DailyIQ
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KTOS·Kratos Defense and Security Solutions

$.
-. (-.%)
After Hours
High
$49.33
Open
$49.08
Market Cap
9.04B
52W High
$134.00
Low
$47.56
P. Close
$48.17
P/E
307.37
52W Low
$44.85
Fwd P/E
44.21
DailyIQ Est.
$119.71
Technical Score (1D)
18
SELL
News Sentiment
74
BULLISH
Ark Invest’s ETFs added $9.1 million of KTOS shares in July, lifting the firm’s total position to roughly $110 million and making the company the tenth‑largest Ark holding; the move signals renewed institutional conviction amid a 33 % year‑to‑date decline and a 300‑times trailing‑earnings premium, implying that Ark sees long‑term upside from Kratos’ AI‑driven drone technology and expected defense‑spending growth. Investors should watch for any subsequent Ark rebalancing, as further allocation changes could reinforce or temper the bullish sentiment. Earlier this week, KTOS secured a new $36 million sole‑source air‑defense contract, yet shares fell sharply, reflecting concerns about execution risk and pricing; the contract win nevertheless adds a new revenue stream and supports the company’s expanding backlog, which analysts view as a robust pipeline for future earnings. Jefferies reaffirmed a Buy rating with an $80 price target, citing stable cash flows and recent contract wins as key drivers, so traders should monitor the upcoming earnings releases for guidance on revenue growth and margin expansion. The broader drone‑industry sell‑off has weighed on KTOS shares, but the company’s growing backlog of funded contracts offsets short‑term pressure, underscoring its resilience; watch for any changes in defense spending that could impact the backlog. Argus Research raised its target to $48, citing a robust contract pipeline and favorable geopolitical tensions, adding another bullish catalyst that could support upside if new contracts materialize. Wedbush’s Outperform rating and $85 target, backed by 22 % revenue growth and a diversified defense portfolio, further underline institutional confidence; investors should keep an eye on any revisions to the target and earnings guidance.
Earnings Summary
Kratos Defense & Security Solutions (KTOS) is a technology provider focused on defense, national security, and commercial sectors, delivering advanced systems such as ground systems for space, unmanned aerial systems, propulsion, and command and control solutions, operating primarily through Government Solutions and Unmanned Systems segments. In the last two quarters—Q4 2025 and Q1 2026—revenue rose from $345.1 million to $371 million, a 7.5 % increase, while EPS fell from $0.18 to $0.16, an 11 % decline; compared to the preceding two quarters—Q2 2025 and Q3 2025—revenue fell 1.1 % and EPS rose 27 %, illustrating a mixed acceleration pattern; nevertheless, the company has consistently beat earnings estimates in every quarter reported, with EPS beats in all seven quarters and revenue beats in Q1 2026 and Q4 2024, but a miss in Q4 2025. Over the past year, revenue has trended upward with a 6.9 % jump from Q4 2024 to Q1 2025, a 16.1 % jump to Q2 2025, a slight 1.1 % dip to Q3 2025, and a 7.5 % rebound to Q1 2026, while EPS has fluctuated but maintained a positive beat pattern, underscoring resilient profitability amid variable growth. Recent developments include Ark Invest’s addition of $9.1 million in shares, elevating its stake to roughly $110 million and signaling renewed institutional conviction; a new $36 million sole‑source air‑defense contract that, despite a sharp share decline, adds a new revenue stream and supports a robust backlog; Jefferies’ reaffirmation of a Buy rating with an $80 target citing stable cash flows and contract wins; Wedbush’s Outperform rating and $85 target driven by 22 % revenue growth and a diversified defense portfolio; and a $100,000‑square‑foot expansion of the Oklahoma City manufacturing campus to scale production of Valkyrie, Firejet, and Mighty Hornet IV drones. Going forward, investors should watch for Ark’s potential rebalancing, the execution milestones of the new government contract, the timing of the expanded manufacturing facilities coming online, and any guidance on revenue growth and margin expansion, as these factors will clarify the company’s ability to sustain its earnings beat trajectory and capitalize on its growing backlog.

EPS

EstBeatMiss
$0.08$0.11$0.14$0.16$0.19Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$0.15 - -
Q1'26$0.14$0.16+17.3%
Q4'25$0.15$0.18+16.2%
Q3'25$0.12$0.14+12.3%
Q2'25$0.09$0.11+17.7%
Q1'25$0.09$0.12+32.8%

Revenue

EstBeatMiss
$285M$323M$361M$398M$436MQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$419M - -
Q1'26$346M$371M+7.1%
Q4'25$347M$345M-0.6%
Q3'25 - $348M -
Q2'25 - $352M -
Q1'25 - $303M -

Market Data

KTOS Stock Snapshot

KTOS is currently trading at $48.30, giving Kratos Defense and Security Solutions a market cap of 9.04B and a P/E ratio of 307.4. Today's range spans $47.56–$49.33, with shares opening at $49.08 and moving up $0.13 (0.3%) from the prior close. DailyIQ's technical score sits at 18/100 (SELL) with a news sentiment reading of 74/100.

Over the past year KTOS has traded between $44.85 and $134.00 - the current price is +7.7% off the 52-week low and -64.0% from the high. 31 analysts cover the stock with a Buy consensus and a mean 12-month target of $109.86 (range $60.00–$150.00), implying upside of +127.5%.

The risk/reward for Kratos Defense and Security Solutions (KTOS) is currently asymmetric to the downside: 18/100 (SELL), bullish sentiment (74/100), price $48.30 (near 52-week lows in $44.85–$134.00). The current P/E ratio stands at 307.4. At 9.04B in Industrials market cap, negative technical and sentiment readings can become self-fulfilling quickly - institutional coverage wanes, volume dries up, and the next catalyst to restore interest needs to be material rather than incremental.

The absence of strong institutional sponsorship makes KTOS's SELL signal (18/100) more consequential than the same signal in a larger name — at 9.04B in Industrials market cap, there are fewer natural buyers to absorb selling pressure, which means the $44.85–$134.00 range's lower bound becomes a sharper test of the thesis. Sentiment at 74/100 (bullish) and price at $48.30 (near 52-week lows) don't yet suggest stabilization is imminent.