Kratos Reports Strong Q4 Earnings

Military contractor beats Wall Street expectations on revenue and profits.

Published on Feb. 23, 2026

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Kratos Defense & Security Solutions Inc., a military contractor based in Round Rock, Texas, reported fourth-quarter net income of $5.9 million, or 3 cents per share. Adjusted earnings came in at 18 cents per share, surpassing Wall Street estimates of 14 cents per share. The company also posted revenue of $345.1 million in the quarter, beating analyst forecasts of $328.3 million.

Why it matters

Kratos' strong financial performance in Q4 2026 demonstrates the continued demand for its defense and security products and services. As a major military contractor, the company's results provide insight into the overall health of the defense industry and government spending on national security.

The details

Kratos reported adjusted earnings of 18 cents per share, exceeding the average analyst estimate of 14 cents per share. The company's revenue of $345.1 million also topped the $328.3 million forecast by analysts. For the full year 2026, Kratos reported a profit of $22 million, or 13 cents per share, on revenue of $1.35 billion.

  • Kratos reported its Q4 2026 results on Monday, February 23, 2026.
  • For the current quarter ending in March 2026, Kratos expects revenue in the range of $335 million to $345 million.
  • Kratos expects full-year 2026 revenue in the range of $1.6 billion to $1.68 billion.

The players

Kratos Defense & Security Solutions Inc.

A military contractor based in Round Rock, Texas that provides a wide range of defense and security products and services to the U.S. government and its allies.

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What’s next

Investors will be closely watching Kratos' performance in the first quarter of 2026 to see if the company can maintain its strong financial momentum.

The takeaway

Kratos' robust Q4 2026 results highlight the continued demand for defense and security products, even in a challenging economic environment. The company's ability to exceed Wall Street expectations on both revenue and profits demonstrates its competitive position in the industry.