Kratos (KTOS) Reports Q3 Earnings: What Key Metrics Have to Say

Kratos (KTOS) reported $347.6 million in revenue for the quarter ended September 2025, representing a year-over-year increase of 26%. EPS of $0.14 for the same period compares to $0.11 a year ago.

The reported revenue represents a surprise of +7.12% over the Zacks Consensus Estimate of $324.5 million. With the consensus EPS estimate being $0.12, the EPS surprise was +16.67%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Kratos performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Revenues- Product sales: $230.2 million compared to the $191.59 million average estimate based on four analysts. The reported number represents a change of +33.8% year over year.
• Revenues- Unmanned Systems: $87.2 million versus $77.18 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +35.8% change.
• Revenues- Kratos Government Solutions: $260.4 million versus $248.03 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +23% change.
• Revenues- Service revenues: $117.4 million versus the four-analyst average estimate of $133.04 million. The reported number represents a year-over-year change of +13%.
• Gross Profit- Service revenues: $26.2 million compared to the $33.11 million average estimate based on four analysts.
• Gross Profit- Product sales: $50.9 million compared to the $44.6 million average estimate based on four analysts.
• Operating income (loss)- Kratos Government Solutions: $13.7 million compared to the $16.75 million average estimate based on three analysts.

View all Key Company Metrics for Kratos here>>>

Shares of Kratos have returned -9.1% over the past month versus the Zacks S&P 500 composite's +2.1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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