We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Kratos Defense Q1 Earnings and Revenues Surpass Estimates
Read MoreHide Full Article
Key Takeaways
KTOS posted Q1 adjusted EPS of 16 cents vs. 13 cents estimate, up 33.3% from 12 cents Y/Y.
KTOS revenues rose 22.6% to $371M, led by Unmanned Systems growth tied to Valkyrie activity.
KTOS posted a 1.6 book-to-bill with $605.2M bookings; backlog rose to $1.635B from $1.212B.
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) reported first-quarter 2026 adjusted earnings of 16 cents per share, which beat the Zacks Consensus Estimate of 13 cents by 26.3%. The bottom line also increased 33.3% from the year-ago quarter’s 12 cents.
Kratos Defense reported GAAP earnings of 7 cents per share compared with 3 cents in the year-ago quarter.
KTOS’ Total Revenues
Total revenues were $371 million, which outpaced the Zacks Consensus Estimate of $344 million by 7.7%. The figure also rose 22.6% from $302.6 million recorded in the year-ago quarter.
Kratos Defense & Security Solutions, Inc. Price, Consensus and EPS Surprise
Kratos Defense’s selling, general and administrative expenses increased 19.9% year over year. Research and development expenses rose 7% compared with the prior-year quarter. Depreciation expenses climbed 46.2% year over year.
Expenses related to the amortization of intangible assets rose 176.2% from the year-ago figure.
The company reported operating income of $4.7 million, which decreased from the year-ago quarter’s $6.6 million.
It posted a consolidated book-to-bill ratio of 1.6 to 1, with bookings worth $605.2 million.
The total backlog at the end of the first quarter of 2026 was $1.635 billion compared with $1.212 billion at the end of the fourth quarter of 2025.
KTOS’ Segmental Performance
Unmanned Systems: Revenues from this segment totaled $82.6 million compared with $63.1 million in the year-ago quarter. The increase was primarily driven by Valkyrie-related activity.
Kratos Government Solutions: Revenues from this segment amounted to $288.4 million compared with $239.5 million in the year-ago quarter. This increase was due to organic revenue growth across its Defense and Rocket Support business, Turbine Technologies and Microwave Products businesses, with organic revenue growth rates of 45.8%, 20.3% and 12.3%, respectively, year over year.
Financial Details of KTOS
As of March 29, 2026, cash and cash equivalents totaled $1.46 billion, up from $0.56 billion as of Dec. 28, 2025.
The company reported other current liabilities of $24.4 million as of March 29, 2026 compared with $9 million recorded as of Dec. 28, 2025.
The net cash used in operating activities amounted to $27.4 million during the first three months of 2026 compared with $29.2 million in the same period of 2025.
Kratos Defense’s Guidance
KTOS projects second-quarter 2026 revenues to be in the range of $400-$410 million. The Zacks Consensus Estimate for revenues is pegged at $401.3 million, which is at the lower end of the company’s guided range.
KTOS now expects 2026 revenues to be in the $1.7-$1.76 million range compared with the previous range of $1,595-$1,675 billion. The Zacks Consensus Estimate for revenues is pegged at $1.68 billion, lower than the company’s guided range.
Kratos Defense now expects operating cash flows to be in the range of $60-$70 million and free cash flow use to be in the band of $85-$105 million for 2026.
TransDigm Group Incorporated (TDG - Free Report) reported second-quarter fiscal 2026 adjusted earnings of $9.85 per share, which topped the Zacks Consensus Estimate of $9.32 by 5.7%. The bottom line also improved 8% from the prior-year quarter’s figure of $9.11.
Sales amounted to $2.54 billion, up 18% from $2.15 billion registered in the prior-year period. The reported figure also topped the Zacks Consensus Estimate of $2.42 billion by 4.9%.
Teledyne Technologies Inc. (TDY - Free Report) reported first-quarter 2026 adjusted earnings of $5.80 per share, which surpassed the Zacks Consensus Estimate of $5.48 by 5.9%. The bottom line also improved 17.2% from $4.95 recorded in the year-ago quarter.
Total sales were $1.56 billion, which beat the Zacks Consensus Estimate of $1.51 billion by 3.3%. The top line also jumped 7.6% from $1.45 billion reported in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2026 adjusted earnings of 59 cents per share, which improved 59.5% from the year-ago quarter’s figure of 37 cents. The bottom line also surpassed the Zacks Consensus Estimate of 42 cents by 40.5%.
The company’s net sales totaled $501.5 million, which beat the Zacks Consensus Estimate of $487 million by 3%. The top line also witnessed an improvement of 9.9% from the year-ago quarter’s figure of $456.5 million.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Kratos Defense Q1 Earnings and Revenues Surpass Estimates
Key Takeaways
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) reported first-quarter 2026 adjusted earnings of 16 cents per share, which beat the Zacks Consensus Estimate of 13 cents by 26.3%. The bottom line also increased 33.3% from the year-ago quarter’s 12 cents.
Kratos Defense reported GAAP earnings of 7 cents per share compared with 3 cents in the year-ago quarter.
KTOS’ Total Revenues
Total revenues were $371 million, which outpaced the Zacks Consensus Estimate of $344 million by 7.7%. The figure also rose 22.6% from $302.6 million recorded in the year-ago quarter.
Kratos Defense & Security Solutions, Inc. Price, Consensus and EPS Surprise
Kratos Defense & Security Solutions, Inc. price-consensus-eps-surprise-chart | Kratos Defense & Security Solutions, Inc. Quote
Operational Update of Kratos Defense
Kratos Defense’s selling, general and administrative expenses increased 19.9% year over year. Research and development expenses rose 7% compared with the prior-year quarter. Depreciation expenses climbed 46.2% year over year.
Expenses related to the amortization of intangible assets rose 176.2% from the year-ago figure.
The company reported operating income of $4.7 million, which decreased from the year-ago quarter’s $6.6 million.
It posted a consolidated book-to-bill ratio of 1.6 to 1, with bookings worth $605.2 million.
The total backlog at the end of the first quarter of 2026 was $1.635 billion compared with $1.212 billion at the end of the fourth quarter of 2025.
KTOS’ Segmental Performance
Unmanned Systems: Revenues from this segment totaled $82.6 million compared with $63.1 million in the year-ago quarter. The increase was primarily driven by Valkyrie-related activity.
Kratos Government Solutions: Revenues from this segment amounted to $288.4 million compared with $239.5 million in the year-ago quarter. This increase was due to organic revenue growth across its Defense and Rocket Support business, Turbine Technologies and Microwave Products businesses, with organic revenue growth rates of 45.8%, 20.3% and 12.3%, respectively, year over year.
Financial Details of KTOS
As of March 29, 2026, cash and cash equivalents totaled $1.46 billion, up from $0.56 billion as of Dec. 28, 2025.
The company reported other current liabilities of $24.4 million as of March 29, 2026 compared with $9 million recorded as of Dec. 28, 2025.
The net cash used in operating activities amounted to $27.4 million during the first three months of 2026 compared with $29.2 million in the same period of 2025.
Kratos Defense’s Guidance
KTOS projects second-quarter 2026 revenues to be in the range of $400-$410 million. The Zacks Consensus Estimate for revenues is pegged at $401.3 million, which is at the lower end of the company’s guided range.
KTOS now expects 2026 revenues to be in the $1.7-$1.76 million range compared with the previous range of $1,595-$1,675 billion. The Zacks Consensus Estimate for revenues is pegged at $1.68 billion, lower than the company’s guided range.
Kratos Defense now expects operating cash flows to be in the range of $60-$70 million and free cash flow use to be in the band of $85-$105 million for 2026.
KTOS’ Zacks Rank
Kratos Defense currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
TransDigm Group Incorporated (TDG - Free Report) reported second-quarter fiscal 2026 adjusted earnings of $9.85 per share, which topped the Zacks Consensus Estimate of $9.32 by 5.7%. The bottom line also improved 8% from the prior-year quarter’s figure of $9.11.
Sales amounted to $2.54 billion, up 18% from $2.15 billion registered in the prior-year period. The reported figure also topped the Zacks Consensus Estimate of $2.42 billion by 4.9%.
Teledyne Technologies Inc. (TDY - Free Report) reported first-quarter 2026 adjusted earnings of $5.80 per share, which surpassed the Zacks Consensus Estimate of $5.48 by 5.9%. The bottom line also improved 17.2% from $4.95 recorded in the year-ago quarter.
Total sales were $1.56 billion, which beat the Zacks Consensus Estimate of $1.51 billion by 3.3%. The top line also jumped 7.6% from $1.45 billion reported in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2026 adjusted earnings of 59 cents per share, which improved 59.5% from the year-ago quarter’s figure of 37 cents. The bottom line also surpassed the Zacks Consensus Estimate of 42 cents by 40.5%.
The company’s net sales totaled $501.5 million, which beat the Zacks Consensus Estimate of $487 million by 3%. The top line also witnessed an improvement of 9.9% from the year-ago quarter’s figure of $456.5 million.