Kratos Defense & Security Solutions
Builds unmanned aircraft, propulsion, space communications, and mission systems for defense customers.
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Profile
Builds jet-powered target and tactical drones alongside satellite ground systems, microwave electronics, propulsion, hypersonic and rocket systems, C5ISR, mobile operations centers, and military training tools. Product sales and contract services flow primarily through U.S. government programs, with smaller international and commercial business.
Builds jet-powered target and tactical drones, small jet engines and rocket motors, hypersonic and missile-defense systems, microwave electronics, satellite communications and virtualized ground software, C5ISR and mobile operations centers, and training systems. Operations are organized into Kratos Government Solutions and Unmanned Systems.
Pairs internally funded development with customer programs to retain intellectual property and move systems from demonstration into production. Work is concentrated in the United States, with smaller international government and commercial sales.
Depends primarily on U.S. government contracts, defense appropriations, security clearances, and compliance with procurement, cost-accounting, export-control, aviation, communications, and classified-program rules. Most revenue comes from U.S. government work performed as a prime contractor or subcontractor.
Company facts
Categories
Key statistics
Year to date −34.4% · Average volume (30d) 3.6M
Analysts
Ratings
Target range
Latest analyst notes
| Date | Firm | Action | Prior rating | Rating | Prior target | Target |
|---|---|---|---|---|---|---|
| Aug 13, 2026 | Truist Financial | Target | $135 | $104 | ||
| Aug 6, 2026 | BTIG | Reiterate | Buy | $100 | $104 | |
| Aug 6, 2026 | Stifel Nicolaus | Target | $134 | $115 | ||
| Aug 5, 2026 | Canaccord Genuity | Target | $130 | $135 | ||
| Aug 5, 2026 | Jefferies | Target | $80 | $105 |
Earnings
EPS
Revenue
History
| Report date | EPS est | EPS | Surprise | Revenue est | Revenue | Surprise | Next session |
|---|---|---|---|---|---|---|---|
| Aug 4, 2026Q2 FY26 | $0.14 | $0.21 | +51.3% | $410.4M | $458.8M | +11.8% | +6.69% |
| May 6, 2026Q1 FY26 | $0.13 | $0.16 | +19.2% | $345.0M | $371.0M | +7.5% | −7.35% |
| Feb 23, 2026Q4 FY25 | $0.16 | $0.18 | +14.0% | $327.2M | $345.1M | +5.5% | −3.85% |
| Nov 4, 2025Q3 FY25 | $0.13 | $0.14 | +12.0% | $322.0M | $347.6M | +8.0% | −14.20% |
Financial highlights
| 12 quarters | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | |
|---|---|---|---|---|---|---|---|
| Revenue | $302.6M | $351.5M | $347.6M | $345.1M | $371.0M | $458.8M | |
| Gross profit | $73.6M | $73.8M | $77.1M | $73.8M | $83.8M | $100.1M | |
| Operating income | $6.6M | $3.7M | $7.1M | $10.3M | $7.7M | −$1.6M | |
| Net income | $4.5M | $2.9M | $8.7M | $5.9M | $11.9M | $4.4M | |
| Diluted EPS | $0.03 | $0.02 | $0.05 | $0.03 | $0.07 | $0.02 | |
| Gross margin | 24.3% | 21.0% | 22.2% | 21.4% | 22.6% | 21.8% | |
| Operating margin | 2.2% | 1.1% | 2.0% | 3.0% | 2.1% | -0.3% |
Fiscal years (4-quarter sums)FY21 $811.5M · FY22 $898.3M · FY23 $1.04B · FY24 $1.14B · FY25 $1.35B
Revenue by product · Q2 FY26
Revenue by geography · Q2 FY26
Balance sheet, Jun 28, 2026Cash & short-term investments $1.44B · Total debt $193.6M · Total assets $4.09B · Shareholders' equity $3.43B
Dividends
No dividends on record.
Ownership
Shares outstanding 187.52M · Float 184.79M · 98.6% free float
Top shareholders13F · 13D/G · Form 4
| Holder | Shares | % outstanding | Form | Filed |
|---|---|---|---|---|
| BlackRock, Inc. | 24.04M | 12.82% | 13F | Aug 7, 2026 |
| State Street Corp | 9.06M | 4.83% | 13F | Aug 7, 2026 |
| Vanguard Capital Management LLC | 8.45M | 4.51% | 13F | Aug 13, 2026 |
| Vanguard Portfolio Management LLC | 7.99M | 4.26% | 13F | Aug 13, 2026 |
| First Trust Advisors LP | 6.02M | 3.21% | 13F | Aug 11, 2026 |
Insider tradesForm 4
| Date | Insider | Role | Shares | Avg price |
|---|---|---|---|---|
| Aug 24, 2026 | Steven S. Fendley | officer: President, US Division | −7,000 | $56.16 |
| Aug 18, 2026 | Scot B. Jarvis | director | −10,000 | $63.50 |
| Aug 17, 2026 | Phillip D. Carrai | officer: President, STC Division | −26,500 | $63.25 |
| Aug 17, 2026 | Marie Mendoza | officer: SVP & General Counsel | −1,513 | $64.37 |
| Aug 14, 2026 | Eric M. Demarco | director, officer: President & CEO | −300,000 | $64.33 |
Peers
- Boeing
Most advanced rival in attritable loyal-wingman UCAS and global CCA market.
- Northrop Grumman
USMC CCA co-awardee; Project Talon competes for USAF CCA Increment 2.
- Lockheed Martin
Primary “disruptive prime” reference; Vectis CCA and F-35 anchor the rivalry.
- L3Harris Technologies
Rival in satellite ground C2, space EW, and defense microwave electronics.
- Mercury Systems
Most direct sub-segment rival in RF/microwave and MOSA defense electronics.
- Leidos
Large defense-IT prime competing in C5ISR, space IT, and government solutions.
- General Dynamics
GDIT and GD Mission Systems contest KGS C5ISR and defense-electronics programs.
CompareAfter-hours close
| Company | Price | Change | |||||
|---|---|---|---|---|---|---|---|
| Kratos Defense & Security Solutions | $52.02 | +0.02% | $9.75B | 305.2 | 54.5 | 6.4 | +30.5% |
| Boeing | $209.76 | −0.03% | $165.84B | 90.8 | 152.1 | 1.8 | +8.0% |
| Northrop Grumman | $546.65 | +0.20% | $77.51B | 17.3 | 18.6 | 1.8 | +5.1% |
| Lockheed Martin | $564.08 | +0.07% | $130.13B | 20.8 | 17.9 | 1.7 | +10.5% |
| L3Harris Technologies | $262.82 | +0.01% | $48.94B | 26.5 | 21.3 | 2.1 | +8.4% |
| Mercury Systems | $88.54 | +0.04% | $5.32B | — | 57.8 | 5.4 | +37.1% |
| Leidos | $141.00 | +0.31% | $17.69B | 13.1 | 11.6 | 1.0 | +7.2% |
| General Dynamics | $376.45 | −0.75% | $102.63B | 23.1 | 21.7 | 1.9 | +8.1% |
| Median | 21.9 | 21.3 | 1.8 | +8.1% |