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Mercury Systems Inc (MRCY)
NASDAQ:MRCY
Earnings Data
Report Date
May 05, 2026After Close (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
0.08Last Year’s EPS
0.06Same Quarter Last Year
Moderate Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong operational execution and tangible progress: robust bookings, record backlog, revenue growth, significant adjusted EBITDA improvement, positive free cash flow, cash and leverage reduction, and strategic design wins. Headwinds are transitional and largely related to mix (conversion of lower-margin backlog), near-term gross margin compression, Q3 seasonality/expected cash outflow due to pulled-forward receipts, and some one-time or near-term charges (restructuring, litigation). Management signaled confidence in margin expansion over time and potential demand tailwinds (Golden Dome, increased defense budgets) but remained appropriately cautious about assuming further quarter-to-quarter accelerations. On balance the positives (bookings, backlog growth, EBITDA gain, cash and working capital improvement, and execution wins) outweigh the manageable near-term challenges.Company Guidance
Strong Bookings and Backlog Growth
Bookings of $288M in Q2 with a book-to-bill of 1.23; record backlog approaching $1.5B, up $119M or 8.8% year-over-year.
Revenue Growth and Record First-Half Performance
Q2 revenue of $233M (up ~$10M or 4.4% YoY) and first-half revenue up 7.1% year-over-year; company reported the highest first-half point-in-time revenue since FY2021.
Material Adjusted EBITDA Improvement
Adjusted EBITDA of $30M in Q2, up 36.3% year-over-year, with adjusted EBITDA margin of 12.9% (up 300 basis points YoY).
Positive Free Cash Flow and Strong Cash Position
Q2 free cash flow inflow of ~$46M (vs. $82M prior year), $335M cash on hand at quarter end, and $41M positive free cash flow over the last two quarters.
Working Capital and Leverage Reduction
Net working capital down ~$61M year-over-year (down ~12.9%) to ~ $414M (lowest since Q1 FY2022); net debt reduced to ~$257M (lowest level in the referenced period).
Execution—Revenue Acceleration and Program Delivery
Accelerated ~ $30M of revenue (primarily planned for Q3) into Q2, contributing roughly $10M of adjusted EBITDA and ~$30M of cash; ongoing ramp and production progress on common processing architecture (CPA) programs.
Business Development and Strategic Wins
Q2 bookings included franchise program expansions, two key design wins (RF/processing subsystem for AAM ground control and a space-based design win), and ~$20M of follow-on CPA awards leveraging StarLab cybersecurity capabilities.
MRCY Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
MRCY Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 03, 2026 | $99.28 | $77.12 | -22.32% |
Nov 04, 2025 | $75.71 | $78.19 | +3.28% |
Aug 11, 2025 | $53.58 | $68.02 | +26.95% |
May 06, 2025 | $50.41 | $47.95 | -4.88% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Mercury Systems Inc (MRCY) report earnings?
Mercury Systems Inc (MRCY) is schdueled to report earning on May 05, 2026, After Close (Confirmed).
What is Mercury Systems Inc (MRCY) earnings time?
Mercury Systems Inc (MRCY) earnings time is at May 05, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is MRCY EPS forecast?
MRCY EPS forecast for the fiscal quarter 2026 (Q3) is 0.08.