KTOS KRATOS DEFENSE & SECURITY SOLUTIONS, INC.
Price Chart
Executive Summary
Kratos reported Q1 2026 revenue of $371.0M (+22.6% YoY), beating consensus by a wide margin, and raised its full-year 2026 guidance to $1.700B-$1.760B (from $1.595B-$1.675B). Adjusted EPS of $0.16 more than doubled the Street estimate of $0.08. Record backlog of $2.01B and strong bookings reinforce the bullish thesis around defense modernization and Valkyrie drone production.
Key Financial Metrics
Actionable Insight
The strong beat and raised guidance confirm accelerating defense demand, especially for Valkyrie drones and hypersonics. However, the stock has historically faded after earnings (0% win rate at T+20 on prior reports). Consider taking partial profits on a gap-up, but the fundamental momentum supports a longer-term bullish view. Monitor cash flow and capex trajectory for signs of inflection.
Key Facts
- Q1 2026 revenue $371.0M, up 22.6% total (15.8% organic) from $302.6M in Q1 2025
- Adjusted EPS $0.16 vs consensus $0.08 (100% beat); GAAP EPS $0.07 vs $0.03 YoY
- Adjusted EBITDA $38.7M (10.4% margin) vs $26.7M (8.8% margin) in Q1 2025
- Bookings $605.2M with book-to-bill 1.6x; backlog hit record $2.01B
- FY2026 guidance raised: revenue $1.700B-$1.760B (prev $1.595B-$1.675B); Adj. EBITDA $170M-$176M (prev $157M-$167M)
- Cash flow from operations negative $27.4M; Free cash flow negative $43.1M due to working capital and capex
- Unmanned Systems revenue grew 30.9% organic; KGS segment grew 11.8% organic
Financial Impact
Revenue beat by ~$26M vs prior guidance midpoint; EPS beat consensus by $0.08
Risk Factors
- Negative free cash flow due to heavy investment in production capacity
- GAAP operating income declined YoY ($4.7M vs $6.6M) on higher SG&A and stock comp
- Valuation already reflects growth; stock has historically pulled back after earnings
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001069258-26-000051 |
| Document: ktos-20260506.htm | 0001069258-26-000051 |
| Document: 0001069258-26-000051-index-headers.html | 0001069258-26-000051 |
| Document: 0001069258-26-000051-index.html | 0001069258-26-000051 |
| Document: 0001069258-26-000051.txt | 0001069258-26-000051 |
| 8-K Data (Synthetic) | 0001069258-26-000051 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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Jun 10, 2026
today
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Insider Cluster
| — | awaiting T+1 | — | — |
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Jun 3, 2026
6d ago
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Insider Cluster
| $63.40 $58.52 | ▼ −7.70% | ▼ −5.12% | $57.73 (−8.94%) |
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May 29, 2026
11d ago
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Insider Cluster
| $63.49 $63.27 | ▲ +0.35% | ▲ +0.50% | $57.73 (+9.07%) |
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May 28, 2026
12d ago
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Insider Cluster
| $64.13 $63.49 | ▼ −1.00% | ▼ −1.27% | $57.73 (−9.98%) |
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May 28, 2026
12d ago
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Insider Cluster
| $64.13 $63.49 | ▼ −1.00% | ▼ −1.27% | $57.73 (−9.98%) |
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May 19, 2026
21d ago
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Insider Cluster
| $55.82 $54.67 | ▼ −2.06% | ▼ −2.25% | $57.73 (+3.42%) |
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May 6, 2026
4w ago
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8-K
| $57.00 $57.00 | · 0.00% | ▼ −0.83% | $57.73 (+1.28%) |
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May 6, 2026
4w ago
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Press Release
| $57.00 $57.00 | · 0.00% | ▼ −0.83% | $57.73 (+1.28%) |
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May 1, 2026
5w ago
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Insider Cluster
| $62.05 $61.93 | ▼ −0.19% | ▲ +0.15% | $57.73 (−6.96%) |
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Apr 27, 2026
6w ago
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Insider Cluster
| $63.16 $61.66 | ▼ −2.37% | ▼ −1.89% | $57.73 (−8.60%) |
US Market Status
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