Mercury Systems, Inc. (MRCY) AI Stock Analysis

Headquartered in Andover, Massachusetts, Mercury Systems, Inc. specializes in the design, manufacturing, and distribution of advanced components, products, modules, and subsystems primarily tailored for aerospace and defense applications across the United States, Europe, and the Asia Pacific region. Supporting approximately 300 programs and collaborating with 25 defense contractors and commercial aviation customers, its portfolio includes power amplifiers, switches, oscillators, memory devices, and monolithic microwave integrated circuits. The company also produces embedded processing modules, integrated radio frequency assemblies, signals intelligence payloads, and technologies for modern electronic warfare applications and small unmanned aerial systems.

Mercury Systems generated revenue of $973.9M in both FY2022 and FY2023, before declining 14.2% to $835.3M in FY2024. Revenue rebounded by 9.2% in FY2025 to $912.0M and grew 7.9% to $983.6M in FY2026, resulting in a 5-year revenue CAGR of 1.3%. Gross margin stood at 24.6% in FY2026 compared to 32.5% in FY2022. The company recorded net losses across each reported fiscal year, including -$137.6M in FY2024 and -$29.7M in FY2026, alongside an operating margin of 2.1%. For the latest quarter ended June 30, 2026, quarterly revenue increased 6.1% year-over-year, while quarterly earnings fell 96.7%.

As of June 30, 2026, Mercury Systems held $214.3M in cash and short-term investments against total debt of $500.9M, leaving net debt at $286.6M. The company maintains a current ratio of 2.96 and a debt-to-equity ratio of 0.33, supported by shareholders' equity of $1.50B and total assets of $2.32B. In FY2026, operating cash flow reached $102.4M and free cash flow was $68.1M. Capital expenditures totaled $34.3M, while share buybacks used $15.0M. Over five years, the share count grew 10.3%.

Mercury Systems trades at a forward P/E of 50.0x, a price-to-sales ratio of 4.6x, and an EV/EBITDA of 81.4x, all positioned above the median of its US-listed Industrials peers at 17.2x, 1.5x, and 13.9x, respectively. The company carries an enterprise value of $5.29B and a market cap of $4.52B. Over the past year, MRCY shares fell 3.7%, trailing the 16.8% return of the S&P 500. Over a 5-year timeframe, the stock gained 48.3% compared to an 83.0% gain for the S&P 500.

Wall Street analyst ratings on Mercury Systems include 6 Strong Buy, 2 Buy, 2 Hold, 0 Sell, and 1 Strong Sell. The mean price target is $114.80, representing a 54.6% premium over the last close of $74.27. For the fiscal year ending June 30, 2027, consensus estimates project revenue of $1.09B and EPS of $1.67, reflecting 57.6% EPS growth. Mercury Systems has beaten EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 10, 2026.

This page is an AI-written research summary of Mercury Systems, Inc. (MRCY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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