Daktronics (DAKT) Q4 2026: Record Sales and Orders — Strong Momentum Ahead

Daktronics, Inc. (NASDAQ: DAKT) reported a robust fourth quarter for fiscal 2026, showcasing significant growth compared to the previous year. The company achieved record net sales of $208.6 million, marking an increase of $36.0 million or 20.9% from $172.6 million in Q4 fiscal 2025. This performance is indicative of a solid recovery and growth trajectory for Daktronics, which is particularly encouraging for shareholders.

Key Financial Metrics

• Q4 Net Sales: $208.6 million, up $36.0 million or +20.9% YoY
• Full Year Net Sales: $838.7 million, up $82.2 million or +10.9% YoY
• Q4 EPS: $0.17, compared to a loss of $0.19 in Q4 fiscal 2025
• Adjusted Q4 EPS: $0.27, up 50% from $0.18 YoY
• Operating Margin: 6.8% in Q4, compared to a negative 1.0% in Q4 fiscal 2025
• Full Year Operating Margin: 7.3%, up from 4.4% in fiscal 2025
• Product Backlog: $356.2 million, up 4.3% YoY
• New Orders in Q4: $222.0 million, down 7.7% from Q4 fiscal 2025
• Full Year New Orders: $860.8 million, up 10.2% YoY

Analyst View

This quarter is a positive outcome for shareholders, reflecting a strong operational turnaround and effective management strategies. The substantial increase in both net sales and adjusted EPS indicates that Daktronics is not only recovering from previous losses but is also positioning itself for future growth. The operating margin improvement from a loss to a profit is particularly noteworthy, suggesting enhanced operational efficiency and cost management.

The decline in new orders for Q4, while concerning, should be viewed in the context of the exceptionally strong prior year. The overall increase in full-year orders demonstrates sustained demand and a solid pipeline moving into fiscal 2027.

Shareholder Returns and Guidance

Daktronics has been proactive in returning capital to shareholders, repurchasing 1.4 million shares at an average price of $17.80, totaling $25.4 million for the fiscal year. In Q4 alone, the company repurchased 0.1 million shares for $2.6 million. This commitment to share buybacks reflects confidence in the company's future performance and is likely to enhance shareholder value.

Looking ahead, Daktronics has set ambitious targets for fiscal 2028, aiming for a 7-10% revenue CAGR, 10-12% operating margin, and 17-20% return on invested capital (ROIC). Investors should closely monitor the execution of these strategic initiatives as the company enters fiscal 2027.

Forward Catalysts

Investors should watch for developments in Daktronics' product backlog, which stands at $356.2 million, as it indicates future revenue potential. Additionally, the company's focus on operational excellence and strategic growth initiatives will be critical in sustaining momentum. The upcoming quarters will reveal how effectively Daktronics can convert its backlog into sales and manage any fluctuations in order volumes.

In conclusion, Daktronics' Q4 results reflect a significant turnaround and a promising outlook for the future, making it an attractive proposition for investors looking for growth in the dynamic display technology sector.

Consolidated Statements of Operations

(in thousands, except per share amounts)

Note: All amounts are in thousands.

	Three Months Ended			Year Ended
	May 2, 2026	April 26, 2025		May 2, 2026	April 26, 2025
Net sales	$208,610	$172,551		$838,706	$756,477
Cost of sales	$150,130	$129,406		$609,700	$560,990
Gross profit	$58,480	$43,145		$229,006	$195,487
Operating expenses	$44,389	$44,885		$168,158	$162,369
Operating income (loss)	$14,091	$-1,740		$60,848	$33,118
Nonoperating income (expense)	$1,107	$637		$3,630	$1,347
Income (loss) before income taxes	$10,737	$-13,438		$58,334	$-5,851
Income tax expense (benefit)	$2,322	$-4,013		$12,958	$4,270
Net income (loss)	$8,415	$-9,425		$45,376	$-10,121
Weighted-average shares outstanding	Basic	48,258	49,516	48,564	47,587
	Diluted	49,032	49,516	49,382	47,587
Earnings (loss) per share:	Basic	$0.17	$-0.19	$0.93	$-0.21
	Diluted	$0.17	$-0.19	$0.92	$-0.21

Consolidated Balance Sheets

(in thousands)

Note: All amounts are in thousands.

	May 2, 2026	April 26, 2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$131,639	$127,507
Accounts receivable, net	$118,590	$92,762
Inventories	$110,471	$105,839
Contract assets	$66,552	$41,169
Current maturities of long-term receivables	$3,405	$2,437
Prepaid expenses and other current assets	$11,278	$8,520
Income tax receivables	$6,047	$3,217
Total current assets	$447,982	$381,451
Property and equipment, net	$64,263	$73,884
Long-term receivables, less current maturities	$1,125	$1,030
Goodwill	$3,685	$3,188
Intangibles, net	$3,263	$568
Debt issuance costs, net	$—	$1,289
Right of use, investment in affiliates, and other assets	$11,828	$9,378
Deferred income taxes	$22,266	$32,104
TOTAL ASSETS	$554,412	$502,892
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt	$1,150	$1,500
Accounts payable	$68,617	$46,669
Contract liabilities	$65,310	$69,050
Accrued expenses	$44,858	$41,705
Warranty obligations	$12,398	$12,706
Income taxes payable	$1,375	$375
Total current liabilities	$193,708	$172,005
Long-term warranty obligations	$24,362	$23,124
Long-term contract liabilities	$20,655	$18,421
Other long-term obligations	$5,289	$6,839
Long-term debt, net	$9,629	$10,487
Deferred income taxes	$22	$85
Total long-term liabilities	$59,957	$58,956
STOCKHOLDERS’ EQUITY:
Preferred Shares, $0.00001 par value, authorized 5,000 shares; no shares issued and outstanding	$—	$—
Common stock, $0.00001 par value, authorized 115,000 shares; 53,650 and 53,030 shares issued as of May 2, 2026 and April 26, 2025, respectively	$—	$—
Additional paid-in capital	$196,837	$189,940
Retained earnings	$173,286	$127,910
Treasury stock, at cost, 5,406 and 3,979 shares as of May 2, 2026 and April 26, 2025, respectively	$-65,324	$-39,759
Accumulated other comprehensive loss	$-4,052	$-6,160
TOTAL STOCKHOLDERS’ EQUITY	$300,747	$271,931
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$554,412	$502,892

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