Does Kratos (KTOS) Gaining OneSat Compatibility Quietly Redefine Its Long-Term Defense Software Narrative?

• In late December 2025, Kratos Defense & Security Solutions reported the successful factory acceptance test of its EPOCH command-and-control software with Airbus’ reconfigurable OneSat satellite platform, and separately disclosed approximately US$30 million of new national security-related air defense and C5ISR hardware production contracts.
• This combination of validated compatibility with a next-generation software-defined satellite system and fresh defense hardware orders underscores Kratos’ role in enabling more flexible, software-centric military and space operations.
• Next, we’ll examine how EPOCH’s integration with Airbus’ OneSat platform may influence Kratos’ investment narrative built around multi-decade defense programs.

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Kratos Defense & Security Solutions Investment Narrative Recap

To own Kratos today, you need to believe that its mix of cutting edge defense technology and space-focused software can support long-lived government programs, despite heavy investment needs and negative free cash flow. The EPOCH and OneSat test and the US$30 million in new air defense and C5ISR hardware contracts add incremental support to the near term contract pipeline, but do not materially change the biggest current risk around ongoing cash outflows and funding future growth.

Among recent announcements, the US$1.45 billion Multi Service Advanced Capability Hypersonic Test Bed award stands out as the most relevant context for the EPOCH and OneSat news, because both reinforce Kratos’ positioning on complex, long duration defense and test programs. Together, they speak to an investment case that leans on program longevity and expanding roles in unmanned, hypersonics and space, while investors still need to weigh that against the company’s willingness to invest ahead of cash generation.

Yet investors should also be aware that Kratos’ ongoing negative free cash flow and heavy up front investments could...

Read the full narrative on Kratos Defense & Security Solutions (it's free!)

Kratos Defense & Security Solutions' narrative projects $1.9 billion revenue and $101.6 million earnings by 2028. This requires 17.0% yearly revenue growth and about a $87 million earnings increase from $14.5 million today.

Uncover how Kratos Defense & Security Solutions' forecasts yield a $100.56 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Fourteen fair value estimates from the Simply Wall St Community range widely, from about US$4.22 to US$136.86 per share, showing how far apart individual views can be. Against that backdrop, the reliance on large, multi decade defense programs as a key catalyst adds another layer of uncertainty that readers may want to explore through several different lenses.

Explore 14 other fair value estimates on Kratos Defense & Security Solutions - why the stock might be worth as much as 49% more than the current price!

Build Your Own Kratos Defense & Security Solutions Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Kratos Defense & Security Solutions research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Kratos Defense & Security Solutions research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Kratos Defense & Security Solutions' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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