Kratos Raises Revenue Outlook After Strong Quarter
The defense technology company reported third-quarter 2026 results and lifted its full-year revenue forecast.
Updated on Nov. 5, 2026 in Corporate Finance
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Kratos Defense & Security reported third-quarter 2026 revenue of $471.80 million, up 35.7% year over year, and adjusted earnings of 24 cents per share. The company raised its full-year 2026 revenue outlook to $1.78 billion to $1.81 billion.
Why it matters
The results point to sustained demand in the defense technology sector, with a consolidated backlog of $2.65 billion providing revenue visibility. The raised outlook signals management confidence in continued growth.
Kratos reported third-quarter revenue of $471.80 million, up 35.7% from a year earlier, with a consolidated backlog of $2.65 billion and a bid and proposal pipeline of $15.5 billion. The source does not explain which contracts make up the backlog or how the pipeline will convert.
The players
Kratos Defense & Security Solutions
A San Diego-based defense technology company that builds unmanned systems, space and satellite hardware, and training and cybersecurity products for government and military customers.
The details
Kratos reported results after the close of trading on Thursday, November 5, 2026, and discussed them on an earnings call starting at 5 p.m. ET. The company guided fourth-quarter revenue to $480 million to $510 million and fiscal 2027 revenue to $2.1 billion to $2.2 billion, with adjusted EBITDA of $230 million to $240 million.
Timeline
Thursday, November 5, 2026: Kratos reports Q3 results after market close.
Thursday, November 5, 2026, 5 p.m. ET: Earnings call begins.
Fourth quarter 2026: Expected revenue of $480 million to $510 million.
Fiscal 2027: Guided revenue of $2.1 billion to $2.2 billion.
Corporate Finance Context
Kratos's 35.7% revenue growth fits a pattern of defense technology firms benefiting from sustained U.S. military procurement of unmanned and autonomous systems. The company's $15.5 billion pipeline suggests that trend is still building rather than leveling off.
Investors tracking defense stocks may weigh Kratos's raised outlook against its after-hours share decline of 4.31%, with shares trading at $31.95 at publication. The company's $1.40 billion cash position gives it flexibility, but the source does not say how that cash will be deployed.
The takeaway
Strong backlog and a raised outlook show how revenue visibility can shape investor expectations for defense contractors. Readers can track whether guided fourth-quarter results match the company's projections.
What happens next
Kratos has guided fiscal 2027 revenue of $2.1 billion to $2.2 billion, and the fourth-quarter 2026 results will test whether the $480 million to $510 million range is met.
Further reading
Explore more Corporate Finance coverage for how companies report earnings and guide future revenue.
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