Zacks Investment Research·6d ago
Mercury Systems (MRCY) Down 13.8% Since Last Earnings Report: Can It Rebound?Mercury Systems (MRCY) reported earnings 30 days ago. What's next for the stock?
Mercury Systems is executing a deleveraging and operational pivot, with 2026Q4 marking the first positive operating income ($12.2M) since 2025Q4 and gross margin recovering to 30.6% from 25.2% in 2026Q3. However, TTM net margin remains negative at -3.0%, and g...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue grew 6.1% YoY to $289.8M in 2026Q4 with gross margin improving to 30.6%, yet TTM operating margin is near zero at 0.0% and net margin is -3.0%, indicating fragile profitability.
A bullish thesis on Mercury Systems, Inc. was highlighted on a Value investing subreddit, suggesting potential undervaluation or growth prospects.
Mercury Systems, Inc. had a forward P/E of 149.25, indicating high growth expectations from investors.
The company maintains an Investor Relations website, signaling transparency and engagement with stockholders and potential investors.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 18, 2026 | $0.37-3.3% vs $0.38 | $290M+8.9% vs $266M |
Q2 2026 May 5, 2026 | $0.27+350.0% vs $0.06 | $236M+13.0% vs $209M |
Q1 2026 Feb 3, 2026 | $0.16+128.6% vs $0.07 | $233M+10.6% vs $211M |
Q4 2025 Nov 4, 2025 | $0.26+225.0% vs $0.08 | $225M+9.4% vs $206M |
Mercury Systems (MRCY) reported earnings 30 days ago. What's next for the stock?
ANDOVER, Mass., Sept. 16, 2026 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a global leader in aerospace and defense electronics, today announced that it has entered into an agreement to extend the employment contract of Chairman and CEO Bill Ballhaus, extending the initial term of his employment contract for another three years through August 15, 2030.
Mercury Systems is positioned for improved profitability as defense customers increase purchases of its standardized computing products. My Buy rating is supported by a visible backlog, operational improvements, and the expectation of higher production volumes driving margin expansion. Key catalysts include manufacturing enhancements (SolderMask acquisition), a Palantir partnership for planning, and repeat customer selections in defense programs.
The transaction involved 48,812 shares with an estimated value of ~$4.8 million. The disposition represented 17% of the executive's total equity holdings.
Benchmark MRCY against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Mercury Systems, Inc. (MRCY)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $83.88 | $5.04B | -167.76 | 7.85% | -3.02% | -2% | — | |
| $46.97 | $8.81B | 361.31 | 18.52% | 2.03% | 1.14% | — | |
| $550.27 | $20.33B | 42.76 | 12.08% | 14.81% | 20.69% | — | |
| $37.15 | $9.91B | 36.07 | 12.8% | 8.52% | 11.76% | — | |
| $12.92 | $2.8B | 19.00 | 6.71% | 13.83% | 10.2% | — | |
| $270.95 | $10.68B | 17.61 | 8.23% | 5.01% | 12.89% | — |
Mercury Systems, Inc. (MRCY) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Mercury Systems, Inc. (MRCY) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 18, 2026·SEC
May 5, 2026·SEC
Feb 3, 2026·SEC
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Mercury Systems, Inc. (MRCY) stock FAQ — growth, dividends, profitability & financials explained
Mercury Systems, Inc. (MRCY) reported $983.6M in revenue for fiscal year 2026. This represents a 1050% increase from $85.5M in 1998.
Mercury Systems, Inc. (MRCY) grew revenue by 7.9% over the past year. This is steady growth.
Mercury Systems, Inc. (MRCY) reported a net loss of $29.7M for fiscal year 2026.
Mercury Systems, Inc. (MRCY) has a return on equity (ROE) of -2.0%. Negative ROE indicates the company is unprofitable.
Mercury Systems, Inc. (MRCY) generated $64.9M in free cash flow for fiscal year 2026. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
