Equity Profile

KTOS

Kratos Defense & Security Solutions, Inc.

IndustrialsAerospace & Defense$11.0B

Aug6Thu

Pre-Earnings Brief

UpcomingQ2-2026After Close5:00 PM EDT

Company Snapshot

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

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and financial health. Investors will be looking for continued growth in this metric.

$0.16

Revenue Growth

While specific revenue estimates are not available, growth in revenue is critical for sustaining investor confidence and supporting future investments.

N/A

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

KTOS Q2-2026 Earnings Preview

Context

Company Snapshot

Kratos Defense & Security Solutions, Inc. (KTOS) operates in the aerospace and defense sector, focusing on providing advanced technology solutions for military and security applications. With a market cap of $13 billion, the company plays a crucial role in defense modernization and national security efforts, which are increasingly important in today's geopolitical landscape.

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 Q1 2026, Kratos reported an EPS of $0.16, significantly beating expectations by 100%. The stock reacted positively, gaining 3.73% the next day.

Management Promises & Guidance

Continued focus on expanding defense technology capabilities.
Commitment to securing new contracts in the defense sector.
Plans to enhance operational efficiency and reduce costs.

Expectations

Wall Street Expectations

Overall, expectations are cautiously optimistic as Kratos has consistently beaten EPS estimates in recent quarters. However, there is uncertainty regarding revenue growth and contract acquisition.

Bull Case

If Kratos continues its trend of beating EPS estimates and secures significant new contracts, it could see substantial stock appreciation.

Bear Case

Conversely, if the company fails to meet revenue expectations or faces delays in contract awards, investor sentiment could turn negative.

Key Metrics to Watch

Earnings Per Share (EPS)

$0.16

EPS is a key indicator of the company's profitability and financial health. Investors will be looking for continued growth in this metric.

Revenue Growth

N/A

While specific revenue estimates are not available, growth in revenue is critical for sustaining investor confidence and supporting future investments.

Defense Contracts

N/A

The number and value of new defense contracts can indicate future revenue potential and market position.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the expected EPS for Q2-2026, and how does it compare to previous quarters?

Given the company's strong track record of beating EPS estimates, this figure will be critical for assessing ongoing profitability.

What new defense contracts has Kratos secured recently?

The ability to secure new contracts is vital for future revenue growth and will be closely scrutinized by investors.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for Kratos to secure new contracts, especially given the current geopolitical climate that favors defense spending.

Supporting Evidence

Kratos has a 100% EPS beat rate in recent quarters, indicating strong operational performance.

Options pricing suggests a significant move, indicating that traders expect volatility, which may not align with consensus expectations.

Insider selling could suggest a lack of confidence in short-term performance, which contrasts with the optimistic outlook from analysts.

Key Risk

If new contract announcements fall short of expectations, it could significantly impact the stock's performance.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is debating whether Kratos can maintain its momentum in earnings growth while expanding its defense contract portfolio.

Bull Confirmed If

An EPS of $0.16 or higher, along with announcements of new significant defense contracts.

Bear Confirmed If

An EPS below $0.16 and no new contracts announced.

Pre-Earnings Positioning

Options Market

Implied Move

±30.74%

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 ±30.7% while KTOS has averaged ±1.4% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.8%

30d HV

71.5%

Calls (2.6M)P/C Ratio: 0.46Puts (548K)

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 and raises guidance, history suggests the stock could rise by around 1.73% on the day.

In-Line / Cautious

If results are in line but management provides cautious commentary, the stock may experience a muted reaction.

Miss

Should the company miss expectations, history suggests a potential decline of around 0.40% based on past performance.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on new defense contracts and their expected impact on revenue.
2Any guidance on future EPS targets and operational efficiencies.
3Insights into market conditions affecting defense spending.
4Management's commentary on competitive positioning in the defense sector.
5Details on any changes in operational strategy or cost management.

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Company Snapshot

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

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and financial health. Investors will be looking for continued growth in this metric.

$0.16

Revenue Growth

While specific revenue estimates are not available, growth in revenue is critical for sustaining investor confidence and supporting future investments.

N/A

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

KTOS Q2-2026 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

In Q1 2026, Kratos reported an EPS of $0.16, significantly beating expectations by 100%. The stock reacted positively, gaining 3.73% the next day.

Management Promises & Guidance

Continued focus on expanding defense technology capabilities.
Commitment to securing new contracts in the defense sector.
Plans to enhance operational efficiency and reduce costs.

Expectations

Wall Street Expectations

Overall, expectations are cautiously optimistic as Kratos has consistently beaten EPS estimates in recent quarters. However, there is uncertainty regarding revenue growth and contract acquisition.

Bull Case

If Kratos continues its trend of beating EPS estimates and secures significant new contracts, it could see substantial stock appreciation.

Bear Case

Conversely, if the company fails to meet revenue expectations or faces delays in contract awards, investor sentiment could turn negative.

Key Metrics to Watch

Earnings Per Share (EPS)

$0.16

EPS is a key indicator of the company's profitability and financial health. Investors will be looking for continued growth in this metric.

Revenue Growth

N/A

While specific revenue estimates are not available, growth in revenue is critical for sustaining investor confidence and supporting future investments.

Defense Contracts

N/A

The number and value of new defense contracts can indicate future revenue potential and market position.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the expected EPS for Q2-2026, and how does it compare to previous quarters?

Given the company's strong track record of beating EPS estimates, this figure will be critical for assessing ongoing profitability.

What new defense contracts has Kratos secured recently?

The ability to secure new contracts is vital for future revenue growth and will be closely scrutinized by investors.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for Kratos to secure new contracts, especially given the current geopolitical climate that favors defense spending.

Supporting Evidence

Kratos has a 100% EPS beat rate in recent quarters, indicating strong operational performance.

Options pricing suggests a significant move, indicating that traders expect volatility, which may not align with consensus expectations.

Insider selling could suggest a lack of confidence in short-term performance, which contrasts with the optimistic outlook from analysts.

Key Risk

If new contract announcements fall short of expectations, it could significantly impact the stock's performance.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is debating whether Kratos can maintain its momentum in earnings growth while expanding its defense contract portfolio.

Bull Confirmed If

An EPS of $0.16 or higher, along with announcements of new significant defense contracts.

Bear Confirmed If

An EPS below $0.16 and no new contracts announced.

Pre-Earnings Positioning

Options Market

Implied Move

±30.74%

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 ±30.7% while KTOS has averaged ±1.4% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.8%

30d HV

71.5%

Calls (2.6M)P/C Ratio: 0.46Puts (548K)

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 and raises guidance, history suggests the stock could rise by around 1.73% on the day.

In-Line / Cautious

If results are in line but management provides cautious commentary, the stock may experience a muted reaction.

Miss

Should the company miss expectations, history suggests a potential decline of around 0.40% based on past performance.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on new defense contracts and their expected impact on revenue.
2Any guidance on future EPS targets and operational efficiencies.
3Insights into market conditions affecting defense spending.
4Management's commentary on competitive positioning in the defense sector.
5Details on any changes in operational strategy or cost management.