Kratos (KTOS) Climbs to 3-Month High as Trump Pushes for $1.5-Trillion Defense Spending

We recently published Wall Street Can’t Keep up With These 10 Stocks on Fire. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) was one of the top performers on Thursday.

Kratos Defense on Thursday clawed back to the $100 level, a three-month high, as investors gobbled up shares following President Donald Trump’s announcement that the US government would ramp up its defense spending to $1.5 trillion.

At intra-day trading, the stock jumped to $109.80 before trimming gains to finish the session just up by 13.78 percent at $104.04 apiece, also just 7 percent shy of its 52-week high. The last time it touched the $100 territory was on October 8, 2025 when it ended at $105.67.

"For the good of our country ... our military budget for the year 2027 should not be $1 trillion, rather $1.5 trillion ... This will allow us to build the 'Dream Military' that we have long been entitled to, and, more importantly, that will keep us SAFE and SECURE,” Trump said on his Truth Social platform.

He said that revenues from tariffs should cover the increased spending, alongside other government priorities.

The announcement sparked rosy prospects for Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) on strong optimism that the higher spending would bolster profit margins.

Meanwhile, the listed firm expressed its support to the government’s policies prioritizing reinvestment in national defense capabilities.

“At Kratos, every dollar we earn is viewed through the lens of readiness and capability,” said Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) President and CEO Eric DeMarco.

“Since our inception as a defense company, we have aggressively self-funded development to be first-to-market with relevant systems that can be affordably produced in large quantities to deter and, if necessary, defeat our adversaries, and we have reinvested in people, facilities, inventory, and real technologies that can be delivered at speed and scale to support today’s and tomorrow’s warfighter.”

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Disclosure: None. This article is originally published at Insider Monkey.