Kratos Selected for Drone Dominance Program Amid Market Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 10 2026
0mins
Should l Buy KTOS?
Kratos Defense and Security Solutions Inc's stock fell 5.43% as it crossed below the 5-day SMA, reflecting market apprehension despite being selected for the U.S. Department of Defense's Drone Dominance Program Phase 1.
The company has been chosen to participate in a program valued at $1.1 billion aimed at producing approximately 350,000 low-cost attack drones. However, the stock's decline indicates investor concerns regarding the actual contract values and the intense competition, as only 12 out of 25 participating companies will secure contracts in the first phase, potentially limiting Kratos' revenue opportunities.
This selection could enhance Kratos' market position if it successfully navigates the competitive landscape. However, the market's reaction suggests skepticism about the financial implications of the contract, highlighting the need for Kratos to demonstrate its capabilities in the upcoming phases.
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Analyst Views on KTOS
Wall Street analysts forecast KTOS stock price to rise
13 Analyst Rating
11 Buy
2 Hold
0 Sell
Strong Buy
Current: 97.210
Low
80.00
Averages
108.69
High
150.00
Current: 97.210
Low
80.00
Averages
108.69
High
150.00
About KTOS
Kratos Defense & Security Solutions, Inc. is a technology, products, system and software company addressing the defense, national security, and commercial markets. It operates through two segments: Kratos Government Solutions (KGS) and Unmanned Systems (US). The KGS segment includes its microwave electronic products, space, satellite and cyber, training solutions, command, control, communication, computing, combat, intelligence surveillance and reconnaissance (C5ISR)/modular systems, turbine technologies, and defense and rocket support services operating segments. The US segment consists of its unmanned aerial, unmanned ground, unmanned seaborne and related command, control and communications system businesses. Its KGS and US segments provide products, solutions and services for mission-critical National Security programs. KGS and US customers primarily include National Security-related agencies, the DoD, intelligence agencies and classified agencies, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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