Equity Profile

KTOS

Kratos Defense & Security Solutions, Inc.

IndustrialsAerospace & Defense$11.8B

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 innovative solutions for national security....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of profitability and will show how well the company is managing costs and generating income.

$0.16

Revenue Growth

Revenue growth reflects the company's ability to expand its business and capture market share in a competitive industry.

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 innovative solutions for national security. With a market cap of $12 billion, the company plays a crucial role in modern defense technologies, including unmanned systems and satellite communications.

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 surpassing expectations of $0.08, marking a 100% surprise. However, revenue figures were not disclosed.

Management Promises & Guidance

Focus on expanding unmanned systems capabilities.
Commitment to enhancing satellite communication technologies.
Plans to secure more defense contracts in the upcoming quarters.

Expectations

Wall Street Expectations

Overall, analysts expect Kratos to continue its trend of beating EPS estimates, given its recent performance. However, the lack of revenue guidance raises concerns about future growth.

Bull Case

If Kratos can demonstrate strong revenue growth and secure new contracts, it could lead to increased investor confidence and a higher stock price.

Bear Case

Conversely, if the company fails to provide clear revenue guidance or if defense spending slows, it may lead to a negative reaction from investors.

Key Metrics to Watch

Earnings Per Share (EPS)

$0.16

EPS is a key indicator of profitability and will show how well the company is managing costs and generating income.

Revenue Growth

N/A

Revenue growth reflects the company's ability to expand its business and capture market share in a competitive industry.

Defense Contracts

N/A

The number and value of defense contracts can signal future revenue and the company's standing in the defense sector.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the projected revenue growth for the next quarter?

Revenue growth is critical for assessing the company's ability to scale and meet market demands, especially in a competitive sector.

How many new defense contracts has Kratos secured recently?

New contracts can significantly impact future earnings and investor confidence, making this a key focus for the market.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Kratos' ability to secure new defense contracts, given recent geopolitical tensions that could drive demand for their services.

Supporting Evidence

Kratos has consistently beaten EPS estimates, indicating strong operational execution.

The options market is pricing in a significant move, suggesting heightened expectations that may not be reflected in current consensus.

Recent trends in defense spending suggest a favorable environment for Kratos' offerings.

Key Risk

If the company announces significant new contracts, it could shift the narrative and lead to a re-evaluation of growth prospects.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is debating whether Kratos can maintain its growth trajectory amidst potential challenges in defense spending.

Bull Confirmed If

Revenue growth exceeding 10% year-over-year would confirm the bull case.

Bear Confirmed If

Any indication of declining defense contracts or revenue below expectations would confirm the bear case.

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 investors 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)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Kratos beats expectations and raises guidance, history suggests a potential stock increase of around 1.39%, confirming strong operational performance.

In-Line / Cautious

If results are in line with expectations but lack strong guidance, the stock may see muted reactions as investors weigh future growth.

Miss

A miss on EPS could lead to a decline, with historical patterns suggesting a drop of around 0.40% on average.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Details on new defense contracts and their potential impact on revenue.
2Any updates on the expansion of unmanned systems capabilities.
3Insights into the competitive landscape and how Kratos plans to differentiate itself.
4Management's outlook on future defense spending trends.
5Clarification on revenue guidance for the upcoming quarters.

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

Danaos Corporation

Company Snapshot

Kratos Defense & Security Solutions, Inc. (KTOS) operates in the aerospace and defense sector, focusing on innovative solutions for national security....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of profitability and will show how well the company is managing costs and generating income.

$0.16

Revenue Growth

Revenue growth reflects the company's ability to expand its business and capture market share in a competitive industry.

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 surpassing expectations of $0.08, marking a 100% surprise. However, revenue figures were not disclosed.

Management Promises & Guidance

Focus on expanding unmanned systems capabilities.
Commitment to enhancing satellite communication technologies.
Plans to secure more defense contracts in the upcoming quarters.

Expectations

Wall Street Expectations

Overall, analysts expect Kratos to continue its trend of beating EPS estimates, given its recent performance. However, the lack of revenue guidance raises concerns about future growth.

Bull Case

If Kratos can demonstrate strong revenue growth and secure new contracts, it could lead to increased investor confidence and a higher stock price.

Bear Case

Conversely, if the company fails to provide clear revenue guidance or if defense spending slows, it may lead to a negative reaction from investors.

Key Metrics to Watch

Earnings Per Share (EPS)

$0.16

EPS is a key indicator of profitability and will show how well the company is managing costs and generating income.

Revenue Growth

N/A

Revenue growth reflects the company's ability to expand its business and capture market share in a competitive industry.

Defense Contracts

N/A

The number and value of defense contracts can signal future revenue and the company's standing in the defense sector.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the projected revenue growth for the next quarter?

Revenue growth is critical for assessing the company's ability to scale and meet market demands, especially in a competitive sector.

How many new defense contracts has Kratos secured recently?

New contracts can significantly impact future earnings and investor confidence, making this a key focus for the market.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Kratos' ability to secure new defense contracts, given recent geopolitical tensions that could drive demand for their services.

Supporting Evidence

Kratos has consistently beaten EPS estimates, indicating strong operational execution.

The options market is pricing in a significant move, suggesting heightened expectations that may not be reflected in current consensus.

Recent trends in defense spending suggest a favorable environment for Kratos' offerings.

Key Risk

If the company announces significant new contracts, it could shift the narrative and lead to a re-evaluation of growth prospects.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is debating whether Kratos can maintain its growth trajectory amidst potential challenges in defense spending.

Bull Confirmed If

Revenue growth exceeding 10% year-over-year would confirm the bull case.

Bear Confirmed If

Any indication of declining defense contracts or revenue below expectations would confirm the bear case.

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 investors 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)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Kratos beats expectations and raises guidance, history suggests a potential stock increase of around 1.39%, confirming strong operational performance.

In-Line / Cautious

If results are in line with expectations but lack strong guidance, the stock may see muted reactions as investors weigh future growth.

Miss

A miss on EPS could lead to a decline, with historical patterns suggesting a drop of around 0.40% on average.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Details on new defense contracts and their potential impact on revenue.
2Any updates on the expansion of unmanned systems capabilities.
3Insights into the competitive landscape and how Kratos plans to differentiate itself.
4Management's outlook on future defense spending trends.
5Clarification on revenue guidance for the upcoming quarters.