Tuesday, November 10, 2026
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Overview. Kratos reported another strong quarter with revenue at the midpoint of guidance and adjusted EBITDA exceeding the high end of guidance. The Company’s third-quarter results reflect Kratos’ position as a leading defense technology, hardware, software, and systems company, aligned with the Department of War’s priorities and reindustrialization efforts, in our view.
3Q26 Results. Third quarter 2026 revenues of $471.8 million increased by $124.2 million year-over-year. We had projected $462 million. KGS revenue grew 52.5% to $397.2 million, while KUS segment revenue declined to $74.6 million from $87.2 million due to the absence of a $16.1 million Valkyrie sale completed last year. Adjusted EBITDA was $50.9 million versus $30.8 million. Kratos reported adjusted earnings per share of $0.24 for the third quarter of 2026, compared to $0.14 for the third quarter of 2025. We had projected $41 million and $0.22/sh, respectively.
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