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, /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].

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B. Metzler seel. Sohn & Co. AG bought a new position in shares of Mercury Systems Inc (NASDAQ:MRCY – Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund bought 32,845 shares of the technology company’s stock, valued at approximately $4,018,000. B. Metzler seel. Sohn & Co. AG owned about 0.05% of Mercury Systems as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors also recently modified their holdings of MRCY. Leonteq Securities AG acquired a new position in shares of Mercury Systems in the 4th quarter worth approximately $35,000. Hollencrest Capital Management purchased a new stake in Mercury Systems in the 4th quarter worth approximately $37,000. Osaic Holdings Inc. raised its holdings in shares of Mercury Systems by 53.2% in the 2nd quarter. Osaic Holdings Inc. now owns 599 shares of the technology company’s stock valued at $32,000 after acquiring an additional 208 shares in the last quarter. Rockefeller Capital Management L.P. boosted its position in shares of Mercury Systems by 53.6% during the 4th quarter. Rockefeller Capital Management L.P. now owns 653 shares of the technology company’s stock valued at $48,000 after acquiring an additional 228 shares during the last quarter. Finally, Federated Hermes Inc. purchased a new position in shares of Mercury Systems in the 2nd quarter worth about $43,000. 95.99% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets Several analysts have weighed in on the stock. JPMorgan Chase & Co. boosted their price target on shares of Mercury Systems from $99.00 to $101.00 and gave the stock a “neutral” rating in a research note on Monday, July 13th. Wall Street Zen cut Mercury Systems from a “buy” rating to a “hold” rating in a report on Saturday, July 18th. Canaccord Genuity Group lifted their target price on shares of Mercury Systems from $106.00 to $128.00 and gave the stock a “buy” rating in a research note on Thursday. Zacks Research downgraded shares of Mercury Systems from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 4th. Finally, Royal Bank Of Canada lifted their target price on shares of Mercury Systems from $105.00 to $120.00 and gave the company an “outperform” rating in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $110.10.

View Our Latest Analysis on Mercury Systems Insider Transactions at Mercury Systems In related news, EVP Steven Ratner sold 1,026 shares of the company’s stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $97.67, for a total value of $100,209.42. Following the completion of the sale, the executive vice president owned 23,275 shares of the company’s stock, valued at approximately $2,273,269.25. This represents a 4.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Douglas Munro sold 548 shares of the business’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $100.31, for a total transaction of $54,969.88. Following the completion of the transaction, the chief accounting officer owned 13,091 shares in the company, valued at $1,313,158.21. The trade was a 4.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 120,705 shares of company stock valued at $12,485,420. 1.40% of the stock is currently owned by company insiders.

Key Mercury Systems News Here are the key news stories impacting Mercury Systems this week:

Positive Sentiment: Mercury Systems reported record fourth-quarter bookings of approximately $660 million, up 93.1% year over year, with a 2.28 book-to-bill ratio. Backlog surpassed $1.9 billion, a 38.4% increase, providing stronger revenue visibility as production ramps. Mercury Systems Reports Fourth Quarter and Fiscal 2026 Results Positive Sentiment: Revenue increased 6.1% year over year to approximately $290 million, exceeding the roughly $266 million analyst estimate. RBC raised its target to $120, Piper Sandler lifted its target to $131 while maintaining an Overweight rating, and Baird also forecast substantial upside. Robert W. Baird Forecasts Strong Price Appreciation Neutral Sentiment: CEO William Ballhaus and several executives sold shares in transactions from August 17–20. The sales totaled several million dollars, but SEC filings said they were intended to cover tax withholding on vested equity awards. That reduces their value as a bearish signal, although no insider purchases were reported. Mercury Systems SEC Insider Trading Filing Negative Sentiment: Adjusted EPS was $0.37, narrowly missing the $0.38 consensus and falling from $0.47 a year earlier. GAAP EPS was $0.01, while adjusted EBITDA declined to $49 million from $51 million and free cash flow fell to $29 million from $34 million. The earnings shortfall appears to have outweighed the strong bookings and revenue figures. Mercury Systems Drops as EPS Miss Overshadows Record Bookings Negative Sentiment: Investors are also evaluating Mercury’s exposure to semiconductor-price volatility. Because many contracts are fixed-price, higher component costs could pressure margins before the company can adjust pricing or supply arrangements. Mercury Systems Fixed-Price Contract Risk Mercury Systems Price Performance Shares of NASDAQ MRCY opened at $91.36 on Friday. The firm has a market cap of $5.49 billion, a P/E ratio of -182.72 and a beta of 0.95. The business’s 50 day moving average price is $107.54 and its 200 day moving average price is $94.85. Mercury Systems Inc has a 52 week low of $65.04 and a 52 week high of $128.45. The company has a quick ratio of 2.15, a current ratio of 2.96 and a debt-to-equity ratio of 0.29.

Mercury Systems (NASDAQ:MRCY – Get Free Report) last released its quarterly earnings data on Tuesday, August 18th. The technology company reported $0.37 EPS for the quarter, missing the consensus estimate of $0.38 by ($0.01). The company had revenue of $289.78 million during the quarter, compared to analysts’ expectations of $266.09 million. Mercury Systems had a positive return on equity of 1.29% and a negative net margin of 3.02%.The company’s revenue for the quarter was up 6.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.47 EPS. On average, sell-side analysts expect that Mercury Systems Inc will post 0.77 earnings per share for the current year.

Mercury Systems Company Profile (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 Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates? Want to see what other hedge funds are holding MRCY? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Mercury Systems Inc (NASDAQ:MRCY – Free Report).

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On August 20, 2026, Mercury Systems Inc
MRCY -6.82% 62

shares fell 6.8%, now trading at $94.23. This decline marks a significant drop from its 52-week high of $128.45, while the stock has fluctuated between $62.78 and $128.45 over the past year.

GF Value™ verdict: Current price of $94.23 is 95.7% overvalued compared to GF Value of $48.16.GF Score™: 62/100, indicating above-average performance relative to the market.Most notable signal: Insiders sold $157.4M worth of shares over the past 12 months, with no buying activity.Is MRCY Overvalued or Undervalued?Mercury Systems Inc
MRCY -6.82% 62

is currently exhibiting a significant disconnect between its market price and intrinsic value as estimated by the GF Value™. With a GF Value of $48.16, the current trading price of $94.23 indicates that the stock is overvalued by approximately 95.7%. This extreme reading serves as a directional warning for potential investors, especially considering that GF Value™ is derived from a combination of historical trading multiples, past business growth, and future performance estimates.

Given that MRCY has yet to achieve profitability, using earnings-based valuation metrics such as Price-to-Earnings (P/E) is not applicable in this case. Instead, a Price-to-Sales (P/S) analysis would be more appropriate. Historically, MRCY has traded at a median P/S ratio of approximately 4.1x. Therefore, any valuation assessment should take into account this historical context while also considering the heightened risk associated with investing in a company that is currently cash-flow negative.

How Does MRCY's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)N/A256.3xForward P/E62.6xN/AAs seen in the table, MRCY is currently trading with a forward P/E of 62.6x, which is lower than its 5-year median P/E of 256.3x. This suggests that while the forward valuation indicates a potential reduction in expected earnings, the stock remains significantly overvalued when considering the lack of profitability. Thus, the P/E analysis reinforces the GF Value™ verdict that MRCY is in a precarious valuation position.

What Does MRCY's GF Score™ Tell Us?The GF Score™ evaluates a stock's potential based on various metrics, including financial strength, profitability, growth, valuation, and momentum. MRCY's GF Score™ of 62/100 indicates an above-average standing relative to its peers, though it has areas of concern as well.

MetricRatingGF Score™62Financial Strength7/10Profitability5/10Growth4/10Valuation1/10Momentum10/10MRCY's strongest area is its financial strength, scoring 7/10, suggesting a solid balance sheet. However, its weakest point is the valuation rank at 1/10, which highlights significant concerns regarding its current price relative to its intrinsic value. The momentum rank is notably strong at 10/10, indicating positive recent price action, but this could be misleading in light of the broader valuation issues.

What Are Gurus and Insiders Doing with MRCY?Currently, six gurus hold positions in MRCY, with two adding to their stakes and four trimming their positions in recent quarters. This mixed sentiment among institutional investors reflects a cautious approach to the stock. Moreover, insider activity has been particularly concerning, with insiders selling a total of $157.4 million worth of shares over the past year without any buying activity. This trend could signal a lack of confidence in the company’s near-term prospects, which is an important consideration for potential investors.

What This Means for InvestorsBased on the current analysis, Mercury Systems Inc
MRCY -6.82% 62

is significantly overvalued according to the GF Value™ assessment. With a price that indicates a 95.7% premium over intrinsic value, potential investors face considerable risk. The lack of profitability and substantial insider selling further complicate the investment thesis. For those looking for a deeper dive into MRCY, visit the Mercury Systems Inc (MRCY) stock page, or explore the GF Value™ page for additional insights.

Frequently Asked QuestionsWhat is MRCY's GF Score™?

MRCY has a GF Score™ of 62/100, indicating that the stock performs above average relative to its peers based on various metrics.

Is MRCY overvalued or undervalued?

According to GF Value™, MRCY is significantly overvalued, with a current price that is 95.7% higher than its estimated intrinsic value.

What is MRCY's P/E ratio?

MRCY does not have a meaningful P/E ratio available due to its unprofitability; its forward P/E is 62.6x, which is substantially lower than its historical median of 256.3x.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Reporting fourth-quarter 2026 financial results yesterday after the bell rang, Mercury Systems (MRCY -5.05%) gave investors plenty to celebrate. In addition to beating analysts' revenue expectations, the aerospace and defense company set several records during the quarter. Investors, however, are uninterested, focusing on another cause for concern instead.

As of 11:30 a.m. ET, shares of Mercury Systems are down 6.4%.

Image source: Getty Images.

Margin contraction is sufficient fodder for the bears Coming up just shy of the adjusted earnings per share (EPS) of $0.38 that analysts expected, Mercury Systems reported adjusted EPS of $0.37, a decline from the $0.47 that it reported during the same period last year.

Today's Change

(

-5.05

%) $

-5.30

Current Price

$

99.70

Besides the Mercury's declining profit, investors are balking at the company's narrower margins. In Q4 2026, Mercury's operating margin contracted to 5% from 8.6% during the same period in 2025. Similarly, Mercury reported a slimmer profit margin in the last quarter of fiscal 2026, at 0.3%, compared with 8.6% in Q4 2025.

Booking Q4 2026 revenue of $289.8 million, Mercury Systems set a new company quarterly sales record and blew past the $266.4 million that analysts anticipated. The company also succeeded in expanding its backlog to $1.9 billion as of July 3, about $540 million higher than where it was a year ago.

Does the current sell-off provide a buying opportunity? While Mercury's growth in both sales and backlog is encouraging, investors are clearly concerned about the waning profitability. Add this to the fact that shares are trading at a steep valuation -- 70 times forward earnings -- and it's clear why investors feel that Mercury stock is too hot to handle right now. At this point, investors should watch Mercury from the sidelines and look for the company to make better progress toward converting its growing revenue into profits. In the meantime, there are plenty of other aerospace stocks to consider.

Scott Levine 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.

Mercury Systems Inc. (NASDAQ:MRCY) on Tuesday reported mixed fourth-quarter financial results.

The company reported quarterly earnings of 37 cents per share, which missed the analyst consensus estimate of 38 cents per share. The company reported quarterly sales of $289.782 million, which beat the analyst consensus estimate of $266.403 million.

"We delivered fourth quarter fiscal 2026 results that were ahead of our expectations, with record bookings, record backlog, record revenue, the highest EBITDA margin of the year, and robust free cash flow," said Bill Ballhaus, chairman and CEO of Mercury Systems.

Mercury Systems increased its organic revenue growth target for fiscal 2027 to low double digits. The company expects first-quarter revenue growth to be up high single digits on a year-over-year basis. Mercury noted that it expects first-quarter growth to be the lowest of the year.

Mercury Systems shares dipped 10.3% to $94.18 in the pre-market trading session.

These analysts made changes to their price targets on Mercury Systems following earnings announcement.

Piper Sandler analyst Clarke Jeffries reiterated the stock with an Overweight rating and raised the price target from $126 to $131. Baird analyst Peter Arment maintained the stock with an Outperform rating and raised the price target from $120 to $130. Latest Private Market Opportunities

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Why Are Insiders Are Dumping Shares of Robinhood, Stryker, and Mercury Systems?Mercury Systems NASDAQ: MRCY reported record fourth-quarter bookings, backlog and revenue for fiscal 2026, as the defense technology company cited broad demand across its portfolio and raised its long-term organic-growth target.

Chairman and Chief Executive Officer Bill Ballhaus said fourth-quarter bookings reached $660 million, up 93.1% from a year earlier, producing a book-to-bill ratio of 2.3. The quarter included the company’s largest-ever bookings for its Common Processing Architecture, or CPA, products, along with production awards in effectors, airborne applications, space and missile defense.

Get Mercury Systems alerts:

Mercury Systems Up 27%: Financials Send Investors a Clear SignalFiscal-year bookings totaled $1.5 billion, an increase of 49.8% year over year, while total backlog rose 38.4% to more than $1.9 billion. Mercury’s next-12-month backlog reached $1 billion, which Ballhaus said provides greater visibility entering fiscal 2027 and into fiscal 2028.

Fourth-Quarter and Full-Year Results Fourth-quarter revenue was a record nearly $290 million, representing organic growth of 6.1% from the prior-year quarter. Adjusted EBITDA was $49 million, or 16.7% of revenue, compared with $51 million, or 18.8% of revenue, a year earlier. Free cash flow was $29 million, down from $34 million in the prior-year period.

Analysts Went All In On These Computer Stocks, Save Your SpotGAAP net income for the fourth quarter was about $1 million, or $0.01 per share, compared with $16 million, or $0.27 per share, in the same quarter last year. Adjusted earnings per share were $0.37, down from $0.47.

For the full fiscal year, revenue increased 7.9% to $984 million. Gross margin improved 70 basis points to 28.6%, while adjusted EBITDA rose 25.7% to $150 million. Full-year adjusted EBITDA margin expanded 217 basis points to 15.3%.

Mercury reported a GAAP net loss of about $30 million, or $0.50 per share, for fiscal 2026, improving from a loss of $38 million, or $0.65 per share, in fiscal 2025. Adjusted earnings per share rose to $1.06 from $0.64. Free cash flow was $68 million, compared with $119 million in the previous fiscal year.

Executive Vice President and CFO David Farnsworth said full-year gross-margin improvement was driven primarily by lower manufacturing adjustments and reduced net estimate-at-completion, or EAC, change impacts. Operating expenses rose 2.5% during the year, though they declined by 150 basis points as a percentage of revenue.

Backlog, Production and Supply Chain Initiatives Ballhaus said Mercury is seeing increased volume on existing production programs and a transition of development programs into production. Domestic revenue, which accounted for about 85.8% of fiscal 2026 revenue, grew organically by 13% year over year.

The company said its overtime revenue rose 23.6% in the fourth quarter, reaching its highest level in 15 quarters. Ballhaus attributed the improvement largely to material receipts and said the company has made progress aligning its supply chain with increased production demand.

Mercury also recently announced a strategic agreement with Palantir to use AI software in material planning and factory operations. Ballhaus said the Department of Defense-sponsored initiative is intended to accelerate deliveries to warfighters and could potentially support revenue growth, margin expansion and cash-flow improvement. However, he said the company is still early in the initiative and has not incorporated benefits from the agreement into its outlook.

International sales declined about 15% during the year, according to management. Ballhaus said Mercury had outsourced manufacturing in its international business to a contract manufacturer and experienced slower deliveries while that operation ramped. He characterized the slowdown as temporary and said the company expects the issues to be resolved over the next several quarters.

Fiscal 2027 Outlook and Fiscal 2028 Reference Points For fiscal 2027, Mercury expects revenue growth approaching double digits, with total revenue approaching $1.1 billion. The company expects first-quarter revenue to be its lowest of the year but to rise by high single digits year over year, followed by revenue growth through the rest of the fiscal year.

Mercury expects full-year adjusted EBITDA to approach $200 million, representing nearly 30% year-over-year growth, with adjusted EBITDA margin in the high teens. Management expects margin to increase through the year, as lower-margin legacy backlog is converted and newer bookings move through production.

The company expects fiscal 2027 free-cash-flow conversion to approach 35%, below its 50% target, as it makes targeted investments in inventory, automation and factory optimization. Mercury expects first-quarter cash flow to be a larger outflow than normal because of material purchases intended to support anticipated growth. Free cash flow is expected to be higher in the second half than in the first half.

Mercury ended the fourth quarter with $214 million in cash and cash equivalents and $227 million in net debt, down 19.5% from a year earlier. The company made a $150 million payment on its revolving credit facility during the fiscal year. Net working capital declined $18 million year over year to about $431 million.

For fiscal 2028, Mercury provided reference points rather than formal guidance: low-double-digit organic revenue growth, adjusted EBITDA margin at the low end of its low-to-mid-20% target range, and free-cash-flow conversion returning toward its 50% target.

Ballhaus said the company’s outlook includes only a limited amount of defense-market tailwinds that have become firm bookings. Potential increases in demand across CPA, effectors, airborne applications, space, missile defense and munitions have not been included in the outlook, he said.

About Mercury Systems (NASDAQ:MRCY)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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Mercury Systems, Inc. (MRCY) Q4 2026 Earnings Call Transcript

Record Q4 FY26 Bookings of $660 million grew 93.1% year-over-year; book-to-bill of 2.28Record Backlog of over $1.9 billion; up 38.4% year-over-yearRecord Q4 FY26 Revenue of approximately $290 million; up 6.1% year-over-yearGAAP net income of $1 million; adjusted EBITDA of $49 million and adjusted EBITDA margin of 16.7% ANDOVER, Mass., Aug. 18, 2026 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), reported operating results for the fourth quarter and fiscal year 2026, ended July 3, 2026.

“We delivered fourth quarter fiscal 2026 results that were ahead of our expectations, with record bookings, record backlog, record revenue, the highest EBITDA margin of the year, and robust free cash flow," said Bill Ballhaus, Mercury’s Chairman and CEO. “Based on our solid execution and strong demand signals, we enter fiscal year 2027 with enhanced visibility and are increasing our outlook for organic growth."

“In the fourth quarter we delivered record bookings of $660 million, up 93% year-over-year and nearly double our previous record bookings quarter; a 2.3 book-to-bill, resulting in a record backlog of approximately $1.9 billion; record revenue of $290 million, up 6.1% year-over-year; GAAP net income of $1 million; adjusted EBITDA of $49 million; adjusted EBITDA margin of 16.7%; cash flows provided by operating activities of $42 million; and free cash flow of $29 million."

Fourth Quarter Fiscal 2026 Results

Fourth quarter fiscal 2026 revenues were $290 million, compared to $273 million in the fourth quarter of fiscal 2025.

Total bookings for the fourth quarter of fiscal 2026 were $660 million, yielding a book-to-bill ratio of 2.28 for the quarter.

GAAP net income and diluted earnings per share for the fourth quarter of fiscal 2026 were $1 million and $0.01, respectively, compared to GAAP net income and diluted earnings per share of $16 million and $0.27, respectively, for the fourth quarter of fiscal 2025. Adjusted earnings per share (“adjusted EPS”) was $0.37 per share for the fourth quarter of fiscal 2026, compared to $0.47 per share in the fourth quarter of fiscal 2025.

Fourth quarter fiscal 2026 adjusted EBITDA was $49 million, compared to $51 million for the fourth quarter of fiscal 2025.

Cash flows provided by operating activities in the fourth quarter of fiscal 2026 were $42 million, compared to $38 million in the fourth quarter of fiscal 2025. Free cash flow, defined as cash flows from operating activities less capital expenditures for property and equipment, was $29 million for the fourth quarter of fiscal 2026 and $34 million for the fourth quarter of fiscal 2025.

Full Year Fiscal 2026 Results

Full year fiscal 2026 revenues were $984 million, compared to $912 million for full year fiscal 2025.

Total bookings for fiscal 2026 were $1.5 billion, yielding a book-to-bill ratio of 1.57 for the year.

GAAP net loss and loss per share for fiscal 2026 were $30 million, and $0.50, respectively, compared to GAAP net loss and loss per share of $38 million, and $0.65, respectively, for fiscal 2025. Adjusted EPS was $1.06 per share for fiscal 2026, compared to adjusted loss per share of $0.64 per share for fiscal 2025.

Fiscal 2026 adjusted EBITDA was $150 million, compared to $119 million for fiscal 2025.

Cash flows provided by operating activities in fiscal 2026 were $102 million, compared to $139 million in fiscal 2025. Free cash flow, defined as cash flows from operating activities less capital expenditures for property and equipment, was $68 million for fiscal 2026 and $119 million for fiscal 2025.

Backlog

Mercury’s total backlog at July 3, 2026 was over $1.9 billion, an approximate $540 million increase from a year ago. Of the July 3, 2026 total backlog, $1.0 billion 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, August 18, 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 leader in aerospace and defense electronics, providing breakthrough capabilities in signal and data processing. With a four-decade legacy of innovation that spans silicon to systems and radio frequency front ends to effectors, we accelerate commercial technology adoption to deliver powerful and secure mission-critical processing solutions to the edge. We are headquartered in Andover, Massachusetts, and have multiple locations worldwide. Our end-to-end processing ecosystem, the Mercury Processing Platform, is built on technologies we have developed and acquired over 40 years. Our technologies are available as standard products or custom solutions from silicon to system scale to ensure interoperability, reduced complexity, optimized performance and speed development. 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, cost increases, our inability to increase production and deliver products on time and with appropriate quality, 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 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 findings 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 the 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 state law claim related to our settled federal securities class action lawsuit, 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 July 3, 2026 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)      July 3, June 27,  2026 2025     Assets    Current assets:    Cash and cash equivalents $214,306 $309,099Accounts receivable, net  69,222  109,588Unbilled receivables and costs in excess of billings, net  285,760  278,475Inventory  366,968  332,920Prepaid income taxes  2,258  457Prepaid expenses and other current assets  34,925  27,639Total current assets  973,439  1,058,178     Property and equipment, net  108,413  101,440Goodwill  942,419  938,093Intangible assets, net  175,820  210,611Operating lease right-of-use assets, net  47,713  52,264Deferred tax asset  67,188  69,016Other non-current assets  7,784  5,162Total assets $2,322,776 $2,434,764     Liabilities and Shareholders’ Equity    Current liabilities:    Accounts payable $91,041 $79,116Accrued expenses  32,991  35,264Due to factoring facility  391  7,879Accrued compensation  54,537  51,321Deferred revenues and customer advances  149,565  126,797Total current liabilities  328,525  300,377     Income taxes payable  3,487  4,046Long-term debt  441,500  591,500Operating lease liabilities  45,829  52,738Other non-current liabilities  5,977  12,642Total liabilities  825,318  961,303     Shareholders’ equity:    Preferred stock  —  —Common stock  596  590Additional paid-in capital  1,333,410  1,287,478Retained earnings  152,222  181,895Accumulated other comprehensive income  11,230  3,498Total shareholders’ equity  1,497,458  1,473,461Total liabilities and shareholders’ equity $2,322,776 $2,434,764        MERCURY SYSTEMS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
  Fourth Quarters Ended Twelve Months Ended  July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025Net revenues $289,782  $273,106  $983,622  $912,020 Cost of revenues(1)   201,199   188,338   702,457   657,526 Gross margin  88,583   84,768   281,165   254,494          Operating expenses:        Selling, general and administrative(1)   47,848   37,714   175,031   154,412 Research and development(1)  16,157   11,913   59,736   67,647 Amortization of intangible assets  9,390   10,275   38,904   42,849 Restructuring and other charges  348   (15)  5,939   7,216 Acquisition costs and other related expenses  375   1,331   1,275   1,997 Total operating expenses  74,118   61,218   280,885   274,121          Income (loss) from operations  14,465   23,550   280   (19,627)         Interest income  1,541   1,367   7,723   3,607 Interest expense  (6,524)  (8,026)  (29,590)  (33,430)Other (expense) income, net  (1,689)  1,926   (7,302)  (974)         Income (loss) before income tax provision (benefit)  7,793   18,817   (28,889)  (50,424)Income tax provision (benefit)  6,995   2,447   784   (12,520)Net income (loss) $798  $16,370  $(29,673) $(37,904)         Basic net earnings (loss) per share $0.01  $0.28  $(0.50) $(0.65)         Diluted net earnings (loss) per share $0.01  $0.27  $(0.50) $(0.65)         Weighted-average shares outstanding:        Basic  59,552   58,924   59,460   58,746 Diluted  61,259   59,540   59,460   58,746          (1) Includes stock-based compensation expense, allocated as follows:Cost of revenues $1,011  $446  $5,584  $1,205 Selling, general and administrative $9,319  $653  $29,197  $17,809 Research and development $1,586  $1,318  $6,351  $6,005                   MERCURY SYSTEMS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)
  Fourth Quarters Ended Twelve Months Ended  July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025Cash flows from operating activities:        Net income (loss) $798  $16,370  $(29,673) $(37,904)Depreciation and amortization  17,514   19,969   72,683   82,027 Other non-cash items, net  23,846   6,953   61,336   26,627 Changes in operating assets and liabilities  (5)  (5,217)  (1,958)  68,101          Net cash provided by operating activities  42,153   38,075   102,388   138,851          Cash flows from investing activities:        Purchases of property and equipment  (13,588)  (4,098)  (34,301)  (19,803)Acquisition of assets and businesses, net of cash acquired  —   (4,543)  (1,415)  (4,543)Proceeds from sale of manufacturing operations to Cicor Group  —   6,246   —   6,246 Other investing activities  —   —   —   4,600          Net cash used in investing activities  (13,588)  (2,395)  (35,716)  (13,500)         Cash flows from financing activities:        Proceeds from employee stock plans  2,690   2,169   5,418   3,661 Payments for retirement of common stock  —   —   (15,001)  — Payments under credit facilities  (150,000)  —   (150,000)  — Payments of deferred financing and offering costs  —   —   (3,156)  (2,249)         Net cash (used in) provided by financing activities  (147,310)  2,169   (162,739)  1,412          Effect of exchange rate changes on cash and cash equivalents  1,251   1,428   1,274   1,815          Net (decrease) increase in cash and cash equivalents  (117,494)  39,277   (94,793)  128,578          Cash and cash equivalents at beginning of period  331,800   269,822   309,099   180,521          Cash and cash equivalents at end of period $214,306  $309,099  $214,306  $309,099                   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.

  Fourth Quarters Ended Twelve Months Ended  July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025Net income (loss) $798 $16,370  $(29,673) $(37,904)Other non-operating adjustments, net  69  (4,645)  2,963   (7,742)Interest expense, net  4,983  6,659   21,867   29,823 Income tax provision (benefit)  6,995  2,447   784   (12,520)Depreciation  8,124  9,694   33,779   39,178 Amortization of intangible assets  9,390  10,275   38,904   42,849 Restructuring and other charges  348  (15)  5,939   7,216 Impairment of long-lived asset  —  —   —   — Acquisition, financing and other third party costs  1,097  2,126   4,509   6,638 Fair value adjustments from purchase accounting  131  131   525   617 Litigation and settlement expense, net  1,820  4,062   13,451   13,010 Stock-based and other non-cash compensation expense  14,763  4,165   57,144   38,273 Adjusted EBITDA $48,518 $51,269  $150,192  $119,438                  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.

  Fourth Quarters Ended Twelve Months Ended  July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025Net cash provided by operating activities $42,153  $38,075  $102,388  $138,851 Purchases of property and equipment  (13,588)  (4,098)  (34,301)  (19,803)Free cash flow $28,565  $33,977  $68,087  $119,048                   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.

  Fourth Quarters Ended  July 3, 2026 June 27, 2025Net income and earnings per share $798  $0.01 $16,370  $0.27Other non-operating adjustments, net  69     (4,645)  Amortization of intangible assets  9,390     10,275   Restructuring and other charges  348     (15)  Impairment of long-lived assets  —     —   Acquisition, financing and other third party costs  1,097     2,126   Fair value adjustments from purchase accounting  131     131   Litigation and settlement expense, net  1,820     4,062   Stock-based and other non-cash compensation expense  14,763     4,165   Impact to income taxes(1)  (5,662)    (4,576)  Adjusted income and adjusted earnings per share $22,754  $0.37 $27,893  $0.47         Diluted weighted-average shares outstanding    61,259    59,540         (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.
             Twelve Months Ended  July 3, 2026 June 27, 2025Net loss and loss per share $(29,673) $(0.50) $(37,904) $(0.65)Other non-operating adjustments, net  2,963     (7,742)  Amortization of intangible assets  38,904     42,849   Restructuring and other charges  5,939     7,216   Impairment of long-lived assets  —     —   Acquisition, financing and other third party costs  4,509     6,638   Fair value adjustments from purchase accounting  525     617   Litigation and settlement expense, net  13,451     13,010   Stock-based and other non-cash compensation expense  57,144     38,273   Impact to income taxes(1)  (29,592)    (25,091)  Adjusted income and adjusted earnings per share(2) $64,170  $1.06  $37,866  $0.64          Diluted weighted-average shares outstanding    60,737     59,203  (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 $0.02 impact and a $0.01 impact to the calculation of adjusted earnings per share as a result of this for the twelve months ended July 3, 2026 and June 27, 2025, respectively.

Analysts on Wall Street project that Mercury Systems (MRCY - Free Report) will announce quarterly earnings of $0.38 per share in its forthcoming report, representing a decline of 19.2% year over year. Revenues are projected to reach $264.88 million, declining 3% from the same quarter last year.

The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

In light of this perspective, let's dive into the average estimates of certain Mercury Systems metrics that are commonly tracked and forecasted by Wall Street analysts.

It is projected by analysts that the 'Net Revenue- Sensor & Effector- Radar' will reach $57.04 million. The estimate suggests a change of +7.7% year over year.

The collective assessment of analysts points to an estimated 'Net Revenue- Sensor & Effector- Electronic Warfare' of $26.82 million. The estimate indicates a change of +6.3% from the prior-year quarter.

The average prediction of analysts places 'Net Revenue- Other' at $38.00 million. The estimate suggests a change of -2.5% year over year.

Analysts forecast 'Net Revenue- Sensor & Effector- Total' to reach $115.37 million. The estimate suggests a change of +8.3% year over year.

The consensus among analysts is that 'Net Revenue- C4I' will reach $108.73 million. The estimate indicates a change of -14.8% from the prior-year quarter.

The combined assessment of analysts suggests that 'Net Revenue- Sensor & Effector- Other Sensor & Effector' will likely reach $31.51 million. The estimate indicates a change of +11.4% from the prior-year quarter.

View all Key Company Metrics for Mercury Systems here>>>

Shares of Mercury Systems have experienced a change of +8.4% in the past month compared to the +2.4% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), MRCY is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Wall Street expects a year-over-year decline in earnings on lower revenues when Mercury Systems (MRCY - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on August 18, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis maker of processing systems and software is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of -19.2%.

Revenues are expected to be $264.88 million, down 3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 10% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Mercury Systems?For Mercury Systems, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +6.67%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Mercury Systems will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Mercury Systems would post earnings of $0.06 per share when it actually produced earnings of $0.27, delivering a surprise of +350.00%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Mercury Systems appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

CAPE CANAVERAL, Fla., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Equity Insider News Commentary - In a recent conversation on the Fighter Pilot Podcast, Tim Franta, chief executive of Starfighters Space, Inc. (NYSE American: FJET), laid out an unusually clear picture of what his company actually does and where he intends to take it. It is a story that runs from a 1950s-designed fighter jet to low Earth orbit, and it lands squarely in two of the fastest-moving corners of aerospace today: hypersonic testing and small-payload launch. For investors trying to understand where a company like Starfighters fits among the better-known names in space and defense, from GE Aerospace (NYSE: GE) and Kratos Defense (Nasdaq: KTOS) to Leonardo DRS (Nasdaq: DRS) and Mercury Systems (Nasdaq: MRCY), the interview is a useful map. The full conversation is available here.

The Aircraft as a Rocket

The heart of the Starfighters story is the F-104, an aircraft Franta describes, only half in jest, as essentially a rocket with a pilot. Designed by Kelly Johnson's team at Lockheed, the F-104 has extremely short wings and an exceptional thrust-to-weight ratio for its era. It was the first aircraft to hold the world speed, altitude and time-to-climb records simultaneously, marks it set in 1958 and 1959. Franta compared the aircraft's acceleration and climb performance to that of a rocket (the F-104 was long nicknamed “the missile with a man in it”), while noting it is a turbojet aircraft. Starfighters operates a fleet of seven F-104 aircraft, including later Italian-built airframes, from NASA's Kennedy Space Center in Florida and the Midland Air and Space Port in Texas, and Franta says the company holds spares and expertise enough to keep them flying for years. That combination of extreme performance and a fully built, well-understood platform is the foundation of everything the company does.

A Wind Tunnel in the Sky

The first of Starfighters' two main business lines is research, development, test, and evaluation, or RDT&E. Franta frames the F-104 as a wind tunnel in the sky, and the pitch is concrete: the aircraft can hold sustained Mach 2 at altitude for approximately ten minutes, while high-speed ground wind tunnel runs are often measured in seconds and access to specialized facilities can require significant scheduling lead times. Flying with Starfighters, Franta argues, a customer testing avionics, antennas, or components gets far more usable test time, and does it in real air, with the humidity, turbulence, and integration with live ranges, radars, and telemetry that a sealed tunnel cannot replicate.

Within that testing business, Franta identified work supporting hypersonic research and development as the company's primary area of current activity. Hypersonic flight, generally defined as speeds above Mach 5, has become a national-security priority. Starfighters' aircraft do not fly at hypersonic speeds; the company's role is testing components and subsystems destined for hypersonic programs at sustained supersonic conditions, which Franta described as an important driver of current flight-test activity. Starfighters is offering a complementary commercial flight-test approach, he argued: rather than relying on infrequent large-scale tests, flying components repeatedly on a fleet of aircraft is intended to produce more data points and more opportunities to iterate, a distributed approach to test cadence that mirrors a broader shift in how the sector operates.

From Mach 2 to Orbit

The second business line, and the one Franta calls the exciting part, is launch. Starfighters intends to use the F-104 as an airborne first stage, releasing small rockets at altitude and speed so that a far smaller, cheaper rocket can reach suborbital and, eventually, orbital space. The rationale is that releasing a vehicle at approximately 45,000 feet and high speed gives it an initial altitude and velocity advantage, which the company expects to reduce launch-vehicle size requirements and dependence on fixed launch infrastructure. Franta described STARLAUNCH 1 as a planned suborbital program targeting payload delivery to approximately 100 kilometers, followed by a planned next-generation system, STARLAUNCH 2, intended to reach low Earth orbit.

He was candid about the deliberate, safety-first pace this requires, describing extensive FAA documentation, a planned payload drop test to demonstrate clean separation, and the sheer volume of regulatory work involved, much of it, he noted, devoted to protecting the uninvolved public. He was equally clear about the market Starfighters is choosing. The company, he said, will not try to compete with the heavy-lift providers moving ever-larger payloads; instead it intends to stay at the small-payload edge of the market, where he sees a large backlog of small satellites and experiments that cannot easily find dedicated rides today. Franta cited the cadence-focused philosophy of operators like SpaceX and Rocket Lab as a model, emphasizing that committing to a repeatable flight rate, rather than any single breakthrough, is what ultimately drives costs down.

Customers, Policy, and the Road Ahead

Franta sketched a customer base evolving from legacy defense, optics, and communications work toward a wave of new applications, including single-sensor satellites for tasks like wildfire and runoff detection, and he compared the moment to the early days of the smartphone app economy, when cheap, routine access unlocked uses no one had imagined. He pointed to the academic and commercial markets as underserved, and suggested that even insurers could become advocates for flying new hardware on small test rockets before it is committed to expensive, long-lived satellites.

Policy runs throughout the story. Franta, who previously worked for the Florida Legislature and served as chief of staff for the Florida Space Authority, welcomed a newly proposed federal rule on supersonic overland flight, a change he argued is long overdue and important for the coming generation of supersonic aircraft, while noting the company is still reviewing the details. He also flagged the practical business hurdles ahead, from launch insurance to environmental review, and made the case that rules written for the largest launch providers do not always fit a small operator whose vehicles carry a fraction of the fuel and risk. Above all, he returned repeatedly to a single theme: “We want to fly, but we want to fly safely.”

Where Starfighters Sits in the Landscape

Starfighters is an early-stage company operating at the intersection of commercial aerospace, hypersonic testing, and defense, and the interview is best read as a statement of strategy rather than a set of guaranteed outcomes. To give investors a sense of the broader neighborhood, the companies below operate in adjacent parts of the space, hypersonics, and defense landscape. They are referenced solely as market and sector context, are far larger and more established than Starfighters, are not peers, competitors, or financial comparables of Starfighters Space, Inc., and their results are not indicative of Starfighters's prospects. The space and defense sector has been volatile. All figures are approximate and subject to change.

GE Aerospace (NYSE: GE)

GE Aerospace is one of the world's largest makers of jet engines and propulsion systems for commercial and military aircraft, with a growing defense and advanced-propulsion business. In 2026 it reported a record backlog exceeding US$210 billion, beat quarterly estimates, and raised its full-year guidance, with defense orders growing strongly. GE is directly relevant to the Starfighters story, since Starfighters has publicly described flying a test in support of GE's ATLAS program, lighting hypersonic igniters under wing, and it illustrates the scale of the established propulsion and defense-technology players whose programs commercial testing platforms like Starfighters can support.

Kratos Defense (Nasdaq: KTOS)

Kratos Defense is a defense-technology company focused on unmanned systems, hypersonic and rocket systems, propulsion, and satellite ground systems. In mid-2026 it completed a US$50 million hypersonic payload integration facility ahead of schedule and pointed to substantial new hypersonics-related funding, and analysts raised price targets on its drone and hypersonics momentum. Kratos maps closely to the hypersonics testing theme at the center of Starfighters's current work, on a far larger and more diversified scale, and reflects the scale of investment flowing into the hypersonics buildout.

Leonardo DRS (Nasdaq: DRS)

Leonardo DRS is a defense-electronics company supplying advanced sensing, network computing, force-protection, and power and propulsion technologies to U.S. and allied forces, including systems tied to missile defense and missile-warning. It has featured among the stronger performers in the defense-electronics group in 2026 on the strength of military-modernization demand. Leonardo DRS is referenced as context for the sensors-and-electronics layer of the defense market, the kind of advanced hardware whose development and qualification increasingly depends on high-speed flight testing of the sort Starfighters provides.

Mercury Systems (Nasdaq: MRCY)

Mercury Systems makes processing and radio-frequency electronics for defense and aerospace systems, including rugged and radiation-hardened components used on satellites, spacecraft, and missile-warning systems. The company has been advancing its production and processing architecture as defense and space demand has grown. Mercury is included as a reference for the mission-electronics and components side of the market, the units and subsystems that must be proven in demanding flight environments, a role that connects to Starfighters's core business of testing components and payloads at speed and altitude.

The Takeaway

What makes the Starfighters interview notable is its coherence. Franta describes a company that has deliberately chosen a niche, small-payload access and high-speed testing, and built a strategy around an existing, operational high-performance aircraft fleet while continuing to develop the STARLAUNCH vehicles. The RDT&E business, led by hypersonics, is meant to generate revenue and data today, while the launch business builds toward suborbital and orbital capability over the next several years. The through-line is cadence and safety: fly often, fly safely, gather data, and drive costs down over time.

The cautions are the ordinary ones for a company at this stage, and they are real. Starfighters is a small-cap operating in a volatile sector; its launch ambitions are still ahead of it and depend on successful test flights, regulatory clearances, and financing; and forward-looking plans described in an interview, from launch timelines to a future second aircraft platform, are goals rather than guarantees. But for investors trying to understand what Starfighters is and how it intends to make its way in the hypersonic era, the conversation offers something rarer than a press release: a clear, unhurried account of the strategy in the CEO's own words. The full interview is worth watching for anyone following the company.

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Article Source:

[1] Starfighters Space, Inc., CEO Tim Franta interview on the Fighter Pilot Podcast (July 10, 2026). Full video: https://www.youtube.com/watch?v=cEThnGxngnU

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MEL, and/or its owners, operators, directors, and associates, own shares of Starfighters Space, Inc., acquired in the open market, and reserve the right to buy and sell shares of Starfighters Space, Inc. at any time without any further notice commencing immediately and ongoing, in the open market, through private placements, and/or through other investment vehicles. There may also be third parties who hold shares of Starfighters Space, Inc. and may liquidate their shares, which could have a negative effect on the price of the stock.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this publication is not trustworthy unless verified by their own independent research. Statements attributed to Mr. Franta are drawn from a recorded podcast interview and reflect his views and the company's stated plans as expressed there. Because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. 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 lose some or all of your investment.

Cautionary Note Regarding Forward-Looking Statements. This publication may contain forward-looking statements, including statements regarding Starfighters Space's testing and launch business lines, its STARLAUNCH suborbital and orbital plans and timelines, hypersonic and RDT&E activities, future aircraft platforms, addressable markets, and business prospects, as well as statements about pending or proposed regulation such as rules on supersonic overland flight. Forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties, including technical, developmental, regulatory, permitting, financing, competitive, and market risks. Proposed regulations may not be adopted, and described timelines and programs may change or not be achieved. Statements made in an interview reflect the speaker's views at the time and are not a substitute for the company's official disclosures. Actual results may differ materially from those projected. Readers should refer to Starfighters Space, Inc.'s filings with the U.S. Securities and Exchange Commission for a full discussion of risk factors.

Cautionary Note Regarding Referenced Companies. References to GE Aerospace, Kratos Defense, Leonardo DRS, and Mercury Systems are provided solely as market and sector context. Those companies are not peers, competitors, or financial comparables of Starfighters Space, Inc., and differ substantially in size, stage, capitalization, operations, and business model. Any reference to a program relationship, such as testing in support of a GE Aerospace program, describes Starfighters's stated activities and does not imply any endorsement, partnership, or comparable financial standing. Their results and share performance describe those companies only, are not indicative of Starfighters Space, Inc.'s prospects or results, and must not be relied upon in evaluating the profiled company. The space and defense sector has been volatile. No affiliation or endorsement is implied.

Eagle Eye Disclosure. Eagle Eye is an investor signal-intelligence platform affiliated with the publisher of this article, and this reference constitutes promotion of an affiliated product. Eagle Eye is not a broker-dealer, and nothing in the platform or in this article is financial, investment, tax, or legal advice. Data provided in the platform is for informational purposes only and may be delayed. Always do your own research before making any investment decision.

July 28, 2026 16:15 ET  | Source: Mercury Systems Inc

ANDOVER, Mass., July 28, 2026 (GLOBE NEWSWIRE) -- Mercury Systems Inc. (NASDAQ: MRCY, www.mrcy.com), a global leader in aerospace and defense electronics, will release its fourth quarter and full year fiscal year 2026 financial results after the market close on Tuesday, August 18, 2026.

Management will host a conference call and simultaneous webcast at 5:00 p.m. ET on the same day 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 attend the conference call or webcast, participants should register online at ir.mrcy.com/events-presentations. Participants are requested to register a day in advance or at a minimum 15 minutes before the start of the call. A replay of the webcast will be available two hours after the call and archived on the same web page for six months.

Mercury Systems – Innovation that matters®
Mercury Systems is a global leader in aerospace and defense electronics, providing breakthrough capabilities in signal and data processing. With a four-decade legacy of innovation that spans silicon to systems and RF front ends to effectors, Mercury accelerates commercial technology adoption to deliver powerful and secure mission-critical processing solutions to the edge. Mercury is headquartered in Andover, Massachusetts, and has multiple locations worldwide. To learn more, visit mrcy.com. (Nasdaq: MRCY)

CONTACT
Tyler Hojo, CFA
Vice President, Investor Relations
[email protected]

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Mercury Systems (MRCY - Free Report) , which belongs to the Zacks Aerospace - Defense Equipment industry.

When looking at the last two reports, this maker of processing systems and software has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 239.29%, on average, in the last two quarters.

For the last reported quarter, Mercury Systems came out with earnings of $0.27 per share versus the Zacks Consensus Estimate of $0.06 per share, representing a surprise of 350.00%. For the previous quarter, the company was expected to post earnings of $0.07 per share and it actually produced earnings of $0.16 per share, delivering a surprise of 128.57%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for Mercury Systems. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Mercury Systems has an Earnings ESP of +2.67% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.

Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. Mercury Systems (MRCY - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.

Mercury Systems is a member of our Aerospace group, which includes 77 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Mercury Systems is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for MRCY's full-year earnings has moved 4.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, MRCY has gained about 54% so far this year. In comparison, Aerospace companies have returned an average of 2.7%. This shows that Mercury Systems is outperforming its peers so far this year.

Spire Global, Inc. (SPIR - Free Report) is another Aerospace stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 116.7%.

In Spire Global, Inc.'s case, the consensus EPS estimate for the current year increased 2.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Mercury Systems belongs to the Aerospace - Defense Equipment industry, which includes 37 individual stocks and currently sits at #52 in the Zacks Industry Rank. This group has gained an average of 10.6% so far this year, so MRCY is performing better in this area.

In contrast, Spire Global, Inc. falls under the Aerospace - Defense industry. Currently, this industry has 39 stocks and is ranked #105. Since the beginning of the year, the industry has moved -0.5%.

Mercury Systems and Spire Global, Inc. could continue their solid performance, so investors interested in Aerospace stocks should continue to pay close attention to these stocks.

Mercury Systems (MRCY) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.

ANDOVER, Mass., April 02, 2026 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a global technology company that delivers mission-critical processing to the edge, today announced it was awarded a contract from L3Harris Technologies (NYSE: LHX) to provide solid-state data recorders (SSDRs) for the U.S. Space Development Agency (SDA) Tranche 3 Tracking Layer satellite constellation.

L3Harris received a contract award in December to build 18 infrared satellites for the Tranche 3 Tracking Layer. These tracking layer satellites will enhance the SDA Proliferated Warfighter Space Architecture (PWSA) constellation that is designed to protect the United States from advanced missile threats, such as hypersonic missiles.

Mercury’s radiation-tolerant SSDRs are leveraged on all four tranches that L3Harris is developing for the PWSA Tracking Layer. Mercury recently completed delivery of SSDRs for all 18 of L3Harris’s Tranche 2 Tracking Layer satellites, after previously delivering data recorders for the Tranche 0 and Tranche 1 constellations.

With Tranche 3, L3Harris has moved to Mercury’s highest-capacity SSDR to date that delivers high performance and long-term data integrity in a 3U VPX form factor for space missions.

“Mercury is proud to support L3Harris to deliver a next-generation, layered defense architecture that can track missile threats in real time to protect our homeland,” said Ken Hermanny, Mercury’s Senior Vice President of Processing Technologies. “As the United States accelerates hardware production across all battlefield domains, Mercury is taking proactive measures to increase manufacturing capacity and efficiency in our operations.”

Mercury Systems – Innovation that matters® 
Mercury Systems is a global technology company that delivers mission-critical processing 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)

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 unrest 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, 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, 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, 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, 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.

INVESTOR CONTACT
Tyler Hojo, CFA
Vice President, Investor Relations
[email protected]

MEDIA CONTACT
Turner Brinton
Senior Director, Corporate Communications
[email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f1ffd4fb-997f-4591-b49c-746ac6927d1e

Tranche 3 Tracking Layer L3Harris technology for the SDA Tranche 3 Tracking Layer program will provide infrared sensing, adva...

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]. Our firm would handle the action on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses.

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.

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

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April 14, 2026 16:15 ET  | Source: Mercury Systems Inc

ANDOVER, Mass., April 14, 2026 (GLOBE NEWSWIRE) -- Mercury Systems Inc. (NASDAQ: MRCY, www.mrcy.com), a global technology company that delivers mission-critical processing to the edge, will release its third quarter fiscal year 2026 financial results after the market close on Tuesday, May 5, 2026.

Management will host a conference call and simultaneous webcast at 5:00 p.m. ET on the same day 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 attend the conference call or webcast, participants should register online at ir.mrcy.com/events-presentations. Participants are requested to register a day in advance or at a minimum 15 minutes before the start of the call. A replay of the webcast will be available two hours after the call and archived on the same web page for six months.

Mercury Systems – Innovation that matters®
Mercury Systems is a global technology company that delivers mission-critical processing 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)

CONTACT
Tyler Hojo, CFA
Vice President, Investor Relations
[email protected]

Posted by Defense World Staff on Apr 20th, 2026

Mercury Systems Inc (NASDAQ:MRCY – Get Free Report) EVP David Farnsworth sold 3,625 shares of Mercury Systems stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $84.87, for a total value of $307,653.75. Following the completion of the sale, the executive vice president owned 157,701 shares of the company’s stock, valued at approximately $13,384,083.87. The trade was a 2.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Mercury Systems Stock Performance NASDAQ MRCY opened at $84.05 on Monday. The company has a market cap of $5.04 billion, a price-to-earnings ratio of -158.58, a P/E/G ratio of 8.14 and a beta of 0.84. Mercury Systems Inc has a 52 week low of $44.01 and a 52 week high of $103.84. The business has a 50 day moving average price of $82.06 and a 200-day moving average price of $80.50. 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 released 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 the consensus estimate of $209.96 million. Mercury Systems had a positive return on equity of 1.28% and a negative net margin of 3.23%.The company’s quarterly revenue was up 4.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.07 earnings per share. As a group, equities analysts expect that Mercury Systems Inc will post -0.08 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Mercury Systems Several institutional investors have recently bought and sold shares of the stock. Signaturefd LLC grew its holdings in Mercury Systems by 15.4% during the fourth quarter. Signaturefd LLC now owns 804 shares of the technology company’s stock worth $59,000 after buying an additional 107 shares in the last quarter. Maryland State Retirement & Pension System grew its holdings in Mercury Systems by 1.8% during the fourth quarter. Maryland State Retirement & Pension System now owns 7,714 shares of the technology company’s stock worth $563,000 after buying an additional 134 shares in the last quarter. PNC Financial Services Group Inc. grew its holdings in Mercury Systems by 2.0% during the third quarter. PNC Financial Services Group Inc. now owns 7,175 shares of the technology company’s stock worth $555,000 after buying an additional 142 shares in the last quarter. AlphaQuest LLC grew its holdings in Mercury Systems by 41.9% during the third quarter. AlphaQuest LLC now owns 569 shares of the technology company’s stock worth $44,000 after buying an additional 168 shares in the last quarter. Finally, Nisa Investment Advisors LLC grew its holdings in Mercury Systems by 10.3% during the third quarter. Nisa Investment Advisors LLC now owns 1,941 shares of the technology company’s stock worth $150,000 after buying an additional 181 shares in the last quarter. Institutional investors own 95.99% of the company’s stock.

Wall Street Analyst Weigh In Several equities research analysts have recently commented on the company. Canaccord Genuity Group set a $102.00 price objective on Mercury Systems in a report on Wednesday, February 4th. Truist Financial boosted their price objective on Mercury Systems from $102.00 to $109.00 and gave the company a “buy” rating in a report on Wednesday, February 4th. The Goldman Sachs Group boosted their price objective on Mercury Systems from $49.00 to $55.00 and gave the company a “sell” rating in a report on Tuesday, January 20th. Weiss Ratings restated a “sell (d-)” rating on shares of Mercury Systems in a report on Thursday, January 22nd. Finally, Jefferies Financial Group decreased their price objective on Mercury Systems from $85.00 to $80.00 and set a “hold” rating for the company in a report on Tuesday, April 7th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $86.33.

View Our Latest Stock Report on Mercury Systems

About Mercury Systems (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.

Further Reading Five stocks we like better than Mercury Systems

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On April 23, 2026, Mercury Systems Inc (MRCY) shares fell 4.5% to $78.91. This decline follows a broader trend, with the stock down 7.1% over the past week, des

Mercury Systems (MRCY - Free Report) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +350.00%. A quarter ago, it was expected that this maker of processing systems and software would post earnings of $0.07 per share when it actually produced earnings of $0.16, delivering a surprise of +128.57%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Mercury Systems, which belongs to the Zacks Aerospace - Defense Equipment industry, posted revenues of $235.76 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 12.06%. This compares to year-ago revenues of $211.36 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Mercury Systems shares have added about 7.6% since the beginning of the year versus the S&P 500's gain of 5.2%.

What's Next for Mercury Systems?While Mercury Systems has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Mercury Systems was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.44 on $279.91 million in revenues for the coming quarter and $0.92 on $948.37 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense Equipment is currently in the bottom 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, TAT Technologies Ltd. (TATT - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 20.

This company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of -44.1%. The consensus EPS estimate for the quarter has been revised 33.7% lower over the last 30 days to the current level.

TAT Technologies Ltd.'s revenues are expected to be $40.07 million, down 4.9% from the year-ago quarter.

Mercury Systems, Inc. (MRCY) Q3 2026 Earnings Call Transcript

May 28, 2026 17:00 ET  | Source: Mercury Systems Inc

ANDOVER, Mass., May 28, 2026 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a global leader in aerospace and defense electronics, today announced it received a multi-year contract to deliver 1,000 of its RTBX06 BuiltSECURE™ servers to Blue Raven, a leading distributor in the defense industry.

Leveraging Mercury’s Common Processing Architecture, Rugged Trusted BuiltSECURE™ (RTB) servers provide uncompromised security for processing at the edge, maintaining system-wide integrity and protecting critical data and technology from loss or compromise. Featuring U.S.-designed and manufactured motherboards, the latest data center-class compute silicon, and secure processing technology, these secure servers are the platform of choice for mission-critical applications.

To meet growing demand and align with U.S. Department of War priorities, Mercury is investing to expand production capacity, add automation, consolidate its operational footprint, and deepen supplier partnerships. This contract award represents Mercury’s largest single order for these systems and a key step toward expanding availability and reducing lead times for customers. Under the contract, Mercury will produce, configure, and support the servers, while Blue Raven will focus on global resale and distribution.

"This contract is further evidence of strong demand for our BuiltSECURE™ product line and the advanced secure processing capabilities it brings to critical defense systems," said Lee Provost, Mercury’s Senior Vice President of Growth. "By partnering with Blue Raven, we are making it easier, more affordable, and faster for customers to field this mission-critical capability that supports deterrence and delivers decisive warfighting advantage.”

"We are excited to partner with Mercury to grow the BuiltSECURE™ market across a broader range of platforms, fleets, and mission profiles," said Paul Elefonte, Chief Growth Officer at Blue Raven. "This collaboration will help improve accessibility, reduce lead times, and maintain price stability, creating a stronger path to field this advanced capability at scale.”

Mercury Systems – Innovation that matters®
Mercury Systems is a global leader in aerospace and defense electronics, providing breakthrough capabilities in signal and data processing. With a four-decade legacy of innovation that spans silicon to systems and RF front ends to effectors, Mercury accelerates commercial technology adoption to deliver powerful and secure mission-critical processing solutions to the edge. Mercury is headquartered in Andover, Massachusetts, and has multiple locations worldwide. To learn more, visit mrcy.com. (Nasdaq: MRCY)

Blue Raven
Blue Raven is a leading, tech-enabled distributor of highly engineered parts, complex systems, and hard-to-source components for aerospace and defense platforms. With more than 65 years of combined experience and long-standing authorized partnerships with leading OEMs, the company supports customers in more than 40 countries. Powered by its proprietary SEDNA analytics platform, Blue Raven provides real-time intelligence and forecasting to reduce lead times, mitigate obsolescence, and maintain mission readiness. To learn more, visit blueravencorp.com

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.

INVESTOR CONTACT
Tyler Hojo, CFA
Vice President, Investor Relations
[email protected]

MEDIA CONTACT
Turner Brinton
Senior Director, Corporate Communications
[email protected]

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.