Kratos Defense & Security Solutions, Inc.

How has the stock done?

Change in closing price from the first day shown, or with Price the closing price itself. Prices: Yahoo Finance, to Nov 12, 2026. Dashed lines: the days the company released earnings (its SEC 8-K filings); EPS estimates: Yahoo Finance. The stock's move after a release runs from the last close before its day to the close the day after (or five days after), so a release before the open counts like one after the close.

Is the business growing?

In the fiscal year to Dec 2025, Product sales was 65% and Service revenues was 35% of revenue; Service revenues fell from 39% in the fiscal year to Dec 2023.

Quarters: Kratos Defense & Security Solutions, Inc.'s SEC filings, named by the month they end. Fiscal years: Kratos Defense & Security Solutions, Inc.'s annual reports to the SEC.

How it makes money

Of every $100 in revenue, $1.6 ends up as net income. Net margin rose from −4.1% to 1.6% over the past 3 years.

Each margin is that line of the income statement divided by revenue. Fiscal year: Kratos Defense & Security Solutions, Inc.'s annual reports to the SEC; quarters: SEC filings.

How much work is already signed?

Customers had signed $2.6B of work Kratos Defense & Security Solutions has not yet delivered at the end of Sep 2026: 1.6 years of revenue at the last four quarters' pace. New orders over those four quarters were about 1.7× revenue, so the backlog grew.

Backlog: remaining performance obligations in Kratos Defense & Security Solutions, Inc.'s SEC filings, revenue under contract not yet delivered. Book-to-bill: the quarter's revenue plus the change in backlog, over the quarter's revenue.

Customers and suppliers

In its latest annual report Kratos Defense & Security Solutions sells to the U.S. government, Northrop Grumman, Lockheed Martin and 13 more; it names no suppliers.

 

KTOSKratos Defense & Security Solutions

Customers

U.S. government 68%

Amazon AMZN

BAE Systems BAESY

Blue Halo (now AeroVironment) AVAV

GE Aerospace GE

General Dynamics GD

L3Harris Technologies LHX

Lockheed Martin LMT

Microsoft MSFT

Northrop Grumman NOC

RTX RTX

Airbus AIR.PA

Boom

Intelsat

Rolls Royce RR.L

Siemens SIE.DE

+8 more

Their customers

Aurora Innovation AURfrom Amazon

Celsius Holdings CELHfrom Amazon

Cerebras Systems CBRSfrom Amazon

Boeing BAfrom GE Aerospace

Genworth GNWfrom GE Aerospace

Show 5

Kratos Defense & Security Solutions's 10-Q for the quarter to Sep 2026 gives one customer's share of its revenue: United States Government (75%).

From Kratos Defense & Security Solutions, Inc.'s 10-Q and 10-K filings (XBRL): each customer whose share of revenue a filing tags, under the filing's own label, so “Customer A” in one filing can be another company in the next; a later filing's figures for a period replace an earlier one's. Rings are fiscal years: a 10-K gives the year, not its fourth quarter.

Partners

RRAFAELEstablish solid rocket motor manufacturing ventureApproximately 50/50 joint venture; jointly committed up to $175 million in capital

PPrometheusSolid rocket motor and energetics manufacturing venture$5.0 million investment carrying value as of December 28, 2025

GE Aerospace GEDevelop, manufacture and test affordable aircraft engines

Changes since the previous annual report (10-K filed Feb 26, 2025)

AirbusNamed for the first time, as a customer

U.S. governmentCustomer, share of revenue67% → 68%

Only the companies Kratos Defense & Security Solutions names in its 10-K filed Feb 23, 2026 (SEC). The supply chain joins the latest annual reports of the companies on it and the 8-Ks they filed since: a link shows when either side's report names the other, so it grows as more reports are read. Hover a name for the filing's own words.

Is it expensive?

P/E of 290x, above the peer median of 32.2x, so it needs earnings to keep growing to hold up.

Priced 799% above the peer median of 32.2x.

At 290× trailing earnings KTOS is inside the middle of its five-year range; the five-year median is 321×.

Closing price over diluted earnings per share of the last four reported quarters, as known on each day (a quarter counts 35 days after it ends). From SEC filings; earnings per share adjusted for splits.

What analysts expect

The average analyst price target is $79.24, 128% above the current price; 96% of 25 analysts rate it a buy; earnings beat estimates in all of the last 4 quarters.

Buy or Strong Buy: 24 analysts (96%). Sell or Strong Sell: 0.

Over the past year the average of the analysts' latest price targets went from $84.67 to $78.05 (−8%), while KTOS went from $71.69 to $34.75 (−52%). In the past three months targets were cut 11 times and never raised. 4 upgrades and no downgrades over the year; the latest: Piper Sandler moved it to Overweight from Neutral on Aug 5, 2026.

The day after each of these reports the stock moved −5.6% (Dec 2025, beat); −3.9% (Mar 2026, beat); +12.5% (Jun 2026, beat); −2.4% (Sep 2026, beat).

For the quarter ending Dec 2026, analysts expect adjusted earnings of $0.24 a share, 33% more than the $0.18 of a year earlier, and revenue of $498M, up 44% on a year earlier. For the fiscal year ending Dec 2027, they expect adjusted earnings of $1.12 a share, 33% more than the year before's estimate of $0.84, and revenue of $2.2B, up 23% on the year before's estimate.

Targets, ratings and earnings estimates: Yahoo Finance. Rating and target changes: Yahoo Finance's list of upgrades and downgrades. The average target on each day is the average of every listed firm's latest target set in the 180 days before it, so it counts fewer analysts than the average target above, and the band is the middle half of those targets (a quarter of the firms are above it, a quarter below); a target set before a stock split is divided by the split. Expected figures: the average of the analysts' estimates (Yahoo Finance). Their EPS is adjusted, as analysts estimate it, so it is set against the adjusted EPS Yahoo reports for the same quarters, not the GAAP EPS of the growth and valuation sections; revenue against the SEC filings. No change is given against a quarter whose reported EPS was more than 50% off its own estimate (often a one-off gain or charge), nor against a year that counts one. Each estimate is pinned to its fiscal period by the report date or the period's end, and one that cannot be is left out.

Where the cash goes

Capex of $92M exceeds operating cash flow of −$31M, leaving free cash flow of −$123M. The gap has to be covered with cash on hand or borrowing.

Kratos Defense & Security Solutions had 189M diluted shares in the quarter ended Sep 2026, 9.2% more than a year earlier, and 9.3% more each year on average since Jun 2020.

Free cash flow: operating cash flow minus capital spending on property, plant and equipment, from SEC filings. Shares: each quarter's diluted weighted average as filed with the SEC, since the stock's listing and its latest split.

Financial health

Current ratio 4.1, no pressure to repay short-term debt; debt-to-equity 0.0, debt is very low and the balance sheet is solid.

Latest fiscal year balance sheet. Source: Yahoo Finance.

Who holds it

In the filings of 7 funds whose copy leaves KTOS out (on the exchange, not in the app yet): Rovida Investment Management, Baillie Gifford &, Norges Bank, Swiss National Bank, Bridgewater Associates, Canada Pension Plan Investment Board and 1 more.

What did the funds Hunch tracks do?

Of the 83 funds whose 13F filings Hunch reads, 9 held KTOS at the end of their latest quarter (for most, Q2 2026). Over that quarter 5 added shares, 2 cut, 1 bought new, 2 sold all and 1 held the same. The largest of them is ARK Investment Management, 4.67M shares worth $233M at Jun 30, 2026, 33.8% more than a quarter earlier.

From the 13F filings of the 83 funds Hunch tracks, not of every institution: each fund's shares of KTOS at its latest quarter end against the quarter before, as filed (long positions only, options left out), the quarter before put on the latest quarter's share count across a split. A fund files 45 days after its quarter ends, so some have a newer quarter than others. Value is at the quarter end. Norges Bank filed its 13F for Q1 2026 confidentially, with no holdings made public, so its row compares Q2 2026 with Q4 2025.

Are insiders buying or selling?

Officers and directors sold $134M of KTOS on the open market in the 12 months to Nov 12, 2026; none bought. 76% of the sales were made under 10b5-1 plans, set up in advance. The largest was Eric M Demarco (President & CEO; director), who sold $82.7M in 17 sales.

From the Form 4s filed with the SEC about Kratos Defense & Security Solutions, Inc. (113 in the 12 months): purchases (code P) and sales (code S) on the open market by its officers and directors, at the price each filing gives (often an average of the day's trades). A sale is a 10b5-1 sale when its filing says it was made under such a plan, set up in advance. Not counted: 165 other transactions (grants, option exercises, shares withheld for tax and gifts).