Noble Financial Brokers Reduce Earnings Estimates for KTOS

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) – Noble Financial decreased their Q3 2026 earnings per share (EPS) estimates for shares of Kratos Defense & Security Solutions in a report released on Thursday, February 26th. Noble Financial analyst J. Gomes now anticipates that the aerospace company will post earnings of $0.14 per share for the quarter, down from their prior forecast of $0.15. Noble Financial has a “Outperform” rating on the stock. The consensus estimate for Kratos Defense & Security Solutions’ current full-year earnings is $0.31 per share. Noble Financial also issued estimates for Kratos Defense & Security Solutions’ Q4 2026 earnings at $0.22 EPS, FY2026 earnings at $0.55 EPS and FY2027 earnings at $0.69 EPS.

A number of other brokerages also recently commented on KTOS. Jefferies Financial Group restated a “hold” rating and issued a $85.00 target price on shares of Kratos Defense & Security Solutions in a research note on Thursday, November 6th. The Goldman Sachs Group increased their price objective on Kratos Defense & Security Solutions from $93.00 to $125.00 and gave the stock a “buy” rating in a research note on Tuesday, January 20th. KeyCorp lifted their target price on Kratos Defense & Security Solutions from $90.00 to $130.00 and gave the company an “overweight” rating in a research report on Wednesday, January 28th. Citigroup reissued a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research report on Tuesday, February 24th. Finally, Piper Sandler started coverage on Kratos Defense & Security Solutions in a research note on Wednesday, January 21st. They set a “neutral” rating and a $99.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $98.28.

Kratos Defense & Security Solutions Trading Down 6.5%

KTOS stock opened at $86.18 on Monday. Kratos Defense & Security Solutions has a 12 month low of $25.11 and a 12 month high of $134.00. The firm’s 50-day moving average is $98.13 and its 200 day moving average is $85.28. The company has a market capitalization of $14.68 billion, a PE ratio of 662.97 and a beta of 1.12. The company has a debt-to-equity ratio of 0.05, a current ratio of 4.06 and a quick ratio of 3.46.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last released its earnings results on Monday, February 23rd. The aerospace company reported $0.18 earnings per share for the quarter, topping analysts’ consensus estimates of $0.14 by $0.04. The business had revenue of $345.10 million for the quarter, compared to analyst estimates of $327.51 million. Kratos Defense & Security Solutions had a return on equity of 3.34% and a net margin of 1.63%.The business’s revenue was up 21.9% compared to the same quarter last year. During the same quarter last year, the firm posted $0.13 earnings per share.

Insiders Place Their Bets

In other news, CEO Eric M. Demarco sold 200,000 shares of the business’s stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $80.53, for a total value of $16,106,000.00. Following the completion of the transaction, the chief executive officer directly owned 796,237 shares of the company’s stock, valued at approximately $64,120,965.61. The trade was a 20.08% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Scott I. Anderson sold 15,401 shares of the company’s stock in a transaction on Monday, December 15th. The stock was sold at an average price of $74.51, for a total value of $1,147,528.51. Following the sale, the director owned 66,334 shares of the company’s stock, valued at $4,942,546.34. This trade represents a 18.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 582,907 shares of company stock worth $50,754,943. Insiders own 2.37% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the company. Amalgamated Bank increased its stake in shares of Kratos Defense & Security Solutions by 57.7% in the 3rd quarter. Amalgamated Bank now owns 73,673 shares of the aerospace company’s stock worth $6,732,000 after acquiring an additional 26,946 shares during the last quarter. Mission Wealth Management LP purchased a new stake in shares of Kratos Defense & Security Solutions in the third quarter valued at about $1,828,000. Baillie Gifford & Co. acquired a new stake in Kratos Defense & Security Solutions during the third quarter worth about $19,048,000. WCM Investment Management LLC purchased a new position in Kratos Defense & Security Solutions during the third quarter worth about $17,922,000. Finally, New York State Teachers Retirement System boosted its holdings in Kratos Defense & Security Solutions by 59.4% in the 3rd quarter. New York State Teachers Retirement System now owns 108,525 shares of the aerospace company’s stock valued at $9,916,000 after purchasing an additional 40,440 shares during the last quarter. Institutional investors own 75.92% of the company’s stock.

Kratos Defense & Security Solutions News Roundup

Here are the key news stories impacting Kratos Defense & Security Solutions this week:

• Positive Sentiment: Kratos won a $61.1M Navy contract modification for full‑rate production of 70 BQM‑177A subsonic aerial targets — adds near‑term funded revenue and supports production momentum. Kratos Navy Contract
• Positive Sentiment: Kratos completed the Critical Design Review (CDR) for the Space Development Agency’s Advanced Fire Control Ground Infrastructure (AFCGI), de‑risking integration milestones on a major space/ground program and supporting future revenue recognition. CDR Completion
• Positive Sentiment: BTIG raised its price target on KTOS to $115, signaling increased analyst optimism tied to program wins and positioning in unmanned/space markets. BTIG Price Target Raise
• Neutral Sentiment: Kratos reported a Q4 beat (revenue +21.9% YoY, EPS above expectations) and a larger backlog — fundamental positives, but largely anticipated and insufficient to offset near‑term concerns. Q4 Results
• Negative Sentiment: The company priced an underwritten offering of 14,285,714 shares at $84.00 to raise roughly $1.17B (with a 30‑day option), all shares sold by Kratos — a primary offering that increases share count and sparked dilution concerns. The offering is expected to close March 2, 2026. Offering Priced
• Negative Sentiment: Noble Financial reduced its Q1 and Q2 2026 EPS estimates for Kratos (Q1 to $0.09, Q2 to $0.10), signaling near‑term earnings pressure despite an Outperform rating — analyst downgrades or cuts tend to pressure sentiment. Noble Financial Estimates
• Negative Sentiment: After‑hours weakness followed management’s softer Q1 guidance and commentary about cash burn (inventory/production ramps), which overshadowed the Q4 beat and likely triggered short‑term profit taking. After‑hours Fall Explanation
• Negative Sentiment: An insider sold 7,000 shares last week (disclosed SEC filing) — not large versus total holdings but a headline that can add selling pressure. Insider Sale Filing
• Negative Sentiment: Valuation remains a concern (very high P/E multiples), leaving KTOS vulnerable to pullbacks if guidance or cash‑flow timing disappoints. Valuation Concerns

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc (NASDAQ: KTOS) is a technology-driven company that specializes in national security and defense solutions for government and military customers. The firm’s core capabilities span unmanned systems, satellite communications, missile defense, cyber security, and directed-energy weapons. Through its integrated approach, Kratos delivers mission-critical products and services designed to enhance operational readiness and support force modernization initiatives.

In the unmanned systems arena, Kratos develops high-performance aerial platforms used as target drones, low-cost attritable aircraft and experimental stealth demonstrators.