Kratos Defense & Security Solutions Inc (NASDAQ:KTOS) reported third-quarter financial results after the close on Thursday. Here's a rundown of the report.

Kratos Q3 Earnings Details

Kratos reported third-quarter revenue of $471.80 million, beating analyst estimates of $471.16 million, according to market data. The defense company posted adjusted earnings of 24 cents per share for the quarter, beating estimates of 20 cents per share.

Total revenue was up 35.7% on a year-over-year basis. Kratos reported a consolidated backlog of $2.65 billion, and a bid and proposal pipeline of $15.5 billion at quarter's end. The company ended the period with $1.40 billion in total cash and cash equivalents.

"Kratos's third-quarter results reflect our position as a leading defense technology, hardware, software and systems company, aligned with the Department of War's [Defense] priorities and reindustrialization efforts," said Eric DeMarco, president and CEO of Kratos.

Kratos expects fourth-quarter revenue of $480 million to $510 million versus estimates of $490.64 million. The company also raised its full-year 2026 revenue outlook to $1.78 billion to $1.81 billion, up from prior guidance of $1.75 billion to $1.81 billion.

Kratos further guided for fiscal 2027 revenue of $2.1 billion to $2.2 billion and adjusted EBITDA of $230 million to $240 million.

"There is a generational recapitalization of the U.S. and its allies' military-industrial base underway, with a limited number of global companies like Kratos qualified to address it," the company said.

Kratos management is currently discussing the quarter on an earnings call that started at 5 p.m. ET.

KTOS Shares Slide After the Close

KTOS Price Action: Kratos Defense shares were down 4.31% in after-hours on Thursday, trading at $31.95 at the time of publication, according to market data.