Equity Profile

KTOS

Kratos Defense & Security Solutions, Inc.

IndustrialsAerospace & Defense$11.0B

Aug6Thu

Pre-Earnings Brief

UpcomingQ2-2026After Close5:00 PM EDT

Company Snapshot

Kratos Defense & Security Solutions, Inc. (KTOS) operates in the aerospace and defense sector, focusing on advanced technology solutions for national security....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of profitability and will show how well the company is managing its costs and generating income.

N/A

Revenue Growth

Revenue growth is essential for assessing the company's ability to expand its market presence and meet increasing demand for defense solutions.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

KTOS Q2-2026 Earnings Preview

Context

Company Snapshot

Kratos Defense & Security Solutions, Inc. (KTOS) operates in the aerospace and defense sector, focusing on advanced technology solutions for national security. With a market cap of $11 billion, the company plays a crucial role in providing innovative defense systems and services, which are increasingly important in today's geopolitical landscape.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+133.66%

Avg Stock Reaction

-0.40%

Last Quarter Recap

In Q1-2026, Kratos reported an EPS of $0.16, significantly beating expectations of $0.08, marking a 100% surprise. The stock rose by 3.73% the following day, reflecting positive investor sentiment.

Management Promises & Guidance

Focus on expanding defense technology offerings.
Commitment to improving operational efficiency.
Plans to enhance customer relationships and secure new contracts.

Expectations

Wall Street Expectations

Investors are cautiously optimistic about Kratos' upcoming earnings, given its strong track record of beating EPS estimates. However, concerns linger about revenue growth and contract acquisition in a competitive environment.

Bull Case

If Kratos continues its trend of beating EPS estimates and demonstrates strong revenue growth, it could solidify investor confidence and drive the stock higher.

Bear Case

On the other hand, if the company fails to meet expectations for revenue growth or shows signs of losing contracts, it could lead to a significant decline in stock price.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the expected EPS for Q2-2026, and how does it compare to previous quarters?

Given the company's history of beating EPS estimates, this figure will be crucial for investor sentiment and stock movement.

How many new defense contracts has Kratos secured in the last quarter?

This will indicate the company's growth potential and ability to compete in the defense sector, which is vital for future revenue.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate Kratos' ability to secure new contracts, especially given recent geopolitical tensions that could drive demand for defense solutions.

Supporting Evidence

Kratos has consistently beaten EPS estimates, suggesting stronger operational performance than anticipated.

The options market is pricing in a significant move, indicating that investors expect a surprise.

Recent insider selling could indicate a strategic shift rather than a lack of confidence in the company's future.

Key Risk

If the number of new contracts secured exceeds expectations, it could lead to a significant upward revision in revenue forecasts.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance hinges on the balance between profitability and contract acquisition, both of which are critical for sustaining growth.

Bull Confirmed If

An EPS of $0.20 or higher would confirm the bull case, indicating strong profitability.

Bear Confirmed If

An EPS below $0.10 would confirm the bear case, suggesting potential issues in revenue generation.

Pre-Earnings Positioning

Options Market

Implied Move

±30.74%

Historical Avg

±1.4%

Pricing rich

The options market is pricing in a substantial move, indicating that investors expect significant volatility around the earnings announcement.

Options are pricing ±30.7% while KTOS has averaged ±1.4% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.8%

30d HV

71.5%

Calls (2.6M)P/C Ratio: 0.46Puts (548K)

Edge

Insider Activity

Open-market trades by officers, directors, and 10%+ holders over the trailing 90 days.

Bought

$0.00

0 sh

0 insiders

Sold

$1.0M

13,417 sh

3 insiders

Net

$1.0M

Net selling

Most Active Insiders· 5 open-market trades

President, STC DivisionCarrai Phillip D
$485,692.65
Net selling

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Kratos beats expectations and raises guidance, history suggests the stock could rise by around 1.39% on the first day.

In-Line / Cautious

If results are in line with expectations but management's commentary is cautious, the stock may see little movement or a slight decline.

Miss

If the company misses expectations, history suggests an average decline of around 0.40% on the first day.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Details on new defense contracts secured in the last quarter.
2Management's outlook on revenue growth for the upcoming quarters.
3Any updates on operational efficiency improvements.
4Insights into competitive positioning in the defense sector.
5Discussion on geopolitical factors affecting defense spending.

See the full picture

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Company Snapshot

Kratos Defense & Security Solutions, Inc. (KTOS) operates in the aerospace and defense sector, focusing on advanced technology solutions for national security....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of profitability and will show how well the company is managing its costs and generating income.

N/A

Revenue Growth

Revenue growth is essential for assessing the company's ability to expand its market presence and meet increasing demand for defense solutions.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

KTOS Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+133.66%

Avg Stock Reaction

-0.40%

Last Quarter Recap

In Q1-2026, Kratos reported an EPS of $0.16, significantly beating expectations of $0.08, marking a 100% surprise. The stock rose by 3.73% the following day, reflecting positive investor sentiment.

Management Promises & Guidance

Focus on expanding defense technology offerings.
Commitment to improving operational efficiency.
Plans to enhance customer relationships and secure new contracts.

Expectations

Wall Street Expectations

Bull Case

If Kratos continues its trend of beating EPS estimates and demonstrates strong revenue growth, it could solidify investor confidence and drive the stock higher.

Bear Case

On the other hand, if the company fails to meet expectations for revenue growth or shows signs of losing contracts, it could lead to a significant decline in stock price.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the expected EPS for Q2-2026, and how does it compare to previous quarters?

Given the company's history of beating EPS estimates, this figure will be crucial for investor sentiment and stock movement.

How many new defense contracts has Kratos secured in the last quarter?

This will indicate the company's growth potential and ability to compete in the defense sector, which is vital for future revenue.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate Kratos' ability to secure new contracts, especially given recent geopolitical tensions that could drive demand for defense solutions.

Supporting Evidence

Kratos has consistently beaten EPS estimates, suggesting stronger operational performance than anticipated.

The options market is pricing in a significant move, indicating that investors expect a surprise.

Recent insider selling could indicate a strategic shift rather than a lack of confidence in the company's future.

Key Risk

If the number of new contracts secured exceeds expectations, it could lead to a significant upward revision in revenue forecasts.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance hinges on the balance between profitability and contract acquisition, both of which are critical for sustaining growth.

Bull Confirmed If

An EPS of $0.20 or higher would confirm the bull case, indicating strong profitability.

Bear Confirmed If

An EPS below $0.10 would confirm the bear case, suggesting potential issues in revenue generation.

Pre-Earnings Positioning

Options Market

Implied Move

±30.74%

Historical Avg

±1.4%

Pricing rich

The options market is pricing in a substantial move, indicating that investors expect significant volatility around the earnings announcement.

Options are pricing ±30.7% while KTOS has averaged ±1.4% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.8%

30d HV

71.5%

Calls (2.6M)P/C Ratio: 0.46Puts (548K)

Edge

Insider Activity

Open-market trades by officers, directors, and 10%+ holders over the trailing 90 days.

Bought

$0.00

0 sh

0 insiders

Sold

$1.0M

13,417 sh

3 insiders

Net

$1.0M

Net selling

Most Active Insiders· 5 open-market trades

President, STC DivisionCarrai Phillip D
$485,692.65
Net selling

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Kratos beats expectations and raises guidance, history suggests the stock could rise by around 1.39% on the first day.

In-Line / Cautious

If results are in line with expectations but management's commentary is cautious, the stock may see little movement or a slight decline.

Miss

If the company misses expectations, history suggests an average decline of around 0.40% on the first day.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Details on new defense contracts secured in the last quarter.
2Management's outlook on revenue growth for the upcoming quarters.
3Any updates on operational efficiency improvements.
4Insights into competitive positioning in the defense sector.
5Discussion on geopolitical factors affecting defense spending.