Daktronics Shares Slide After Mixed Q3 FY26 Results

Daktronics, Inc. (NASDAQ:DAKT) shares are trading lower on Wednesday after the company reported mixed third-quarter FY26 results.

Earnings Snapshot

The company reported:

• Adjusted EPS of nine cents, missing a 13-cent estimate. However, sales of $181.87 million exceeded a $181 million estimate.
• Sales rose 21.6% year over year (Y/Y), driven by efficient fulfillment of the backlog entering the quarter. The company expects it to continue into the final quarter of fiscal 2026.
• Adjusted operating income rose significantly to $4 million from $1.2 million in the prior-year quarter. Margins expanded to 2.2% from 0.8% a year ago quarter.
• Net sales increased 14.6% Y/Y in Commercial to $43.5 million, 62.6% Y/Y in Live Events to $74.9 million and 7.8% Y/Y in High School Park and Recreation to $31.6 million.

However, Transportation slipped 18.7% Y/Y to $15.3 million and International net sales fell 4.5% Y/Y to $16.5 million.

Other Key Metrics

Third-quarter new orders for products and services rose to $201.1 million from $186.9 million, and Product backlog increased to $342.3 million from $273.2 million a year ago quarter.

Order volume benefited from High School Parks and Recreation and Transportation business units.

As of January 31, cash and cash equivalents stood at $144.4 million.

The company says that it is monitoring tariffs and inflationary pressures on electronic component costs, taking proactive measures in pricing, supply chain management, and contractual protections.

Ramesh Jayaraman, President and Chief Executive Officer, said the quarter unfolded as expected, “with efficient order conversion to revenue and the commencement of five MLB stadium projects with planned installation this spring.”

Price Action: Daktronics shares are trading 10.37% lower at $22.30 as of Wednesday’s publication, according to Benzinga Pro data.

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