Mercury Systems Q4 revenue beats estimates as bookings hit record high

Mercury Systems

18/08/2026 21:15

Overview
US aerospace electronics firm's fiscal Q4 revenue rose 6.1%, beating analyst expectations
Adjusted EPS for fiscal Q4 missed analyst consensus
Company reported record bookings and backlog, citing strong demand and solid execution

Outlook
Mercury Systems expects to recognize $1.0 bln of its July 3 backlog as revenue within the next 12 months
Mercury Systems says it is increasing its outlook for organic growth in fiscal 2027
Company cites record backlog and strong demand as supporting improved growth outlook

Result Drivers
RECORD BOOKINGS – Q4 bookings reached $660 mln, lifting backlog to over $1.9 bln and indicating strong customer demand
OPERATING-COST PRESSURE – Higher Q4 SG&A and R&D expenses outweighed gross-margin gains, reducing operating income to $14.5 mln from $23.6 mln
TAX AND OTHER EXPENSES – Higher tax provision and a swing to other expense contributed to Q4 net income falling to $0.8 mln from $16.4 mln

Company press release: ID:nGNXbJdKP0

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$289.78 mln
$266.40 mln (10 Analysts)
Q4 Adjusted EPS
Miss
$0.37
$0.38 (10 Analysts)
Q4 Net Income
 
$798,000
 
Q4 Adjusted EBITDA
Beat
$48.51 mln
$45.83 mln (10 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for Mercury Systems Inc is $106.00, about 6.5% below its August 17 closing price of $113.36
The stock recently traded at 73 times the next 12-month earnings vs. a P/E of 56 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)