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Kratos Defense stock drops 50% despite strong Q1 revenue and $2B backlog

Market News
14 May 2026
Seeking Alpha
View Source
Neutral
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Kratos Defense & Security Solutions saw its stock fall 50% despite reporting a 22.6% revenue increase to $371 million in Q1 2026 and holding a record $2 billion backlog. The company maintains a strong $14 billion opportunity pipeline and a 1.6:1 book-to-bill ratio, signaling robust demand. However, Q2 2026 guidance suggests limited organic growth, causing investor caution. The stock trades at a low multiple of 4 times projected 2028 sales, with analysts expecting a 50% revenue rise from 2026 to 2028, indicating potential upside if growth resumes.

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