Kratos Defense & Security Solutions raised its fiscal 2026 revenue guidance, as second quarter sales and profit increased.

The company raised its fiscal 2026 revenue to between $1.75 billion and $1.81 billion. Analysts polled by FactSet are expecting $1.74 billion. The company said it projects the second half of fiscal 2026 will have significantly higher revenue than the first half as it expects to receive long-lead items related to existing customer funded programs.

For the second quarter, the aerospace and defense company posted net income of $4.4 million, or 2 cents a share, compared with $2.9 million, or 2 cents a share, a year earlier.

Adjusted earnings per share were 21 cents. Analysts polled by FactSet expected 14 cents.

Revenue rose nearly 31% to $458.8 million. Analysts polled by FactSet expected $410.4 million.

Kratos' government solutions segment, which accounts for most of its top-line, recorded revenue growth of 36% to $379.7 million, driven by defense rocket systems, turbine technologies and microwave products and space.

The company's unmanned systems business logged revenue of $79.1 million, up from $73.2 a year earlier. The revenue was primarily driven by Valkyrie-related activity, the company said.

Chief Executive Eric DeMarco said expected growth areas for Kratos include hypersonic and rocket systems, missiles, jet engines, and space and satellite communications.

For the third quarter, the company forecasts revenue of $460 million to $480 million. Wall Street expects $461.6 million.