Kratos Defense & Security

Q2 FY2026 EarningsQ2 FY26 results significantly beat consensus across all key top-line and bottom-line metrics, characterized by revenue of $458.8M vs. $411.2M expected and Adjusted EPS of $0.21 vs. $0.15 expected. The Kratos Government Solutions (KGS) segment led growth with 22.0% organic expansion, driven by Defense Rocket Systems and Turbine Technologies. Management increased full-year revenue guidance to $1.75B - $1.81B, signaling strong confidence in AI-driven unmanned systems and hypersonic demand, despite increased capital investment impacting near-term free cash flow.