Kratos Defense & Security Solutions, Inc. KTOS continues strengthening its revenue visibility through a growing backlog tied to defense, satellite communications and unmanned systems programs. As of March 29, 2026, the company had nearly $2.01 billion of total backlog, of which $1.46 billion was funded, reflecting healthy contract momentum and long-term demand across multiple defense markets.
A key advantage of this backlog strength is the level of future revenue support it provides. Kratos expects nearly 37% of its remaining performance obligations to convert into revenues during fiscal 2026, while another 25% is expected to be recognized in fiscal 2027. This visibility helps the company better align manufacturing activity, resource planning and operational execution while improving confidence in future business trends.
The company continues benefiting from demand across its Kratos Government Solutions and Unmanned Systems businesses. These operations support areas such as satellite communications, microwave electronics, tactical drones, propulsion technologies and defense modernization programs. During first-quarter 2026, Kratos Government Solutions generated revenues of $288.4 million, while the Unmanned Systems segment contributed $82.6 million, highlighting broad demand across its portfolio.
Kratos is also expanding its long-term growth pipeline through acquisitions like Orbit Technologies and Nomad Global Communication Solutions. These additions strengthen its capabilities in satellite communications and connected operational systems while supporting future contract opportunities and backlog growth.
While program timing and government funding remain important, Kratos’ growing backlog position continues supporting stronger long-term revenue visibility and operational stability.
Companies With Strong Aerospace & Defense Backlogs
Healthy defense demand continues supporting strong order pipelines across the aerospace and defense sector. Companies like Lockheed Martin Corporation LMT and Northrop Grumman Corporation NOC are also maintaining sizeable backlog positions tied to long-term defense and space programs.
Lockheed Martin reported a backlog of approximately $186.4 billion as of March 29, 2026, supported by fighter aircraft, missile systems and classified defense programs.
Northrop Grumman reported a backlog of nearly $95.6 billion as of March 31, 2026, backed by demand for missile defense, space systems and strategic deterrence programs.
Earnings Estimates for KTOS Stock
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 32.73% and 41.29%, respectively.
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KTOS Stock Trading at a Discount
Kratos Defense is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 5.38X compared with the industry average of 12.07X.
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KTOS Stock Price Performance
Over the past year, Kratos Defense shares have rallied 55.7% compared with the industry’s 24.8% growth.
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KTOS’ Zacks Rank
Kratos currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Lockheed Martin Corporation (LMT): Free Stock Analysis Report
Northrop Grumman Corporation (NOC): Free Stock Analysis Report
Kratos Defense & Security Solutions, Inc. (KTOS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).