KTOS

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Kratos (KTOS), which belongs to the Zacks Aerospace - Defense Equipment industry. This military contractor has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 25.82%. For the most recent quarter, Kratos was expected to post earnings of $0.13 per share, but it reported $0.16 per share instead, representing a surprise of 23.08%. For the previous quarter, the consensus estimate was $0.14 per share, while it actually produced $0.18 per share, a surprise of 28.57%. With this earnings history in mind, recent estimates have been moving higher for Kratos. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Kratos has an Earnings ESP of +4.25% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground...

Shares of Unusual Machines (AMEX:UMAC), Kratos Defense & Security (NASDAQ:KTOS) and Vishay Precision Group (NYSE:VPG) moved higher on Tuesday as investors reacted to stronger-than-expected results from industry peer AeroVironment (NASDAQ:AVAV). Kratos Defense & Security gained 8%, while Vishay Precision Group advanced 5%. The broader rally followed a 32% jump in AeroVironment’s shares during premarket trading after the company reported record fiscal fourth-quarter results. AeroVironment reported fiscal fourth-quarter 2026 revenue of $641.6 million, more than double the level recorded a year earlier and comfortably ahead of analyst expectations of about $557 million. Adjusted earnings also exceeded forecasts, with non-GAAP earnings per share reaching $1.84 versus consensus estimates of between $1.47 and $1.48, representing an upside surprise of roughly 25%. The company’s Autonomous Systems division generated $492 million in quarterly revenue, outperforming expectations of approximately $402 million and contributing around 76% of total sales for the quarter. AeroVironment’s stronger-than-expected financial performance sparked buying across the defence and precision technology sector, with investors extending gains to companies viewed as industry peers. The positive reaction reflected growing optimism around defence technology companies following AeroVironment’s robust revenue growth and earnings outperformance. Unusual Machines stock price Kratos Defense & Security Solutions stock price Vishay Intertechnology stock price AeroVironment stock price

What a brutal six months it’s been for Kratos. The stock has dropped 40.3% and now trades at $46.40, rattling many shareholders. This may have investors wondering how to approach the situation. Following the pullback, is now a good time to buy KTOS? Find out in our full research report, it’s free. Established with a commitment to supporting national security, Kratos (NASDAQ:KTOS) is a provider of advanced engineering, technology, and security solutions tailored for critical national security applications. Investors interested in Defense Contractors companies should track organic revenue in addition to reported revenue. This metric gives visibility into Kratos’s core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement. Over the last two years, Kratos’s organic revenue averaged 14.6% year-on-year growth. This performance was fantastic and shows it can expand quickly without relying on expensive (and risky) acquisitions. Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite, though some deceleration is natural as businesses become larger. Over the next 12 months, sell-side analysts expect Kratos’s revenue to rise by 29.9%, an improvement versus its 12.9% annualized growth for the past five years. This projection is eye-popping and suggests its newer products and services will fuel better top-line performance. If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills. Kratos’s demanding reinvestments have drained its resources over the last five years, putting it in a pinch and limiting its ability to return capital to investors. Its free cash flow margin averaged negative 5.1%, meaning it lit $5.10 of cash on fire for every $100 in revenue. Kratos has huge potential even though it has some open questions. With the recent decline, the stock trades at 60.9× forward P/E (or $46.40 per share). Is now the time to initiate a position? See for yourself in our full research report, it’s free. WHILE YOU’RE HERE: Top 9 M...

A month has gone by since the last earnings report for Kratos (KTOS). Shares have added about 11.2% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Kratos due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers. Kratos Defense Q1 Earnings and Revenues Surpass EstimatesKratos Defense & Security Solutions, Inc. 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. 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’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. 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. As of March 29, 2026, cash and cash equivalents totaled $1.46 billion, up from $0.56 billi...

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Kratos (NASDAQ:KTOS) and the rest of the defense contractors stocks fared in Q1. Defense contractors typically require technical expertise and government clearance. Companies in this sector can also enjoy long-term contracts with government bodies, leading to more predictable revenues. Combined, these factors create high barriers to entry and can lead to limited competition. Lately, geopolitical tensions–whether it be Russia’s invasion of Ukraine or China’s aggression towards Taiwan–highlight the need for defense spending. On the other hand, demand for these products can ebb and flow with defense budgets and even who is president, as different administrations can have vastly different ideas of how to allocate federal funds. The 13 defense contractors stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 3.4% while next quarter’s revenue guidance was 1.8% below. While some defense contractors stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.6% since the latest earnings results. Established with a commitment to supporting national security, Kratos (NASDAQ:KTOS) is a provider of advanced engineering, technology, and security solutions tailored for critical national security applications. Kratos reported revenues of $371 million, up 22.6% year on year. This print exceeded analysts’ expectations by 8.1%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ organic revenue and EBITDA estimates. Eric DeMarco, Kratos’ President and CEO, said, “Kratos’ balanced business model, including making internally funded investments in property, plant, equipment and facilities, and the rapid development and fielding of relevant products for the Department of War, while generating growth and profitability, is accelerating as reflected in our Q1 results and 1.6 to 1.0 book to bill ratio. There is a generational recapitalization of the U.S. defense industrial base underway and Kratos is committed to doing its part to ensure that the Department and our country are successful.” The stock is down 8.5% since reporting and currently trades at $56.32. Is now the time t...

Kratos’ first quarter was defined by broad-based momentum across its core defense segments, but the market responded negatively to its results despite notable outperformance against Wall Street’s key expectations. Management pointed to particularly strong execution in its Microwave Electronics, Turbine Technologies, and Unmanned Systems businesses as the main contributors. CEO Eric DeMarco highlighted that Kratos’ “engine business, KTT, is ripping right now,” citing increased demand from missile, drone, and space programs. Executives also referenced robust demand for microwave products tied to global conflicts and replenishment cycles, especially in Israel, which drove additional growth this quarter. Is now the time to buy KTOS? Find out in our full research report (it’s free). Revenue: $371 million vs analyst estimates of $343.1 million (22.6% year-on-year growth, 8.1% beat) Adjusted EPS: $0.16 vs analyst estimates of $0.13 (19.3% beat) Adjusted EBITDA: $38.7 million vs analyst estimates of $28.91 million (10.4% margin, 33.9% beat) The company lifted its revenue guidance for the full year to $1.73 billion at the midpoint from $1.64 billion, a 5.8% increase EBITDA guidance for the full year is $173 million at the midpoint, above analyst estimates of $167.6 million Operating Margin: 1.3%, in line with the same quarter last year Organic Revenue rose 15.8% year on year (beat) Market Capitalization: $10.75 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Sheila Kahyaoglu (Jefferies): Asked for details on which segments drove the strong start and how recent acquisitions performed. CEO Eric DeMarco detailed that engine, microwave electronics, and unmanned systems all contributed, with Orbit and Nomad expected to drive further growth. Noah Poponak (Goldman Sachs): Questioned the step-down in Q2 revenue and margin guidance. CFO Deanna Lund explained this was due to a less favorable product mix and increased infrastructure costs as the company ramps for second-half growth. Michael Crawford (B. Riley Securities): Inquired about Kratos’ competitive position in supplying engines for tactical jet and cruise missile progra...

Download the Complete Report Here Key Takeaways: 1Q26 establishes the starting revenue baseline ahead of expected sequential growth. Meta Bureau’s $2.86 million SkyKnight award covers 16,000+ licenses, with $10.4 million of upgrade options creating software attach upside. Japan / Rakuten, HIMERA, and interceptor initiatives broaden SWMR’s funnel across allied markets, resilient communications, and counter-UAS applications. Cash increased to $23.5 million after IPO and Series A-1 proceeds, supporting engineering, product development, and integration capacity. Platform expansion, strategic partnerships, and autonomy adoption support a premium valuation framework. 1Q26 establishes the starting revenue baseline ahead of expected sequential growth. SWMR’s first reported quarter as a public company showed revenue of $20,325, down 81.6% y/y from $110,704, gross profit moving to a $(19,599) loss from $65,162, and net loss widening to $(4.5) million from $(0.7) million. The revenue decline was primarily tied to the wind-down of service-related deferred revenue from the company’s historically largest Ukraine customer, from which SWMR does not expect future revenue, while the current focus has shifted toward higher-volume Ukraine and international opportunities. The quarter therefore looks more like a transition point in reported revenue than a demand signal, with the forward story tied to license activation, deployment timing, and partner production. Street estimates sourced from TIKR show that revenue is expected to increase to $1.0 million in 2Q26, $3.0 million in 3Q26, and $5.0 million in 4Q26, implying that sequential growth is expected to begin immediately as new awards and integrations start contributing to recognized revenue. Nasdaq listing strengthened the balance sheet and funded the next phase of product integration. During the quarter, Swarmer completed its IPO and began trading on the Nasdaq Capital Market under the ticker SWMR, raising approximately $17.3 million in gross proceeds to support continued investment in engineering, product development, and growth initiatives. Combat-proven intelligence layer underpins SWMR’s differentiation as drone coordination demand scales. SWMR’s platform is positioned around the core bottleneck in modern unmanned systems: coordinating, controlling, and automating large numbers of low-cost drones rather than building the...

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Kratos Defense & Security Solutions (KTOS) is back in focus after a strong first quarter, raised 2026 revenue guidance, and a record backlog, as investors weigh growth in drones, hypersonics, and space contracts against valuation and cash flow questions. See our latest analysis for Kratos Defense & Security Solutions. Despite strong first quarter figures and raised 2026 guidance, the stock has come under pressure recently, with the 30 day share price return down 28.63% and the year to date share price return down 33.8%. Over a 1 year period, the total shareholder return is 56.55%, and the 3 year total shareholder return is roughly 3x. This suggests long term holders have still seen substantial gains, while shorter term momentum has cooled as investors reassess growth against cash flow and valuation concerns. If Kratos’s recent volatility has you thinking about where else defense and autonomy trends might lead, it could be worth scanning a curated list of 30 robotics and automation stocks So, with strong Q1 results, higher 2026 guidance, a record backlog, and a share price that has recently fallen sharply after a multiyear run, is KTOS now mispriced, or is the market already factoring in future growth? Kratos Defense & Security Solutions' most followed valuation narrative pegs fair value at $117.35, well above the recent $52.49 close, framing a wide gap that hinges on how far drones, hypersonics, and space contracts can scale over time. Read the complete narrative. Want to see what is driving that valuation gap? The narrative leans heavily on faster revenue compounding, higher margins, and a rich future earnings multiple. Curious how those ingredients combine to justify a fair value more than double the current share price and a premium to typical defense stocks? The full story lays out the exact growth and profitability path behind that $117.35 figure. Result: Fair Value of $117.35 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, bullish assumptions can quickly be tested if major drone or hypersonic awards slip in timing, or if heavy investment and supplier dependence continue to squeeze margins and cash flow. Find out about the key risks to this Kratos Defense & S...

Ondas Inc. ONDS will release results for the first quarter of 2026 on May 14. ONDS’ earnings missed the Zacks Consensus Estimate in the last quarter. It has missed the estimate in three of the four trailing quarters, while beating once, with an average negative surprise of 144.77%. Ondas Holdings Inc. price-eps-surprise | Ondas Holdings Inc. Quote Let us see how ONDS is expected to fare in terms of revenues and earnings this time. The Zacks Consensus Estimate for the first-quarter 2026 bottom line stands at a loss of 3 cents, unchanged in the past 30 days. The same for revenues stands at $39.6 million, indicating an 831.1% jump from the year-ago actual. Management guided quarterly revenues to be between $38 million and $40 million. Image Source: Zacks Investment Research The company’s guidance is driven by strong business momentum, especially in its Ondas Autonomous Systems (“OAS”) division. Robust M&A activity is a key factor here. Our proven model does not predict an earnings beat for Ondas this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here. ONDS currently has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Ondas entered the first quarter with significant momentum in the OAS unit following a transformative 2025. OAS has quickly become a comprehensive “system-of-systems” platform. The division is now a multi-domain autonomy platform spanning Intelligence, Surveillance, Reconnaissance or ISR, Counter-UAS, loitering munitions/strike systems, unmanned ground vehicles and stratospheric sensing via World View acquisition. Through the OAS unit, the company is expanding its footprint with new defense and homeland security customers across Europe, the Middle East and the United States. Simmering geopolitical tensions and rising defense budgets are driving increased demand for solutions such as counter-UAS systems and ISR platforms. On the last earnings call, management noted increasing customer interest, RFP activity and urgency in procurement decisions. The company executed five acquisitions alone in the first quarter of 2026 and expects thes...

Kratos significantly beat Q1 expectations with revenue of $371 million (or $357.7 million ex‑Orbit), consolidated organic revenue growth of 15.8%, adjusted EBITDA of $38.7 million, a record $2 billion backlog and a 1.6-to-1 book‑to‑bill (pipeline > $14 billion). The company is leaning into space and satellite work—highlighted by a $447 million U.S. Space Force prime contract and expected meaningful OpenSpace deliveries in Q3–Q4—which management says will drive stronger H2 profitability and support growth and margin expansion into 2027–2028. Operational ramps and guidance: Kratos expects defense rocket support (hypersonics) revenue of roughly $400M in 2026 and $700M in 2027, plans to scale Valkyrie production to ~40 drones annually by early 2028, and updated 2026 revenue guidance to $1.7B–$1.76B with Q2 revenue forecast at $400M–$410M; Q1 cash flow used was negative with DSOs rising to 130 days. Interested in Kratos Defense & Security Solutions, Inc.? Here are five stocks we like better. Defense Budget Expansion: 3 Mid-Cap Names in a Sweet Spot Kratos Defense & Security Solutions (NASDAQ:KTOS) reported a first-quarter 2026 performance that management said significantly exceeded its internal forecast, driven by strength across several product lines and supported by what CEO Eric DeMarco described as an expanding U.S. and global defense market. Executive Vice President and CFO Deanna Lund said first-quarter revenue totaled $371 million, above the company’s prior estimated range of $335 million to $345 million. The estimate did not include the recently closed Orbit acquisition, Lund noted. Excluding Orbit, revenue was $357.7 million, still above the forecast range. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches The Drone Disruptor: Kratos Stock Seeks a Higher Altitude Lund said the quarter included consolidated organic revenue growth of 15.8%, with “the largest contributors to the overachievement” coming from Unmanned Systems, Defense and Rocket Support, Turbine Technologies, and Microwave Products. She cited year-over-year organic growth rates of 45.8% in Defense and Rocket Support, 30.9% in Unmanned Systems, 20.3% in Turbine Technologies, and 12.3% in Microwave Products. Adjusted EBITDA came in at $38.7 million, above the company’s estimated range of $25 million to $30 million. Lund attributed the outperformance to contributions from...

Kratos Defense & Security Solutions, Inc. KTOS 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. 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-eps-surprise-chart | Kratos Defense & Security Solutions, Inc. Quote 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. 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. 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. KTOS projects second-quarter 2026 revenues to be in the range of $400-$410...

Kratos (KTOS) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +26.28%. A quarter ago, it was expected that this military contractor would post earnings of $0.14 per share when it actually produced earnings of $0.18, delivering a surprise of +28.57%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Kratos, which belongs to the Zacks Aerospace - Defense Equipment industry, posted revenues of $371 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 7.70%. This compares to year-ago revenues of $302.6 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Kratos shares have lost about 21.9% since the beginning of the year versus the S&P 500's gain of 6%. While Kratos has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Kratos was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks h...