Kratos Defense & Security Solutions: Is the Aerospace Darling an Attractive Opportunity?

Kratos Defense and Security Solutions has reported a 26% YoY increase in revenue to $348 million, beating analyst expectations. The company raised its full-year 2025 organic revenue growth guidance to 14%-15% and provided preliminary guidance for 2026 and 2027. Despite the strong results, shares fell 20% following the earnings release, suggesting markets wanted even stronger guidance. The consensus price target stands at $82, implying around 4% upside in shares.