Noble Financial Issues Negative Outlook for KTOS Earnings

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) – Equities research analysts at Noble Financial cut their Q2 2026 earnings per share estimates for Kratos Defense & Security Solutions in a research note issued on Friday, March 20th. Noble Financial analyst J. Gomes now anticipates that the aerospace company will post earnings per share of $0.09 for the quarter, down from their previous forecast of $0.10. Noble Financial has a “Outperform” rating on the stock. The consensus estimate for Kratos Defense & Security Solutions’ current full-year earnings is $0.31 per share.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last released its quarterly earnings results on Monday, February 23rd. The aerospace company reported $0.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.14 by $0.04. Kratos Defense & Security Solutions had a return on equity of 3.34% and a net margin of 1.63%.The company had revenue of $345.10 million during the quarter, compared to the consensus estimate of $327.51 million. During the same quarter in the prior year, the company posted $0.13 EPS. The firm’s revenue was up 21.9% on a year-over-year basis.

A number of other equities research analysts have also recently issued reports on the company. B. Riley Financial upped their target price on Kratos Defense & Security Solutions from $105.00 to $128.00 and gave the stock a “buy” rating in a research report on Friday, January 9th. JonesTrading assumed coverage on shares of Kratos Defense & Security Solutions in a research report on Monday, January 5th. They issued a “buy” rating on the stock. The Goldman Sachs Group boosted their price objective on shares of Kratos Defense & Security Solutions from $93.00 to $125.00 and gave the stock a “buy” rating in a research note on Tuesday, January 20th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Kratos Defense & Security Solutions in a report on Thursday, January 22nd. Finally, Canaccord Genuity Group raised their target price on shares of Kratos Defense & Security Solutions from $120.00 to $125.00 and gave the company a “buy” rating in a research note on Tuesday, February 24th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, Kratos Defense & Security Solutions presently has an average rating of “Moderate Buy” and a consensus price target of $98.28.

Kratos Defense & Security Solutions Stock Down 8.8%

Shares of KTOS stock opened at $84.62 on Monday. The stock’s 50 day simple moving average is $99.48 and its 200 day simple moving average is $87.71. The company has a debt-to-equity ratio of 0.05, a quick ratio of 3.46 and a current ratio of 4.06. Kratos Defense & Security Solutions has a twelve month low of $25.78 and a twelve month high of $134.00. The company has a market capitalization of $15.80 billion, a price-to-earnings ratio of 650.97 and a beta of 1.12.

Institutional Trading of Kratos Defense & Security Solutions

A number of hedge funds have recently bought and sold shares of the stock. Franklin Resources Inc. increased its holdings in shares of Kratos Defense & Security Solutions by 29.6% during the 2nd quarter. Franklin Resources Inc. now owns 5,086,494 shares of the aerospace company’s stock worth $236,268,000 after purchasing an additional 1,162,577 shares during the period. Geode Capital Management LLC grew its position in Kratos Defense & Security Solutions by 3.5% during the fourth quarter. Geode Capital Management LLC now owns 4,446,230 shares of the aerospace company’s stock worth $337,565,000 after buying an additional 148,622 shares in the last quarter. Morgan Stanley grew its position in Kratos Defense & Security Solutions by 3.9% during the fourth quarter. Morgan Stanley now owns 3,311,095 shares of the aerospace company’s stock worth $251,345,000 after buying an additional 124,607 shares in the last quarter. First Trust Advisors LP increased its stake in Kratos Defense & Security Solutions by 29.5% during the third quarter. First Trust Advisors LP now owns 3,068,863 shares of the aerospace company’s stock valued at $280,402,000 after acquiring an additional 698,778 shares during the period. Finally, Invesco Ltd. increased its stake in Kratos Defense & Security Solutions by 7.4% during the third quarter. Invesco Ltd. now owns 3,046,194 shares of the aerospace company’s stock valued at $278,331,000 after acquiring an additional 209,189 shares during the period. 75.92% of the stock is owned by institutional investors.

Insider Transactions at Kratos Defense & Security Solutions

In other news, SVP Marie Mendoza sold 1,516 shares of the stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $88.97, for a total value of $134,878.52. Following the completion of the sale, the senior vice president directly owned 67,926 shares of the company’s stock, valued at approximately $6,043,376.22. This represents a 2.18% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP De Burgreen Maria Cervantes sold 6,270 shares of the firm’s stock in a transaction on Monday, March 16th. The stock was sold at an average price of $89.29, for a total transaction of $559,848.30. Following the completion of the sale, the vice president owned 59,369 shares in the company, valued at approximately $5,301,058.01. The trade was a 9.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 371,500 shares of company stock worth $34,664,848. Insiders own 2.37% of the company’s stock.

Key Kratos Defense & Security Solutions News

Here are the key news stories impacting Kratos Defense & Security Solutions this week:

• Positive Sentiment: Large government awards: Kratos won a $446M Space Force contract for missile‑tracking ground systems, a multi‑hundred‑million dollar win that supports near‑term revenue visibility in missile defense programs. Kratos wins $446 million Space Force contract for missile-tracking ground systems
• Positive Sentiment: Hypersonics backlog: Kratos is the MACH‑TB 2.0 Task Area 1 prime supporting Rocket Lab’s 20‑flight HASTE hypersonic award, which bolsters Kratos’ hypersonics pipeline and recurring high‑priority defense work. Rocket Lab Secures $190M Contract for 20x HASTE Launches
• Positive Sentiment: Recent results and analyst support: Q4 beat (EPS and revenue) and raised price targets from some brokers have sustained a bullish narrative around Kratos’ growth in unmanned systems and hypersonics. How The Kratos Defense (KTOS) Investment Story Is Shifting
• Neutral Sentiment: Sector tailwinds: Drone‑focused ETFs and broader defense demand (Middle East tensions, hypersonics interest) are lifting investor interest in UAV/hypersonic suppliers, a contextual positive that doesn’t guarantee company‑specific upside. Beyond Defense: Drone ETFs Flying High Amid the Middle East Crisis
• Negative Sentiment: Concentrated insider selling: Several officers and a director executed sizable share sales in mid‑March (including a VP, SVP and a director), which likely amplified near‑term selling pressure and signaled liquidity‑taking. Kratos Defense Insider Buying and Selling
• Negative Sentiment: Reported operational/partner issue: Coverage flagged “bad news from Red Cat” as a proximate cause for an intraday drop, suggesting partner/program noise that may concern short‑term traders. Why Kratos Defense Stock Dropped Today
• Negative Sentiment: Valuation risk: KTOS trades at a premium multiple; any execution miss, slower contract conversion, or weaker guidance could produce outsized downside versus peers.

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc (NASDAQ: KTOS) is a technology-driven company that specializes in national security and defense solutions for government and military customers. The firm’s core capabilities span unmanned systems, satellite communications, missile defense, cyber security, and directed-energy weapons. Through its integrated approach, Kratos delivers mission-critical products and services designed to enhance operational readiness and support force modernization initiatives.

In the unmanned systems arena, Kratos develops high-performance aerial platforms used as target drones, low-cost attritable aircraft and experimental stealth demonstrators.