Kratos Defense & Security Solutions Expectations for 2026

Kratos Defense & Sec...

NasdaqGS:KTOS

$ 62,27

$-3,25 (-4,96%)

62,27 $

$-3,25 (-4,96%)

Real-time: 04/24/2026 13:30

Kratos Defense & Security Solutions Stock Value

The analyst rating for NasdaqGS:KTOS is currently Outperform.

Outperform

Kratos Defense & Security Solutions Company Info

EPS Growth 5Y

7,58%

Market Cap

$12,28 B

Long-Term Debt

$0,18 B

Short Interest

2,43%

Quarterly earnings

05/07/2026

Dividend

$0,00

Dividend Yield

0,00%

Founded

1994

Industry

Industrials

Country

United States

ISIN Number

US50077B2079

Website

http://www.kratosdefense.com

Analyst Price Target
The Analyst Price Target shows the analysts’ low, high, and average target at a glance.

$115,00

75.52%

Last Update: 04/24/2026

Analysts: 20

Highest Price Target $150,00

Average Price Target $115,00

Lowest Price Target $80,00

In the last five quarters, Kratos Defense & Security Solutions’s Price Target has risen from $7,21 to $32,27 - a 347,57% increase. Seventeen analysts predict that Kratos Defense & Security Solutions’s share price will increase in the coming year, reaching $115,00. This would represent an increase of 75,52%.

Top growth stocks in the industrials sector (5Y.)

What does Kratos Defense & Security Solutions do?

Kratos Defense & Security Solutions, Inc. (‘Kratos’) operates as a technology, hardware, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital, and other investments, to rapidly develop, produce, and field systems and solutions that address its customers’ and partners’ mission-critical needs and requirements. The company intends to partner and team with a large, traditional syst...

Kratos Defense & Security Solutions, Inc. (‘Kratos’) operates as a technology, hardware, products, system and software company addressing the defense, national security, and commercial markets.

Kratos makes true internally funded research, development, capital, and other investments, to rapidly develop, produce, and field systems and solutions that address its customers’ and partners’ mission-critical needs and requirements. The company intends to partner and team with a large, traditional system integrator when its assessment of probability of win is greater, or required investment is beyond Kratos' comfort level. Kratos’ primary business areas include virtualized ground systems for satellites and space vehicles, including software for command and control (C2) and telemetry, tracking, and control (TT&C), space domain awareness, jet-powered unmanned aerial drone systems, hypersonic vehicles, and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, spacecraft and launch systems, command, control, communication, computing, combat, intelligence surveillance, and reconnaissance (C5ISR), and microwave electronic products for missile, radar, air defense, missile defense, space, satellite, counter unmanned aircraft systems (CUAS), directed energy, communication, and other systems, and virtual and augmented reality training systems for the warfighter.

Kratos is the primary provider of jet target drone systems to the USN, with the BQM-177, the USAF with the BQM-167, and the U.S. Army with the MQM-178. In addition to the United States Armed Services, Kratos sells its target drones to numerous allied countries globally. Kratos is currently under contract with a U.S. Government Agency for a Next Generation Target Drone (5GAT). Kratos is in sole-source production year 20 for the BQM-167 with the USAF, sole-source production year 7 with the USN for BQM-177, and single-source production year 12, with the U.S. Army for MQM-178.

Kratos also provides the Kratos Mako high-performance jet-powered tactical unmanned drone, which flew manned/unmanned teaming missions with a USMC manned fighter aircraft in 2015. Kratos’ Fifth Generation Stealth Valkyrie tactical drone systems have flown with the USAF and USMC, are under contract with the USMC, and are currently involved with the USMC project Eagle. Other Kratos jet-powered tactical drones flying today include Thanatos, Apollo, Athena, and Air Wolf, each of which is currently under a customer-funded contract. Kratos’ tactical drones are recognized for their extreme high performance, low cost, and ability to be rapidly fielded. The new Trump Administration, the new Secretary of Defense, and other Trump Administration leadership have indicated their support and the potential for increased future funding for unmanned aerial drone systems and related autonomy and artificial intelligence systems.

Kratos is also a recognized industry leader in low-cost hypersonic flight vehicles, ballistic missile targets, and other systems. Over the past few years, Kratos has been in development on a new solid rocket motor system, Zeus (Zeus 1 and Zeus 2), and related hypersonic flight vehicle systems, including Erinyes and Dark Fury, each of which Kratos has made significant internally funded investments for rapid development, fielding, and a first-to-market position. In November 2024, Kratos announced that Zeus 1 and Zeus 2 SRMs had completed their first successful flight on October 24, 2024, from the NASA Wallops Flight Facility in Virginia under a customer-funded mission. In June 2024, Kratos announced the successful launch and flight of the Kratos Erinyes hypersonic flyer, also under a customer-funded mission. The exercise, designated Hypersonic Test Bed-1 (HTB-1), demonstrated hypersonic flight that enabled the collection of data for multiple experiments to be provided to test teams for design and evaluation of new technologies. In February 2025, Kratos announced the second successful flight of the Erinyes Hypersonic flight system in conjunction with its government customers.

Kratos is a recognized industry leader in the rapid development of low-cost jet engines for missiles, drones, and other systems. Kratos’ engine and propulsion teams are also recognized as industry leaders in the design, engineering, and development of hypersonic, space, and supersonic propulsion systems, including Kratos being the engine development lead for Boom Supersonics (Concorde commercial supersonic jet replacement) Overture’s aircraft engines, the Symphony.

Segments

The company currently operates in two reportable segments.

The Kratos Government Solutions (‘KGS’) reportable segment consists of an aggregation of KGS operating segments, including its microwave electronic products, space, satellite, and cyber, training solutions, C5ISR/modular systems, turbine technologies, and defense and rocket support services operating segments.

The Unmanned Systems (‘US’) reportable segment consists of an aggregation of US operating segments, including its unmanned aerial, unmanned ground, unmanned seaborne, and related command, control, and communications system businesses.

The company organizes its operating segments based primarily on the nature of the products, solutions, and services offered. Transactions between segments are negotiated and accounted for under terms and conditions similar to other government and commercial contracts, and these intercompany transactions are eliminated in consolidation.

Strategy

The company’s strategy is to be a leading technology, hardware, systems, software, and products provider to the defense, national security, and relevant commercial and related global markets, and to disrupt its market focus areas by being first to market with internally funded and developed offerings, engineered and designed to be mass-produced at an affordable cost. In executing the company’s strategy, Kratos primarily seeks to utilize proven technology, which it modifies, adopts, changes, integrates, and applies to address market opportunities that it identifies jointly with its customers and with its partners. This approach allows the company to rapidly develop and field relevant offerings while reducing technical, schedule, and financial risk.

Customers

A representative list of government customers in the company’s KGS and US segments during 2024 included the U.S. Air Force, the U.S. Army, the U.S. Navy, the U.S. Marines, Missile Defense Agency, Space Command, Space Force, NASA, the AFRL, foreign military sales (‘FMS’), the U.S. Southern Command, STRATCOM, the SCO, DIU or DIUx, the Rapid Capabilities Offices, the U.S. intelligence community, DARPA, Office of the Secretary of Defense (OSD), and certain confidential customers. A representative list of non-government customers during 2024 included tier one, large U.S. Government contractors and system integrators, such as Northrop Grumman, Lockheed Martin, General Dynamics, Raytheon Technologies, BAE Systems, and L3Harris, as well as Intelsat, Blue Halo, Microsoft, Amazon, Siemens, Rolls Royce, Boom, GE Aerospace, and others.

Revenue from the U.S. Government (which includes FMS) includes revenue from contracts for which the company is the prime contractor as well as those for which it is a subcontractor and the ultimate customer is the U.S. Government.

Research and Development

The company’s research and development expenses were $40.3 million in 2024.

Government Regulation

The company is subject to various government regulations, including various U.S. Government regulations as a contractor and subcontractor to the agencies of the U.S. Government. Among the most significant U.S. Government regulations affecting the company’s business are:

The Federal Acquisition Regulations and supplemental agency regulations, which comprehensively regulate the formation, administration, and performance under government contracts;

The Truthful Cost or Pricing Data Statute (formerly the Truth in Negotiations Act), which requires certification and disclosure of all cost and pricing data in connection with contract negotiations;

The Cost Accounting Standards, which impose accounting requirements that govern the company’s right to reimbursement under cost-based government contracts;

The Industrial Security Manual, which establishes the security guidelines for classified programs and facilities, as well as individual security clearances;

The Foreign Corrupt Practices Act, which prohibits U.S. companies from providing anything of value to a foreign official to help obtain, retain, or direct business, or obtain any unfair advantages;

The False Claims Act and the False Statements Act, which, respectively, impose penalties for payments made on the basis of false facts provided to the government and impose penalties on the basis of false statements, even if they do not result in a payment; and

Laws, regulations, and executive orders restricting the use and dissemination of information classified for National Security purposes, and the exportation of certain products and technical data.

Certain aspects of the company’s business are subject to further regulation by additional U.S. government authorities, including the Federal Aviation Administration, which regulates airspace for all air vehicles in the U.S. National Airspace System, the National Telecommunications and Information Administration, and the Federal Communications Commission, which regulate the wireless communications upon which the company’s UAS business depends in the United States, and the Defense Trade Controls of the U.S. Department of State that administer the International Traffic in Arms Regulations, which regulate the export of controlled technical data, defense articles, and defense services.

History

Kratos Defense & Security Solutions, Inc. was incorporated in the state of New York in 1994. It was reincorporated in the state of Delaware in 1998.

Kratos Defense & Security Solutions Questions and Answers

Which sectors generate sales and which are the top 3 markets?

**Revenue distribution by sectors:** - Unmanned systems: 40% - Communication solutions: 30% - Rocket and space systems: 20% - Other defense solutions: 10% **TOP 3 markets and their percentage shares:** - USA: 60% - Europe: 20% - Middle East: 15% Kratos Defense & Security Solutions, Inc. genera...

At which locations are the company’s products manufactured?

**Production Sites of Kratos Defense & Security Solutions, Inc.:** Kratos Defense & Security Solutions, Inc. mainly produces its products in the USA. The most significant production sites include: - **San Diego, California:** Headquarters and important location for research and development...

What strategy does Kratos Defense & Security Solutions pursue for future growth?

**Strategy for Future Growth:** 1. **Focus on Unmanned Systems:** Kratos Defense & Security Solutions is increasingly focusing on the development and deployment of unmanned aerial systems (UAS) to meet the growing demand in the defense industry. These systems are crucial for modern military ope...

Which raw materials are imported and from which countries?

**Main materials:** High-performance metals, composite materials, electronic components **Countries of origin:** USA, China, Germany, Japan Kratos Defense & Security Solutions, Inc. is a company specializing in defense and security solutions. The production of their products requires a variety...

How strong is the company’s competitive advantage?

**Market Share:** Estimated 5-7% in the field of unmanned systems (2025) **Research & Development:** 10% of revenue (2024) **Contract Volume:** $1.2 billion (2024) Kratos Defense & Security Solutions, Inc. has established itself as a significant player in the field of defense and securi...

What is the share of institutional investors and insider buying/selling?

**Institutional Investor Share:** 85% (Estimated 2025) **Insider Buys/Sells:** No significant insider transactions in the last year (2024) The institutional investor share in Kratos Defense & Security Solutions, Inc. is estimated to be 85%. This demonstrates the confidence of large investment...

What percentage market share does Kratos Defense & Security Solutions have?

**Market share of Kratos Defense & Security Solutions, Inc.:** Estimated 2-3% (2025) **Top competitors and their market share:** 1. **Lockheed Martin Corporation:** 15-20% 2. **Raytheon Technologies Corporation:** 12-15% 3. **Northrop Grumman Corporation:** 10-12% 4. **General Dynamics Corporat...

Is Kratos Defense & Security Solutions stock currently a good investment?

**Revenue Growth:** 10% (estimated for 2025) **Profit Growth:** 8% (estimated for 2025) **R&D Expenses:** 20% of revenue (2024) Kratos Defense & Security Solutions, Inc. has shown solid revenue growth of around 10% annually in recent years, driven by increasing demand for defense technologi...

Does Kratos Defense & Security Solutions pay a dividend – and how reliable is the payout?

**Dividend:** No payout (as of 2023) Kratos Defense & Security Solutions, Inc. has not paid any dividends in recent years. Instead, the company focuses on growth and reinvestment in its business segments, particularly in the areas of unmanned systems and satellite communication. Kratos' s...

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Kratos Defense & Security Solutions Stock Value

Kratos Defense & Security Solutions Company Info

Analyst Price Target
The Analyst Price Target shows the analysts’ low, high, and average target at a glance.

Top growth stocks in the industrials sector (5Y.)

What does Kratos Defense & Security Solutions do?

Kratos Defense & Security Solutions Questions and Answers

Offer & Services

Service & Collaboration

Company & Legal

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Explore

Kratos Defense & Security Solutions Stock Value

Kratos Defense & Security Solutions Company Info

Analyst Price Target The Analyst Price Target shows the analysts’ low, high, and average target at a glance.

Top growth stocks in the industrials sector (5Y.)

What does Kratos Defense & Security Solutions do?

Kratos Defense & Security Solutions Questions and Answers

Offer & Services

Service & Collaboration

Company & Legal

Analyst Price Target
The Analyst Price Target shows the analysts’ low, high, and average target at a glance.