Kratos Selected to Participate in Phase 1 Gauntlet for the Office of the Secretary of War’s Drone Dominance Program
Rhea-AI Summary
Kratos (NASDAQ: KTOS) was selected on Feb 10, 2026 to participate in the Phase 1 Gauntlet of the Office of the Secretary of War’s Drone Dominance Program. The Gauntlet is a live competition to evaluate platforms for multiple one-way attack missions, with prototype delivery awards tied to rankings.
Kratos highlighted its small unmanned aerial systems portfolio and emphasized speed, affordability, and prior delivery experience as reasons it is positioned for the program.
Positive
- Selected for Phase 1 Gauntlet of the Drone Dominance Program
- Eligibility for prototype delivery award tied to Gauntlet performance
- Showcases Kratos small unmanned aerial systems portfolio and capabilities
Negative
- No contract award yet; outcomes depend on Gauntlet performance
- Program is competitive and time-sensitive, creating execution pressure
News Market Reaction – KTOS
On the day this news was published, KTOS declined 5.39%, reflecting a notable negative market reaction. Argus tracked a trough of -10.3% from its starting point during tracking. Our momentum scanner triggered 32 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $912M from the company's valuation, bringing the market cap to $16.00B at that time.
Data tracked by StockTitan Argus on the day of publication.
Market Reality Check
Peers on Argus
KTOS was up 4.66% pre-news. Key peers were mixed but generally positive: DRS +3.1%, AVAV +6.91%, HII +1.2%, TXT +0.39%, ERJ -0.54%. Scanner data shows no coordinated sector momentum.
Previous Clinical trial Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 06 | Phase 1 contract award | Positive | +4.2% | Single-award Phase 1 AN/SPY-1 sustainment program with projected <b>$175M</b> ceiling. |
Tag-linked Phase 1 awards have previously coincided with positive price reactions.
This announcement adds another early-phase defense program opportunity to Kratos’ recent string of contract and capability milestones. In Oct 2025, a Phase 1 AN/SPY-1 sustainment award with a projected $175 million ceiling saw a 4.22% move. Since early 2026, KTOS has highlighted new facilities, contract wins, and tests across hypersonics, unmanned systems, and training, underscoring a build-out of capacity that aligns with today’s drone-focused selection.
Historical Comparison
Prior tag-linked news featured a Phase 1 AN/SPY-1 radar sustainment award with a 4.22% move. Today’s Phase 1 Drone Dominance Gauntlet role is a similarly early-stage defense program opportunity.
Tag-specific history shows Kratos repeatedly landing Phase 1-style awards, from radar sustainment to unmanned drone programs, reinforcing its role in early-stage U.S. defense initiatives.
Market Pulse Summary
The stock moved -5.4% in the session following this news. A negative reaction despite this selection would contrast with the prior tag-linked Phase 1 AN/SPY-1 award, which was followed by a 4.22% gain. In that scenario, concerns could center on the competitive Gauntlet structure, uncertainty around eventual prototype awards, or recent insider selling activity. Past news flow in early 2026 has generally been constructive, so a sharp decline would highlight shifting risk perceptions rather than a lack of announced opportunities.
Key Terms
unmanned systems technical
small unmanned aerial systems technical
one-way attack missions technical
AI-generated analysis. Not financial advice.
SAN DIEGO, Feb. 10, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading technology company in defense, national security, and global markets, announced today that it has been selected to participate in the initial Phase 1 Gauntlet for the Office of the Secretary of War’s Drone Dominance Program. This opportunity seeks to identify and evaluate platforms capable of demonstrating multiple one-way attack missions through a live competition.
“Unmanned systems are redefining the landscape of war. To ensure our superiority, we must equip our warfighter with the tools needed to neutralize adversarial threats, enhance mission success, and ensure operational safety,” said Dave Carter, President of Kratos Defense & Rocket Support Services Division. “Kratos’ small unmanned aerial systems portfolio provides such a platform, enabling mass attritables in the battlefield.”
Upon successful completion of the Gauntlet, participants will be ranked and extended a prototype delivery award based on their performance and placement.
“Kratos prides itself on delivering highly capable platforms with unmatched speed and affordability that make readiness certain,” said Eric DeMarco, President and CEO of Kratos. “Drone Dominance is a time-sensitive, critical program to ensure national security and global competitiveness. Kratos stands on its proven track record of delivering systems at the urgency signaled by our Department of War.”
About the Drone Dominance Program Spanning four independent phases over the next 2 years, the Drone Dominance Program represents a
About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers’ mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos’ approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as an innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low-cost future manufacturing which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. Kratos’ primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, advanced vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com.
Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 29, 2024, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.
Press Contact:
Claire Cantrell
claire.cantrell@kratosdefense.com
Investor Information:
877-934-4687
investor@kratosdefense.com
FAQ
What did Kratos announce about the Drone Dominance Program selection (KTOS) on Feb 10, 2026?
What does Phase 1 Gauntlet participation mean for KTOS shareholders?
What capabilities is Kratos highlighting for the Drone Dominance Program (KTOS)?
Will Kratos receive immediate funding after Phase 1 Gauntlet selection (KTOS)?
How does Kratos describe the urgency and purpose of the Drone Dominance Program (KTOS)?
