Kratos Defense reported Q2 adjusted EPS of $0.21 and revenue of $458.8 million, exceeding estimates and lifting full-year guidance.
Kratos Defense & Security (NASDAQ:KTOS) shares climbed 7.8% in pre-market trading after reporting second-quarter adjusted earnings of $0.21 per share, surpassing the $0.13 consensus. Revenue reached $458.8 million, up from $411 million expected, driven by 19.1% organic growth in hypersonics, engines, and unmanned systems.
The company raised its full-year 2026 organic revenue growth forecast to 19%-23%, up from 15%-20%, and lifted revenue guidance to $1.75 billion-$1.81 billion. Analysts responded positively, with Piper Sandler upgrading the stock to Overweight and setting a $75 price target, citing growth visibility in the MACH-TB program and drone production.
Cantor Fitzgerald maintained its Overweight rating but lowered its price target to $100 from $115, reflecting mixed but broadly supportive sentiment among analysts.