MRCY

Looking back on defense contractors stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Mercury Systems (NASDAQ:MRCY) and its peers. Defense contractors typically require technical expertise and government clearance. Companies in this sector can also enjoy long-term contracts with government bodies, leading to more predictable revenues. Combined, these factors create high barriers to entry and can lead to limited competition. Lately, geopolitical tensions–whether it be Russia’s invasion of Ukraine or China’s aggression towards Taiwan–highlight the need for defense spending. On the other hand, demand for these products can ebb and flow with defense budgets and even who is president, as different administrations can have vastly different ideas of how to allocate federal funds. The 14 defense contractors stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 4.2% while next quarter’s revenue guidance was 2.3% below. While some defense contractors stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.5% since the latest earnings results. Founded in 1981, Mercury Systems (NASDAQ:MRCY) specializes in providing processing subsystems and components for primarily defense applications. Mercury Systems reported revenues of $235.8 million, up 11.5% year on year. This print exceeded analysts’ expectations by 14.2%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS and EBITDA estimates. “We delivered third quarter fiscal 2026 results that were ahead of our expectations, with significant year-over-year growth in backlog, revenue, and adjusted EBITDA,” said Bill Ballhaus, Mercury’s Chairman and CEO. Interestingly, the stock is up 38.6% since reporting and currently trades at $114.97. Is now the time to buy Mercury Systems? Access our full analysis of the earnings results here, it’s free. Creator of the famous M1 Abrahms tank, General Dynamics (NYSE:GD) develops aerospace, marine systems, combat systems, and information technology products. General Dynamics reported revenues of $13.48 billion, up 10.3% year on year, outperforming analysts’ expectations by 5.9%. The business had a stunning quarter with a solid beat of analysts’ adjusted operating income and EPS estimates. The market seems happy with the r...

It has been about a month since the last earnings report for Axon Enterprise (AXON). Shares have added about 20.2% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Axon due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. Axon Enterprise reported first-quarter 2026 adjusted earnings of $1.61 per share, up 9.5% year over year. However, the figure missed the Zacks Consensus Estimate of $1.66.Total revenues were $807.3 million, up 33.7% year over year and ahead of the consensus estimate of $781 million. Effective first-quarter 2025, Axon Enterprise realigned its business segments. The company now reports results under two business segments, namely Connected Devices and Software & Services.Connected Devices: The segment’s revenues increased 32.8% year over year to $452.8 million, driven by strong demand for TASER 10 devices, Axon Body 4, counter-drone products and fleet systems, along with continued momentum in Platform Solutions. However, the adjusted gross margin decreased year over year to 50.4% from 52.8%.Software & Services: The segment’s revenues rose 34.9% year over year to $354.5 million, driven by new users and increased adoption of premium software offerings by existing customers. However, the adjusted gross margin decreased to 75.8% from 77.7% in the year-ago period. Axon’s cost of sales increased 38.8% year over year to $330.1 million. Selling, general and administrative expenses were $259 million, up 15.9% year over year.Total operating expenses climbed 19.6% year over year to $448 million. The adjusted gross margin decreased to 61.6% from 63.6% in the year-ago period, owing to an increase in global tariffs and higher professional services costs. At the end of first-quarter 2026, Axon Enterprise had cash and cash equivalents of $458.9 million compared with $1.20 billion at December 2025-end. Long-term lease liabilities totaled $97.2 million compared with $98.9 million at 2025-end.In the first quarter of 2026, the company used net cash of $31.5 million in operating activities against $25.8 million net cash generated in the prior-year period.Adjusted free cash outflow was $54.1 millio...

A month has gone by since the last earnings report for Mercury Systems (MRCY). Shares have added about 21.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Mercury Systems due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Mercury Systems Inc before we dive into how investors and analysts have reacted as of late. Mercury Systems reported adjusted earnings of 27 cents per share for the third quarter of fiscal 2026, which beat the Zacks Consensus Estimate by 350%. The bottom line increased significantly year over year from 6 cents in the prior-year quarter.In the fiscal third quarter, MRCY reported revenues of $236 million, reflecting an 11.5% organic year-over-year increase and surpassing the Zacks Consensus Estimate by 12.06%.Fiscal third-quarter results were ahead of management's expectations, with significant year-over-year growth in backlog, revenues and adjusted EBITDA, driven by strong demand signals and solid execution. Total bookings for the third quarter of fiscal 2026 were a record $348 million, up 73.7% year over year, yielding a book-to-bill ratio of 1.48. As a defense technology company focused on mission-critical processing systems, Mercury Systems operates primarily as a single-segment business serving aerospace and defense markets. Third-quarter bookings were driven largely by follow-on production orders, reflecting the company's transition toward higher-rate production. The largest bookings spanned several missile, C4I and space programs, and the quarter featured the strongest bookings of the fiscal year for solutions leveraging Mercury's Common Processing Architecture. The company also secured a follow-on development award on a strategic program with potential to proliferate across multiple platforms.MRCY achieved a record total backlog of approximately $1.6 billion as of March 27, 2026, up 17.9% (an approximately $240 million increase) year over year. Of the total backlog, $891 million represents orders expected to be recognized as revenues within the next 12 months. The 12-month backlog also increased 10.3% sequentially. Trailing 12-month bookings reached a record $1.23 billion. Third-quarter fiscal 2026 adjusted EBITDA was $36 million, up 46.2% from $25 million...

Mercury Systems, Inc. (NASDAQ:MRCY) is among the 10 Best Performing Defense Stocks So Far in 2026. The company’s shares are up 34% year-to-date as of the close on May 22. Several analysts have adjusted their price targets on the stock this month following the company’s third-quarter results. Recent updates include Goldman Sachs, which on May 11 raised its price target on the stock to $68 from $60 but maintained a Sell rating. The adjustment came as part of the firm revising its model post the company’s third-quarter earnings report. On May 10, Jefferies also hiked its price target on Mercury Systems, Inc. (NASDAQ:MRCY) to $95 from $80 after the company raised its full-year guidance for 2026 during the earnings call. The firm reiterated its Hold rating on the stock. Earlier on May 7, Canaccord Genuity increased its price target by $4 to $106 while maintaining a Buy rating. Quarterly revenue was reported at $236 million, representing an 11.5% organic increase. Adjusted earnings per share came in at $0.27 compared to $0.06 during the same period last year. Bookings grew by $348 million in Q3, taking the backlog to a record $1.6 billion. Mercury Systems, Inc. (NASDAQ:MRCY) now anticipates top-line growth for fiscal 2026 in the mid-single digits, up from initial estimates of low single digits. Adjusted EBITDA margin for the full year is expected in the mid-teens, against earlier forecasts of near mid-teens. Moreover, the company sees positive free cash flow ahead in the fourth quarter. Mercury Systems, Inc. (NASDAQ:MRCY) provides mission-critical processing that helps enhance the accessibility of advanced technologies used in complex aerospace and defense missions. While we acknowledge the potential of MRCY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Stocks That Will Make You Rich Over the Next Decade and 9 Best Drone Stocks to Buy According to Wall Street Analysts. Disclosure: None. Follow Insider Monkey on Google News.

Mercury Systems delivered first quarter results that surpassed Wall Street’s expectations, driven by accelerated backlog conversion and broad demand across its production and development programs. Management credited stronger execution—particularly in ramping up production and streamlining operations—for improved margins and higher organic growth. CEO William L. Ballhaus pointed to “solid execution across our broad portfolio” and highlighted that domestic business grew 17% year over year, reflecting the company’s successful transition from development-heavy projects into higher-rate production. The team also noted progress in reducing net working capital, which contributed to operational improvements. Is now the time to buy MRCY? Find out in our full research report (it’s free). Revenue: $235.8 million vs analyst estimates of $206.4 million (11.5% year-on-year growth, 14.2% beat) Adjusted EPS: $0.27 vs analyst estimates of $0.07 (significant beat) Adjusted EBITDA: $36.09 million vs analyst estimates of $21.52 million (15.3% margin, 67.7% beat) Operating Margin: 2.2%, up from -8.2% in the same quarter last year Backlog: $1.6 billion at quarter end, up 19.4% year on year Market Capitalization: $5.52 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Kenneth George Herbert (RBC Capital Markets) asked about the expected margin trajectory into the next quarter and beyond. CFO David E. Farnsworth explained that margin progression is becoming more gradual due to improved business linearity, with steady increases expected as production ramps up. Peter John Skibitski (Aerospace Analyst, Alembic Global) questioned whether implied revenue guidance for next quarter was conservative given the strong book-to-bill ratio. CEO William L. Ballhaus noted that the comparison includes accelerated revenue from last year, and the current outlook reflects a consistent progression of the business. Austin Moeller (Canaccord Genuity) inquired about opportunities from the IBAS defense industrial base and Golden Dome programs. CEO Ballhaus confirmed ongoing engagement and alignment with these priorities, noting potential incremental invest...

Mercury Systems MRCY reported adjusted earnings of 27 cents per share for the third quarter of fiscal 2026, which beat the Zacks Consensus Estimate by 350%. The bottom line increased significantly year over year from 6 cents in the prior-year quarter. In the fiscal third quarter, MRCY reported revenues of $236 million, reflecting an 11.5% organic year-over-year increase and surpassing the Zacks Consensus Estimate by 12.06%. Fiscal third-quarter results were ahead of management's expectations, with significant year-over-year growth in backlog, revenues and adjusted EBITDA, driven by strong demand signals and solid execution. Mercury Systems Inc price-consensus-eps-surprise-chart | Mercury Systems Inc Quote Total bookings for the third quarter of fiscal 2026 were a record $348 million, up 73.7% year over year, yielding a book-to-bill ratio of 1.48. As a defense technology company focused on mission-critical processing systems, Mercury Systems operates primarily as a single-segment business serving aerospace and defense markets. Third-quarter bookings were driven largely by follow-on production orders, reflecting the company's transition toward higher-rate production. The largest bookings spanned several missile, C4I and space programs, and the quarter featured the strongest bookings of the fiscal year for solutions leveraging Mercury's Common Processing Architecture. The company also secured a follow-on development award on a strategic program with potential to proliferate across multiple platforms. MRCY achieved a record total backlog of approximately $1.6 billion as of March 27, 2026, up 17.9% (an approximately $240 million increase) year over year. Of the total backlog, $891 million represents orders expected to be recognized as revenues within the next 12 months. The 12-month backlog also increased 10.3% sequentially. Trailing 12-month bookings reached a record $1.23 billion. Third-quarter fiscal 2026 adjusted EBITDA was $36 million, up 46.2% from $25 million in the third quarter of fiscal 2025. The adjusted EBITDA margin was 15.3%, expanding 360 basis points year over year. GAAP net loss and diluted loss per share for the third quarter of fiscal 2026 were $3 million and 4 cents, respectively, compared with GAAP net loss and loss per share of $19 million and 33 cents, respectively, for the third quarter of fiscal 2025. As of March 27, 2026, cash and cash e...

Image source: The Motley Fool. Tuesday, May 5, 2026, at 5 p.m. ET Chairman and Chief Executive Officer — William L. Ballhaus Executive Vice President and Chief Financial Officer — David E. Farnsworth Vice President of Investor Relations — Tyler Hojo Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good day, everyone, and welcome to the Mercury Systems, Inc. Third Quarter Fiscal 2026 conference call. Today's call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to the company's Vice President of Investor Relations, Tyler Hojo. Please go ahead, Mr. Hojo. Tyler Hojo: Good afternoon, and thank you for joining us. With me today is our Chairman and Chief Executive Officer, William L. Ballhaus, and our Executive Vice President and CFO, David E. Farnsworth. If you have not received a copy of the earnings press release we issued earlier this afternoon, you can find it on our website at mrcy.com. The slide presentation that we will be referencing is posted on the Relations section of the website under Events and Presentations. Turning to slide two in the presentation, I would like to remind you that today's presentation includes forward-looking statements, including information regarding Mercury Systems, Inc.'s financial outlook, future plans, objectives, business prospects, and anticipated financial performance. These forward-looking statements are subject to future risks and uncertainties that could cause our actual results or performance to differ materially. All forward-looking statements should be considered in conjunction with the cautionary statements on slide two, the earnings press release, and the risk factors included in Mercury Systems, Inc.'s SEC filings. I would also like to mention that in addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, during our call we will also discuss several non-GAAP financial measures: specifically adjusted income, adjusted earnings per share, adjusted EBITDA, and free cash flow. A reconciliation of these non-GAAP metrics is included as an appendix to today's slide presentation and in the earnings press release. I will now turn the call over to Mercury Systems, Inc.'s Chairman and CEO, William L. Ballhaus. William L. Ballhaus: Please turn to slide three. Thanks, everyone. Good afternoon, and...

Mercury Systems (MRCY) reported fiscal Q3 adjusted earnings late Tuesday of $0.27 per diluted share,

Performance beat was driven by the successful acceleration of high-priority programs, pulling approximately $25 million of revenue and $15 million of adjusted EBITDA from Q4 into Q3. Management is successfully transitioning the business from a high concentration of development programs to higher-volume production, evidenced by 17% year-over-year domestic revenue growth. Operational improvements in supply chain management, specifically pulling material delivery dates 'to the left,' have increased backlog conversion speed and improved forecast visibility. The company is consolidating subscale sites and expanding automated manufacturing capacity in Phoenix to support efficient scaling of common processing architecture programs. Margin expansion of 360 basis points year-over-year was attributed to converting legacy lower-margin backlog and implementing a streamlined operating structure with lower headcount. Record backlog approaching $1.6 billion reflects strong demand across core franchise programs in missiles, C4I, and space, with no single program exceeding 10% of the portfolio. Full-year FY '26 revenue guidance was raised to 'approaching mid single digits' from 'low single digits' due to improved material staging and better-than-expected organic growth. Management expects to reach a target profile of low-to-mid 20% adjusted EBITDA margins and 50% free cash flow conversion as production volumes continue to ramp. Q4 bookings are projected to be the strongest of the year based on a robust pipeline, which management views as a leading indicator for growth beyond FY '26. The company anticipates potential incremental tailwinds from global defense budget increases and domestic priorities like 'Golden Dome' to materialize by late calendar 2026. Free cash flow is expected to remain positive for the full year, supported by the continued burn-down of older unbilled receivable balances. Completed the acquisition of a critical manufacturing process technology provider to support key ramping production programs. Reduced net working capital by 4.1% year-over-year, contributing to a $150 million payment against the company's revolver in Q4. Inventory increased sequentially by $12 million, primarily in work-in-process, to support the shift toward point-in-time revenue recognition on production contracts. Operating expenses decreased 14.3% year-over-year, reflecting efficienc...

For the quarter ended March 2026, Mercury Systems (MRCY) reported revenue of $235.76 million, up 11.5% over the same period last year. EPS came in at $0.27, compared to $0.06 in the year-ago quarter. The reported revenue represents a surprise of +12.06% over the Zacks Consensus Estimate of $210.38 million. With the consensus EPS estimate being $0.06, the EPS surprise was +350%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Mercury Systems performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Revenue- Sensor & Effector- Radar: $44.84 million versus the two-analyst average estimate of $36.23 million. The reported number represents a year-over-year change of +24.8%. Net Revenue- Sensor & Effector- Electronic Warfare: $30 million compared to the $20.51 million average estimate based on two analysts. The reported number represents a change of +40.1% year over year. Net Revenue- Other: $31.82 million compared to the $32.51 million average estimate based on two analysts. The reported number represents a change of -9.6% year over year. Net Revenue- Sensor & Effector- Total: $114.16 million versus the two-analyst average estimate of $78.85 million. The reported number represents a year-over-year change of +43.8%. Net Revenue- C4I: $89.78 million versus $95.22 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -7.2% change. Net Revenue- Sensor & Effector- Other Sensor & Effector: $39.32 million versus the two-analyst average estimate of $22.12 million. The reported number represents a year-over-year change of +78.4%. View all Key Company Metrics for Mercury Systems here>>> Shares of Mercury Systems have returned +3.7% over the past month versus the Zacks S&P 500 composite's +9.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the n...

ANDOVER, Mass. (AP) — ANDOVER, Mass. (AP) — Mercury Systems Inc. (MRCY) on Tuesday reported a loss of $2.9 million in its fiscal third quarter. On a per-share basis, the Andover, Massachusetts-based company said it had a loss of 4 cents. Earnings, adjusted for one-time gains and costs, were 27 cents per share. The results exceeded Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 6 cents per share. The maker of processing systems and software posted revenue of $235.8 million in the period, which also topped Street forecasts. Four analysts surveyed by Zacks expected $210.4 million. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on MRCY at https://www.zacks.com/ap/MRCY

Record Q3 FY26 Bookings of $348 million grew 73.7% year-over-year; book-to-bill of 1.48 Record backlog of approximately $1.6 billion; up 17.9% year-over-year Q3 FY26 Revenue of $236 million; up 11.5% organically year-over-year GAAP net loss of $3 million; and adjusted EBITDA of $36 million, up 46.2% year-over-year ANDOVER, Mass., May 05, 2026 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), reported operating results for the third quarter of fiscal year 2026, ended March 27, 2026. “We delivered third quarter fiscal 2026 results that were ahead of our expectations, with significant year-over-year growth in backlog, revenue, and adjusted EBITDA,” said Bill Ballhaus, Mercury’s Chairman and CEO. “Strong demand signals and solid execution contributed to better than expected organic growth and margin expansion this quarter." “In the third quarter we delivered record bookings of $348 million, with a 1.48 book-to-bill, resulting in a record backlog of approximately $1.6 billion. Revenue for the third quarter was $236 million, up 11.5% year-over-year. GAAP net loss of $3 million, adjusted EBITDA of $36 million, and adjusted EBITDA margin of 15.3%, each improving year-over-year." Third Quarter Fiscal 2026 Results Third quarter fiscal 2026 revenues were $236 million, compared to $211 million in the third quarter of fiscal 2025. Total bookings for the third quarter of fiscal 2026 were $348 million, yielding a book-to-bill ratio of 1.48 for the quarter. GAAP net loss and loss per share for the third quarter of fiscal 2026 were $3 million and $0.04, respectively, compared to GAAP net loss and loss per share of $19 million and $0.33, respectively, for the third quarter of fiscal 2025. Adjusted earnings per share (“adjusted EPS”) was $0.27 per share for the third quarter of fiscal 2026, compared to $0.06 per share in the third quarter of fiscal 2025. Third quarter fiscal 2026 adjusted EBITDA was $36 million, compared to $25 million for the third quarter of fiscal 2025. Cash flows provided by operating activities in the third quarter of fiscal 2026 were $6 million, compared to $30 million in the third quarter of fiscal 2025. Free cash flow, defined as cash flows from operating activities less capital expenditures for property and equipment, was $(2) million for the third quarter of fiscal 2026 and $24 million for the third quarter of fiscal 2025. Backl...