Track market-moving stories before they get noisy

Posted by Defense World Staff on Jul 23rd, 2026

Shares of Mercury Systems Inc (NASDAQ:MRCY – Get Free Report) have received a consensus rating of “Moderate Buy” from the ten analysts that are covering the company, Marketbeat Ratings reports. Two investment analysts have rated the stock with a sell rating, two have given a hold rating, three have given a buy rating and three have issued a strong buy rating on the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $95.7778.

Several brokerages have recently issued reports on MRCY. Wall Street Zen lowered Mercury Systems from a “buy” rating to a “hold” rating in a research report on Saturday, July 18th. Jefferies Financial Group reissued a “hold” rating and issued a $115.00 price target on shares of Mercury Systems in a report on Friday, July 10th. JPMorgan Chase & Co. increased their price target on shares of Mercury Systems from $99.00 to $101.00 and gave the company a “neutral” rating in a research report on Monday, July 13th. The Goldman Sachs Group raised their price objective on shares of Mercury Systems from $60.00 to $68.00 and gave the stock a “sell” rating in a report on Monday, May 11th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Mercury Systems in a research report on Friday, July 17th.

Get Our Latest Research Report on Mercury Systems

Mercury Systems Price Performance Mercury Systems stock opened at $98.92 on Thursday. Mercury Systems has a 52 week low of $50.13 and a 52 week high of $128.45. The company’s 50 day moving average price is $107.80 and its two-hundred day moving average price is $93.44. The company has a quick ratio of 2.15, a current ratio of 3.19 and a debt-to-equity ratio of 0.40. The stock has a market cap of $5.94 billion, a P/E ratio of -412.17 and a beta of 0.93.

Mercury Systems (NASDAQ:MRCY – Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The technology company reported $0.27 EPS for the quarter, beating analysts’ consensus estimates of $0.06 by $0.21. The company had revenue of $235.76 million during the quarter, compared to the consensus estimate of $208.56 million. Mercury Systems had a positive return on equity of 2.22% and a negative net margin of 1.46%.Mercury Systems’s revenue was up 11.5% on a year-over-year basis. During the same period last year, the business posted $0.06 earnings per share. On average, equities analysts predict that Mercury Systems will post 0.35 earnings per share for the current year.

Insider Activity In other news, Director Howard L. Lance sold 9,250 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $99.76, for a total transaction of $922,780.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Steven Ratner sold 2,000 shares of Mercury Systems stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $92.46, for a total transaction of $184,920.00. Following the completion of the sale, the executive vice president directly owned 32,238 shares in the company, valued at $2,980,725.48. This trade represents a 5.84% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 18,250 shares of company stock valued at $1,733,220 in the last three months. Company insiders own 1.40% of the company’s stock.

Institutional Inflows and Outflows A number of institutional investors have recently made changes to their positions in the company. State Street Corp grew its stake in shares of Mercury Systems by 12.1% during the 4th quarter. State Street Corp now owns 3,423,600 shares of the technology company’s stock worth $249,957,000 after acquiring an additional 368,242 shares during the period. Invesco Ltd. raised its stake in Mercury Systems by 25.1% in the 4th quarter. Invesco Ltd. now owns 1,910,742 shares of the technology company’s stock valued at $139,503,000 after acquiring an additional 383,299 shares during the period. T. Rowe Price Investment Management Inc. lifted its holdings in Mercury Systems by 1.4% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 1,542,851 shares of the technology company’s stock valued at $112,644,000 after purchasing an additional 21,182 shares during the last quarter. Geode Capital Management LLC lifted its holdings in Mercury Systems by 3.6% during the fourth quarter. Geode Capital Management LLC now owns 1,368,659 shares of the technology company’s stock valued at $99,940,000 after purchasing an additional 47,174 shares during the last quarter. Finally, Segall Bryant & Hamill LLC boosted its position in Mercury Systems by 46.9% during the first quarter. Segall Bryant & Hamill LLC now owns 934,824 shares of the technology company’s stock worth $68,158,000 after purchasing an additional 298,298 shares during the period. Hedge funds and other institutional investors own 95.99% of the company’s stock.

Mercury Systems Company Profile (Get Free Report)

Mercury Systems, Inc (NASDAQ: MRCY) is a technology company that designs, manufactures and markets secure processing subsystems for aerospace and defense applications. The company’s products are built to address the stringent security, safety and reliability requirements of mission-critical programs, with a focus on radar, electronic warfare, intelligence and other sensor and processing functions. Mercury’s offerings encompass rugged embedded computing modules, high-performance radio frequency (RF) and microwave components, digital signal processing subsystems and secure networking solutions.

Since its origins in advanced signal processing, Mercury Systems has expanded its capabilities through a combination of internal development and targeted acquisitions.

See Also Five stocks we like better than Mercury Systems Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play

Receive News & Ratings for Mercury Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Mercury Systems and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEInstalled Building Products, Inc. (NYSE:IBP) Receives Average Recommendation of “Hold” from Brokerages

NEXT HEADLINE »Beam Therapeutics Inc. (NASDAQ:BEAM) Given Average Rating of “Moderate Buy” by Brokerages

On July 13, 2026, Mercury Systems Inc (MRCY) shares fell 9.0% today, bringing the current price down to $98.26. The stock has experienced a 52-week range of $49

Shareholders are encouraged to contact the firm to discuss their rights and options at no cost or obligation. We would handle any matter on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses.

Shareholders should contact the firm immediately as there may be limited time to enforce your rights.

, /PRNewswire/ -- Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of Mercury Systems, Inc. (NASDAQ: MRCY) breached their fiduciary duties to shareholders.

If you currently own Mercury stock and are a long-term shareholder, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to learn more about your legal rights and options or contact Daniel Sadeh or Zachary Halper at (212) 763-0060 or [email protected] or [email protected].

Why Your Participation Matters:

Shareholder involvement can help improve a company's policies, practices, and oversight mechanisms to create a more transparent, accountable, and effectively managed organization, which can enhance shareholder value.

Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct. Our attorneys have been instrumental in implementing corporate reforms and recovering millions of dollars on behalf of defrauded investors.

Attorney Advertising. Prior results do not guarantee a similar outcome.

Contact Information:
Halper Sadeh LLC
One World Trade Center
85th Floor
New York, NY 10007
Daniel Sadeh, Esq.
Zachary Halper, Esq.
(212) 763-0060
[email protected]
[email protected]
https://www.halpersadeh.com

SOURCE Halper Sadeh LLP

On Feb. 25, 2026, Howard L. Lance, director at Mercury Systems (MRCY +0.45%), reported an open-market sale of 4,832 common shares for a transaction value of approximately $430,000, according to the SEC Form 4 filing.

Transaction summaryMetricValueContextShares sold (direct)4,832Open-market shares sold on Feb. 25, 2026Transaction value$430,000Based on weighted average sale price of $88.98 per sharePost-transaction shares (direct)27,272Directly held after salePost-transaction shares (indirect)9,250Indirectly held via trust after salePost-transaction value (direct ownership)~$2.44 millionCalculated using Feb. 25, 2026 market closeTransaction value based on SEC Form 4 weighted average purchase price ($88.98); post-transaction value calculated using the Feb. 25, 2026 market close.

Key questionsHow does this sale compare to Lance’s historical transaction pattern?
This transaction is his only open-market sale in the past two years.What proportion of Lance’s direct holdings was impacted?
The sale accounted for 15% of his direct shares, with all shares sold from his direct account.What is the context of Lance’s remaining stake?
Following the sale, Lance continues to hold 27,272 shares directly and 9,250 shares indirectly through his revocable living trust, with a post-transaction direct holding valued at approximately $2.44 million as of Feb. 25, 2026.How does the transaction price relate to the current and historical stock price?
The weighted average sale price was $88.98 per share, which is slightly below the market close of $89.30 on the transaction date and 2.2% below the $91.01 level as of March 2, 2026, following a 104.9% total return year over year.Company overviewMetricValueMarket capitalization$4.54 billionRevenue (TTM)$942.55 millionNet income (TTM)($30.41 million)1-year price change105.4% 1-year price performance calculated using Feb. 25, 2026 as the reference date.

Company snapshotProvides advanced components, modules, and subsystems including RF/microwave devices, embedded processing boards, and integrated solutions for aerospace and defense applications.Generates revenue through the design, manufacture, and sale of proprietary technology solutions, targeting high-value defense programs and mission-critical systems integration.Serves leading defense contractors and commercial aviation companies, with products deployed in approximately 300 programs across the United States, Europe, and Asia Pacific.Mercury Systems is a mid-cap technology provider specializing in high-performance electronics for aerospace and defense markets. The company leverages its engineering expertise and proprietary technologies to deliver mission-critical solutions for major defense contractors and government agencies. Its competitive advantage stems from deep integration across the value chain and a focus on secure, scalable, and innovative subsystems supporting next-generation defense platforms.

Today's Change

(

0.45

%) $

0.54

Current Price

$

119.86

What this transaction means for investorsLance’s late February sale of aerospace and defense technology company Mercury Systems capitalized on the recent strong performance of both the stock and its sector. As of March 24, the stock is still up 68% year over year on a total return basis, though it’s down slightly from its more than 100% return earlier this year.

The company announced its results for the second quarter of fiscal year 2026 (ended Dec. 26, 2025) on Feb. 3. Q2 bookings were up 18.6% year over year and the company celebrated a record backlog of $1.5 billion, an 8% year-over-year increase. First-half revenue of $233 million was also a record.

In March, the company completed its acquisition of SolderMask Inc., a provider of specialized manufacturing processes that were already in use across more than 20 Mercury Systems programs. Bringing the processes in-house should allow Mercury Systems to expand manufacturing capacity and improve production rate.

Mercury Systems currently trades at a price-to-sales (P/S) ratio of 4.98, which is close to the aerospace and defense industry average P/S of 4.57, and below the peer group average of 11.29, according to Simply Wall St. While some still believe the stock is overvalued, bulls may be interested in the company’s strategic acquisitions and growing backlog amid enhanced recent interest in the aerospace and defense sector.

Sarah Sidlow has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Posted by Defense World Staff on Apr 7th, 2026

SG Americas Securities LLC grew its position in Mercury Systems Inc (NASDAQ:MRCY – Free Report) by 100.2% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 22,227 shares of the technology company’s stock after purchasing an additional 11,123 shares during the quarter. SG Americas Securities LLC’s holdings in Mercury Systems were worth $1,623,000 as of its most recent filing with the SEC.

Other large investors also recently modified their holdings of the company. Vanguard Group Inc. boosted its holdings in shares of Mercury Systems by 4.0% during the 3rd quarter. Vanguard Group Inc. now owns 5,731,033 shares of the technology company’s stock worth $443,582,000 after buying an additional 221,093 shares in the last quarter. State Street Corp increased its stake in shares of Mercury Systems by 8.7% in the 2nd quarter. State Street Corp now owns 3,246,573 shares of the technology company’s stock valued at $174,860,000 after acquiring an additional 259,388 shares in the last quarter. First Trust Advisors LP lifted its position in shares of Mercury Systems by 96.3% during the 3rd quarter. First Trust Advisors LP now owns 1,532,822 shares of the technology company’s stock valued at $118,640,000 after acquiring an additional 751,813 shares during the period. Invesco Ltd. boosted its stake in Mercury Systems by 161.7% during the third quarter. Invesco Ltd. now owns 1,527,443 shares of the technology company’s stock worth $118,224,000 after acquiring an additional 943,736 shares in the last quarter. Finally, Bamco Inc. NY boosted its stake in Mercury Systems by 4.9% during the third quarter. Bamco Inc. NY now owns 1,295,284 shares of the technology company’s stock worth $100,255,000 after acquiring an additional 60,483 shares in the last quarter. 95.99% of the stock is currently owned by institutional investors and hedge funds.

Mercury Systems Stock Up 2.1% Shares of NASDAQ:MRCY opened at $75.75 on Tuesday. The business’s 50 day moving average is $83.79 and its 200 day moving average is $80.13. Mercury Systems Inc has a 12-month low of $39.89 and a 12-month high of $103.84. The stock has a market cap of $4.55 billion, a price-to-earnings ratio of -142.92, a PEG ratio of 7.19 and a beta of 0.84. The company has a quick ratio of 2.04, a current ratio of 2.96 and a debt-to-equity ratio of 0.41.

Mercury Systems (NASDAQ:MRCY – Get Free Report) last posted its quarterly earnings data on Tuesday, February 3rd. The technology company reported $0.16 EPS for the quarter, beating the consensus estimate of $0.07 by $0.09. The firm had revenue of $232.87 million during the quarter, compared to analyst estimates of $209.96 million. Mercury Systems had a negative net margin of 3.23% and a positive return on equity of 1.28%. The company’s revenue for the quarter was up 4.4% on a year-over-year basis. During the same quarter last year, the business posted $0.07 EPS. On average, sell-side analysts forecast that Mercury Systems Inc will post -0.08 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades A number of research firms have recently issued reports on MRCY. The Goldman Sachs Group increased their price objective on shares of Mercury Systems from $49.00 to $55.00 and gave the stock a “sell” rating in a research report on Tuesday, January 20th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Mercury Systems in a research note on Thursday, January 22nd. Canaccord Genuity Group set a $102.00 price target on Mercury Systems in a report on Wednesday, February 4th. Royal Bank Of Canada reissued an “outperform” rating and issued a $105.00 price objective on shares of Mercury Systems in a research note on Wednesday, February 4th. Finally, Jefferies Financial Group restated a “hold” rating and set a $85.00 price objective on shares of Mercury Systems in a report on Sunday, February 8th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Mercury Systems has a consensus rating of “Hold” and a consensus price target of $86.89.

Get Our Latest Stock Analysis on MRCY

Insider Buying and Selling at Mercury Systems In other news, EVP Stuart Kupinsky sold 2,287 shares of the business’s stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $83.56, for a total transaction of $191,101.72. Following the completion of the transaction, the executive vice president owned 68,010 shares of the company’s stock, valued at approximately $5,682,915.60. The trade was a 3.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Douglas Munro sold 582 shares of the business’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $83.56, for a total transaction of $48,631.92. Following the completion of the transaction, the chief accounting officer directly owned 14,328 shares of the company’s stock, valued at approximately $1,197,247.68. This represents a 3.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 859,758 shares of company stock valued at $74,481,931 in the last quarter. Corporate insiders own 1.40% of the company’s stock.

About Mercury Systems (Free Report)

Mercury Systems, Inc (NASDAQ: MRCY) is a technology company that designs, manufactures and markets secure processing subsystems for aerospace and defense applications. The company’s products are built to address the stringent security, safety and reliability requirements of mission-critical programs, with a focus on radar, electronic warfare, intelligence and other sensor and processing functions. Mercury’s offerings encompass rugged embedded computing modules, high-performance radio frequency (RF) and microwave components, digital signal processing subsystems and secure networking solutions.

Since its origins in advanced signal processing, Mercury Systems has expanded its capabilities through a combination of internal development and targeted acquisitions.

Featured Stories Five stocks we like better than Mercury Systems

Receive News & Ratings for Mercury Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Mercury Systems and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEJPMorgan Chase & Co. Sells 1,819,106 Shares of The Wendy’s Company $WEN

NEXT HEADLINE »SG Americas Securities LLC Reduces Stake in SPDR S&P Homebuilders ETF $XHB

As Counter-Drone Spending Marches Toward $20 Billion, Defense Tech Companies Are Layering Visual Intelligence Onto RF-First Architectures To Stay Competitive

Featured Tickers: VisionWave Holdings, Inc. (NASDAQ: VWAV), Rekor Systems, Inc. (NASDAQ: REKR), Ondas Inc. (NASDAQ: ONDS), Red Cat Holdings, Inc. (NASDAQ: RCAT), Mercury Systems, Inc. (NASDAQ: MRCY).

KEY TAKEAWAYS

The global counter-unmanned aerial system market is projected to grow from approximately USD 2.08 billion in 2025 to roughly USD 19.06 billion by 2035, a CAGR of about 25.8%, according to Precedence Research.[1] VisionWave Holdings (Nasdaq: VWAV) has acquired the xClibre™ AI video intelligence IP — independently valued at approximately USD 60 million by BDO Consulting Group — to add a visual perception layer to its RF-based defense platforms.[2] The Pentagon's Drone Dominance Program is now targeting more than 200,000 autonomous systems, against the backdrop of a 2026 US defense budget being discussed at roughly USD 1 trillion.[3] xClibre is built on an edge-first "video-as-a-sensor" architecture, designed to convert existing camera infrastructure into a real-time AI intelligence layer with no cloud dependency.[2] Featured tickers covered in this report: VWAV, REKR, ONDS, RCAT, MRCY. , /PRNewswire/ -- Equity-Insider.com News Commentary — Modern air defense has a problem that money alone cannot solve: too many alerts, not enough certainty. Radio-frequency (RF) sensors are excellent at wide-area detection, but they cannot always tell an operator whether the contact in question is a hostile drone, a stray bird, or a passing aircraft. Visual confirmation has become a non-negotiable input before autonomous engagement — or even authorized human response — can move forward with confidence.

That single operational gap is reshaping the counter-unmanned aircraft system (C-UAS) procurement map. According to Precedence Research, the global C-UAS market is forecast to grow from approximately USD 2.08 billion in 2025 to roughly USD 19.06 billion by 2035, a compound annual growth rate of about 25.8%, with North America accounting for 49% of 2025 market share.[1] Within that growth, control systems — the integration layer that fuses detection, classification, and response — are the fastest-growing component segment, reflecting demand for AI-driven threat prioritization and automated decision support.[1]

The macro environment is amplifying the trend. The Pentagon's Drone Dominance Program is now aiming to field more than 200,000 autonomous systems, Section 1709 of the FY25 NDAA has effectively banned foreign-manufactured drones from the US market via FCC implementation, and the 2026 US defense budget is being discussed at roughly USD 1 trillion, with FY2027 proposals reportedly pushing toward USD 1.5 trillion.[3]

Against that backdrop, VisionWave Holdings, Inc. (Nasdaq: VWAV) has just made one of the most pointed strategic moves of the cycle.

VisionWave Buys The Visual Perception Layer Its Argus Stack Was Missing

On April 13, 2026, VisionWave announced the completed acquisition of the intellectual property assets underlying the xClibre™ AI video intelligence platform, pursuant to a definitive Asset Purchase Agreement dated April 10, 2026. The acquired IP was independently valued at approximately USD 60 million by BDO Consulting Group as of April 10, 2026.[2]

VisionWave's defense platforms — including its Argus™ space-enabled counter-UAS architecture and its WaveStrike™ RF-enabled fire-control workflows — had until now relied primarily on RF-based detection.[2][4] xClibre adds the visual perception layer expected to complement those RF capabilities, addressing what management described as a critical capability gap in the Company's sensing architecture.

"RF sensing tells you something is there. Video intelligence tells you what it is and what it's doing," said Douglas Davis, CEO and Executive Chairman of VisionWave.[2] "With xClibre, we have taken an important step toward delivering both — in a single integrated architecture built for the realities of contested environments. Our near-term focus is validating performance in the field. The commercial path follows from that."

Total consideration for the IP portfolio consists of 7,000,000 shares of VisionWave common stock (3,500,000 issued at closing and 3,500,000 contingent upon successful proof-of-concept validation and Nasdaq Shareholder Approval under Nasdaq Listing Rule 5635), plus a USD 6,000,000 promissory note.[2] VisionWave intends to assign the acquired IP into a dedicated subsidiary, xClibre Inc., creating a focused commercial vehicle for development and go-to-market execution.[2]

xClibre is designed as a "video-as-a-sensor" platform that converts existing camera infrastructure into a real-time AI intelligence layer. Stated capabilities include automated threat detection with behavioral analytics, rapid forensic search to accelerate post-incident investigation, visual verification of RF-detected contacts to potentially reduce false-positive response rates, and event-driven action pipelines that connect detection to autonomous system response.[2] The platform is built on an edge-first architecture — processing data locally via dedicated compute appliances, with no cloud dependency — a design choice intended to enable deployment in bandwidth-constrained forward environments and meet data sovereignty requirements.[2]

Integration is targeted across VisionWave's existing defense stack via APIs and SDKs, with near-term focus on the Argus counter-UAS platform (visual confirmation for RF-identified aerial threats), autonomous interceptor systems, the VARAN unmanned ground vehicle, and fixed-site security deployments with forensic replay capability.[2] A structured proof-of-concept evaluation with an industry partner is targeted for completion in H2 2026, and successful POC outcomes plus Nasdaq Shareholder Approval will trigger release of the remaining 3,500,000 contingent shares.[2]

The xClibre transaction lands against an active strategic backdrop. VisionWave previously entered into a definitive agreement to acquire a 51% controlling stake in C.M. Composite Materials, an Israeli manufacturer whose structural assemblies are used in Israel's multi-layer missile defense architecture, including Iron Dome and the Barak 8 long-range air defense system.[3] The Company has also been advancing its qSpeed™ pre-commercial computational acceleration architecture across defense-focused programs — including Argus counter-UAS workflows — where reduced end-to-end latency may enhance operational responsiveness in time-critical scenarios.[4]

Other Defense Tech Names Building The AI Sensing Stack

Rekor Systems, Inc. (NASDAQ: REKR)

Rekor Systems is one of the purer-play AI computer vision companies on US exchanges. Its Rekor One® roadway intelligence engine ingests data from proprietary systems, third-party sources, and existing infrastructure, applying computer vision, edge processing, pattern recognition, and predictive algorithms to transform that data into actionable intelligence.[5] On June 6, 2025, Rekor announced a one-year, USD 1.2 million Data-as-a-Service contract with a Sun Belt state transportation agency to deploy 150 Rekor Discover® systems, replacing intrusive legacy roadway sensors with FHWA-compliant AI-based technology.[6]

On October 23, 2025, the Company announced it would enter the global deepfake detection market via a new subsidiary called Rekor Labs, combining its AI and machine vision expertise to identify synthetic video, audio, and images. Proof-of-concept and alpha milestones were reported as complete, with a full product launch expected in the first half of 2026, and Rekor estimated the global deepfake detection market could exceed USD 30 billion over the next decade.[7] On March 18, 2026, the US Patent and Trademark Office granted Rekor a patent for an incident-based method to retain ALPR and vehicle recognition data based on suspected-offense severity, expanding the Company's IP portfolio in computer vision data management.[8]

Ondas Inc. (NASDAQ: ONDS)

Ondas — which changed its name from Ondas Holdings Inc. to Ondas Inc. in January 2026 — has built one of the most active counter-drone franchises among small-cap defense plays.[9] Through its Ondas Autonomous Systems unit and operating companies American Robotics, Airobotics, Apeiro Motion, Roboteam, and Sentrycs, the Company offers an integrated suite of autonomous aerial, ground, and counter-UAS solutions, including the Iron Drone Raider autonomous counter-UAS interception platform and the Optimus System.[9]

On November 17, 2025, Ondas secured an approximately USD 8.2 million order from a major European security authority to deploy multiple Iron Drone Raider systems at one of Europe's largest international airports, followed on December 1, 2025 by a second USD 8.2 million order from the same governmental customer for a different airport.[10] On December 3, 2025, Ondas announced it had been selected as prime contractor for a major government tender to develop a full-scale drone-based autonomous border-protection system, with an initial purchase order expected in January 2026 and the multi-phase program expected to culminate in the deployment of thousands of autonomous drones.[11] On January 28, 2026, the Company's Optimus drone was added to the Defense Contract Management Agency's Blue List, identifying it as an approved, secure, NDAA-compliant unmanned aircraft system for rapid Department of War procurement.[12]

Red Cat Holdings, Inc. (Nasdaq: RCAT)

Red Cat is a US-based provider of advanced all-domain drone and robotic solutions for defense and national security, operating through wholly owned subsidiaries Teal Drones and FlightWave Aerospace. Its Family of Systems is led by the Black Widow™ small unmanned aircraft system, which won the US Army's Short Range Reconnaissance (SRR) production contract over Skydio in November 2024.[13]

On February 2, 2026, Red Cat announced that an Asia-Pacific ally had selected Black Widow on a competitive tender in December 2025, the second Asia-Pacific ally to recently order the system.[14] Then on April 2, 2026, the Company announced that a NATO ally had selected Black Widow in March 2026 through a competitive tender facilitated by the NATO Support and Procurement Agency (NSPA), with deliveries scheduled across calendar year 2026.[15] Red Cat is widely viewed as a potential beneficiary of the Pentagon's Drone Dominance Program, which is focused on strengthening US ability to deploy advanced unmanned systems in future conflicts.[15]

Mercury Systems, Inc. (NASDAQ: MRCY)

Mercury Systems delivers mission-critical processing to the edge — the rugged compute infrastructure that makes AI sensor fusion possible inside platforms operating in harsh, contested environments. The Company's products are deployed in more than 300 programs across 35 countries, supporting applications in mission computing, sensor processing, command and control, and communications.[16]

On January 15, 2026, Mercury announced contract awards totaling more than USD 60 million for work associated with two critical US space and strategic weapons programs.[16] The Company's Q2 fiscal 2026 results, reported on February 3, 2026, showed bookings of USD 288 million (up 18.6% year-over-year), a book-to-bill of 1.23, and a record backlog of USD 1.5 billion (up 8.8% year-over-year).[17] On March 12, 2026, Mercury acquired SolderMask, Inc. to support higher-rate production across more than 20 Mercury programs, including the US Army's Lower Tier Air and Missile Defense Sensor (LTAMDS) program.[18] And on April 2, 2026, Mercury announced it had been selected by L3Harris Technologies (NYSE: LHX) to provide solid-state data recorders for the US Space Development Agency's Tranche 3 Tracking Layer satellite constellation, designed to protect the United States from advanced missile threats including hypersonic weapons.[19]

Frequently Asked Questions

What is xClibre and why does it matter for VisionWave?

xClibre is an AI video intelligence platform whose intellectual property assets VisionWave acquired on April 13, 2026 in a transaction valued at approximately USD 60 million by independent valuation from BDO Consulting Group. It is designed as a "video-as-a-sensor" system that converts existing camera infrastructure into a real-time AI intelligence layer, providing the visual perception capability that VisionWave's previously RF-first defense platforms — including Argus counter-UAS — had been missing.[2]

How fast is the counter-drone market actually growing?

Forecasts vary by methodology, but multiple credible sources point to compound annual growth rates in the 25%–26% range through the early 2030s. Precedence Research projects growth from approximately USD 2.08 billion in 2025 to roughly USD 19.06 billion by 2035 (CAGR of about 25.8%).[1] MarketsandMarkets projects growth from approximately USD 6.64 billion in 2025 to roughly USD 20.31 billion by 2030 (CAGR of about 25.1%) on a slightly different definitional basis.[20]

What is the Pentagon's Drone Dominance Program?

The Drone Dominance Program is a Department of War initiative aimed at fielding more than 200,000 autonomous systems in support of US forces, accelerating the delivery of advanced unmanned systems to operational units. It exists alongside Section 1709 of the FY25 NDAA, which has effectively banned foreign-manufactured drones from the US market through FCC implementation, against a 2026 US defense budget being discussed at roughly USD 1 trillion.[3]

Why is sensor fusion so important in counter-UAS architectures?

Single-modality detection — RF alone, radar alone, or optical alone — produces too many false positives in real-world conditions to support autonomous engagement or rapid human authorization. Layered architectures that combine RF detection with electro-optical confirmation and AI-driven classification are now considered the standard for both military and critical-infrastructure deployments. The control-systems segment, which fuses sensor inputs into integrated command interfaces with real-time threat response, is the fastest-growing component category in the C-UAS market.[1]

When will VisionWave's xClibre integration be validated?

VisionWave plans to conduct a structured proof-of-concept evaluation with an industry partner targeting completion in H2 2026, validating detection accuracy, false-alert performance, and integration across the multi-sensor stack. Successful POC outcomes plus receipt of Nasdaq Shareholder Approval will trigger release of the remaining 3,500,000 contingent shares of the consideration.[2]

CONTINUED… Read this and more news for VisionWave Holdings at: https://equity-insider.com/2025/09/25/the-ai-defense-technology-developments-on-the-rise-in-2025-26/

Article Sources

[1] Precedence Research, "Counter-Unmanned Aerial System (C-UAS) Market Size to Hit USD 19.06 Billion by 2035," https://www.precedenceresearch.com/counter-unmanned-aerial-system-market

[2] VisionWave Holdings, Inc., "VisionWave Acquires xClibre™ AI Video Intelligence IP Assets," April 13, 2026 (company press release).

[3] PR Newswire / Equity-Insider.com, "Counter-Drone Just Became the Fastest-Growing Niche in Defense. VisionWave Is Already Demonstrating ARGUS," April 6, 2026, https://www.prnewswire.com/news-releases/counter-drone-just-became-the-fastest-growing-niche-in-defense-visionwave-is-already-demonstrating-argus-302734941.html

[4] VisionWave Holdings, Inc., "VisionWave Advances qSpeed™ Pre-Commercial Computational Acceleration Architecture Across Defense Programs," January 20, 2026, https://www.globenewswire.com/news-release/2026/01/20/3221720/0/en/VisionWave-Advances-qSpeed-Pre-Commercial-Computational-Acceleration-Architecture-Across-Defense-Programs-Including-Fire-Control-Counter-UAS-and-Intercept-Workflows-Where-Microseco.html

[5] Rekor Systems, Inc., corporate website, https://www.rekor.ai

[6] StockTitan, "$1.2M AI Traffic Monitoring Contract Won by Rekor Systems," June 6, 2025, https://www.stocktitan.net/news/REKR/sun-belt-state-transportation-agency-to-deploy-150-rekor-discover-1cahyoj7102b.html

[7] Rekor Systems, Inc., "Rekor Systems Announces Plan to Enter the Global Deepfake Detection Market," October 23, 2025, https://www.stocktitan.net/news/REKR/rekor-systems-announces-plan-to-enter-the-global-deepfake-detection-tjdi0dvrvvec.html

[8] StockTitan, "REKR — Rekor Systems Inc Latest Stock News & Market Updates," https://www.stocktitan.net/news/REKR/

[9] Yahoo Finance, "Ondas Inc. (ONDS) Stock Price, News, Quote & History," https://finance.yahoo.com/quote/ONDS/

[10] Ondas Holdings Inc., "Ondas Secures Additional $8.2 Million Counter-UAS Order," December 1, 2025, https://ir.ondas.com/press-releases/detail/259/ondas-secures-additional-8-2-million-counter-uas-order

[11] Ondas Holdings Inc., "Ondas Wins Strategic Government Tender to Develop and Deploy Autonomous Border-Protection System with Thousands of Drones," December 3, 2025, https://ir.ondas.com/press-releases/detail/261/ondas-wins-strategic-government-tender-to-develop-and

[12] Ondas Inc., "Ondas' American Robotics Optimus Drone Approved for Rapid Federal Procurement via DCMA Blue UAS Cleared List," January 28, 2026, https://ir.ondas.com/press-releases/detail/275/ondas-american-robotics-optimus-drone-approved-for-rapid

[13] The Robot Report, "Red Cat wins U.S. Army next-gen drone contract over Skydio," November 22, 2024, https://www.therobotreport.com/red-cat-wins-u-s-army-next-gen-drone-contract-over-skydio/

[14] Red Cat Holdings, Inc., "Red Cat Secures New Orders for Black Widow™ Drones from Asia-Pacific Ally," February 2, 2026, https://ir.redcatholdings.com/news-events/press-releases/detail/210/red-cat-secures-new-orders-for-black-widow-drones-from-asia-pacific-ally

[15] Red Cat Holdings, Inc., "Red Cat Secures New Orders for Black Widow™ Drones from NATO Ally," April 2, 2026, https://www.globenewswire.com/news-release/2026/04/02/3267257/0/en/Red-Cat-Secures-New-Orders-for-Black-Widow-Drones-from-NATO-Ally.html

[16] Mercury Systems, Inc., "Mercury Awarded Contracts for U.S. Space and Strategic Weapons Programs," January 15, 2026 (per company news listings).

[17] Mercury Systems, Inc., "Mercury Systems Reports Second Quarter Fiscal 2026 Results," February 3, 2026.

[18] Mercury Systems, Inc., "Mercury Systems Acquires SolderMask To Support Higher Rate Production," March 12, 2026, https://www.globenewswire.com/news-release/2026/03/12/3255136/18849/en/Mercury-Systems-Acquires-SolderMask-To-Support-Higher-Rate-Production.html

[19] Mercury Systems, Inc., "L3Harris Selects Mercury To Provide Solid-State Data Recorders for SDA's Tranche 3 Tracking Layer Satellites," April 2, 2026, https://www.globenewswire.com/news-release/2026/04/02/3267213/18849/en/L3Harris-Selects-Mercury-To-Provide-Solid-State-Data-Recorders-for-SDA-s-Tranche-3-Tracking-Layer-Satellites.html

[20] MarketsandMarkets, "Counter-UAS Systems Market — Global Forecast to 2030," https://www.marketsandmarkets.com/Market-Reports/counter-cuas-systems-market-4197284.html

Contact

Equity Insider

[email protected]

(604) 265-2873

DISCLAIMER

Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Equity-Insider.com is a wholly-owned subsidiary of Market IQ Media Group, Inc. ("MIQ"). MIQ has been paid a fee for VisionWave Holdings, Inc. advertising and digital media from the company directly. There may be 3rd parties who may have shares of VisionWave Holdings, Inc., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. MIQ owns shares of VisionWave Holdings, Inc. that were purchased in the open market and reserves the right to buy and sell, and will buy and sell shares of VisionWave Holdings, Inc. at any time thereafter without any further notice. MIQ also expects to receive further compensation as outlined in our disclosures concerning VisionWave Holdings, Inc. This article is being distributed for Market IQ Media Group, Inc.

The above article contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward looking statements." Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including without limitation, the ability of VisionWave Holdings, Inc. to successfully integrate the xClibre IP, complete the proof-of-concept evaluation, obtain Nasdaq Shareholder Approval for the issuance of the contingent shares, and execute on its broader commercialization roadmap. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Logo - https://mma.prnewswire.com/media/2840019/5912200/Equity_Insider_Logo.jpg

SOURCE Equity Insider

The $900.6 billion Pentagon budget that took effect in early 2026 was already the largest in American history before the Iran war started. Then, President Donald Trump proposed a budget of $1.5 trillion for the Defense Department for 2027. Whatever skepticism you might feel about the odds that Congress will set the final number anywhere near that, the directional signal is unmistakable: The United States government is in the midst of a generational expansion of its military networks, and it doesn't seem to be slowing down.

The companies that will benefit most from this cycle aren't necessarily the defense primes -- the giant primary contractors like Lockheed Martin and General Dynamics. The specific technological priorities of the current moment -- battle network integration, missile tracking, cyber warfare, and AI-enabled edge processing -- favor companies that have spent years building precisely those capabilities.

Image source: Getty Images.

1. Mercury Systems There's a way to think about Mercury Systems (MRCY +0.45%) that most coverage misses: It doesn't build the weapons. It builds what makes the weapons intelligent. Its products are processing platforms such as radiation-hardened signal processors and AI-capable edge computing subsystems that are embedded directly into the electronics of over 300 defense programs, including the F-35, the Patriot missile defense system, and numerous classified hypersonic programs.

In January, Mercury announced contracts exceeding $60 million across two critical U.S. space and strategic weapons programs. One extended a strategic weapons development contract through 2031. The other deal came from a space systems prime contractor, which tapped it to supply a subsystem for a national security satellite program -- specifically, Mercury's radiation-tolerant wideband storage and processing unit.

The "design-in" model is what makes Mercury stock particularly compelling. Once one of Mercury's processing platforms becomes embedded in a multidecade defense program -- and it is written into hundreds of them -- that sets it up for many years of ongoing revenues.

The Iran war is underscoring exactly how critical edge AI processing is at every node of the battlefield network. Mercury is the company that makes those nodes work.

Today's Change

(

0.45

%) $

0.54

Current Price

$

119.86

2. Leonardo DRS Leonardo DRS (DRS 1.26%) was awarded a subcontract in January 2026 to provide infrared mission payloads for the Space Development Agency's Tracking Layer Tranche 3 (TRKT3). That project is a cornerstone of the Pentagon's next-generation missile defense architecture.

Per its press release, Leonardo DRS "will design, build, integrate, and test advanced infrared mission payloads to support TRKT3’s accelerated capability to provide global detection, warning, and tracking of ballistic missiles and hypersonic weapons. The infrared capability will be used from the earliest stages of an adversarial launch through interception, including delivering precision fire-control sensing data for missile interceptors."

During the recent conflict, Iran has fired what it describes as hypersonic missiles. Tracking such weapons from space -- with the kind of speed and precision that DRS' infrared payloads are designed for -- is no longer a theoretical defense problem. The Space Force intends to deploy a constellation of approximately 30 of these missile-tracking satellites. Leonardo DRS is helping to build their eyes.

Today's Change

(

-1.26

%) $

-0.63

Current Price

$

49.06

3. Parsons owns the digital battlefield nobody sees Most defense industry coverage focuses on the companies behind the hardware -- missiles, planes, drones, satellites, etc. Parsons (PSN 1.19%) operates in the layer beneath it all, which is the cyber infrastructure that ties the battle network together. In February, its SealingTech subsidiary was awarded a three-year contract worth up to $500 million by U.S. Cyber Command to produce the Joint Cyber Hunt Kit -- a system for seeking out cyber threats on isolated computer networks.

Parsons also operates in space intelligence, signals intelligence, and missile warning -- capabilities it expanded in January through its acquisition of Altamira Technologies. The company is a classified-systems intelligence contractor that most retail investors have never heard of, which is the point. The less visible a defense contractor is to the public, the more likely its work sits in the sensitive programs that governments fund through every budget cycle, regardless of the direction the political winds are blowing.

Today's Change

(

-1.26

%) $

-0.63

Current Price

$

49.06

U.S. defense spending may or may not reach Trump's aggressive $1.5 trillion target in 2027. But the underlying demand for battle network integration, missile tracking, and cyberdefense is structural, and Mercury Systems, Leonardo DRS, and Parsons are doing the specific technical work that the next decade's worth of defense projects will be built around.

Mercury Systems, Inc. remains a Buy, with a base case price target of $97.53 (18% upside) and a more bullish target of $113.45 (37% upside). MRCY benefits from long-term demand for defense microelectronics but faces near-term risks from supply chain fragility and rising input costs due to geopolitical tensions. Recent estimate revisions show minimal change in annual revenue and EBITDA, but Q3 2026 EPS was trimmed 70% as non-recurring material receipts were excluded from ongoing guidance.

Record Q3 FY26 Bookings of $348 million grew 73.7% year-over-year; book-to-bill of 1.48Record backlog of approximately $1.6 billion; up 17.9% year-over-yearQ3 FY26 Revenue of $236 million; up 11.5% organically year-over-yearGAAP net loss of $3 million; and adjusted EBITDA of $36 million, up 46.2% year-over-year ANDOVER, Mass., May 05, 2026 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), reported operating results for the third quarter of fiscal year 2026, ended March 27, 2026.

“We delivered third quarter fiscal 2026 results that were ahead of our expectations, with significant year-over-year growth in backlog, revenue, and adjusted EBITDA,” said Bill Ballhaus, Mercury’s Chairman and CEO. “Strong demand signals and solid execution contributed to better than expected organic growth and margin expansion this quarter."

“In the third quarter we delivered record bookings of $348 million, with a 1.48 book-to-bill, resulting in a record backlog of approximately $1.6 billion. Revenue for the third quarter was $236 million, up 11.5% year-over-year. GAAP net loss of $3 million, adjusted EBITDA of $36 million, and adjusted EBITDA margin of 15.3%, each improving year-over-year."

Third Quarter Fiscal 2026 Results

Third quarter fiscal 2026 revenues were $236 million, compared to $211 million in the third quarter of fiscal 2025.

Total bookings for the third quarter of fiscal 2026 were $348 million, yielding a book-to-bill ratio of 1.48 for the quarter.

GAAP net loss and loss per share for the third quarter of fiscal 2026 were $3 million and $0.04, respectively, compared to GAAP net loss and loss per share of $19 million and $0.33, respectively, for the third quarter of fiscal 2025. Adjusted earnings per share (“adjusted EPS”) was $0.27 per share for the third quarter of fiscal 2026, compared to $0.06 per share in the third quarter of fiscal 2025.

Third quarter fiscal 2026 adjusted EBITDA was $36 million, compared to $25 million for the third quarter of fiscal 2025.

Cash flows provided by operating activities in the third quarter of fiscal 2026 were $6 million, compared to $30 million in the third quarter of fiscal 2025. Free cash flow, defined as cash flows from operating activities less capital expenditures for property and equipment, was $(2) million for the third quarter of fiscal 2026 and $24 million for the third quarter of fiscal 2025.

Backlog

Mercury’s total backlog at March 27, 2026 was approximately $1.6 billion, an approximate $240 million increase from a year ago. Of the March 27, 2026 total backlog, $891 million represents orders expected to be recognized as revenue within the next 12 months.

Conference Call Information

Management will host a conference call and simultaneous webcast at 5:00 p.m. ET on Tuesday, May 5, 2026, to discuss Mercury's quarterly financial results, business highlights and outlook. In addition, Company representatives may answer questions concerning business and financial developments and trends, the Company's view on earnings forecasts, and other business and financial matters affecting the Company, the responses to which may contain information that has not been previously disclosed.

To participate in the conference call Q&A as an analyst please register online at https://events.q4inc.com/analyst/603599389?pwd=RYGqad9c or dial +1 585 542 9983 by phone using Meeting ID: 603599389. The live listen-only webcast and replay will be available ir.mrcy.com/events-presentations. A replay of the webcast will be available two hours after the call and archived on the same web page for six months.

Use of Non-GAAP Financial Measures

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the Company provides adjusted EBITDA, adjusted income, adjusted earnings per share (“adjusted EPS”) and free cash flow, which are non-GAAP financial measures. Adjusted EBITDA, adjusted income, and adjusted EPS exclude certain non-cash and other specified charges. The Company believes these non-GAAP financial measures are useful to help investors understand its past financial performance and prospects for the future. However, these non-GAAP measures should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. Management believes these non-GAAP measures assist in providing a more complete understanding of the Company’s underlying operational results and trends, and management uses these measures along with the corresponding GAAP financial measures to manage the Company’s business, to evaluate its performance compared to prior periods and the marketplace, and to establish operational goals. A reconciliation of GAAP to non-GAAP financial results discussed in this press release is contained in the attached exhibits.

Mercury Systems – Innovation that Matters®

Mercury Systems is a global technology company that delivers mission-critical processing power to the edge, making advanced technologies profoundly more accessible for today’s most challenging aerospace and defense missions. The Mercury Processing Platform allows customers to tap into innovative capabilities from silicon to system scale, turning data into decisions on timelines that matter. Mercury’s products and solutions are deployed in more than 300 programs and across 35 countries, enabling a broad range of applications in mission computing, sensor processing, command and control, and communications. Mercury is headquartered in Andover, Massachusetts, and has more than 20 locations worldwide. To learn more, visit mrcy.com. (Nasdaq: MRCY)

Investors and others should note that we announce material financial information using our website (www.mrcy.com), SEC filings, press releases, public conference calls, webcasts, and social media, including X (X.com/mrcy) and LinkedIn (www.linkedin.com/company/mercury-systems). Therefore, we encourage investors and others interested in Mercury to review the information we post on the social media and other communication channels listed on our website.

Forward-Looking Safe Harbor Statement
This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the Company's focus on enhanced execution of the Company's strategic plan. You can identify these statements by the words “may,” “will,” “could,” “should,” “would,” “plans,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” “likely,” “forecast,” “probable,” “potential,” and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs, the timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, effects of any U.S. federal government shutdown or extended continuing resolution, effects of increasingly volatile geopolitical events and regional conflicts, competition, changes in technology and methods of marketing, delays in or cost increases related to completing development, engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in, or in the U.S. government’s interpretation of, federal export control or procurement rules and regulations, including tariffs, changes in, or in the interpretation or enforcement of, environmental rules and regulations, market acceptance of the Company's products, shortages in or delays in receiving components, supply chain delays or volatility for critical components, production delays or unanticipated expenses including due to quality issues or manufacturing execution issues, failure to meet contractual performance specifications, adherence to required manufacturing standards, capacity underutilization, increases in scrap or inventory write-offs, failure to achieve or maintain manufacturing quality certifications, such as AS9100, failure to achieve or maintain qualified business systems, such as those required by the DFARS, adverse finding in government audits or investigations, the impact of supply chain disruption, inflation and labor shortages, among other things, on program execution and the resulting effect on customer satisfaction, inability to fully realize the expected benefits from acquisitions, restructurings, and operational efficiency initiatives or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, effects of shareholder activism, increases in interest rates, changes to industrial security and cyber-security regulations and requirements and impacts from any cyber or insider threat events, including risks from heightened, persistent, and increasingly sophisticated nation-state level cyberattacks and emerging threats associated with agentic AI-enabled cyber tools, changes in tax rates or tax regulations, changes to interest rate swaps or other cash flow hedging arrangements, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, litigation, including the federal securities class action lawsuit and related claims, unanticipated costs under fixed-price service and system integration engagements, and various other factors beyond our control. These risks and uncertainties also include such additional risk factors as are discussed in the Company's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 27, 2025 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

Contact:
Tyler Hojo, CFA, Vice President of Investor Relations
Mercury Systems, Inc.
978-967-3676

Mercury Systems and Innovation That Matters are registered trademarks of Mercury Systems, Inc. Other product and company names mentioned may be trademarks and/or registered trademarks of their respective holders.

   MERCURY SYSTEMS, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands)
       March 27, June 27, 2026 2025      Assets     Current assets:     Cash and cash equivalents$331,800  $309,099 Accounts receivable, net 95,547   109,588 Unbilled receivables and costs in excess of billings, net 269,498   278,475 Inventory 361,693   332,920 Prepaid income taxes 1,294   457 Prepaid expenses and other current assets 56,899   27,639 Total current assets 1,116,731   1,058,178       Property and equipment, net 102,592   101,440 Goodwill 942,614   938,093 Intangible assets, net 185,210   210,611 Operating lease right-of-use assets, net 50,094   52,264 Deferred tax asset 75,964   69,016 Other non-current assets 8,082   5,162 Total assets$2,481,287  $2,434,764       Liabilities and Shareholders’ Equity     Current liabilities:     Accounts payable$104,066  $79,116 Accrued expenses 69,059   35,264 Due to factoring facility 14,107   7,879 Accrued compensation 36,952   51,321 Deferred revenues and customer advances 126,312   126,797 Total current liabilities 350,496   300,377       Income taxes payable 4,046   4,046 Long-term debt 591,500   591,500 Operating lease liabilities 48,343   52,738 Other non-current liabilities 9,230   12,642 Total liabilities 1,003,615   961,303       Shareholders’ equity:     Preferred stock —   — Common stock 595   590 Additional paid-in capital 1,314,770   1,287,478 Retained earnings 151,424   181,895 Accumulated other comprehensive income 10,883   3,498 Total shareholders’ equity 1,477,672   1,473,461 Total liabilities and shareholders’ equity$2,481,287  $2,434,764          MERCURY SYSTEMS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
  Third Quarters Ended Nine Months Ended March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025Net revenues$235,759  $211,358  $693,840  $638,914 Cost of revenues(1) 166,709   154,248   501,258   469,188 Gross margin 69,050   57,110   192,582   169,726         Operating expenses:       Selling, general and administrative(1) 39,138   43,044   127,183   116,698 Research and development(1) 15,014   15,983   43,579   55,734 Amortization of intangible assets 9,561   10,185   29,514   32,574 Restructuring and other charges (48)  4,931   5,591   7,231 Acquisition costs and other related expenses 155   311   900   666 Total operating expenses 63,820   74,454   206,767   212,903         Income (loss) from operations 5,230   (17,344)  (14,185)  (43,177)        Interest income 2,507   1,290   6,182   2,240 Interest expense (7,331)  (8,068)  (23,066)  (25,404)Other (expense) income, net (3,093)  2,304   (5,613)  (2,900)        Loss before income tax provision (benefit) (2,687)  (21,818)  (36,682)  (69,241)Income tax provision (benefit) 174   (2,648)  (6,211)  (14,967)Net loss$(2,861) $(19,170) $(30,471) $(54,274)        Basic net loss per share$(0.04) $(0.33) $(0.51) $(0.93)        Diluted net loss per share$(0.04) $(0.33) $(0.51) $(0.93)        Weighted-average shares outstanding:       Basic 59,422   58,749   59,386   58,614 Diluted 59,422   58,749   59,386   58,614         (1) Includes stock-based compensation expense, allocated as follows:Cost of revenues$950  $813  $4,573  $759 Selling, general and administrative$6,556  $6,228  $19,878  $17,156 Research and development$1,543  $1,507  $4,765  $4,687                  MERCURY SYSTEMS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)
         Third Quarters Ended Nine Months Ended March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025Cash flows from operating activities:       Net loss$(2,861) $(19,170) $(30,471) $(54,274)Depreciation and amortization 17,956   19,916   55,169   62,058 Other non-cash items, net 12,335   8,989   37,490   19,674 Changes in operating assets and liabilities (20,988)  20,239   (1,953)  73,318         Net cash provided by operating activities 6,442   29,974   60,235   100,776         Cash flows from investing activities:       Purchases of property and equipment (8,263)  (5,914)  (20,713)  (15,705)Acquisition of assets and businesses, net of cash acquired (1,415)  —   (1,415)  — Other investing activities —   2,700   —   4,600         Net cash used in investing activities (9,678)  (3,214)  (22,128)  (11,105)        Cash flows from financing activities:       Proceeds from employee stock plans —   —   2,728   1,492 Payments for retirement of common stock —   —   (15,001)  — Payments of deferred financing and offering costs —   —   (3,156)  (2,249)        Net cash used in financing activities —   —   (15,429)  (757)        Effect of exchange rate changes on cash and cash equivalents 46   497   23   387         Net (decrease) increase in cash and cash equivalents (3,190)  27,257   22,701   89,301         Cash and cash equivalents at beginning of period 334,990   242,565   309,099   180,521         Cash and cash equivalents at end of period$331,800  $269,822  $331,800  $269,822                  UNAUDITED SUPPLEMENTAL INFORMATION RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In thousands, except per share data)

Adjusted EBITDA, a non-GAAP measure for reporting financial performance, excludes the impact of certain items and, therefore, has not been calculated in accordance with GAAP. Management believes that exclusion of these items assists in providing a more complete understanding of the Company’s underlying results and trends, and management uses these measures along with the corresponding GAAP financial measures to manage the Company’s business, to evaluate its performance compared to prior periods and the marketplace, and to establish operational goals. The adjustments to calculate this non-GAAP financial measure, and the basis for such adjustments, are outlined below:

Other non-operating adjustments. The Company records other non-operating adjustments such as gains or losses on foreign currency remeasurement, investments and fixed asset sales or disposals among other adjustments. These adjustments may vary from period to period without any direct correlation to underlying operating performance.

Interest income and expense. The Company receives interest income on investments and incurs interest expense on loans, financing leases and other financing arrangements. These amounts may vary from period to period due to changes in cash and debt balances and interest rates driven by general market conditions or other circumstances which may be outside of the normal course of the Company’s operations.

Income taxes. The Company’s GAAP tax expense can fluctuate materially from period to period due to tax adjustments that are not directly related to underlying operating performance or to the current period of operations.

Depreciation. The Company incurs depreciation expense related to capital assets purchased to support the ongoing operations of the business. These assets are recorded at cost or fair value and are depreciated using the straight-line method over the useful life of the asset. Purchases of such assets may vary significantly from period to period and without any direct correlation to underlying operating performance.

Amortization of intangible assets. The Company incurs amortization of intangible assets primarily as a result of acquired intangible assets such as backlog, customer relationships and completed technologies but also due to licenses, patents and other arrangements. These intangible assets are valued at the time of acquisition or upon receipt of right to use the asset, amortized over the requisite life and generally cannot be changed or influenced by management after acquisition.

Restructuring and other charges. The Company incurs restructuring and other charges in connection with management’s decisions to undertake certain actions to realign operating expenses through workforce reductions and the closure of certain Company facilities, businesses and lines of business. The Company’s adjustments reflected in restructuring and other charges are typically related to acquisitions and organizational redesign programs initiated as part of discrete post-acquisition integration activities. Management believes these items are non-routine and may not be indicative of ongoing operating results.

Impairment of long-lived assets. The Company incurs impairment charges of long-lived assets based on events that may or may not be within the control of management. Management believes these items are outside the normal operations of the Company’s business and are not indicative of ongoing operating results.

Acquisition, financing and other third party costs. The Company incurs transaction costs related to acquisition and potential acquisition opportunities, such as legal, accounting, and other third party advisory fees. The Company may also incur third party costs, such as legal, banking, communications, proxy solicitation, and other third party advisory fees in connection with engagements by activist investors or unsolicited acquisition offers. Although the Company may incur such third party costs and other related charges and adjustments, it is not indicative that any transaction will be consummated. Additionally, the Company incurs unused revolver and bank fees associated with maintaining its credit facility as well as non-cash financing expenses associated with obtaining its credit facility. Management believes these items are outside the normal operations of the Company’s business and are not indicative of ongoing operating results.

Fair value adjustments from purchase accounting. As a result of applying purchase accounting rules to acquired assets and liabilities, certain fair value adjustments are recorded in the opening balance sheet of acquired companies. These adjustments are then reflected in the Company’s income statements in periods subsequent to the acquisition. In addition, the impact of any changes to originally recorded contingent consideration amounts are reflected in the income statements in the period of the change. Management believes these items are outside the normal operations of the Company and are not indicative of ongoing operating results.

Litigation and settlement income and expense. The Company periodically receives income and incurs expenses related to pending claims and litigation and associated legal fees and potential case settlements and/or judgments. Although the Company may incur such costs and other related charges and adjustments, it is not indicative of any particular outcome until the matter is fully resolved. Management believes these items are outside the normal operations of the Company’s business, often occur in periods other than the period of activity, and are not indicative of ongoing operating results. The Company periodically receives warranty claims from customers and makes warranty claims towards its vendors and supply chain. Management believes the expenses and gains associated with these recurring warranty items are within the normal operations and operating cycle of the Company’s business. Therefore, management deems no adjustments are necessary unless under extraordinary circumstances.

Stock-based and other non-cash compensation expense. The Company incurs expense related to stock-based compensation included in its GAAP presentation of cost of revenues, selling, general and administrative expense and research and development expense. The Company also incurs non-cash based compensation in the form of pension related expenses and matching contributions to its defined contribution plan. Although stock-based and other non-cash compensation is an expense of the Company and viewed as a form of compensation, these expenses vary in amount from period to period, and are affected by market forces that are difficult to predict and are not within the control of management, such as the market price and volatility of the Company’s shares, risk-free interest rates and the expected term and forfeiture rates of the awards, as well as pension actuarial assumptions. Management believes that exclusion of these expenses allows comparisons of operating results to those of other companies, both public, private or foreign, that disclose non-GAAP financial measures that exclude stock-based compensation and other non-cash compensation.

Mercury uses adjusted EBITDA as an important indicator of the operating performance of its business. Management excludes the above-described items from its internal forecasts and models when establishing internal operating budgets, supplementing the financial results and forecasts reported to the Company’s board of directors, determining a portion of bonus compensation for executive officers and other key employees based on operating performance, evaluating short-term and long-term operating trends in the Company’s operations, and allocating resources to various initiatives and operational requirements. The Company believes that adjusted EBITDA permits a comparative assessment of its operating performance, relative to its performance based on its GAAP results, while isolating the effects of charges that may vary from period to period without direct correlation to underlying operating performance. The Company believes that these non-GAAP financial adjustments are useful to investors because they allow investors to evaluate the effectiveness of the methodology and information used by management in its financial and operational decision-making. The Company believes that trends in its adjusted EBITDA are valuable indicators of its operating performance.

Adjusted EBITDA is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. The Company expects to continue to incur expenses similar to the adjusted EBITDA financial adjustments described above, and investors should not infer from the Company’s presentation of this non-GAAP financial measure that these costs are unusual, infrequent or non-recurring.

The following table reconciles the most directly comparable GAAP financial measure to the non-GAAP financial measure.

 Third Quarters Ended Nine Months Ended March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025Net loss$(2,861) $(19,170) $(30,471) $(54,274)Other non-operating adjustments, net 2,445   (3,911)  2,894   (3,097)Interest expense, net 4,824   6,778   16,884   23,164 Income tax provision (benefit) 174   (2,648)  (6,211)  (14,967)Depreciation 8,395   9,731   25,655   29,484 Amortization of intangible assets 9,561   10,185   29,514   32,574 Restructuring and other charges (48)  4,931   5,591   7,231 Impairment of long-lived asset —   —   —   — Acquisition, financing and other third party costs 581   1,072   3,412   4,512 Fair value adjustments from purchase accounting 132   131   394   486 Litigation and settlement expense, net 2,120   5,467   11,631   8,948 Stock-based and other non-cash compensation expense 10,768   12,124   42,381   34,108 Adjusted EBITDA$36,091  $24,690  $101,674  $68,169                  Free cash flow, a non-GAAP measure for reporting cash flow, is defined as cash provided by operating activities less capital expenditures for property and equipment, which includes capitalized software development costs, and, therefore, has not been calculated in accordance with GAAP. Management believes free cash flow provides investors with an important perspective on cash available for investment and acquisitions after making capital investments required to support ongoing business operations and long-term value creation. The Company believes that trends in its free cash flow are valuable indicators of its operating performance and liquidity.

Free cash flow is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. The Company expects to continue to incur expenditures similar to the free cash flow financial adjustment described above, and investors should not infer from the Company’s presentation of this non-GAAP financial measure that these expenditures reflect all of the Company's obligations which require cash.

The following table reconciles the most directly comparable GAAP financial measure to the non-GAAP financial measure.

 Third Quarters Ended Nine Months Ended March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025Net cash provided by operating activities$6,442  $29,974  $60,235  $100,776 Purchases of property and equipment (8,263)  (5,914)  (20,713)  (15,705)Free cash flow$(1,821) $24,060  $39,522  $85,071                  Adjusted income and adjusted earnings per share (“adjusted EPS”) are non-GAAP measures for reporting financial performance, exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. Management believes that exclusion of these items assists in providing a more complete understanding of the Company’s underlying results and trends and allows for comparability with its peer company index and industry. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. The Company uses these measures along with the corresponding GAAP financial measures to manage the Company’s business and to evaluate its performance compared to prior periods and the marketplace. The Company defines adjusted income as income before other non-operating adjustments, amortization of intangible assets, restructuring and other charges, impairment of long-lived assets, acquisition, financing and other third party costs, fair value adjustments from purchase accounting, litigation and settlement income and expense, and stock-based and other non-cash compensation expense. The impact to income taxes includes the impact to the effective tax rate, current tax provision and deferred tax provision(1). Adjusted EPS expresses adjusted income on a per share basis using weighted average diluted shares outstanding.  

The following tables reconcile the most directly comparable GAAP financial measures to the non-GAAP financial measures.

 Third Quarters Ended March 27, 2026 March 28, 2025Net loss and loss per share$(2,861) $(0.04) $(19,170) $(0.33)Other non-operating adjustments, net 2,445     (3,911)  Amortization of intangible assets 9,561     10,185   Restructuring and other charges (48)    4,931   Impairment of long-lived assets —     —   Acquisition, financing and other third party costs 581     1,072   Fair value adjustments from purchase accounting 132     131   Litigation and settlement expense, net 2,120     5,467   Stock-based and other non-cash compensation expense 10,768     12,124   Impact to income taxes(1) (6,279)    (7,240)  Adjusted income and adjusted earnings per share(2)$16,419  $0.27  $3,589  $0.06         Diluted weighted-average shares outstanding   60,776     59,367         (1) Impact to income taxes is calculated by recasting income before income taxes to include the items involved in determining adjusted income and recalculating the income tax provision using this adjusted income from operations before income taxes. The recalculation also adjusts for any discrete tax provision or benefit related to the items.
(2) Adjusted earnings per share is calculated using diluted shares whereas Net loss per share is calculated using basic shares. There was a $0.01 impact and no impact to the calculation of adjusted earnings per share as a result of this for the third quarters ended March 27, 2026 and March 28, 2025, respectively.   Nine Months Ended March 27, 2026 March 28, 2025Net loss and loss per share$(30,471) $(0.51) $(54,274) $(0.93)Other non-operating adjustments, net 2,894     (3,097)  Amortization of intangible assets 29,514     32,574   Restructuring and other charges 5,591     7,231   Impairment of long-lived assets —     —   Acquisition, financing and other third party costs 3,412     4,512   Fair value adjustments from purchase accounting 394     486   Litigation and settlement expense, net 11,631     8,948   Stock-based and other non-cash compensation expense 42,381     34,108   Impact to income taxes(1) (23,930)    (20,515)  Adjusted income and adjusted earnings per share(2)$41,416  $0.68  $9,973  $0.17         Diluted weighted-average shares outstanding   60,525     59,024         (1) Impact to income taxes is calculated by recasting income before income taxes to include the items involved in determining adjusted income and recalculating the income tax provision using this adjusted income from operations before income taxes. The recalculation also adjusts for any discrete tax provision or benefit related to the items.
(2) Adjusted earnings per share is calculated using diluted shares whereas Net loss per share is calculated using basic shares. There was no impact and a $0.01 impact to the calculation of adjusted earnings per share as a result of this for the nine months ended March 27, 2026 and March 28, 2025, respectively. 

For the quarter ended March 2026, Mercury Systems (MRCY - Free Report) reported revenue of $235.76 million, up 11.5% over the same period last year. EPS came in at $0.27, compared to $0.06 in the year-ago quarter.

The reported revenue represents a surprise of +12.06% over the Zacks Consensus Estimate of $210.38 million. With the consensus EPS estimate being $0.06, the EPS surprise was +350%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Mercury Systems performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Revenue- Sensor & Effector- Radar: $44.84 million versus the two-analyst average estimate of $36.23 million. The reported number represents a year-over-year change of +24.8%.Net Revenue- Sensor & Effector- Electronic Warfare: $30 million compared to the $20.51 million average estimate based on two analysts. The reported number represents a change of +40.1% year over year.Net Revenue- Other: $31.82 million compared to the $32.51 million average estimate based on two analysts. The reported number represents a change of -9.6% year over year.Net Revenue- Sensor & Effector- Total: $114.16 million versus the two-analyst average estimate of $78.85 million. The reported number represents a year-over-year change of +43.8%.Net Revenue- C4I: $89.78 million versus $95.22 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -7.2% change.Net Revenue- Sensor & Effector- Other Sensor & Effector: $39.32 million versus the two-analyst average estimate of $22.12 million. The reported number represents a year-over-year change of +78.4%.View all Key Company Metrics for Mercury Systems here>>>

Shares of Mercury Systems have returned +3.7% over the past month versus the Zacks S&P 500 composite's +9.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Key Takeaways Mercury Systems fiscal Q3 EPS jumped to 27 cents, beating estimates and rising sharply year over year.MRCY posted record $348M bookings, up 73.7% Y/Y, with backlog hitting $1.6B and strong production demand.MRCY raised fiscal 2026 outlook, citing stronger revenue growth, improved margins and robust pipeline. Mercury Systems (MRCY - Free Report) reported adjusted earnings of 27 cents per share for the third quarter of fiscal 2026, which beat the Zacks Consensus Estimate by 350%. The bottom line increased significantly year over year from 6 cents in the prior-year quarter.

In the fiscal third quarter, MRCY reported revenues of $236 million, reflecting an 11.5% organic year-over-year increase and surpassing the Zacks Consensus Estimate by 12.06%.

Fiscal third-quarter results were ahead of management's expectations, with significant year-over-year growth in backlog, revenues and adjusted EBITDA, driven by strong demand signals and solid execution.

MRCY's Q3 DetailsTotal bookings for the third quarter of fiscal 2026 were a record $348 million, up 73.7% year over year, yielding a book-to-bill ratio of 1.48. As a defense technology company focused on mission-critical processing systems, Mercury Systems operates primarily as a single-segment business serving aerospace and defense markets. Third-quarter bookings were driven largely by follow-on production orders, reflecting the company's transition toward higher-rate production. The largest bookings spanned several missile, C4I and space programs, and the quarter featured the strongest bookings of the fiscal year for solutions leveraging Mercury's Common Processing Architecture. The company also secured a follow-on development award on a strategic program with potential to proliferate across multiple platforms.

MRCY achieved a record total backlog of approximately $1.6 billion as of March 27, 2026, up 17.9% (an approximately $240 million increase) year over year. Of the total backlog, $891 million represents orders expected to be recognized as revenues within the next 12 months. The 12-month backlog also increased 10.3% sequentially. Trailing 12-month bookings reached a record $1.23 billion.

MRCY's Q3 Operating DetailsThird-quarter fiscal 2026 adjusted EBITDA was $36 million, up 46.2% from $25 million in the third quarter of fiscal 2025. The adjusted EBITDA margin was 15.3%, expanding 360 basis points year over year. GAAP net loss and diluted loss per share for the third quarter of fiscal 2026 were $3 million and 4 cents, respectively, compared with GAAP net loss and loss per share of $19 million and 33 cents, respectively, for the third quarter of fiscal 2025.

MRCY’s Q3 Balance Sheet & Cash FlowAs of March 27, 2026, cash and cash equivalents totaled $331.8 million compared with $335 million as of Dec. 26, 2025. Long-term debt was $591.5 million, unchanged from the prior quarter. In the reported quarter, cash flow from operations was $6.4 million compared with $30 million in the third quarter of fiscal 2025. Free cash outflow was $2 million in the third quarter of fiscal 2026 compared with free cash flow of $24 million in the prior-year quarter. The fiscal third-quarter free cash outflow meaningfully outperformed the company's expectations, which had reflected the pull-forward of approximately $30 million of cash receipts into the second quarter.

MRCY Completes SolderMask AcquisitionDuring the quarter, Mercury Systems completed the acquisition of SolderMask, Inc., a specialized manufacturing process technology provider with unique expertise in dry-film solder mask applications leveraged across more than 20 Mercury programs, including the U.S. Army's Lower Tier Air and Missile Defense Sensor program and a number of Common Processing Architecture programs. The transaction closed on March 3, 2026, with Mercury acquiring SolderMask's assets, intellectual property and five-person workforce. Operations continue at the Huntington Beach, CA, facility, while a parallel manufacturing process line is being established at Mercury's Phoenix facility to enable greater throughput as key programs ramp into higher-rate production.

MRCY Raises Fiscal 2026 OutlookFollowing its fiscal third-quarter outperformance, Mercury raised its full-year fiscal 2026 outlook. The company now expects fiscal 2026 annual revenue growth approaching mid single-digits, up from the prior outlook of low single-digits, supported by efforts to stage material earlier and better align the supply base. Full-year adjusted EBITDA margin is now expected in the mid-teens, up from approaching mid-teens previously. Free cash flow is expected to be positive in the fourth quarter of fiscal 2026. Management noted that fourth-quarter bookings have the potential to be the strongest of the fiscal year, based on a pipeline of opportunities more robust than in the third quarter — a potential indicator of increased top-line growth and further margin expansion beyond fiscal 2026. The outlook excludes any upside from domestic priorities, such as the Golden Dome or increased global defense budgets.

MRCY Zacks Rank & Stocks to ConsiderMercury Systems currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Computer and Technology sector include Analog Devices (ADI - Free Report) , Applied Materials (AMAT - Free Report) and Audioeye (AEYE - Free Report) , each carrying a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Analog Devices have gained 46.4% in the year-to-date period. Analog Devices is set to report the second quarter of fiscal 2026 results on May 20.

Applied Materials shares have gained 52.3% in the year-to-date period. Applied Materials is scheduled to report its second-quarter 2026 results on May 14.

Audioeye shares have lost 21.6% in the year-to-date period. Audioeye is set to report its first-quarter 2026 results on May 13.

On May 28, 2026, Mercury Systems Inc (MRCY) shares rose 11.3% to a current price of $108.11. The stock has shown impressive price performance over the past year

Mercury Systems Inc (NASDAQ:MRCY) has received a multi-year contract to deliver 1,000 of its RTBX06 BuiltSECURE servers to Blue Raven, a leading distributor in the defense industry, marking the largest production order to date for the aerospace and defense electronics company's Common Processing Architecture.

The Andover, Massachusetts-based company said the contract covers a multi-year delivery schedule, providing forward visibility into a production stream of 1,000 units of the RTBX06 platform.

Mercury described Blue Raven as a leading distributor in the defense industry but did not disclose end customer identities, dollar value, or the specific platforms onto which the servers will be integrated.

The order is the largest production commitment to date for Mercury's Common Processing Architecture, a reusable hardware platform designed to be deployed across multiple defense and aerospace applications. A common architecture allows multiple programs to draw from a shared hardware baseline, which can reduce per-unit costs and shorten certification timelines for customers that adopt it.

For Mercury, the order validates the Common Processing Architecture strategy as a route to scaling production runs beyond program-specific bespoke builds. Multi-year contracts of this size support production planning and supply chain commitments, particularly in defense electronics where component lead times and certification cycles are long.

The BuiltSECURE branding refers to Mercury's family of secure processing products designed for trusted compute applications in defense and aerospace systems. The RTBX06 sits within that family as a member of the company's processing server line. Under the agreement, Mercury will produce, configure, and support the servers, while Blue Raven will handle global resale and distribution.

Mercury Systems is a global aerospace and defense electronics company, supplying secure processing systems and components to prime contractors and defense distributors, including its RTBX06 BuiltSECURE servers within a Common Processing Architecture portfolio.

Shares of Mercury Systems gained 3.5% on Friday morning.