Kratos Defense’s Unmanned Systems segment focuses on jet-powered aerial platforms such as BQM-177, BQM-167 and MQM-178 target drones and the Valkyrie tactical aircraft. These systems support intelligence, surveillance and reconnaissance as well as combat training for the U.S. Navy, Air Force and Army, enhancing defense readiness.

Shares of Kratos Defense have climbed 32.5% over the past six months as analysts project 40% EPS growth in 2026 and 39.8% in 2027. The stock trades at a 9.37X forward price-to-sales multiple, below the industry average of 12.48X, reflecting a valuation discount despite robust growth expectations.

Global defense budgets are increasingly allocating funds toward unmanned and autonomous systems to enhance mission efficiency and reduce operational costs. Kratos’s focus on affordability and rapid production positions the company to capture a growing share of the high-performance drone market and differentiate from traditional defense contractors.