Kratos Defense Q1 revenue rises 22.6%, beats estimates

Kratos Defense & Security Solutions

06/05/2026 21:12

Overview

US defense technology firm's Q1 revenue grew 22.6% yr/yr, beating analyst expectations

Adjusted EPS for Q1 beat consensus, driven by organic and acquisition-related growth

Q1 adjusted EBITDA beat analyst expectations, reflecting higher volume and favorable mix

Outlook

Kratos sees Q2 2026 revenue between $400 mln and $410 mln

Company forecasts full-year 2026 revenue of $1.7 bln to $1.76 bln

Kratos expects higher revenue and improved margins in H2 2026 as contract funding increases

Result Drivers

UNMANNED SYSTEMS GROWTH - Q1 revenue in the Unmanned Systems segment rose 30.9% organically, driven mainly by increased Valkyrie-related activity

GOVERNMENT SOLUTIONS DEMAND - Government Solutions segment saw 11.8% organic growth, with notable gains in Defense Rocket Systems, Turbine Technologies, and Microwave Products

STRONG BOOKINGS - Consolidated book-to-bill ratio of 1.6 to 1 and $605.2 mln in Q1 bookings signal robust demand and future revenue visibility

Company press release: ID:nGNX4Qp2BL

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$371 mln
$339.84 mln (19 Analysts)
Q1 Adjusted EPS
Beat
$0.16
$0.13 (17 Analysts)
Q1 EPS
$0.07
Q1 Net Income
$11.90 mln
Q1 Adjusted EBITDA
Beat
$38.70 mln
$28.71 mln (18 Analysts)
Q1 Operating Income
$4.70 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the aerospace & defense peer group is "buy"

Wall Street's median 12-month price target for Kratos Defense and Security Solutions Inc is $115.00, about 93.9% above its May 5 closing price of $59.31

The stock recently traded at 68 times the next 12-month earnings vs. a P/E of 134 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)