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Q2 26 EPS
$N/A
Q2 26 Revenue
N/A
vs S&P Since Q2 26
-14.4%
TRAILING MARKET
KTOS -14.2% vs S&P +0.3%
Market Reaction
Did KTOS Beat Earnings? Q2 2026 Results
Kratos Defense & Security Solutions delivered a strong first-quarter fiscal 2026 result, with adjusted EPS of $0.16 beating the $0.13 consensus estimate by 19.23% and revenue of $371.00 million clearing Wall Street's $345.28 million forecast by 7.45%… Read more Kratos Defense & Security Solutions delivered a strong first-quarter fiscal 2026 result, with adjusted EPS of $0.16 beating the $0.13 consensus estimate by 19.23% and revenue of $371.00 million clearing Wall Street's $345.28 million forecast by 7.45%, as total revenue climbed 22.6% year over year. The primary engine behind the outperformance was the company's Unmanned Systems segment, which posted 30.9% organic revenue growth fueled by Valkyrie-related activity, a business that has drawn growing investor attention alongside recent significant contract awards. Adjusted EBITDA expanded to $38.70 million at a 10.4% margin, up from $26.70 million and 8.8% a year ago, while consolidated bookings of $605.20 million produced a 1.6x book-to-bill ratio and pushed backlog to $2.01 billion. Management raised its full-year fiscal 2026 revenue guidance to $1.70 billion to $1.76 billion, with Adjusted EBITDA of $170.00 million to $176.00 million, projecting materially stronger second-half results as long-lead-time hardware deliveries and increased customer funding accelerate across defense programs.
Key Takeaways
- • Valkyrie-related activity driving KUS segment growth
- • Defense Rocket Systems organic revenue growth of 45.8%
- • Turbine Technologies organic revenue growth of 20.3%
- • Microwave Products organic revenue growth of 12.3%
- • Strong consolidated book-to-bill ratio of 1.6 to 1.0
- • Favorable revenue mix driving margin expansion
- • Acquisitions of Nomad and Orbit Technologies contributing to KGS revenue growth
KTOS Forward Guidance & Outlook
Kratos increased its full-year fiscal 2026 guidance, now forecasting revenue of $1.700 billion to $1.760 billion and Adjusted EBITDA of $170.0 million to $176.0 million, including the Nomad and Orbit acquisitions. Q2 2026 guidance calls for revenue of $400 million to $410 million and Adjusted EBITDA of $30 million to $35 million, with operating income (loss) of ($6 million) to ($8 million). The company expects the second half of fiscal 2026 to have significantly higher revenue, Adjusted EBITDA, and operating cash flow than the first half, driven by receipt of long-lead-time items including solid rocket motors and hardware related to hypersonic and other programs, jet engine development and production hardware, and air defense/missile/radar production. Full-year 2026 operating cash flow is forecast at $60 million to $70 million, capital expenditures of $155 million to $165 million, and free cash flow use of ($85 million) to ($105 million). Adjusted EBITDA margin rates are expected to be approximately 100 bps greater than 2025 rates, with an additional 100 bps expansion expected in 2027. Full-year 2027 guidance is expected to be provided when Q3 2026 results are reported. Total FY26 forecasted investments are $248 million to $270 million, including capital expenditures, working capital investments, and Prometheus joint venture funding.
KTOS YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
KTOS Revenue by Segment
With YoY comparisons, source: SEC Filings
“Kratos' balanced business model, including making internally funded investments in property, plant, equipment and facilities, and the rapid development and fielding of relevant products for the Department of War, while generating growth and profitability, is accelerating as reflected in our Q1 results and 1.6 to 1.0 book to bill ratio. There is a generational recapitalization of the U.S. defense industrial base underway and Kratos is committed to doing its part to ensure that the Department and our country are successful.”
— Eric DeMarco, Q2 2026 Earnings Press Release
KTOS Earnings Trends
KTOS vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
KTOS EPS Trend
Earnings per share: estimate vs actual
KTOS Revenue Trend
Quarterly revenue: estimate vs actual
KTOS Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 | — | — | — | — | — |
| Q1 26 BEAT | $0.13 | $0.16 | +19.23% | $371.0M | +7.45% |
| Q4 25 BEAT FY | $0.15 | $0.18 | +22.03% | $345.1M | +5.39% |
| FY Full Year | — | $0.55 | — | $1.35B | — |
| Q3 25 BEAT | $0.12 | $0.14 | +12.36% | $347.6M | +7.88% |
| Q2 25 BEAT | $0.09 | $0.11 | +17.77% | $351.5M | +14.93% |
| Q1 25 BEAT | $0.09 | $0.12 | +32.89% | $302.6M | +3.54% |