Daktronics, Inc. (DAKT) AI Stock Analysis
DAKT AI stock analysis summary
AI ResearchDaktronics, Inc. (DAKT) designs and manufactures electronic display systems, dynamic message signs, and sports scoreboards worldwide. In FY2026, the company rebounded with revenue growing 10.9% to $838.7M and net income reaching $45.4M. It also maintains a solid financial position with net cash of $139.4M as of July 31, 2026.
- Market cap
- $875.8M
- Revenue (TTM)
- $854.3M
- P/E
- 18.6x fwd 14.6x
- 1Y return
- -6.3% S&P 500 16.8%
- Avg. target
- $33.67 84.9% vs last close
Bull case
- Trailing valuation multiples sit at a discount, including a trailing P/E of 18.6x and EV/EBITDA of 8.7x compared to US-listed Technology peer medians of 28.1x and 16.6x.
- The balance sheet is well capitalized with $139.4M in net cash and a debt-to-equity ratio of just 0.05 as of July 31, 2026.
- Analyst projections indicate sustained growth, with expected FY2027 EPS growth of 18.9% and a mean price target of $33.67.
Bear case
- Revenue growth has displayed historical volatility, falling 7.5% in FY2025 alongside a net income loss of -$10.1M.
- Trailing twelve-month net profit margin remains modest at 5.7%, trailing the sector peer median operating margin of 13.2%.
- Share price momentum has lagged broader indices, declining 6.3% over the past year while the S&P 500 gained 16.8%.
What Daktronics does
Daktronics, Inc. is a global designer, manufacturer, and distributor of electronic display systems and related products. The company operates across five key segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. Its product portfolio spans indoor and outdoor LED video displays, centerhung screens, ribbon boards, video walls, architectural lighting, and mobile display units. Daktronics also offers scoreboards, timing systems, dynamic message signs for road and mass transit management, digital billboards, and Fuelight digit displays for petroleum retailers. Additionally, its ADFLOW DMS systems deliver networked indoor solutions for retail environments and commercial businesses.
Growth and profitability
Daktronics delivered a 5-year revenue compound annual growth rate of 11.7% from FY2021 to FY2026. Annual revenue expanded from $611.0M in FY2022 to $818.1M in FY2024 before contracting 7.5% to $756.5M in FY2025. In FY2026, revenue rebounded 10.9% to $838.7M, supported by a gross margin of 27.3% and an operating margin of 7.3%. Net income recovered to $45.4M in FY2026 after a loss of -$10.1M in FY2025. For the trailing twelve months ended July 31, 2026, revenue stood at $854.3M with an operating margin of 10.6%. In the quarter ended July 31, 2026, quarterly revenue grew 7.1% year-over-year while quarterly earnings increased 21.2%.
Balance sheet and cash flow
As of July 31, 2026, Daktronics held $154.6M in cash and short-term investments against total debt of $15.1M, yielding net cash of $139.4M. Total assets were $607.4M alongside shareholders' equity of $317.6M. Liquidity remains sound with a current ratio of 2.17 and a debt-to-equity ratio of 0.05. In FY2026, operating cash flow reached $49.2M and free cash flow was $34.3M. The company directed capital toward $14.9M in capital expenditures and $25.6M in share buybacks during FY2026.
Valuation and performance
At a last close of $18.21, Daktronics holds a market cap of $875.8M and an enterprise value of $704.0M. The stock trades at a trailing P/E of 18.6x and a forward P/E of 14.6x, compared to the median of its US-listed Technology peers of 28.1x and 18.8x, respectively. Its price-to-sales ratio of 1.0x and EV/EBITDA of 8.7x also sit below peer medians of 2.8x and 16.6x. Over the past year, DAKT shares fell 6.3%, lagging the S&P 500 (SPY) return of 16.8%, though its 5-year return of 234.1% outperformed the SPY return of 83.0%.
What analysts expect
Wall Street coverage consists of 2 Strong Buy ratings, with 0 Buy, Hold, Sell, or Strong Sell ratings. The mean price target is $33.67, representing an 84.9% upside compared to the last close of $18.21. For the current fiscal year ending April 30, 2027, consensus estimates project EPS of $1.25 on revenue of $897.8M. For the next fiscal year, 2 analysts expect EPS of $1.58 on revenue of $969.8M, reflecting 8.0% revenue growth. Daktronics beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is December 9, 2026.
Key risks and what to watch
- Operating margins have fluctuated widely in recent years, ranging between 0.7% in FY2022 and 10.6% in FY2024.
- The stock exhibits elevated price volatility relative to the market, reflected in a beta of 1.68.
- The shares trade 11.1% below their 200-day moving average and sit below their 52-week high of $28.27.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this DAKT AI stock analysis
This page is an AI-written research summary of Daktronics, Inc. (DAKT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: DAKT income statement, DAKT balance sheet, DAKT key metrics, DAKT analyst forecast, DAKT chart. See the DAKT stock overview for the latest quote and news.
DAKT AI stock analysis FAQ
Does Daktronics pay a dividend?
Daktronics does not currently report a dividend payout. In FY2026, the company returned capital to shareholders via $25.6M in share buybacks.
What is the balance sheet standing of Daktronics?
As of July 31, 2026, Daktronics held $154.6M in cash and short-term investments against total debt of $15.1M, resulting in $139.4M in net cash. Its current ratio was 2.17 and debt-to-equity was 0.05.
What are analysts forecasting for DAKT stock?
Both covering analysts rate the stock a Strong Buy, with a mean price target of $33.67. Consensus estimates project EPS of $1.25 for FY2027 and $1.58 for FY2028.
When does Daktronics report earnings next?
The next earnings report date for Daktronics is scheduled for December 9, 2026.