Kratos Defense & Security Solutions 3Q 2026: Revenue $471.8M, EPS ($0.00) — 10-Q Summary
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Kratos’ revenue rose 35.7% year over year, while it swung to a net loss from net income. Growth in KGS, including contributions from the Nomad and Orbit acquisitions, was partly offset by lower Unmanned Systems revenue; higher acquisition costs, stock compensation and labor and material costs weighed on results.
Financial Highlights
| Metric | Current quarter | Prior year quarter | YoY change |
| Revenue¹ | $471.8M | $347.6M | 35.7% |
| Net income² | ($200K) | $8.7M | (102.3%) |
| Diluted EPS³ | ($0.00) | $0.05 | (100%) |
¹ Reported as “Total revenues”. ² Reported as “Net income (loss)”. ³ Reported as “Diluted income per common share”.
Business Highlights
- KGS growth: Revenue increased $136.8 million, driven by hypersonic systems and growth in turbine technologies, microwave products, space and training, plus Nomad and Orbit.
- Unmanned Systems: Revenue declined $12.6 million; the prior-year quarter included a $16.1 million Valkyrie aircraft shipment to an international customer.
- Margins: Gross margin increased to 22.5% from 22.2%; KGS margin fell to 22.9% from 23.9%, while US margin rose to 20.0% from 17.0%.
- Backlog: Total backlog was approximately $2.650 billion at September 27, 2026, of which $2.067 billion was funded.
Original SEC Filing: KRATOS DEFENSE & SECURITY SOLUTIONS, INC. [ KTOS ] - 10-Q - Nov. 05, 2026
This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.