Mercury Systems Inc (NASDAQ:MRCY) Sees Large Decline in Short Interest
Short interest in Mercury Systems (NASDAQ:MRCY) significantly declined by 25.2% to 3.83 million shares as of January 30th, resulting in a 5.8 days-to-cover ratio. This reduction occurred despite a substantial sale of 400,000 shares by Director Jana Partners for $32.4 million and the company beating quarterly revenue and EPS estimates. Analysts remain divided on the stock, with a "Hold" consensus rating and a target price ranging from $55 to $109.
Mercury Systems Inc $MRCY Position Lessened by Cookson Peirce & Co. Inc.
Cookson Peirce & Co. Inc. significantly reduced its stake in Mercury Systems Inc. ($MRCY) by 53.5% in the third quarter of 2025. Simultaneously, Director Jana Partners Management, LP sold 400,000 shares, decreasing its holding by 8.05%. Despite these reductions by some institutional investors, Mercury Systems beat earnings expectations, reporting an EPS of $0.16 against an estimated $0.07 and revenue of $232.9 million against $209.96 million.
3 Small-Cap Stocks We're Skeptical Of
This article identifies three small-cap stocks—Mercury Systems (MRCY), Assured Guaranty (AGO), and Flagstar Financial (FLG)—that StockStory is skeptical of due to various financial and operational challenges. The analysis highlights concerns such as declining revenue growth, falling earnings per share, and other performance issues for each company. It also suggests alternative "high-quality" stock investments that have historically outperformed the market.
Should Mercury Systems’ Record H1 Revenue and Narrower Losses Prompt Action From MRCY Investors?
Mercury Systems (MRCY) reported record first-half fiscal 2026 revenue of US$232.87 million, with a narrowed net loss of US$15.10 million. Despite these improvements and a US$200 million share repurchase program, the company still faces challenges including a low-margin backlog and modest revenue growth. Analysts have varying outlooks, with some more cautious about its long-term financial projections.
Insider Selling: Mercury Systems (NASDAQ:MRCY) Director Sells 400,000 Shares of Stock
Jana Partners Management, LP, a director at Mercury Systems (NASDAQ:MRCY), sold 400,000 shares of the company's stock for $32.4 million at an average price of $81.00 on February 9th, reducing their stake by 8.05%. This comes as Mercury Systems reported Q4 EPS of $0.16 and revenue of $232.87 million, both above estimates, though analysts project a negative EPS for the current year. The stock traded down to $80.33 mid-day, and analyst coverage for MRCY is mixed with a "Hold" consensus rating and a target price of $86.89.
Mercury Systems, Inc. (NASDAQ:MRCY) Shares Could Be 24% Above Their Intrinsic Value Estimate
Mercury Systems' stock (NASDAQ:MRCY) appears to be overvalued by approximately 24% based on a Discounted Cash Flow (DCF) model, with a projected fair value of US$68.86 compared to its current share price of US$85.37. Although analysts have a higher price target of US$97.50, the DCF analysis suggests the company's valuation needs further scrutiny. Investors are encouraged to consider the company's financial health, future earnings, and other business fundamentals in addition to this DCF assessment.
5 Revealing Analyst Questions From Mercury Systems's Q4 Earnings Call
Mercury Systems's Q4 results exceeded revenue and non-GAAP profit expectations, driven by accelerated deliveries and strong bookings, yet the market reacted negatively. Analysts' questions focused on low-margin backlog, guidance conservatism, net EAC adjustments, unbilled program capacity allocation, and international revenue mix. The company anticipates future growth from converting low-margin backlog, increasing production capacity, and stronger defense budgets.
Assessing Mercury Systems (MRCY) Valuation After Earnings Beat And Ongoing Losses
Mercury Systems (MRCY) recently reported stronger-than-expected quarterly results, with earnings and revenue exceeding analyst expectations due to increased customer deliveries and a robust backlog. Despite this, the company continues to experience losses, and its valuation remains a key consideration for investors. While one valuation model suggests the stock is undervalued, another indicates it might be expensive based on future cash flows.
Bessemer Group Inc. Purchases 274,070 Shares of Mercury Systems Inc $MRCY
Bessemer Group Inc. significantly increased its stake in Mercury Systems Inc. (NASDAQ:MRCY) by purchasing an additional 274,070 shares in the third quarter, bringing its total holdings to 274,302 shares valued at approximately $21.23 million. This increase occurred despite a Mercury Systems insider selling shares and the company reporting a negative net margin, though it did beat earnings and revenue estimates. Analysts currently have a "Hold" consensus rating on MRCY with a target price of $87.13.
Mercury Systems joins elite club of stocks with RS ratings over 90
Mercury Systems (MRCY) has achieved an impressive Relative Strength (RS) Rating of 91, placing it among the top-performing stocks. This upgrade from 88 signifies strong price performance over the past year compared to other equities. The company is currently forming a cup-with-handle base, requiring a significant price rise to trigger a new buy point.
Mercury Systems Joins Elite Club Of Stocks With RS Ratings Over 90
Mercury Systems (MRCY) has achieved a significant technical milestone, with its Relative Strength (RS) Rating climbing to 91, placing it in the 90-plus percentile. This upgrade from 87 indicates strong price performance relative to other stocks. IBD's proprietary RS Rating measures a stock's price performance on a scale of 1 to 99, with higher scores signifying better performance.
Mercury Systems Q2 Loss Of US$15.1 Million Tests Bullish Profitability Narrative
Mercury Systems (MRCY) reported a Q2 2026 loss of US$15.1 million with revenue of US$232.9 million, continuing a trend of unprofitability despite revenue growth. The company's trailing twelve-month revenue is US$942.5 million, with a net loss of US$30.4 million. While forecasts project significant earnings growth and profitability within three years, the current valuation shows mixed signals with a P/S ratio above the industry average but below peers.
Mercury Systems Earnings Call: Recovery Gains Traction
Mercury Systems' latest earnings call indicates a recovering trajectory with strong bookings, a record backlog of nearly $1.5 billion, and improved adjusted profitability. Despite sustained pressure on gross margins due to lower-margin backlog and non-operational charges, the company delivered positive free cash flow and reduced net debt. Management projects gradual margin expansion and reaffirmed its full-year guidance, emphasizing a path to recovery even with near-term volatility.
Mercury Systems Q2 Loss Of US$15.1 Million Tests Bullish Profitability Narrative
Mercury Systems (MRCY) reported a Q2 2026 loss of US$15.1 million with revenue of US$232.9 million, continuing a trend of unprofitability despite revenue growth. The company's trailing twelve-month revenue was US$942.5 million, with a net loss of US$30.4 million. While forecasts predict strong earnings growth and profitability within three years, the current valuation signals are mixed, with the stock trading above its DCF fair value but below its peer average P/S.
Mercury Systems Q2 Loss Of US$15.1 Million Tests Bullish Profitability Narrative
Mercury Systems reported a Q2 2026 loss of US$15.1 million on revenue of US$232.9 million, continuing a trend of unprofitability despite revenue growth. The company's trailing revenue growth of 7.9% is below the US market benchmark, and while forecasts predict significant earnings growth and profitability within three years, the current results challenge this bullish narrative. The stock's P/S ratio indicates mixed valuation signals, trading above the industry average but below its peer group.
Analysts Offer Insights on Industrial Goods Companies: Pentair (PNR), Hillman Solutions (HLMN) and Mercury Systems (MRCY)
Three analysts have recently issued bullish ratings for companies in the Industrial Goods sector: Pentair (PNR), Hillman Solutions (HLMN), and Mercury Systems (MRCY). RBC Capital maintained a Buy rating for Pentair with a $117 price target, reflecting a potential 16.0% upside. Hillman Solutions also received a maintained Buy rating from Canaccord Genuity with a $15 price target, and Mercury Systems was maintained at Buy by RBC Capital with a $105 price target, despite a current analyst consensus indicating a slight downside.
Mercury Systems price target raised to $109 from $102 at Truist
Truist has raised its price target for Mercury Systems (MRCY) to $109 from $102, maintaining a Buy rating on the shares. This decision follows Mercury Systems exceeding consensus expectations, particularly in free cash flow, indicating strong financial performance. The firm highlighted management's focus on improving working capital through supply chain optimization, faster customer deliveries, and strategic demand planning.
Navigating the Turnaround: A Deep-Dive into Mercury Systems (MRCY) in 2026
Mercury Systems (MRCY) has completed a significant turnaround by 2026, transitioning from a component vendor to a systems-integrated powerhouse in the aerospace and defense sector. The company has seen its stock price surge over 135% in the last year, with a record backlog of $1.5 billion, driven by new leadership and a focus on operational excellence. While facing risks like short-term revenue dips and fixed-price contracts, Mercury Systems is well-positioned for future growth through international expansion, space electronics, and potential M&A, capitalizing on trends like "Software-Defined Defense" and the Replicator Initiative.
Mercury Systems (MRCY) Surpasses Q2 Earnings and Revenue Estimates
Mercury Systems (MRCY) reported strong Q2 earnings, beating the Zacks Consensus Estimate with $0.16 per share compared to an expected $0.07. The company also surpassed revenue estimates, posting $232.87 million against a $207.39 million consensus. Despite this outperformance, the stock currently holds a Zacks Rank #4 (Sell), suggesting potential underperformance in the near future based on unfavorable estimate revision trends.
Mercury Systems Tumbles 25%, But This Turnaround Is Just Getting Started (NASDAQ:MRCY)
Mercury Systems' stock tumbled 25% despite a Q2 sales beat, attributed to persistent net losses and margin pressures, even with a $30M revenue pull-forward. While lower gross margins are expected to normalize by 2028 as the company burns off low-margin backlog, management's reluctance to raise guidance has disappointed investors. The author maintains a Buy rating on MRCY with a $110.64 price target, suggesting a turnaround is underway despite investor skepticism.
Why Mercury Systems (MRCY) Shares Are Getting Obliterated Today
Mercury Systems (MRCY) shares dropped significantly despite beating Q4 earnings estimates, as investors focused on underlying concerns like persistent negative operating margins and a sharp decline in free cash flow margins. The company has shown sluggish five-year sales growth and an annual EPS decline, indicating struggles with profitable growth, which overshadowed the positive headline numbers. This market reaction suggests that profitability and growth concerns are weighing heavily on investor perception, even after a recent sector rally fueled by increased defense spending proposals.
The Bull Case For Mercury Systems (MRCY) Could Change Following Record Backlog And Narrowing Losses – Learn Why
Mercury Systems (MRCY) recently reported strong fiscal second-quarter 2026 results with increased sales and narrowing net losses, accompanied by a record backlog approaching US$1.50 billion. While these results suggest positive program momentum and potential for growth, the company remains loss-making and carries execution risk and an elevated valuation. Investors are encouraged to consider various perspectives and conduct thorough research, as the stock's future performance hinges on margin progress and cash generation.
Defense Contractor Mercury Systems Smashed Earnings. Why the Stock Fell 19%.
Mercury Systems, a defense contractor, significantly exceeded its earnings expectations. Despite the strong financial performance, the company's stock experienced a substantial decline of 19-22%. The article suggests that stock reactions to earnings reports can sometimes be unpredictable, highlighting this as an example.
Mercury Systems Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Mercury Systems (MRCY) reported a significant beat on Q2 fiscal 2026 adjusted earnings per share and saw an increase in revenues year-over-year. The defense technology company also achieved a record backlog of $1.5 billion and maintained its fiscal 2026 outlook for low single-digit revenue growth and approaching mid-teen adjusted EBITDA margin, despite anticipating a dip in Q3 revenues before a Q4 ramp-up.
The Bull Case For Mercury Systems (MRCY) Could Change Following Record Backlog And Narrowing Losses – Learn Why
Mercury Systems (MRCY) recently reported strong fiscal second-quarter 2026 results with rising sales, narrowing losses, and a record backlog approaching US$1.50 billion, leading to potential shifts in its investment narrative. While the company remains loss-making, its significant backlog and program momentum in space and advanced air mobility could be near-term catalysts. However, investors need to consider execution risk, valuation concerns, and the impact of revenue pull-forward into Q2.
Mercury Systems: Strategic Mix Shift and Backlog Strength Support Buy Rating
William Blair analyst Jonathan Ho has reaffirmed a Buy rating for Mercury Systems (MRCY) due to strong bookings, revenue exceeding expectations, and accelerated deliveries. The company is strategically shifting towards higher-margin programs, building a substantial backlog with good visibility into fiscal 2026. Management's focus on operational efficiency is expected to drive margin leverage and renewed growth by fiscal 2027, despite conservative short-term guidance.
Mercury Systems (MRCY) Q2 Earnings: Loss Narrows, Beats Revenue Forecasts - News and Statistics
Mercury Systems Inc. (MRCY) reported a narrower loss of $15.1 million, or 26 cents per share, for its fiscal second quarter, beating analyst expectations with adjusted earnings of 16 cents per share against an estimated 7 cents. The company also surpassed revenue forecasts, posting $232.9 million compared to an anticipated $207.4 million. These results indicate a stronger performance than Wall Street predicted for the Andover, Massachusetts-based processing systems and software provider.
Mercury Systems Stock Pre-Market (-13%): Earnings Beat Marred by Margin and Guidance Fears
Mercury Systems' stock dropped 13% pre-market despite reporting an earnings beat, as investor concerns over declining margins and cautious guidance overshadowed the positive results. The market reacted negatively to the company's outlook, indicating that future profitability and growth prospects are a significant concern. This highlights a disconnect between reported earnings and market expectations for future performance.
Mercury Systems Q2 Net Loss Narrows; But Stock Drops In After-hours
Mercury Systems (MRCY) reported a narrower net loss of $15.10 million for Q2 fiscal 2026, or $0.26 per share, compared to $17.58 million, or $0.30 per share, in the same quarter last year. Adjusted earnings per share significantly beat analyst estimates, coming in at $0.16 versus $0.07 in Q2 2025 and an expected $0.06. Despite these positive financial results, the company's stock experienced a significant drop of 14.59% in after-hours trading.
Mercury Systems Q2 Earnings Beat Estimates Despite Loss
Mercury Systems (MRCY) reported adjusted earnings of $0.16 per share for Q2, significantly beating the consensus estimate of $0.06, despite posting a net loss of $15 million. The company's revenue reached $233 million, surpassing Wall Street expectations and showing a slight increase year-over-year. Strong Q2 bookings of $288 million led to a record backlog of $1.5 billion, signaling robust future revenue potential, although cash flow saw some pressure compared to the previous year.
MERCURY SYSTEMS INC SEC 10-Q Report
Mercury Systems Inc. (MRCY) has released its Q2 Form 10-Q report, detailing financial performance and operational shifts. The company reported $232.872 million in net revenues, a reduced operating loss of $(10.818) million, and a net loss of $(15.095) million. Strategic changes include an internal reorganization and workforce reductions impacting approximately 100 positions, with a significant portion of remaining performance obligations expected to be recognized as revenue within the next year.
Mercury Systems (MRCY) Surpasses Revenue Expectations in Q2
Mercury Systems (MRCY) reported strong Q2 fiscal 2026 results, exceeding revenue expectations with $232.87 million and achieving a record high backlog of $1.5 billion. This performance was driven by significant progress on customer programs, leading to record revenue for the first half of the year. Despite some valuation concerns and insider selling, the company demonstrates robust financial health within the aerospace and defense industry.
Mercury Systems's (NASDAQ:MRCY) Q4 CY2025: Strong Sales
Mercury Systems (NASDAQ:MRCY) announced better-than-expected revenue and adjusted EPS for Q4 CY2025, with sales up 4.4% year-on-year to $232.9 million and adjusted EPS significantly beating analyst estimates. Despite strong earnings and backlog growth, the company has experienced sluggish long-term revenue growth and negative operating margins. Analysts expect revenue to grow 5.2% and full-year EPS to grow 24.9% over the next 12 months.
Earnings Flash (MRCY) Mercury Systems, Inc. Reports Q2 Revenue $232.9M, vs. FactSet Est of $210.5M
Mercury Systems, Inc. (MRCY) announced its Q2 revenue reached $232.9 million, surpassing FactSet's estimate of $210.5 million. This financial update indicates stronger-than-anticipated performance for the company in the second quarter. The release highlights are part of a broader set of financial and operational news for Mercury Systems.
Mercury Systems Reports Second Quarter Fiscal 2026 Results
Mercury Systems announced strong Q2 fiscal 2026 results, exceeding expectations with $288 million in bookings and a record backlog of $1.5 billion. The company reported $233 million in revenue, a GAAP net loss of $15 million, and adjusted EBITDA of $30 million, representing significant year-over-year growth. Operating cash flow reached $52 million, with free cash flow at $46 million, indicating robust financial performance driven by accelerating progress on high-priority customer programs.
Mercury Systems (NASDAQ:MRCY) Releases Quarterly Earnings Results, Beats Estimates By $0.09 EPS
Mercury Systems (NASDAQ:MRCY) reported quarterly earnings of $0.16 per share, significantly beating analyst estimates of $0.07, and revenue of $232.87 million, exceeding expectations of $209.96 million. Following the news, shares rose by 5.9%, though Wall Street analysts maintain a "Hold" rating with an average price target of $83.25. The article also notes substantial insider selling, with Jana Partners Management, Lp selling 1,000,000 shares for $75.45 million.
Mercury Systems: Fiscal Second Quarter Earnings Overview
Mercury Systems Inc. reported a net loss of $15.1 million, or $0.26 per share, for its fiscal second quarter. However, adjusted earnings of $0.16 per share surpassed analyst expectations of $0.07 per share. The company also exceeded revenue forecasts, generating $232.9 million against an average estimate of $207.4 million.
Mercury Systems (MRCY) Reports Q4: Everything You Need To Know Ahead Of Earnings
Mercury Systems (MRCY) is set to announce its Q4 earnings results. Analysts anticipate a 5.5% year-on-year revenue decline to $210.9 million and adjusted earnings of $0.06 per share. Despite past revenue misses, investor sentiment in the defense contractors segment is positive, with MRCY's stock up 14.4% in the last month.
Mercury Systems (MRCY) Q4 Preview: Key Insights Before Earnings Release
Mercury Systems (MRCY) is set to release its Q4 earnings report, with analysts anticipating a 5.5% year-over-year decrease in revenue to $210.9 million and adjusted earnings per share of $0.06. While the company exceeded revenue forecasts by 9.5% in the previous quarter, it has missed Wall Street's revenue predictions twice in the last two years. Despite this, Mercury Systems has outperformed its peers in the defense contractor sector, with its shares gaining 14.4% in the past month.
Great Lakes Advisors LLC Sells 34,868 Shares of Mercury Systems Inc $MRCY
Great Lakes Advisors LLC significantly reduced its stake in Mercury Systems Inc. by 50.2%, selling 34,868 shares and now holding 34,617 shares worth approximately $2.68 million. Meanwhile, other institutional investors like Loomis Sayles & Co. and Allspring Global Investments Holdings LLC aggressively increased their positions. Despite beating recent earnings estimates, Mercury Systems still faces a negative net margin and P/E, leading analysts to a consensus "Hold" rating with a target price of $83.25.
Mercury Systems Inc (MRCY) Shares Gap Down to $94.805 on Jan 30
Shares of Mercury Systems Inc (MRCY) fell 3.59% to $94.81 on January 30, placing the stock 8.70% below its 52-week high. Wall Street analysts have an average target price of $90.88, implying a 4.15% downside, and a consensus "Outperform" recommendation. GuruFocus estimates a GF Value of $43.69 for MRCY, suggesting a 53.92% downside from the current price.
Mercury Systems (MRCY) Expected to Announce Quarterly Earnings on Tuesday
Mercury Systems (MRCY) is scheduled to announce its Q2 2026 earnings on Tuesday, February 3rd, with analysts forecasting earnings of $0.07 per share and revenue of $209.96 million. The company's stock recently opened at $98.89, maintaining a "Hold" consensus rating among analysts, with an average price target of $83.25. Recent insider activity shows significant selling by Jana Partners and CAO Douglas Munro, totaling over $75 million in the last three months.
Mutual of America Capital Management LLC Acquires 67,518 Shares of Mercury Systems Inc $MRCY
Mutual of America Capital Management LLC increased its stake in Mercury Systems Inc. (NASDAQ:MRCY) by 42.8%, purchasing an additional 67,518 shares, bringing its total ownership to 225,374 shares valued at approximately $17.44 million. This move is part of broader institutional activity, with several funds increasing their positions while some insiders, notably Jana Partners, sold a significant number of shares. The stock currently holds a consensus "Hold" rating from analysts with an average price target of $83.25.
Is Mercury’s New US$60 Million Strategic Weapons And Space Wins Altering The Investment Case For Mercury Systems (MRCY)?
Mercury Systems announced over US$60 million in new contracts for U.S. strategic weapons and national security space programs, which could strengthen its revenue visibility and address near-term execution risks. Despite these wins, the company remains unprofitable and trades above various fair value estimates, suggesting a high bar for future performance. Investors should consider multiple viewpoints and the company's fundamental analysis before making investment decisions, as these awards do not fully mitigate balance sheet leverage or valuation risks.
Is Mercury’s New US$60 Million Strategic Weapons And Space Wins Altering The Investment Case For Mercury Systems (MRCY)?
Mercury Systems announced over US$60 million in new contracts for U.S. strategic weapons and national security space programs, including an extended development on radiation-hardened data processing through 2031. While these wins underscore revenue visibility and fit a bullish narrative for its niche technology, the company remains unprofitable, faces balance sheet leverage and execution risks, and trades at a high valuation, necessitating careful consideration of its long-term profitability. Multiple fair value estimates suggest varied investor perspectives on the company's future performance.
Emerald Mutual Fund Advisers Trust Boosts Stake in Mercury Systems Inc $MRCY
Emerald Mutual Fund Advisers Trust significantly increased its holding in Mercury Systems Inc (MRCY) by 27.7% in the third quarter of 2025, now owning 336,058 shares valued at $26.0 million. This makes Mercury Systems the 19th largest holding in their portfolio. Despite institutional buying, company insiders sold over 1 million shares worth $75.7 million, with current insider ownership at 1.40%. Mercury Systems reported strong Q3 earnings, beating analyst expectations with an EPS of $0.26 and revenue of $225.21 million, though analysts maintain a mixed "Hold" consensus rating with an average target price of $83.25.
Emerald Advisers LLC Grows Holdings in Mercury Systems Inc $MRCY
Emerald Advisers LLC increased its stake in Mercury Systems (NASDAQ:MRCY) by 16.7% in Q3, now holding 533,092 shares valued at approximately $41.26 million. Despite heavy insider selling, Mercury Systems exceeded Q3 earnings estimates with EPS of $0.26 and revenue of $225.21 million, leading to an average analyst "Hold" rating with an $83.25 target price. Institutional investors own nearly 96% of the company's stock, while corporate insiders sold over 1 million shares.
Mercury Systems (NASDAQ:MRCY) Shares Pass Above 200 Day Moving Average - Here's Why
Mercury Systems (NASDAQ:MRCY) shares recently traded above their 200-day moving average, signaling a technical breakout, despite negative net margins and P/E ratios. The company surpassed quarterly EPS and revenue estimates, however, analyst sentiment remains mixed with an average "Hold" rating, and insiders have sold a significant number of shares. This event highlights a divergence between short-term technical performance, fundamental challenges, and insider activity.
Do Mercury Systems’ (MRCY) New Space Contracts Clarify Its Long-Cycle Defense Investment Narrative?
Mercury Systems has secured over US$60 million in new space and strategic weapons contracts, extending their involvement in a key program through 2031 and broadening their adoption of radiation-tolerant technologies. While these contracts enhance backlog and long-term visibility, the article notes they don't immediately resolve concerns about near-term weak organic growth and margin pressure from legacy, lower-margin work. Investors are advised to watch the upcoming Q2 FY26 results for insight into how these wins impact revenue and margins.
Do Mercury Systems’ (MRCY) New Space Contracts Clarify Its Long-Cycle Defense Investment Narrative?
Mercury Systems (MRCY) secured over $60 million in new space and strategic weapons contracts, including an extension through 2031, which bolsters its long-cycle defense investment narrative by increasing backlog and visibility. While these wins underscore the growing adoption of Mercury's radiation-tolerant processing technologies, the company still faces near-term challenges with low growth and legacy, lower-margin contracts impacting earnings. Upcoming Q2 FY26 results will be crucial in assessing how these new contracts translate into reported revenue and improved margins.
