
KTOS Stock Forecast & Price Target
KTOS Analyst Ratings
Bulls say
Kratos Defense & Security is viewed favorably because its merchant-supplier model is embedded across unmanned systems, hypersonics, engines, space, and C5ISR, giving it durable content regardless of which prime wins and aligning it with the Department of War’s push for affordable, production-ready capabilities. Its record pipeline and backlog support a multi-year growth profile, with revenue growth expected to stay above 20% and FY1Q26 revenue of about $371M up 22.6% year over year, while hypersonic revenue is guided to roughly $400M in FY26 and $700M in FY27. Although 2026 requires heavy investment, including $125M-$135M of capex and total outlays of $250M-$275M, those funds build capacity for a 2027-2028 ramp and should drive margin expansion, cash flow inflection, and rising market share.
Bears say
Kratos Defense & Security is a smaller, highly concentrated defense contractor that derived roughly 68% of 2025 revenue from U.S. Government customers, leaving it exposed to continuing resolutions, delayed appropriations, and weaker contract flow than larger primes. Its revenue base of $1.35B in 2025 is heavily tied to 69% fixed-price work and several transition-stage programs, so any learning-curve miss, cost overrun, or adverse EAC revision can quickly pressure margins and cash generation. Execution risk is amplified by supply-chain bottlenecks, labor shortages, and opaque classified backlog quality, while front-loaded capex for new capacity may keep free cash flow under strain longer than expected.
This aggregate rating is based on analysts' research of Kratos Defense & Security Solutions and is not a guaranteed prediction by Public.com or investment advice.
KTOS Analyst Forecast & Price Prediction
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