Cathie Wood Loads Up on Kratos Defense: ARK ETFs Buy $3M as Pentagon Bets on Autonomous Warfare

Cathie Wood’s ARK Invest bought more than $3 million worth of Kratos Defense & Security Solutions (NASDAQ:KTOS) shares on Wednesday across two of its ETFs, even as the stock struggles to regain momentum.

ARK Innovation ETF (BATS:ARKK) bought 66,183 Kratos shares, while ARK Autonomous Technology & Robotics ETF (BATS:ARKQ) added 19,020 shares. The combined purchases brought 85,203 shares into the two portfolios, highlighting ARK’s continued interest in companies developing technologies for next-generation military operations.

The trades tie Kratos to two investment themes within ARK’s portfolio: disruptive innovation and autonomous technologies. While ARKK offers broad exposure to companies developing potentially transformative technologies, ARKQ provides a more targeted allocation to automation, robotics and autonomous systems.

The purchases come as the U.S. Department of Defense increasingly prioritizes unmanned aircraft, hypersonic systems and advanced missile-defense capabilities, areas where Kratos has established operations.

Why Kratos Is Drawing ARK’s Attention

Kratos’ growth outlook could help explain the renewed buying interest. The defense contractor expects 2027 revenue of $2.1 billion to $2.2 billion, representing an increase of approximately 18% to 22% over its updated 2026 outlook. Adjusted EBITDA is projected at $230 million to $240 million.

The company, however, expects a slower start to 2027 as delays in U.S. defense funding affect program execution. It anticipates stronger revenue and profitability in the third and fourth quarters once government budget approvals unlock spending.

Kratos has also advanced its position in the defense and space technology ecosystem. It recently completed a technical review for the U.S. Space Force’s missile warning and tracking program and signed a long-term agreement with Seagate Space to use its offshore launch platform. The first mission is planned for 2027.

ARK’s Kratos Bet Comes Despite Stock Weakness

ARK’s latest purchases stand out against Kratos’ share-price performance. The stock has fallen about 53% year to date. Thursday’s decline trimmed its gain for the week to about 1%.

For ARK investors, the latest transactions offer a glimpse into Wood’s positioning around the future of defense technology. The simultaneous purchases by ARKK and ARKQ also show how the same company can feature in different thematic ETF strategies.

However, the investment thesis faces execution risks. Kratos must translate its growing program pipeline into sustained revenue, while navigating uncertainty around government funding. Whether ARK’s latest accumulation proves well-timed will depend on how successfully the company converts its growth ambitions into financial results.

KTOS Price Action: Kratos Defense shares were down 3.11% at $35.55 at the time of publication Thursday, according to Benzinga Pro data.

Photo: Courtesy of ARK Invest