Mercury Systems, Inc.
- Open
- 121.78
- Day high
- 127.83
- Day low
- 121.40
- Prev close
- 122.33
- Volume
- 254K
- Mkt cap
- $7.3B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 5.0
- P/S
- 7.6
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$2.0M over the last 3 months (0 open-market buys, 5 sales)
- 🏛Institutions accumulating (13F)
Mercury Systems, Inc. (MRCY) is a Industrials company listed on NASDAQ. The stock is up 105% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 5 sales (SEC Form 4).
Mercury Systems, Inc. (MRCY) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
MRCY earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $0.06 | $0.27 | +350.0% | $236M | +13.0% |
| Feb 3, 2026 | $0.07 | $0.16 | +128.6% | $233M | +11.1% |
| Nov 4, 2025 | $0.08 | $0.26 | +225.0% | $225M | -0.2% |
| Feb 4, 2025 | $-0.04 | $0.07 | +275.0% | $223M | +5.9% |
| Aug 13, 2024 | $-0.07 | $0.23 | +428.6% | $249M | +7.7% |
| Feb 6, 2024 | $0.07 | $-0.42 | -700.0% | $197M | -7.9% |
| Aug 15, 2023 | $0.54 | $0.11 | -79.6% | $253M | -10.4% |
| May 2, 2023 | $0.35 | $0.40 | +14.3% | $263M | +3.9% |
| Jan 31, 2023 | $0.33 | $0.26 | -21.2% | $230M | -1.3% |
| Nov 1, 2022 | $0.20 | $0.24 | +20.0% | $228M | +4.4% |
| Aug 2, 2022 | $1.01 | $0.81 | -19.8% | $290M | -5.7% |
| May 3, 2022 | $0.56 | $0.57 | +1.8% | $253M | +1.6% |
MRCY insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 27, 2026 | LANCE HOWARD Ldirector | Sell | 8,000 | $99.95 |
| May 27, 2026 | LANCE HOWARD Ldirector | Sell | 1,250 | $98.50 |
| May 13, 2026 | Carvalho Orlando Ddirector | Sell | 7,000 | $89.36 |
| May 12, 2026 | Ratner Stevenofficer: EVP, CHRO | Sell | 2,000 | $92.46 |
| Apr 17, 2026 | Farnsworth David E.officer: EVP, CFO | Sell | 3,625 | $84.87 |
| Apr 17, 2026 | Nearhos Barry Rdirector | Grant | 245 | — |
| Mar 4, 2026 | JANA Partners Management, LPdirector, other: See Remarks | Sell | 168,648 | $90.12 |
| Mar 4, 2026 | JANA Partners Management, LPdirector, other: See Remarks | Sell | 100,899 | $89.68 |
| Mar 4, 2026 | JANA Partners Management, LPdirector, other: See Remarks | Sell | 182,510 | $94.05 |
| Feb 27, 2026 | LANCE HOWARD Ldirector | Sell | 4,832 | $88.98 |
| Feb 19, 2026 | KUPINSKY STUARTofficer: EVP, CLO & Corp Sec | Sell | 2,287 | $83.56 |
| Feb 19, 2026 | Munro Douglasofficer: SVP, CAO | Sell | 582 | $83.56 |
| Feb 11, 2026 | JANA Partners Management, LPdirector, other: See Remarks | Sell | 400,000 | $81.00 |
| Jan 20, 2026 | Nearhos Barry Rdirector | Grant | 474 | — |
| Nov 13, 2025 | Munro Douglasofficer: SVP, CAO | Sell | 1,329 | $73.42 |
Source: MRCY SEC Form 4 filings, latest May 27, 2026. For informational purposes only — not investment advice.
See the full MRCY insider & 13F page →Mercury Systems, Inc. company profile
Overview
Mercury Systems, Inc. (NASDAQ:MRCY) is a Massachusetts-based technology company that has been serving the aerospace and defense industries since its incorporation in 1981. Originally known as Mercury Computer Systems, Inc., the company rebranded to Mercury Systems in 2012 to better reflect its expanded scope beyond computing solutions. The company went public in 1998 and has grown through both organic development and strategic acquisitions to become a significant supplier of mission-critical electronic components and subsystems to defense contractors and commercial aviation customers. Mercury's products are currently deployed in approximately 300 programs across 25 defense contractors and commercial aviation customers, positioning it as a key technology enabler in modern defense and aerospace applications.
Business
Mercury Systems operates in the highly specialized aerospace and defense electronics sector, focusing on mission-critical processing and electronic warfare systems. The company's core business revolves around designing, manufacturing, and selling advanced electronic components, modules, and integrated subsystems that enable modern military and aerospace platforms to process information, communicate, and defend against threats in real-time. The company's product portfolio spans three main categories. Components include fundamental building blocks such as power amplifiers, limiters, switches, oscillators, filters, analog-to-digital converters, and specialized memory devices that form the foundation of electronic systems. Modules and sub-assemblies represent more complex integrated solutions, including embedded processing modules, digital receiver boards, radio frequency assemblies, graphics processing units, and communication interfaces that combine multiple components into functional units. Integrated subsystems are complete, mission-ready solutions such as digital radio frequency memory units for electronic warfare, radar simulation systems for testing and training, and specialized processor systems for unmanned aerial vehicles. A significant portion of Mercury's business centers around what the defense industry calls "processing at the edge" - the ability to rapidly analyze and act on data in real-time combat or surveillance environments. This includes electronic warfare systems that can jam enemy communications, radar processing systems that can identify and track multiple targets simultaneously, and signals intelligence payloads that can intercept and analyze enemy transmissions. The company also develops specialized solutions for small unmanned aerial vehicles, including electro-optical/infrared sensors and onboard processing systems for wide-area motion imagery. Mercury's revenue is primarily concentrated in defense applications, with major programs including the Aegis Combat System (naval defense), F-35 Lightning II fighter aircraft, P-8 Poseidon maritime patrol aircraft, and various classified radar and electronic warfare programs. While the company also serves commercial aviation customers, defense applications represent the vast majority of its business, reflecting the specialized nature of its high-performance, ruggedized electronic systems designed to operate in harsh military environments.
Competitive moat
Mercury Systems operates in a niche market with several defensive characteristics, though its moat is moderate rather than exceptionally strong. The company's primary competitive advantages stem from its specialized technical expertise in electronic warfare, signal processing, and ruggedized electronics for military applications. These capabilities require significant domain knowledge, security clearances, and years of experience working with defense contractors and government agencies, creating meaningful barriers to entry for new competitors. The company benefits from program entrenchment, where once Mercury's systems are designed into major defense platforms like the F-35 or Aegis systems, switching costs for customers become prohibitively high due to extensive testing, certification, and integration requirements. Military systems have extremely long lifecycles, often spanning decades, which provides Mercury with recurring production revenue once initial design wins are secured. Additionally, the company's security clearances and established relationships with prime contractors create switching costs and relationship-based barriers. However, Mercury's moat faces several challenges. The defense electronics market is highly competitive, with large, well-capitalized competitors like Raytheon, L3Harris, and BAE Systems that have broader product portfolios and deeper customer relationships. These companies can leverage their scale and prime contractor status to compete directly with Mercury or potentially integrate vertically to develop competing capabilities internally. Additionally, the rapid pace of technological change in electronics means Mercury must continuously invest in R&D to maintain its technical edge, and newer technology companies with commercial electronics expertise are increasingly entering defense markets. The company's dependence on a relatively small number of major defense programs also creates vulnerability - program cancellations, budget cuts, or competitive losses on key platforms can significantly impact Mercury's business. While the specialized nature of military electronics provides some protection, the ongoing trend toward open architecture systems and commercial-off-the-shelf components in defense applications could potentially commoditize some of Mercury's offerings over time. Overall, Mercury operates with a moderate moat that provides meaningful competitive protection but requires continuous investment and execution to maintain.
Risks & safety
Mercury Systems presents a moderate margin of safety profile with manageable financial risks but some operational challenges. • Liquidity and Solvency: Strong balance sheet with $270 million in cash and short-term investments as of Q3 2025, current ratio of 3.44, and manageable debt-to-equity ratio of 0.45. No immediate solvency concerns. • Cash Flow: Positive free cash flow generation of $146 million over the trailing twelve months, though historically volatile. Company expects to remain cash flow positive in fiscal 2025. • Valuation Metrics: Trading at elevated multiples with EV/EBITDA of 117x due to temporarily depressed EBITDA. Price-to-book ratio of 1.73 appears reasonable given asset base. Graham net-net value is negative, indicating stock trades above liquidation value. • Operational Risks: Recent years marked by significant program execution challenges, cost overruns on development contracts, and margin compression. Company has been working through approximately 20 problematic programs. • Working Capital: High working capital requirements (currently over 50% of revenue) tie up significant cash, though management is targeting reduction to 35-40% of revenue levels. • Other Considerations: Backlog of $1.34 billion provides revenue visibility, but margins on this backlog remain uncertain. Defense spending environment generally supportive, but subject to budget cycles and political changes.
Recent development
Over the past few years, Mercury Systems has undergone significant strategic and operational transformation focused on addressing execution challenges and positioning for sustainable growth. The company experienced a difficult period in fiscal 2023-2024, grappling with cost overruns and delays on approximately 20 development programs that severely impacted margins and profitability. In response, Mercury appointed new CEO Bill Ballhaus and added experienced defense industry executives to its board, including Roger Krone and Jerry DeMuro. The company has implemented a comprehensive turnaround strategy centered on four key priorities: delivering predictable performance, driving organic growth, expanding margins, and improving free cash flow. To address program execution issues, Mercury has retired risk on 13 of its 19 originally challenged programs and implemented more rigorous program management processes. The company has also streamlined its organizational structure and reduced operating expenses to improve efficiency. A major strategic focus has been transitioning from development-heavy to production-heavy revenue mix. Mercury has successfully shifted its booking profile, with over 80% of recent bookings being production-based contracts compared to historically higher development program concentration. Key production ramp-ups include the Common Processing Architecture (CPA) programs, which reached initial pilot production and are expected to scale to full production capacity. The company has also made targeted acquisitions to strengthen its capabilities, including the recent acquisition of Star Lab cybersecurity software company, while simultaneously divesting non-core operations such as its Swiss manufacturing facility. Mercury has significantly improved its working capital management, reducing net working capital by over $90 million year-over-year and targeting further reductions to optimize cash flow generation. Recent contract wins demonstrate the company's competitive positioning, including $40 million in CPA production contracts, $20 million in F-35 follow-on production orders, and multiple awards in air and missile defense programs. The company has maintained strong customer relationships and book-to-bill ratios above 1.0, indicating healthy demand for its solutions despite execution challenges.
MRCY company profile · for informational purposes only — not investment advice.
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