Kratos Defense & Security Solutions (KTOS) shares surged 6.00% in overnight trading, extending gains after the company reported second-quarter results that handily beat Wall Street expectations and raised its full-year revenue outlook following Tuesday's market close.

The defense contractor posted adjusted earnings of $0.21 per share, crushing the consensus estimate of $0.14, while revenue jumped 30.5% year-over-year to $458.8 million, well above the $410.4 million analysts had forecast. 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, Piper Sandler raised its rating on Kratos to Overweight from Neutral, and the company highlighted a $2.08 billion consolidated backlog alongside a $15 billion bid and proposal pipeline, reflecting robust demand across its Government Solutions and Unmanned Systems segments.