Cathie Wood's ARK Invest Buys $3M In KTOS Stock — Kratos Defense Eyes 22% Revenue Growth In 2027

• ARK funds bought a potential $3 million worth of Kratos shares across two of its funds. 
• The company expects 18% to 22% revenue growth in 2027 to $2.1 billion to $2.2 billion. 
• Kratos completed a tech review for the U.S. Space Force’s missile tracking program. 

Cathie Wood’s ARK Invest has increased its exposure to the defense-tech sector, scooping up over $3 million worth of shares in Kratos Defense & Security Solutions, Inc. (KTOS) across its flagship exchange-traded funds. 

The institutional buying follows Kratos' strong outlook and operational milestones as the Pentagon increasingly bets on autonomous systems to drive future warfare. Kratos stock edged 0.4% lower overnight ahead of Thursday. The stock has gained 4.5% so far this week. 

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Cathie Wood’s ARK Invest Increases Kratos Defense Exposure

On Wednesday, ARK Innovation ETF (ARKK) bought 66,183 shares, while the ARK Autonomous Technology & Robotics ETF (ARKQ) added 19,020 shares. The purchases show sustained interest in Kratos’ work in defense technology, space systems, and military drones. 

Kratos expects strong growth in 2027, guiding to annual revenue of $2.1 billion to $2.2 billion and adjusted EBITDA of $230 million to $240 million. The revenue outlook implies an expected increase of 18% to 22% over the company’s updated 2026 outlook. 

However, Kratos expects a slower start to 2027 due to delays in U.S. defense funding. It expects revenue and adjusted EBITDA to be stronger in the third and fourth quarters once the government approves its annual defense budget. 

Kratos Advances U.S. Space Force Missile Tracking Program

On Wednesday, Kratos finished an important technical review for the U.S. Space Force’s missile warning and tracking program. This will accelerate the development of ground systems that detect and track missiles.  

Also, Kratos Defense has signed a long-term agreement with Seagate Space to use its Gateway offshore launch platform. The first mission is planned for 2027, with more launches expected in the coming years. The partnership will support defense launches and testing, including hypersonic tests, missile-target missions, and other national security operations. 

KTOS Stock: Retail View

On Stocktwits, retail sentiment around the stock turned ‘bearish’ from ‘neutral’. 

KTOS stock has crashed 51% year-to-date. 

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