Kratos (KTOS) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
Kratos Defense & Security Solutions, Inc. is riding a wave of defense sector momentum, driven by surging demand for drones and geopolitical tensions. KTOS forecasts robust organic revenue growth: 14–15% for 2025, 15–20% for 2026, and 18–23% for 2027, underpinned by major U.S. and international programs. Despite strong top line growth, KTOS remains unprofitable, with persistent cash burn and margin pressures from fixed-price contracts and heavy capital investment.
Defense contracts have risen sharply in recent years as global security challenges intensify.
Kratos Defense and Lockheed Martin benefit from Pentagon demand for advanced aerospace and defense systems.
Kratos Defense & Security Solutions, Inc. is undergoing a structural transformation, evolving into a production-oriented defense platform with emphasis on speed, scale, and cost efficiency. Key programs are advancing beyond development, with multiple franchises moving in parallel toward sustained manufacturing activity. Revenue growth is increasingly supported by real deliveries and long-duration programs, improving backlog quality and visibility.
Kratos Defense rallies as new facilities, strong drone demand and a solid backlog boost its defense footprint and prospects.
Kratos Defense and Elbit Systems gain momentum as defense spending surges, with soaring unmanned system revenues.
Kratos Defense surges on booming unmanned systems demand, rising contracts and next-gen drone investments fueling momentum.
Kratos Defense & Security Solutions Inc (NASDAQ:KTOS) was last seen down 0.8% to trade at $75.99 at last check, having pulled back from its Oct. 9 record high of $112.57.
In a standout year for aerospace and defense stocks, Kratos Defense and Security Solutions NASDAQ: KTOS has separated itself from the pack. The iShares U.S. Aerospace & Defense ETF BATS: ITA—a commonly used barometer of U.S. stocks in this industry—has delivered a total return of around 46% in 2025.
KTOS' 200% stock surge in 2025 reflects booming unmanned systems demand and strategic deals fueling its growth momentum.
KTOS posts strong Q3 results with revenues up 26% year over year and earnings surpassing estimates, lifting full-year guidance.