Kratos Defense & Security Solutions (KTOS) saw its shares surge 5.01% over the past 24 hours, propelled by a stellar second-quarter earnings report that easily beat Wall Street expectations and a significantly raised full-year revenue outlook. The rally extended into after-market hours as investors digested the robust results and upbeat forward guidance.

The defense contractor reported adjusted earnings of $0.21 per share, crushing the consensus estimate of $0.14, while revenue climbed 30.5% year-over-year to $458.8 million, well above the $410.4 million analysts had forecast. GAAP net income rose to $4.4 million, and adjusted EBITDA came in at $38.2 million, exceeding expectations. The company also lifted its fiscal 2026 revenue guidance to a range of $1.75 billion to $1.81 billion, up from the prior $1.70 billion to $1.76 billion, citing strong organic growth and accelerating business momentum heading into the second half of the year.

Adding to the positive sentiment, Kratos highlighted a consolidated backlog of $2.08 billion and a $15 billion bid and proposal pipeline, reflecting solid demand across its Government Solutions and Unmanned Systems segments. The earnings-driven spike followed an already strong intraday performance fueled by recent significant contract wins and production capacity expansions, as the company continues to benefit from increased defense spending on hypersonic, drone, and space systems.