Mercury Systems, Inc. (MRCY) Earnings
Mercury Systems, Inc. is expected to report next earnings on August 10, 2026 (in NaN days), with a consensus EPS estimate of $0.39. MRCY has beaten EPS estimates in 8 of its last 12 reported quarters (average surprise +244.6% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $0.06 | $0.27 | +350.0% | $236M | +13.0% |
| Feb 3, 2026 | $0.07 | $0.16 | +128.6% | $233M | +11.1% |
| Nov 4, 2025 | $0.08 | $0.26 | +225.0% | $225M | -0.2% |
| Feb 4, 2025 | $-0.04 | $0.07 | +275.0% | $223M | +5.9% |
| Aug 13, 2024 | $-0.07 | $0.23 | +428.6% | $249M | +7.7% |
| Feb 6, 2024 | $0.07 | $-0.42 | -700.0% | $197M | -7.9% |
| Aug 15, 2023 | $0.54 | $0.11 | -79.6% | $253M | -10.4% |
| May 2, 2023 | $0.35 | $0.40 | +14.3% | $263M | +3.9% |
| Jan 31, 2023 | $0.33 | $0.26 | -21.2% | $230M | -1.3% |
| Nov 1, 2022 | $0.20 | $0.24 | +20.0% | $228M | +4.4% |
| Aug 2, 2022 | $1.01 | $0.81 | -19.8% | $290M | -5.7% |
| May 3, 2022 | $0.56 | $0.57 | +1.8% | $253M | +1.6% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q3 FY2026 · May 5, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
Three topics covered: introductory comments on business and results, update on four priorities (performance excellence, building a thriving growth engine, expanding margins, driving free cash flow), and performance expectations for the balance of FY '26 and longer term. Priority one: performance excellence, focused on sound execution on development programs, accelerating deliveries, ramping production. Priority two: driving organic growth, driven by increased volume on existing production programs, transition of development programs to production, potential tailwind from customer-driven acceleration. Priority three: expanding margins, focused on backlog margin expansion, simplifying/automating/optimizing operations, driving organic growth for positive operating leverage. Priority four: improved free cash flow, making progress on drivers, reducing net working capital.
Guidance
Raising expectations for FY '26, expecting annual revenue growth approaching mid single digits, up from low single digits; full-year adjusted EBITDA margin of mid teens, up from approaching mid teens; expect free cash flow to be positive for Q4. Q4 bookings have potential to be strongest of the year, with more robust pipeline than Q3, indicating increased top-line growth and further margin expansion beyond FY 2026.
Segment performance
Q3 results: Record bookings of $348.3 million, 1.48 book-to-bill, record backlog approaching $1.6 billion; revenue of $235.8 million, up 11.5% organically year over year; adjusted EBITDA of $36.1 million, adjusted EBITDA margin of 15.3%, up 46% and 360 basis points year over year; free cash outflow of $1.8 million; domestic revenue, representing 88% of Q3 revenue, generated 17% year-over-year growth. Gross margin of 29.3% was up 230 basis points year over year. Operating expenses decreased approximately $11 million, or 14.3%, year over year. GAAP net loss and loss per share in the third quarter were approximately $3 million and $0.04, respectively. Adjusted earnings per share was $0.27 as compared to $0.06 in the prior year. Free cash flow for the third quarter was an outflow of approximately $2 million.
Analyst Q&A
Q: Ken asked about implied margins in Q4 and longer-term target,
A: Dave said no big step up in Q4 margin, more gradual trend, Bill added about business transition.
Q: Peter asked about Q4 revenue growth comparison and unbilled receivables,
A: Bill said top-line growth consistent, Dave said timing of production.
Q: Austin asked about IBAS and Golden Dome,
A: Bill said interactions with IBAS, opportunities across board.
Q: Analyst asked about missile exposure and LTAMDS,
A: Bill said no public sizing, Dave said work with prime on pricing.
Q: Garrett asked about reordering areas,
A: Bill said transition from development to production, new development programs, tailwinds.
Q: Peter asked about staging and CPA,
A: Bill said pulling supply chain left for better visibility, CPA has strong demand, differentiation.