Kratos Defense jumps after Q2 beat-and-raise report

Kratos Defense & Security Solutions

05/08/2026 14:56

** Kratos Defense & Security Solutions' KTOS.O shares up 10% at $57.05 early Weds after qtrly results surpassed Wall Street's expectations and it raised 2026 forecast
** KTOS jumps as much as 20.2% to $62.34, a two-month high, and on course for fifth straight sessions of gains
** Round Rock, Texas-based firm late Tues said Q2 rev grew 30.5% yr/yr to $458.8 mln beating consensus view of $410.36 mln, per LSEG
** Adj EPS of 21 cents above 14 cents profit analysts had modeled
** Overall results driven by its Government Solutions and Unmanned Systems segments, co said
** It now sees 2026 rev of $1.75-$1.81 bln, up from prior forecast of $1.7-$1.76 bln
** Reacting to report, Piper Sandler upgraded KTOS to 'overweight' from 'neutral'; JP Morgan increased its PT to $86 from $82 and Canaccord Genuity boosted its PT to $135 from $130
** Avg rating of 23 brokerages is "buy"; median PT $105
** With the advance, stock down ~25% YTD, well underperforming ~32% gain in S&P 400 Aerospace & Defense index .SPMDCAED 

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))