Shares of Daktronics Inc. (NASDAQ: DAKT) surged 26.22% in Wednesday's trading session following the company's impressive fiscal 2026 first-quarter earnings report. The electronic display systems manufacturer delivered strong financial results that surpassed analyst expectations, demonstrating robust order growth and improved profitability.

Daktronics reported quarterly earnings of $0.33 per share, significantly beating the analyst consensus estimate of $0.25. The company's revenue for the quarter came in at $218.97 million, also surpassing the expected $213.41 million. While this represents a slight 3.1% decrease from the same period last year, Daktronics saw substantial improvements in other key metrics.

The standout feature of the report was the company's order growth, which soared 35.4% year-over-year to $238.5 million, marking the third-highest quarterly orders in Daktronics' history. This surge was primarily driven by the Live Events segment, which saw an 81% increase in orders, bolstered by three major league stadium projects. The High School Park and Recreation division also experienced strong growth, with orders rising 36.2%. Additionally, the company's operating margin improved to 10.6%, landing within its stated long-term target range. Daktronics' CEO, Brad Wiemann, expressed confidence in the company's trajectory, reiterating its three-year objectives of 7-10% sales growth and 10-12% operating margins. The positive results and outlook have clearly resonated with investors, leading to the significant stock price surge.