Kratos Defense's second quarter revenue surged 30.5% to $458.8 million, prompting a raised full-year 2026 outlook.

Kratos Defense & Security Solutions reported second quarter 2026 revenue of $458.8 million, a 30.5% increase year-over-year, driven by strong organic growth of 19.1%. The company posted a GAAP EPS of $0.02, consistent with the prior-year quarter, while adjusted EPS nearly doubled to $0.21. Citing strong performance and increasing demand, Kratos raised its full-year revenue guidance.

Key Highlights

• The Kratos Government Solutions (KGS) segment was the primary growth driver, with revenues increasing 36.4% to $379.7 million, reflecting strong performance in its Defense Rocket Systems business which grew 50.2%.
• The Unmanned Systems (KUS) segment reported revenue of $79.1 million, an 8.1% increase, primarily driven by Valkyrie-related activity.
• Kratos raised its full-year 2026 revenue guidance to a range of $1.750 billion to $1.810 billion and reported a consolidated book-to-bill ratio of 1.1 to 1.0 for the quarter.