Kratos Defense and Security Solutions Inc

KTOS remains entrenched in a Stage 4 decline with a clear sequence of lower highs and lower lows. Price is trading below the 9EMA, 20EMA, and 50DMA and is rejecting at these resistance levels. The short-term downtrend is intact with no signs of exhaustion, reinforcing a medium-term bearish bias. We will Sell Now to participate in further downside continuation through the current consolidation zone.

• ↑Revenue $371M (+15.8% YoY) vs guidance $335M; backlog $2B with 1.6 book-to-bill.
• ↑FY26 revenue guidance raised to $1.7B–$1.76B, implying 15%–19% organic growth.
• ↓Negative earnings yield indicates margin pressure from higher material costs.