Keybanc has initiated coverage on Kratos Defense and Security Solutions Inc (KTOS) with an Overweight rating, reflecting its assessment of the company's investment potential. This marks the firm's first evaluation of KTOS, which operates within the aerospace and defense sector, focusing on mission-critical products and services for U.S. national security.
Headquartered in San Diego, California, Kratos employs approximately 4,000 full-time staff and operates through two main segments: Kratos Government Solutions (KGS) and Unmanned Systems (US). The KGS segment encompasses microwave electronic products, cyber solutions, and defense services, while the US segment includes unmanned aerial and ground systems.
As of December 18, 2025, KTOS is priced at $80.44, with a market capitalization of $12.2 billion. The company has demonstrated a strong earnings performance, surpassing estimates in recent quarters. Notably, in Q3 2025, the company reported an EPS of $0.14, against an estimate of $0.13, representing a 10.1% surprise. Upcoming earnings are anticipated on August 5, 2026, with an estimated EPS of $0.19 and revenue of $411.8 million.
Analyst ratings serve as professional assessments based on extensive research and financial modelling. While they can provide valuable insights, they are based on assumptions that may not always hold true. Investors are encouraged to consider a variety of factors, including company fundamentals and market conditions, when making decisions. Analyst perspectives can evolve over time as new information emerges, and varying opinions may exist on the same entity.