BROOKINGS, S.D., Sept. 02, 2026 (GLOBE NEWSWIRE) — Daktronics, Inc. (NASDAQ: DAKT) (“Daktronics” or the “Company”), a recognized industry leader in digital display and control system technology, today reported results for its fiscal 2027 first quarter, ended August 1, 2026. The first quarter of fiscal 2027 reflects a 13-week reporting period, compared with a 14-week reporting period in the prior-year first quarter.
Fiscal 2027 Q1 Financial Highlights:
- Sales of $234.6 million, 7.1% growth from $219.0 million in the first quarter of fiscal 2026, despite one less week
- Operating income of $24.9 million, 7.2% growth from $23.3 million in the first quarter of fiscal 2026, operating margin of 10.6%
- Diluted earnings per share (“EPS”) of $0.40, up 21.2% from $0.33 in the first quarter of fiscal 2026, representing the highest quarterly diluted EPS in the past 12 quarters
- Operating cash flow of $31.4 million, compared to $26.1 million in the first quarter of fiscal 2026, resulting in period-end cash balance of $154.6 million net of $4.4 million share repurchases
- New orders(1) for products and services of $191.8 million, compared to $238.5 million in the first quarter of fiscal 2026, reflecting the timing of a few substantial orders expected to be booked in the second quarter of fiscal 2027
- Product backlog(1) of $311.3 million for the quarter, compared to $360.3 million at the end of the first quarter of fiscal 2026, marking the sixth consecutive quarter-end with product backlog(1) exceeding $300 million
Ramesh Jayaraman, Daktronics’ President and Chief Executive Officer, said, “Fiscal 2027 began on a strong note as we continued to drive momentum in sales, operating income, and EPS, maintaining our focus on executing the growth and operational excellence initiatives laid out in our long-term plan. During Q1, we continued to advance our strategic priorities, strengthen customer engagement across our core markets, and build upon a healthy sales pipeline. We delivered 21.2 percent year-over-year increase in EPS on 7.1 percent sales growth and operating margin of 10.6 percent, reflecting the ongoing, successful execution of our planned business growth and operational excellence initiatives.”
Tracking to Three-Year Plan
The Company continued to execute across its growth, operational excellence, and capital deployment pillars in support of its fiscal 2028 targets. Progress during the quarter included the following strategic initiatives.
Growth. Core markets and the sales pipeline remained strong during the quarter. The Company advanced targeted vertical market expansion initiatives and invested in software and service offerings that enhance customer value and support recurring revenue growth. A diversified product backlog(1) of $311.3 million reflects continued demand across key business segments.
Operational Excellence. Manufacturing and supply chain initiatives improved efficiency, increased flexibility, and supported long-term margin expansion. Key initiatives included the ramp-up of manufacturing operations in Mexico, procurement optimization efforts, automation investments, and ongoing lean simplification initiatives across the supply chain.
Capital Deployment. Capital allocation remained focused on long-term value creation through investments in plant network improvements and automation designed to enhance operational efficiency and support future growth. The Company also continued returning capital to shareholders through share repurchases, including $4.4 million executed during the first quarter.
“Supported by the execution of our strategic initiatives, our pipeline remains robust. At the same time, our operational improvements are making us leaner and smarter every quarter,” said Mr. Jayaraman. “We also continue to evaluate acquisition and disciplined capital deployment opportunities in complementary products/solutions, verticals, and geographies that can enhance our organic growth strategy. We are tracking well toward our fiscal 2028 targets of 7-10% revenue CAGR, 10-12% operating margin, and 17-20% ROIC. None of this would be possible without the trust of our customers and the dedication of our team, and I am grateful for both.”
First Quarter Results
“Top line growth was solid again this quarter, with net sales increasing 7.1 percent compared to the first quarter of fiscal 2026, despite one less week this quarter,” said Acting Chief Financial Officer Howard Atkins. The increase was led by strong net sales in the Transportation, Live Events, and International business units.
Gross profit rose to $71.6 million or 30.5 percent gross profit margin in the first quarter of fiscal 2027, compared with 29.7 percent gross profit margin a year earlier. The increase in gross profit margin included the receipt of tariff refunds in the first quarter, partially offset by higher memory and other price-sensitive input costs.
Orders(1) for the first quarter of fiscal 2027 were $191.8 million compared to $238.5 million in the first quarter of fiscal 2026. Q1 orders(1) do not include a few substantial transactions negotiated in Q1, which are expected to book in Q2 as the final purchase orders are received. At $311.3 million, backlog(1) remained above $300 million for the sixth consecutive quarter.
Operating expenses were $46.7 million in the first quarter of fiscal 2027, compared to $41.8 million for the first quarter of fiscal 2026. The first quarter of fiscal 2027 included $0.8 million of expenses associated with the acquired XDC display business and microLED development activities, $0.7 million in consulting expenses in support of the operational excellence initiatives, and a $2.0 million commission on a large International project completed during the quarter.
Operating margin was 10.6 percent for the first quarter of both fiscal 2027 and fiscal 2026.
Interest income (expense), net increased for the first quarter of fiscal 2027 compared to the same period a year ago on our higher-average cash balance, which reached $154.6 million as of August 1, 2026.
For the three months ended August 1, 2026, the effective tax rate was 24.3 percent compared to an effective tax rate of 25.9 percent for the three months ended August 2, 2025. The decrease in the effective tax rate was primarily attributable to valuation allowances recorded in fiscal 2026 which did not recur in fiscal 2027.
Net income for the first quarter of fiscal 2027 was $19.4 million, compared to a net income of $16.5 million for the first quarter of fiscal 2026. The increase reflects higher gross profit and operating income compared to the prior-year period.
For the three months ended August 1, 2026, earnings per diluted share was $0.40 compared to $0.33 in the same period last year.
Insider Note: Below is a schedule of net sales and orders for the first quarter as provided by the Company.
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