Noble Financial Issues Negative Outlook for KTOS Earnings

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) – Stock analysts at Noble Financial cut their Q1 2026 EPS estimates for Kratos Defense & Security Solutions in a report released on Thursday, February 26th. Noble Financial analyst J. Gomes now anticipates that the aerospace company will earn $0.09 per share for the quarter, down from their previous estimate of $0.10. Noble Financial currently has a “Outperform” rating on the stock. The consensus estimate for Kratos Defense & Security Solutions’ current full-year earnings is $0.31 per share. Noble Financial also issued estimates for Kratos Defense & Security Solutions’ Q2 2026 earnings at $0.10 EPS.

A number of other equities analysts have also recently issued reports on the company. KeyCorp increased their target price on Kratos Defense & Security Solutions from $90.00 to $130.00 and gave the stock an “overweight” rating in a report on Wednesday, January 28th. JonesTrading initiated coverage on shares of Kratos Defense & Security Solutions in a research note on Monday, January 5th. They issued a “buy” rating on the stock. Citizens Jmp lifted their price objective on shares of Kratos Defense & Security Solutions from $105.00 to $125.00 and gave the company a “market outperform” rating in a report on Monday, January 12th. BNP Paribas Exane set a $80.00 target price on shares of Kratos Defense & Security Solutions in a research report on Tuesday, November 18th. Finally, Jefferies Financial Group reaffirmed a “hold” rating and issued a $85.00 price target on shares of Kratos Defense & Security Solutions in a research report on Thursday, November 6th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $98.28.

Kratos Defense & Security Solutions Trading Down 6.5%

Shares of Kratos Defense & Security Solutions stock opened at $86.18 on Friday. The stock has a market capitalization of $14.68 billion, a PE ratio of 662.97 and a beta of 1.09. Kratos Defense & Security Solutions has a 52 week low of $25.11 and a 52 week high of $134.00. The stock has a 50 day moving average price of $98.13 and a two-hundred day moving average price of $85.06. The company has a debt-to-equity ratio of 0.05, a quick ratio of 3.68 and a current ratio of 4.06.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last issued its earnings results on Monday, February 23rd. The aerospace company reported $0.18 EPS for the quarter, beating analysts’ consensus estimates 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 business had revenue of $345.10 million during the quarter, compared to analyst estimates of $327.51 million. During the same period in the previous year, the company posted $0.13 EPS. The firm’s revenue was up 21.9% compared to the same quarter last year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Amalgamated Bank increased its stake in shares of Kratos Defense & Security Solutions by 57.7% in the third quarter. Amalgamated Bank now owns 73,673 shares of the aerospace company’s stock worth $6,732,000 after purchasing an additional 26,946 shares in the last quarter. Mission Wealth Management LP purchased a new stake in shares of Kratos Defense & Security Solutions during the 3rd quarter valued at approximately $1,828,000. Baillie Gifford & Co. bought a new position in Kratos Defense & Security Solutions in the 3rd quarter worth approximately $19,048,000. WCM Investment Management LLC bought a new position in Kratos Defense & Security Solutions in the 3rd quarter worth approximately $17,922,000. Finally, New York State Teachers Retirement System grew its stake in Kratos Defense & Security Solutions by 59.4% in the 3rd quarter. New York State Teachers Retirement System now owns 108,525 shares of the aerospace company’s stock valued at $9,916,000 after buying an additional 40,440 shares in the last quarter. 75.92% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other news, CEO Eric M. Demarco sold 200,000 shares of the business’s stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $74.09, for a total value of $14,818,000.00. Following the transaction, the chief executive officer owned 1,196,237 shares in the company, valued at $88,629,199.33. The trade was a 14.32% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Scott I. Anderson sold 15,401 shares of Kratos Defense & Security Solutions stock in a transaction on Monday, December 15th. The stock was sold at an average price of $74.51, for a total value of $1,147,528.51. Following the sale, the director owned 66,334 shares in the company, valued at $4,942,546.34. The trade was a 18.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 897,907 shares of company stock worth $74,113,293. Corporate insiders own 2.37% of the company’s stock.

Kratos Defense & Security Solutions News Roundup

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

• Positive Sentiment: Kratos won a $61.1M Navy contract modification for full‑rate production of 70 BQM‑177A subsonic aerial targets — adds near‑term funded revenue and supports production momentum. Kratos Navy Contract
• Positive Sentiment: Kratos completed the Critical Design Review (CDR) for the Space Development Agency’s Advanced Fire Control Ground Infrastructure (AFCGI), de‑risking integration milestones on a major space/ground program and supporting future revenue recognition. CDR Completion
• Positive Sentiment: BTIG raised its price target on KTOS to $115, signaling increased analyst optimism tied to program wins and positioning in unmanned/space markets. BTIG Price Target Raise
• Neutral Sentiment: Kratos reported a Q4 beat (revenue +21.9% YoY, EPS above expectations) and a larger backlog — fundamental positives, but largely anticipated and insufficient to offset near‑term concerns. Q4 Results
• Negative Sentiment: The company priced an underwritten offering of 14,285,714 shares at $84.00 to raise roughly $1.17B (with a 30‑day option), all shares sold by Kratos — a primary offering that increases share count and sparked dilution concerns. The offering is expected to close March 2, 2026. Offering Priced
• Negative Sentiment: Noble Financial reduced its Q1 and Q2 2026 EPS estimates for Kratos (Q1 to $0.09, Q2 to $0.10), signaling near‑term earnings pressure despite an Outperform rating — analyst downgrades or cuts tend to pressure sentiment. Noble Financial Estimates
• Negative Sentiment: After‑hours weakness followed management’s softer Q1 guidance and commentary about cash burn (inventory/production ramps), which overshadowed the Q4 beat and likely triggered short‑term profit taking. After‑hours Fall Explanation
• Negative Sentiment: An insider sold 7,000 shares last week (disclosed SEC filing) — not large versus total holdings but a headline that can add selling pressure. Insider Sale Filing
• Negative Sentiment: Valuation remains a concern (very high P/E multiples), leaving KTOS vulnerable to pullbacks if guidance or cash‑flow timing disappoints. Valuation Concerns

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.