Kratos Defense Q2 revenue jumps 30.5%, raises 2026 outlook

Kratos Defense & Security Solutions

04/08/2026 21:09

Overview
US defense technology firm's Q2 revenue grew 30.5%, beating analyst expectations
Adjusted EPS and adjusted EBITDA for Q2 beat analyst expectations
Company raised full-year 2026 revenue guidance, forecasting 18-23% organic growth
Shares of the company were up about 9% in extended trading

Outlook
Kratos raises full-year 2026 revenue guidance to $1.75-$1.81 bln
Company expects third-quarter organic revenue growth of 19%-25%
Kratos forecasts expanding Adjusted EBITDA margins in second half 2026 and into 2027

Result Drivers
SEGMENT GROWTH - Organic revenue growth in Government Solutions (22%) and Unmanned Systems (8.1%) segments drove overall results
PROGRAM DEMAND - Defense Rocket Systems, Turbine Technologies, Microwave Products, and Space, Training and Cyber businesses saw notable growth
VALKYRIE ACTIVITY - Increased Valkyrie-related activity boosted Unmanned Systems revenue

Company press release: ID:nGNX5zQbzM

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$458.80 mln
$410.36 mln (19 Analysts)
Q2 Adjusted EPS
Beat
$0.21
$0.14 (19 Analysts)
Q2 EPS
 
$0.02
 
Q2 Net Income
 
$4.40 mln
 
Q2 Adjusted EBITDA
Beat
$38.20 mln
$34.73 mln (18 Analysts)
Q2 Operating Income
 
-$1.60 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 3 "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 $105.00, about 113.4% above its August 3 closing price of $49.21
The stock recently traded at 54 times the next 12-month earnings vs. a P/E of 72 three months ago

Reuters Recommended Reads
Aug 4 - Leidos lifts annual forecasts on strong defense demand
Aug 3 - Voyager Technologies Q2 revenue beats estimates, raises annual forecast
Aug 3 - US signs deal to boost Patriot and THAAD missile parts production

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.)