Mercury Systems, Inc., engages in the aerospace and defense electronics industry. The company manufactures and sells components, products, modules, and subsystems for defense prime contractors, original equipment manufacturers, government, and commercial aerospace companies. It offers components, including power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, monolithic microwave integrated circuits, and memory and storage devices; modules and sub-assemblies, such as embedded processing boards, switched fabrics and boards, digital receivers, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners, and transceivers, as well as graphics and video; and integrated subsystems. The company also designs, develops, and manufactures digital radio frequency memory units for various modern electronic warfare applications; radar environment simulation and test systems for defense and intelligence applications; and signals intelligence payloads and EO/IR technologies for small UAV platforms, as well as onboard UAV processor systems for real-time wide area motion imagery. It operates in the United States, Europe, and the Asia Pacific. The company was formerly known as Mercury Computer Systems, Inc. and changed its name to Mercury Systems, Inc. in November 2012. Mercury Systems, Inc. was incorporated in 1981 and is headquartered in Andover, Massachusetts.
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Mercury Systems Books Record $660 Million in Orders Yet Shares Tumble
Mercury Systems reported record fiscal fourth-quarter bookings of $660 million, up 93.1%, but shares fell more than 10% after hours as earnings and cash flow lagged demand. Revenue rose 6.1% to $289.8 million and beat consensus, while adjusted earnings of $0.37 per share missed estimates and declined from $0.47 a year earlier. Backlog exceeded $1.9 billion, up 38.4%, with about $1 billion expected to convert to revenue over the next 12 months. Management expects fiscal 2027 revenue to approach $1.1 billion and adjusted EBITDA to approach $200 million, but free cash flow conversion is projected to approach only 35%, below its 50% long-term target.
Mercury Systems and Palantir Announce Strategic Alliance for Defense Manufacturing
Mercury Systems and Palantir Technologies announced a strategic alliance on August 3 to automate material planning and factory operations for U.S. military programs. Palantir will deploy its software suite to help Mercury optimize material planning, eliminate manual bottlenecks, and increase factory output capacity, while also building an enterprise ontology to serve as an operational digital twin. The partnership comes as Palantir reported $1.935 billion in quarterly revenue for Q2 2026, a 93% year-over-year jump, and raised its full-year 2026 revenue guidance to $8.150–$8.158 billion. Mercury Systems, which operates on a shifted fiscal calendar, posted Q3 FY26 revenue of $236 million with record quarterly bookings of $348 million and a record backlog of approximately $1.6 billion, though it logged a GAAP net loss of $3 million. Hedge fund data shows 32 funds held Mercury Systems in Q1 2026, while Palantir was held by 96 funds.
Palantir Stock Climbs as Enterprise AI Demand Keeps Growing
Palantir Technologies stock gained 1% on Wednesday morning as the company held its second AI Sovereignty Bootcamp, drawing nearly 100 organizations to broaden engagement with its artificial intelligence platforms. The latest event follows the first bootcamp on July 27, and together the two gatherings have attracted nearly 200 unique organizations in less than a month, including Dell, HCA Healthcare, SharkNinja and Zeta Global, with speakers from NVIDIA, Novartis, Cisco and NATO. Palantir also recently entered a partnership with Mercury Systems covering deployments across manufacturing and supply-chain operations, and a bullish analyst report reiterated a Buy rating, citing U.S. commercial total contract value growth of more than 150% year over year and remaining performance obligations that more than doubled.
Moderna, Merck surge on cancer vaccine trial success
Moderna and Merck shares surged after their personalized cancer vaccine showed positive results in a late-stage trial, with Moderna skyrocketing 120% and Merck jumping 10%. Pilgrim's Pride rallied 15% after JBS, which owns more than 80% of the chicken producer, bid to acquire the remaining stock. Gold miners jumped after the Treasury Department announced sharply higher government debt repurchases, sending yields lower and boosting gold, with the VanEck Gold Miners ETF up 9% and Coeur and Hecla each gaining more than 13%. Marvell Technology rose more than 7% after giving Google permission to buy a $12 billion stake as part of a custom chip development deal. Coinbase surged 11% as bitcoin popped more than 5% to about $68,000, while Lowe's gained over 3% despite cutting its full-year outlook to the bottom end of prior guidance. Target added 5% after beating second-quarter revenue expectations and hiking full-year guidance, helped by a $752 million tariff refund boost. La-Z-Boy tanked 16% after fiscal first-quarter adjusted earnings fell 9% and current-quarter revenue guidance missed FactSet consensus, while Mercury Systems slid more than 6% on mixed results. Estee Lauder rose more than 16% after fiscal fourth-quarter adjusted earnings and revenue beat estimates.
Mercury Systems Q4 Earnings in Line, Revenues Top on Bookings
Mercury Systems reported adjusted earnings of 37 cents per share for the fourth quarter of fiscal 2026, in line with the Zacks Consensus Estimate, while revenues of $289.78 million beat the consensus by 9.37%. Adjusted earnings declined 21.3% year over year from 47 cents, and revenues increased 6.1% year over year. Total bookings reached $660 million, up 93.1% year over year, with a book-to-bill ratio of 2.28, pushing backlog above $1.9 billion. Gross margin was 30.6%, down from 31% in the prior-year quarter, and adjusted EBITDA was $48.52 million, down from $51.27 million a year earlier. For fiscal 2027, the company expects revenues to approach $1.1 billion and adjusted EBITDA to approach $200 million.
Moderna and Merck surge on positive cancer vaccine trial results
Moderna and Merck shares surged premarket after their personalized cancer vaccine showed positive results in a late-stage trial. Moderna's stock at one point soared 57%, while Merck's jumped just over 6%. It is unclear when the companies plan to submit applications for approval of the drug in the U.S. Elsewhere, Keysight Technologies rose 2% after beating third-quarter earnings and revenue expectations, while Lowe's fell 2% after updating its full-year outlook to the bottom end of prior guidance. Target declined 1.5% despite better-than-expected revenue and raised guidance, and La-Z-Boy tanked almost 17% after missing earnings and issuing weak current-quarter revenue guidance. Mercury Systems slid more than 9% after its adjusted earnings missed estimates, while Toll Brothers rose just over 1% on better-than-expected results. Estee Lauder rose more than 7% after beating fiscal fourth-quarter estimates, and Analog Devices gained more than 3% after exceeding expectations and reporting a higher gross margin.
Toll Brothers, Keysight, La-Z-Boy lead after-hours movers
Several companies made notable moves in after-hours trading following their latest earnings reports. Toll Brothers dipped 0.3% after guiding fourth quarter deliveries to between 3,450 and 3,550 homes, versus the StreetAccount consensus of 3,508, while reporting third quarter earnings of $2.97 per share on revenue of $2.65 billion, beating LSEG estimates of $2.93 and $2.61 billion. Keysight Technologies rose 2% after posting adjusted earnings of $3.07 per share on revenue of $1.85 billion, exceeding FactSet expectations of $2.48 and $1.75 billion. La-Z-Boy tumbled 17% as first quarter adjusted earnings fell 9% to 43 cents per share and adjusted operating income dropped 20% to $18.7 million, with current quarter revenue guidance of $500 million to $520 million missing the FactSet consensus of $536.8 million. Mercury Systems slid more than 10% after projecting fiscal 2027 revenue of about $1.1 billion, above the $1.05 billion FactSet estimate, but fourth quarter adjusted earnings of 37 cents missed by one cent. Jack Henry & Associates gained 3% after reporting fourth quarter earnings of $1.57 per share on revenue of $644 million, topping FactSet forecasts of $1.47 and $631.6 million.
Palantir Raises 2026 Revenue Guidance After Strong Q2
Palantir Technologies raised its full-year 2026 revenue guidance to between US$8.15 billion and US$8.16 billion after reporting second-quarter sales of US$1.94 billion and net income of US$1.06 billion. Management reiterated expectations for GAAP profitability each quarter, citing strong demand for its AI platforms. The company also announced a new agreement with Mercury Systems to embed its software into U.S. defense manufacturing workflows. Analysts note the raised guidance reinforces the AI adoption catalyst but sharpens valuation risk.
Mercury Systems turnaround gains traction with record bookings and accelerating revenue
Conestoga Capital Advisors reported that Mercury Systems' operational turnaround is gaining traction, with record quarterly bookings of $348 million translating into accelerating revenue growth and expanding margins. The firm highlighted the company as a performance contributor in its second-quarter 2026 investor letter, noting that stronger orders are beginning to convert into more consistent financial performance. Mercury Systems, which provides mission-critical electronics for aerospace and defense, has a market capitalization of $6.45 billion and its shares gained 104.18% over the past 52 weeks, closing at $107.44 on August 5, 2026.
Mercury Systems partners with Palantir to automate factory operations under Pentagon-funded deal
Mercury Systems has partnered with Palantir Technologies to automate its factory operations, handing over the very process that once nearly cost it credibility with the Pentagon. Under the agreement, Palantir will deploy two initial workflows inside Mercury's plants to streamline material planning and cut manual scheduling work, and will build a digital twin of Mercury's operations using its Foundry platform. The effort is funded through the government's Tradewind Prototype Agreement, a Pentagon vehicle for fast-tracking new technology into defense production. Mercury's operational problems became public in 2023 when roughly 20 of its 300 active programs ran so far over budget that they dragged fiscal 2023 earnings down by $56 million, leading to a leadership shakeup under pressure from activist investor JANA Partners. The partnership is part of a broader push by Palantir to speed up delivery timelines across major U.S. defense suppliers, and Mercury shares surged 8.7% on the news.
Mercury Systems leads defense contractors with strong Q1 earnings beat
Mercury Systems reported fiscal third quarter revenue of $235.8 million, up 11.5% year on year and exceeding analyst estimates by 14.2%, making it the best performer among 14 defense contractors tracked. The company also beat EPS and EBITDA expectations, and its stock has risen 38.6% since the report. General Dynamics posted revenue of $13.48 billion, a 10.3% increase that beat estimates by 5.9%, while Lockheed Martin was the weakest with flat revenue of $18.02 billion, missing estimates by 0.9% and issuing the weakest full-year guidance update. Overall, the group beat revenue consensus by 4.2% but next-quarter guidance came in 2.3% below expectations, and average share prices have declined 3.5% since earnings.
3 Reasons MRCY is Risky and 1 Stock to Buy Instead
Mercury Systems' stock has surged 50.1% in six months to $110.84 per share, but analysts urge caution. Despite the momentum, we're swiping left on Mercury Systems for now. Here are three reasons you should be careful with MRCY, plus one stock we'd rather own. The company's revenue grew at a sluggish 1.7% compounded annual rate over five years, while its operating margin averaged negative 3.2% and earnings per share declined 13.6% annually. We'd suggest looking at the most entrenched endpoint security platform on the market.
KBR reported first-quarter revenues of $1.92 billion, down 4.7% year on year but exceeding analyst expectations by 2.8%, in what was an exceptional quarter with a solid beat on EBITDA estimates. The company achieved the highest full-year guidance raise among the 13 defense contractors tracked, yet had the slowest revenue growth of the group. Its stock has fallen 16.6% since reporting, trading at $32.25. Mercury Systems posted the best performance, with revenues of $235.8 million up 11.5% year on year and a 14.2% beat, sending its stock up 27.2% to $105.50. Lockheed Martin had the weakest quarter, with flat revenues of $18.02 billion missing estimates by 0.9% and its stock down 8.8% to $506.43. Leidos reported revenues of $4.4 billion, up 3.7% and beating by 2.8%, but its stock dropped 32.3% to $100.68. General Dynamics saw revenues of $13.48 billion, up 10.3% and beating by 5.9%, with its stock up 9.5% to $343.44.
Mercury Systems shares surge 44% year-to-date amid record backlog and analyst upgrades
Mercury Systems shares have surged 44% year-to-date as of June 24, making it one of the best-performing defense stocks in 2026. The company reported fiscal third-quarter revenue of $236 million, an organic increase of 11.5% year-over-year, with adjusted earnings per share rising to 27 cents from 6 cents a year earlier. It ended the quarter with a record backlog of $1.6 billion, up 17.9% from the prior year. William Blair analyst Jonathan Ho reiterated a Buy rating on June 5, while Jefferies raised its price target to $105 from $95 and maintained a Hold rating, citing record bookings and expected margin improvement. Wall Street analysts have a Moderate Buy rating on the stock but see a downside of 6%.