Mercury Systems, Inc.
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Range $68 – $131
Price Chart
About the company
Mercury Systems, Inc. is a technology firm dedicated to the creation and delivery of a wide range of advanced components, modules, and integrated subsystems, primarily catering to the aerospace and defense industries. The company's operations span globally, with a presence in the United States, Europe, and the Asia Pacific regions.
- CEO
- William L. Ballhaus
- IPO
- 1998
- Employees
- 2,102
- HQ
- Andover, MA, US
AI snapshot
Six angles, distilled from the data.
The stock is in a corrective pullback after a strong multi-month run, still above its 200-day moving average but below its 50-day line. It remains well off the 52-week high, yet the long-term trend is intact and the setup favors watching whether support near the 200-day area continues to hold.
Street sentiment is constructive: the consensus sits at Buy, and the target stack has moved higher, with the median at $120 and the consensus target at $116. Recent changes were mostly positive, including multiple target raises from Truist, Canaccord, RBC, Baird, and Piper Sandler, even as ratings stayed mixed.
The next print follows a mixed but generally resilient beat history: 6 of the last 8 quarters topped estimates, but the most recent quarter missed by 10.0%. Analysts still expect a sharp step-up in earnings, with next-year EPS at 1.5063 versus TTM EPS of -0.5, so margin execution and guidance will matter most.
Insider activity leans negative, with 14 sells and no discretionary buys. Most of the volume came from officer and CEO-related sales, while the August 14 return transactions look like non-discretionary noise; the absence of open-market buying leaves sentiment cautious.
Profitability is improving but still uneven: gross margin is 28.7% and operating margin is 3.16%, while net margin remains negative at -1.46%. Revenue grew 11.5% year over year, and free cash flow was $136.689 million, giving the business a solid cash base despite negative ROE and ROA.
Mercury sits in the defense electronics niche, where its embedded systems and RF subsystems support prime contractors and aerospace customers. Versus peers, the market is paying a premium multiple at 80.78x earnings, which leaves less room for execution misses.
Similar companies
Peers in the same neighborhood.
- Market Cap
- $5.66B
- P/E
- -186.67
- Fwd P/E
- 57.53
- PEG
- 1.61
- P/S
- 5.75
- P/B
- 3.75
- EV/EBITDA
- 63.35
- Div Yield
- 0.00%
- Gross Margin
- 27.61%
- Op Margin
- 2.13%
- Net Margin
- -3.02%
- ROE
- -2.01%
- ROIC
- 1.04%
Latest fiscal year · YoY change
- Revenue
- $983.62M+7.9%
- Gross Profit
- $281.17M+10.5%
- Op Income
- $20.95M
- Net Income
- $-29,673,000+21.7%
- EPS
- $-0.50+23.1%
- OCF Growth
- -26.3%
- FCF Growth
- -42.8%
- 52W High
- $128.45
- 52W Low
- $64.05
- 50D MA
- $108.13
- 200D MA
- $89.80
- Beta
- 1.00
- RSI (14)
- 38
- Avg Volume
- 796.15K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Mercury Systems capped FY26 with record bookings, backlog, and revenue, and raised its organic growth outlook for FY27 on strong defense demand and improving visibility.· August 18, 2026
- Record Q4 bookings of $660 million and backlog above $1.9 billion gave Mercury much stronger visibility into FY27 and beyond.
- Q4 revenue reached nearly $290 million, with adjusted EBITDA of $49 million and adjusted EBITDA margin of 16.7%.
- FY26 revenue was $984 million, up 7.9% year over year, while FY26 adjusted EBITDA rose 25.7% to $150 million.
- Management raised targeted organic revenue growth to low double digits over time, while keeping its adjusted EBITDA margin target in the low-to-mid-20s and free cash flow conversion target at 50%.
- The company said FY27 will see margin improvement through the year, with Q1 revenue the low point and free cash flow conversion below target as it invests in inventory and automation.
Q4 FY26 bookings were approximately $660 million, up 93.1% year over year, with a book-to-bill of 2.28. Record backlog was over $1.9 billion, up $540 million or 38.4% year over year. Q4 revenue was nearly $290 million, up approximately $17 million or 6.1% organically. Q4 gross margin was 30.6% versus 31.0% last year; adjusted EBITDA was approximately $49 million versus $51 million, with margin of 16.7% versus 18.8%; adjusted EPS was $0.37 versus $0.47; and free cash flow was approximately $29 million versus $34 million. For FY26, bookings were approximately $1.5 billion, revenue was $984 million, gross margin was 28.6% versus 27.9%, adjusted EBITDA was $150 million versus $119 million, adjusted EPS was $1.06 versus $0.64, and free cash flow was approximately $68 million versus $119 million. Management expects FY27 revenue growth approaching double digits with total revenue approaching $1.1 billion, adjusted EBITDA approaching $200 million, and adjusted EBITDA margin in the high teens. Q1 FY27 revenue is expected to be the lowest of the year and up high single digits year over year, while FY27 free cash flow conversion is expected to approach 35% and be below the company’s 50% target.
Bill Ballhaus emphasized that Mercury is entering FY27 with record bookings, record backlog, and enhanced multiyear visibility, which is supporting a higher organic growth outlook. He said the business is progressing through lower-margin backlog early in FY27 and expects margins to improve through the year toward the company’s target profile, while also citing opportunities from defense budget tailwinds, CPA growth, and the Palantir AI partnership. His tone was upbeat and confident, but he repeatedly noted that many of the cited tailwinds are not yet included in guidance.
David Farnsworth highlighted the quarter’s hard numbers: Q4 gross margin of 30.6%, adjusted EBITDA of $49 million, adjusted EPS of $0.37, and free cash flow of $29 million. For FY26, he pointed to gross margin of 28.6%, adjusted EBITDA margin of 15.3%, adjusted EBITDA of $150 million, and free cash flow of $68 million, along with cash and cash equivalents of $214 million at year-end. He also noted net working capital of approximately $431 million, down $18 million year over year, and said capital spending is expected to be flat as the company invests in automation, footprint optimization, and inventory to support growth.
Analysts focused on how FY27 margin expansion will unfold, and management said it is mainly a function of backlog margin improving as lower-margin work rolls off and new bookings come in closer to target margins. They also asked about the larger FY27 revenue outlook, and management said it reflects broad-based demand and backlog visibility rather than a single framework or UCA agreement, with very little of the potential defense tailwinds embedded in guidance. Questions on Palantir, working capital, and CapEx led management to say the partnership is early but could help revenue, margins, and cash conversion, while CapEx should be flat and working capital investment may rise to support delivery timing and supply-chain flexibility.
The bullish case from the call is that Mercury has a record backlog, record bookings, and improving visibility into FY27 and FY28, with broad-based demand across CPA, effectors, airborne applications, space, missile defense, and munitions. Management also said FY27 revenue and margin should improve through the year, while several potential tailwinds and the Palantir initiative are not yet in guidance, leaving room for upside if they materialize.
The main risks discussed were that FY27 free cash flow conversion is expected to fall to about 35%, below the company’s 50% target, because Mercury plans to invest in inventory, automation, facilities, and factory optimization. Management also said Q1 FY27 will be the weakest revenue and cash flow quarter, and some large defense and multiyear tailwinds remain only pipeline items, not yet firm bookings. International deliveries were also temporarily weaker due to the shift to a contract manufacturer, though management expects that to work out over the next couple of quarters.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 92.5%
- Shares Outstanding
- 60.04M
- Float Shares
- 55.53M
of shares held by institutions
368 13F filers
Buy/sell ratio 0.07. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Blackrock, Inc. | 9.37M | ▲ 450.58K |
| Vanguard Group Inc | 5.63M | ▼ 98.98K |
| Jana Partners Management, LP | 3.96M | ▼ 148.57K |
| State Street Corp | 3.42M | ▼ 447.43K |
| Invesco Ltd. | 2.67M | ▲ 227.87K |
| Vanguard Capital Management LLC | 2.42M | ▲ 18.81K |
| Fmr LLC | 1.84M | ▲ 938.43K |
| T. Rowe Price Investment Management, Inc. | 1.60M | ▲ 15.88K |
| Goldman Sachs Group Inc | 1.58M | ▲ 374.62K |
| Conestoga Capital Advisors, LLC | 1.49M | ▼ 431.40K |
| Geode Capital Management, LLC | 1.46M | ▼ 66.14K |
| First Trust Advisors LP | 1.30M | ▲ 138.18K |
Held by 342 ETFs
Biggest fund positions in MRCY by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Aug 17, 26 | Munro Douglas | sell | 404 |
| Aug 18, 26 | Munro Douglas | sell | 494 |
| Aug 17, 26 | Ratner Steven | sell | 1,084 |
| Aug 18, 26 | Ratner Steven | sell | 1,971 |
| Aug 17, 26 | KUPINSKY STUART | sell | 1,195 |
| Aug 18, 26 | KUPINSKY STUART | sell | 1,178 |
| Aug 17, 26 | Farnsworth David E. | sell | 1,345 |
| Aug 18, 26 | Farnsworth David E. | sell | 7,347 |
| Aug 17, 26 | Ballhaus William L | sell | 3,536 |
| Aug 18, 26 | Ballhaus William L | sell | 24,144 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our MRCY coverage
Recent articles, reports, and earnings notes.

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Mercury Systems Q4 Earnings Call Highlights
defenseworld.net · Aug 20
Why Mercury Systems Stock Is Sinking Today
fool.com · Aug 19
Mercury Systems Q4 Earnings in Line, Revenues Top on Bookings
zacks.com · Aug 19
Mercury Systems Posts Mixed Q4 Results, Joins WhiteFiber And Other Big Stocks Moving Lower In Wednesday's Pre-Market Session
benzinga.com · Aug 19
These Analysts Raise Their Forecasts On Mercury Systems After Q4 Results
benzinga.com · Aug 19
Mercury Systems, Inc. (MRCY) Q4 2026 Earnings Call Transcript
seekingalpha.com · Aug 18
Here's What Key Metrics Tell Us About Mercury Systems (MRCY) Q4 Earnings
zacks.com · Aug 18
Mercury Systems Q4 Earnings Call Highlights
marketbeat.com · Aug 18
Headlines from third-party outlets — TickerSpark isn't affiliated with these sources.
AI analysis · Last refreshed August 20, 2026 · Live quote · Not investment advice