Kratos Defense Posts Double Beat in Q2, Business Momentum Expected to Accelerate

Kratos Defense & Security Solutions Inc (NASDAQ: KTOS ) reported financial results for the second quarter after the market close on Tuesday.

Here’s what you need to know from the print.

Kratos Defense & Security stock is charging ahead with momentum.

What’s fueling KTOS stock? Kratos Q2 Earnings Highlights Kratos reported second-quarter revenue of $458.80 million, beating analyst estimates of $410.38 million, according to Pro.

The defense company posted adjusted earnings of 21 cents per share for the quarter, beating estimates of 14 cents per share.

Total revenue was up 30.50% on a year-over-year basis.

The company said it experienced 8.10% organic growth in its Unmanned Systems segment and 22% organic growth in its Government Solutions segment.

Kratos reported a consolidated backlog of $2.08 billion, and a bid and proposal pipeline of $15 billion at quarter’s end.

The company ended the period with $1.44 billion in total cash and cash equivalents. “Kratos’ second quarter results are reflective of the execution of the Kratos team and that our strategy, including making internally funded investments to be first-to-market with relevant hardware and software, that is engineered up front for affordable mass production, at scale, is aligned with the Department of War’s [Defense’s] priorities,” said Eric DeMarco, president and CEO of Kratos. “Representative of this alignment is Kratos’ last 12-month book-to-bill ratio of 1.3 to 1.0, the number of opportunities for Kratos continuing to increase as evidenced in our bid and proposal pipeline of $15 billion, and our business momentum expected to accelerate in the second half of 2026 and into 2027.” Kratos expects third-quarter revenue of $460 million to $480 million versus estimates of $461.64 million.

The company also raised its full-year 2026 revenue outlook to $1.75 billion to $1.81 billion, up from prior guidance of $1.70 billion to $1.76 billion.

Kratos executives will further discuss the quarter on an earnings call with investors and analysts at 5 p.m.

ET.

KTOS Shares Rise After Earnings KTOS Price Action: Kratos Defense shares were up 1.75% in after-hours, trading at $52.78 at the time of publication on Tuesday, according to Pro.

The stock initially popped above $57 when earnings were first released.

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