Mercury Systems Inc (MRCY)
NASDAQ:MRCY
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Earnings Data
Report Date
Aug 18, 2026After Close (Confirmed)
Period Ending
2026 (Q4)Consensus EPS Forecast
0.4Last Year’s EPS
0.47Same Quarter Last Year
Strong Buy
Based on 5 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong operational momentum and financial improvement: record bookings/backlog, double-digit organic revenue growth, material adjusted EBITDA expansion, balance sheet strength and capacity investments. Near-term challenges include a slight Q3 free cash flow outflow, working capital and receivable timing dynamics, inventory reserve impacts, and the fact that larger market tailwinds are not yet baked into bookings. Management raised FY'26 guidance and emphasized improved backlog conversion and margin trajectory, while acknowledging more work is required to reach longer-term margin targets.Company Guidance
Record Bookings and Backlog
Q3 bookings of $348.3M (book-to-bill of 1.48); record backlog approaching $1.6B (up $240M or ~17.9% year over year); trailing twelve-month bookings a record $1.23B.
Strong Revenue Growth
Q3 revenue of $235.8M (reported as nearly $236M), up 11.5% organically year over year; domestic revenue (88% of Q3 revenue) up 17% year over year.
Margin Expansion and Adjusted Profitability
Adjusted EBITDA of ~$36.1M, up ~46.2% year over year; adjusted EBITDA margin 15.3%, an increase of ~360 basis points year over year; gross margin improved to 29.3%, up ~230 basis points year over year; adjusted EPS $0.27 vs $0.06 prior year.
Improved GAAP Results and Operating Expense Reduction
GAAP net loss narrowed to ~$3M (loss per share $0.04) from ~$19M ($0.33) year ago; operating expenses decreased approximately $11M or ~14.3% year over year driven by lower restructuring, SG&A, and R&D.
Cash and Balance Sheet Strength
Cash and cash equivalents of $332M, up ~$62M (~23%) year over year; net debt $259.7M; year-to-date free cash flow $39.5M; net working capital improved, down ~4.1% year over year and down ~$225M (34%) from peak in Q1 FY24.
Operational Execution and Capacity Expansion
Accelerated program execution that generated ~ $25M of revenue, ~$15M of adjusted EBITDA, and ~$25M of cash primarily planned for Q4; added 50,000 sq ft of automated factory space in Phoenix and completed an acquisition of a critical manufacturing process technology provider to support ramped production.
Raised FY'26 Outlook
Updated FY'26 expectations: revenue growth approaching mid single digits (up from low single digits), full-year adjusted EBITDA margin target moved to mid teens (from approaching mid teens), and expectation of positive free cash flow in Q4; reiterated longer-term target of low- to mid-20% adjusted EBITDA margins and 50% free cash flow conversion.
Breadth of Demand Across Portfolio
Bookings driven by follow-on production orders across missiles, C4I, and space; leadership highlights that no single program exceeds ~10% of business, indicating diversified demand and broad-based strength across ~300 programs.
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 |
|---|---|---|---|
May 05, 2026 | $82.96 | $91.66 | +10.49% |
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% |
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 Aug 18, 2026, After Close (Confirmed).
What is Mercury Systems Inc (MRCY) earnings time?
Mercury Systems Inc (MRCY) earnings time is at Aug 18, 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 (Q4) is 0.4.