KTOS · PEAD ↓ 70

Kratos Defense reported Q1 2026 EPS of $0.16 on 2026-05-13, beating the $0.1562 consensus by $0.0038 (+2.4%).

Print-day reaction was −8.4% versus the prior close, a sharp sell-the-news move despite the modest EPS beat. The overnight gap to the T+1 open recovered a thin +0.5%, suggesting little conviction in any bounce. Over days 1–3, price drifted a further −1.1%, confirming no sustained recovery and leaving the stock well below its pre-earnings level. Cumulative abnormal return of −5.5% versus SPY.US firmly clears the PEAD short threshold; per the documented drift pattern, the read holds through 2026-08-10.