Equity Profile

KTOS

Kratos Defense & Security Solutions, Inc.

IndustrialsAerospace & Defense$11.0B

May6Wed

Post-Earnings Recap

ReportedQ1-2026After Close4:00 PM EDT

Kratos Defense & Security Solutions Beats on EPS, Stock Up 3.73%

Metric	Actual	Expected	Surprise
EPS	$0.16	$0.13	+100.00%
Revenue	—	$345M	—

management commentary, guidance changes, and full analysis available with Pro.

Kratos Defense & Security Solutions Beats on EPS, Stock Up 3.73%

Key Numbers

Metric	Actual	Expected	Surprise
EPS	$0.16	$0.13	+100.00%
Revenue	—	$345M	—

Management Commentary

Tone: Unknown

No transcript is on record for the earnings call, and the analysis is based solely on the numerical results.

What It Means

Kratos Defense & Security Solutions reported better-than-expected earnings per share, which contributed to a positive stock reaction, with shares rising by 3.73%. However, revenue figures were not disclosed, leaving some uncertainty about overall performance. Investors may be encouraged by the EPS beat but will likely look for more details in future reports.

Company Snapshot

Kratos Defense & Security Solutions, Inc. (KTOS) operates in the aerospace and defense sector, focusing on advanced technologies for military and security applications....

Key Metrics to Watch

EPS

Earnings per share is a key indicator of profitability and financial health, and this quarter's estimate reflects expectations for continued growth.

$0.13

Revenue

Revenue figures provide insight into the company's sales performance and market demand for its defense solutions.

$345M

Wall Street expectations, options signals, track record, and call prep available with Pro.

Original Pre-Earnings Preview

Context

Company Snapshot

Kratos Defense & Security Solutions, Inc. (KTOS) operates in the aerospace and defense sector, focusing on advanced technologies for military and security applications. With a market cap of $12 billion, the company plays a crucial role in providing innovative solutions that address national security needs and defense modernization.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+133.66%

Avg Stock Reaction

-0.40%

Last Quarter Recap

In Q4-2025, Kratos reported an EPS of $0.18, significantly exceeding the estimate of $0.10, showcasing strong operational performance. However, the stock declined by 1.84% the following day, indicating potential market skepticism despite the positive earnings surprise.

Management Promises & Guidance

Continue to innovate in defense technology.
Expand partnerships with government and military agencies.
Focus on improving operational efficiency.

Expectations

Wall Street Expectations

Analysts expect Kratos to report solid earnings, with a consensus EPS of $0.13 and revenue of $345 million. The market is closely watching how the company will navigate ongoing challenges in the defense sector.

Bull Case

If Kratos exceeds expectations, it could signal robust demand for its products and services, potentially leading to a positive re-rating of the stock.

Bear Case

Conversely, any sign of declining demand or operational challenges could lead to a negative reaction, especially given the recent insider selling.

Key Metrics to Watch

EPS

$0.13

Earnings per share is a key indicator of profitability and financial health, and this quarter's estimate reflects expectations for continued growth.

Revenue

$345M

Revenue figures provide insight into the company's sales performance and market demand for its defense solutions.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will Kratos achieve an EPS of at least $0.13 this quarter?

This figure is critical as it reflects the company's ability to maintain profitability amidst market challenges.

What are the revenue expectations for defense contracts this quarter?

Revenue from defense contracts is a key indicator of demand and operational success, influencing investor sentiment.

Edge

What the Street Is Missing

Why consensus could be wrong

The consensus may underestimate the potential for Kratos to capitalize on increased defense spending, particularly in emerging technologies.

Supporting Evidence

Recent insider selling may indicate a temporary sentiment rather than a fundamental issue.

The strong historical EPS beat rate suggests that the company has consistently outperformed expectations.

Options pricing indicates a higher expected move, suggesting traders are anticipating significant news.

Key Risk

If defense contract revenues exceed expectations, it could shift market sentiment positively.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is weighing Kratos' ability to sustain growth in a competitive defense landscape, making earnings critical this quarter.

Bull Confirmed If

An EPS of $0.15 or higher would confirm strong operational performance and market demand.

Bear Confirmed If

An EPS below $0.10 would raise concerns about declining demand and operational challenges.

Pre-Earnings Positioning

Options Market

Implied Move

±11.00%

Historical Avg

±1.4%

Pricing rich

The options market is pricing in a significant move, suggesting that traders expect volatility around the earnings announcement.

Options are pricing ±10.4% while KTOS has averaged ±1.4% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

1.4%

30d HV

75.1%

Calls (488K)P/C Ratio: 0.66Puts (184K)

Edge

Insider Activity

Open-market trades by officers, directors, and 10%+ holders over the trailing 90 days.

Bought

$0.00

0 sh

0 insiders

Sold

$1.0M

13,417 sh

3 insiders

Net

$1.0M

Net selling

Most Active Insiders· 5 open-market trades

President, STC DivisionCarrai Phillip D
$485,692.65
Net selling

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Kratos beats expectations, history suggests the stock could rise by about 1.09% on average, confirming strong demand.

In-Line / Cautious

If results are in line with expectations, the stock may react cautiously, reflecting uncertainty in future growth.

Miss

A miss could lead to a decline of around 1.09%, as the market would reassess the company's growth trajectory.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on new defense contracts and partnerships.
2Any commentary on operational efficiencies and cost management.
3Insights into market demand for Kratos' products.
4Management's outlook on future revenue growth.
5Responses to questions about insider selling and its implications.

See the full picture

AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

No charge today · Auto-bills $8/mo after 7 days · Cancel anytime

More Earnings This Week

5 Reports

May4

GRABReported

Grab Holdings Limited

RecapView

May4

GBDCReported

Company Snapshot

Kratos Defense & Security Solutions, Inc. (KTOS) operates in the aerospace and defense sector, focusing on advanced technologies for military and security applications....

Key Metrics to Watch

EPS

Earnings per share is a key indicator of profitability and financial health, and this quarter's estimate reflects expectations for continued growth.

$0.13

Revenue

Revenue figures provide insight into the company's sales performance and market demand for its defense solutions.

$345M

Wall Street expectations, options signals, track record, and call prep available with Pro.

Original Pre-Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+133.66%

Avg Stock Reaction

-0.40%

Last Quarter Recap

Management Promises & Guidance

Continue to innovate in defense technology.
Expand partnerships with government and military agencies.
Focus on improving operational efficiency.

Expectations

Wall Street Expectations

Bull Case

If Kratos exceeds expectations, it could signal robust demand for its products and services, potentially leading to a positive re-rating of the stock.

Bear Case

Conversely, any sign of declining demand or operational challenges could lead to a negative reaction, especially given the recent insider selling.

Key Metrics to Watch

EPS

$0.13

Earnings per share is a key indicator of profitability and financial health, and this quarter's estimate reflects expectations for continued growth.

Revenue

$345M

Revenue figures provide insight into the company's sales performance and market demand for its defense solutions.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will Kratos achieve an EPS of at least $0.13 this quarter?

This figure is critical as it reflects the company's ability to maintain profitability amidst market challenges.

What are the revenue expectations for defense contracts this quarter?

Revenue from defense contracts is a key indicator of demand and operational success, influencing investor sentiment.

Edge

What the Street Is Missing

Why consensus could be wrong

The consensus may underestimate the potential for Kratos to capitalize on increased defense spending, particularly in emerging technologies.

Supporting Evidence

Recent insider selling may indicate a temporary sentiment rather than a fundamental issue.

The strong historical EPS beat rate suggests that the company has consistently outperformed expectations.

Options pricing indicates a higher expected move, suggesting traders are anticipating significant news.

Key Risk

If defense contract revenues exceed expectations, it could shift market sentiment positively.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is weighing Kratos' ability to sustain growth in a competitive defense landscape, making earnings critical this quarter.

Bull Confirmed If

An EPS of $0.15 or higher would confirm strong operational performance and market demand.

Bear Confirmed If

An EPS below $0.10 would raise concerns about declining demand and operational challenges.

Pre-Earnings Positioning

Options Market

Implied Move

±11.00%

Historical Avg

±1.4%

Pricing rich

The options market is pricing in a significant move, suggesting that traders expect volatility around the earnings announcement.

Options are pricing ±10.4% while KTOS has averaged ±1.4% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

1.4%

30d HV

75.1%

Calls (488K)P/C Ratio: 0.66Puts (184K)

Edge

Insider Activity

Open-market trades by officers, directors, and 10%+ holders over the trailing 90 days.

Bought

$0.00

0 sh

0 insiders

Sold

$1.0M

13,417 sh

3 insiders

Net

$1.0M

Net selling

Most Active Insiders· 5 open-market trades

President, STC DivisionCarrai Phillip D
$485,692.65
Net selling

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Kratos beats expectations, history suggests the stock could rise by about 1.09% on average, confirming strong demand.

In-Line / Cautious

If results are in line with expectations, the stock may react cautiously, reflecting uncertainty in future growth.

Miss

A miss could lead to a decline of around 1.09%, as the market would reassess the company's growth trajectory.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on new defense contracts and partnerships.
2Any commentary on operational efficiencies and cost management.
3Insights into market demand for Kratos' products.
4Management's outlook on future revenue growth.
5Responses to questions about insider selling and its implications.