Kratos Defense's $2.01 billion backlog, $1.46 billion funded, boosts revenue visibility, with 37% slated for fiscal 2026 and 25% for fiscal 2027.
KTOS pushes deeper into space communications with software-based ground systems like OpenSpace, aiming for flexible, scalable control of complex satellite networks.
KTOS gains traction with major defense contracts and drone demand, but supply-chain pressures and weak ROE may keep new investors cautious.
Kratos Defense & Security Solutions (KTOS) is upgraded to strong buy after a 50% stock decline despite Q1 earnings beat and raised guidance. KTOS's backlog reached $2 billion with a 1.6:1 book-to-bill ratio, and management projects double-digit organic growth for the next two years. Key growth drivers include hypersonics, Valkyrie drones, directed energy weapons, and a potential gas turbine contract.
KTOS beats Q1 estimates as adjusted EPS rises to 16 cents, and revenues jump 22.6% to $371 million, with the backlog climbing to $1.635 billion.
Kratos Defense & Security Solutions, Inc. (KTOS) Q1 2026 Earnings Call Transcript
The headline numbers for Kratos (KTOS) give insight into how the company performed in the quarter ended March 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Kratos (KTOS) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.12 per share a year ago.
Kratos Defense & Security Solutions (KTOS) is initiated with a Buy rating and a $135 price target, implying 92% upside from current levels. KTOS is positioned for significant growth across Valkyrie drone production, a rapidly expanding hypersonics franchise, and the Prometheus solid rocket motor facility. Recent contract wins, a record $1.57B backlog, and a $13.7B pipeline support robust revenue growth projections through 2028.
Both Kratos Defense and Draganfly are involved in unmanned systems and defense technologies, including tactical drones and military applications.
KTOS ramps up its hypersonic push with in-house innovation, successful tests and cost-focused systems, strengthening its role in next-gen defense programs.
Kratos lands a $446.8 million U.S. Space Force contract, strengthening its role in missile tracking systems and expanding its footprint in space-based defense.