KTOS · PEAD ↓ 80

Kratos Defense reported Q3 2026 EPS of $0.24 on 2026-11-03, beating the $0.15 consensus by $0.09 (+60%).

Print-day reaction was a modest +1.9% versus the prior close, a muted response given the magnitude of the EPS beat. The overnight gap told a different story: the stock opened -2.8% below the event-day close, signalling that after-hours sellers absorbed the initial enthusiasm. Over the following two trading days (T+1 through T+3) the stock drifted a further -2.4%, extending the fade rather than recovering. Cumulative abnormal return of -10.5% versus SPY.US firmly places this in PEAD short territory; the drift pattern runs through the holding window end of 2027-01-29.