# Mercury Systems, Inc. (MRCY)

> Source: Nexqual · https://nexqual.com/MRCY · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Mercury Systems, Inc. (MRCY), nexqual.com/MRCY" · informational, not investment advice.

**Price:** USD 75.56 (+0.09% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 75.49 · day 73.73–76.23 · 52w 65.04–128.45 · market cap $4.60B · NMS

## Key facts
- Last four reported quarters (through Jul 3, 2026): revenue $984M, net income -$29.7M (-3.0% margin), free cash flow $68.1M (SEC filings).
- 1 of 80 tracked superinvestors hold MRCY (13F, Q2 2026): 1 new, 0 added, 0 reduced, 0 unchanged.
- Insider open-market sales, last ~7 months: 20 Form 4 filings, $43.9M; 18 not under a Rule 10b5-1 plan ($43.7M); 0 by opportunistic insiders, 4 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Buy (mean 2.17 on a 1–5 scale) (12 analysts), mean target USD 112.55 (range 78–131).
- Total return with dividends: 1Y -2.6% vs S&P 500 +14.9%; 5Y +43.3% vs S&P 500 +80.3%.
- Next earnings: 2026-11-10, EPS estimate USD 0.3, revenue estimate $245M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $988M | $974M | $835M | $912M | $984M | $984M |
| Gross profit | $395M | $317M | $196M | $254M | $281M | — |
| Operating income | $31.6M | -$21.7M | -$148M | -$19.6M | $280K | $280K |
| Net income | $11.3M | -$28.3M | -$138M | -$37.9M | -$29.7M | -$29.7M |
| EPS (diluted) | $0.20 | -$0.50 | -$2.38 | -$0.65 | -$0.50 | — |
| Free cash flow | -$46.5M | -$60.0M | $26.1M | $119M | $68.1M | $68.1M |
| Gross margin | 40.0% | 32.5% | 23.5% | 27.9% | 28.6% | — |
| Operating margin | 3.2% | -2.2% | -17.7% | -2.2% | 0.0% | 0.0% |
| Net margin | 1.1% | -2.9% | -16.5% | -4.2% | -3.0% | -3.0% |
| Revenue growth | +6.9% | -1.4% | -14.2% | +9.2% | +7.9% | — |
| Cash + short-term investments | $65.7M | $71.6M | $181M | $309M | $214M | — |
Fiscal years end Jul. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jul 3, 2026)
P/S 4.7x · P/FCF 67.5x · P/B 3.1x · FCF yield 1.48% · Earnings yield -0.65%

## Superinvestors (SEC 13F-HR, Q2 2026)
1 of 80 tracked investors hold MRCY. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Polen Capital | Polen Capital Management | <0.01% | $355K | New position |

## Insider sales (SEC Form 4, open-market, last ~7 months)
2 of 20 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-09-21 | Kupinsky Stuart | EVP, CLO & Corp Sec | 1,000 | $87K | 1.6% | Yes (adopted May 7, 2026) | Too little history (no open-market trades in 2023 or 2024) |
| 2026-09-03 | Ratner Steven | EVP, CHRO | 4,000 | $338K | 17.1% | No | Too little history (no open-market trades in 2023) |
| 2026-08-25…2026-08-26 | Ballhaus William L | Chairman, President & CEO | 160,166 | $14.1M | 30.2% | No | Routine (traded in Aug each year 2023–2025) |
| 2026-08-21…2026-08-24 | Ballhaus William L | Chairman, President & CEO | 173,209 | $15.7M | 36% | No | Routine (traded in Aug each year 2023–2025) |
| 2026-08-21 | Ratner Steven | EVP, CHRO | 356 | $33K | 1.5% | No | Too little history (no open-market trades in 2023) |
| 2026-08-21 | Kupinsky Stuart | EVP, CLO & Corp Sec | 1,000 | $95K | 1.7% | Yes (adopted May 7, 2026) | Too little history (no open-market trades in 2023 or 2024) |
| 2026-08-19…2026-08-20 | Munro Douglas | SVP, CAO | 657 | $66K | 4.7% | No | Too little history (no open-market trades in 2023) |
| 2026-08-19…2026-08-20 | Ratner Steven | EVP, CHRO | 3,213 | $320K | 12% | No | Too little history (no open-market trades in 2023) |
| 2026-08-19…2026-08-20 | Farnsworth David E. | EVP, CFO | 14,767 | $1.5M | 11% | No | Too little history (no open-market trades in 2023) |
| 2026-08-19…2026-08-20 | Ballhaus William L | Chairman, President & CEO | 48,812 | $4.8M | 17.1% | No | Routine (traded in Aug each year 2023–2025) |
| 2026-08-19 | Kupinsky Stuart | EVP, CLO & Corp Sec | 1,308 | $131K | 2.2% | No | Too little history (no open-market trades in 2023 or 2024) |
| 2026-08-17…2026-08-18 | Munro Douglas | SVP, CAO | 898 | $99K | 6% | No | Too little history (no open-market trades in 2023) |
| 2026-08-17…2026-08-18 | Ratner Steven | EVP, CHRO | 3,055 | $339K | 10.2% | No | Too little history (no open-market trades in 2023) |
| 2026-08-17…2026-08-18 | Kupinsky Stuart | EVP, CLO & Corp Sec | 2,373 | $263K | 3.8% | No | Too little history (no open-market trades in 2023 or 2024) |
| 2026-08-17…2026-08-18 | Farnsworth David E. | EVP, CFO | 8,692 | $966K | 6.1% | No | Too little history (no open-market trades in 2023) |
| 2026-08-17…2026-08-18 | Ballhaus William L | Chairman, President & CEO | 27,680 | $3.1M | 8.8% | No | Routine (traded in Aug each year 2023–2025) |
| 2026-05-26 | Lance Howard L | Director | 9,250 | $923K | 25.3% | No | Too little history (no open-market trades in 2025) |
| 2026-05-12 | Carvalho Orlando D | Director | 7,000 | $626K | 11.8% | No | Too little history (no open-market trades in 2024 or 2025) |
| 2026-05-11 | Ratner Steven | EVP, CHRO | 2,000 | $185K | 5.8% | No | Too little history (no open-market trades in 2023) |
| 2026-04-16 | Farnsworth David E. | EVP, CFO | 3,625 | $308K | 2.2% | No | Too little history (no open-market trades in 2023) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Buy (mean 2.17 on a 1–5 scale), 12 analysts; mean target USD 112.55 (low 78, high 131).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-22 | Oppenheimer | Initiated | Outperform | $90 |
| 2026-09-15 | Guggenheim | Initiated | Buy | $115 |
| 2026-08-20 | Canaccord Genuity | Target raised | Buy | $106 → $128 |
| 2026-08-20 | Truist Securities | Target raised | Buy | $109 → $120 |
| 2026-08-19 | RBC Capital | Target raised | Outperform | $105 → $120 |
| 2026-08-19 | Baird | Target raised | Outperform | $120 → $130 |
| 2026-08-19 | Piper Sandler | Target raised | Overweight | $126 → $131 |
| 2026-08-12 | Piper Sandler | Initiated | Overweight | $126 |
| 2026-07-13 | JP Morgan | Target raised | Neutral | $99 → $101 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | -2.6% | +43.3% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | -2.6% | +7.5% |
| Volatility (annualized) | 57.7% | 45.3% |
| Max drawdown | -41.1% (Jul 2026→Oct 2026) | -61.3% (Feb 2022→Jun 2024) |

## Peers (Aerospace & Defense)
KTOS (Kratos Defense & Security Solut) USD 38.27 -1.21% · SARO (StandardAero, Inc.) USD 21.72 +1.26% · CAE (CAE Inc) USD 25.02 +2.08% · DRS (Leonardo DRS, Inc.) USD 34.3 +1.06% · MOG-A (Moog Inc.) USD 341.71 -6.96% · HII (Huntington Ingalls Industries, ) USD 278.86 +1.79%

## More
Full page: https://nexqual.com/MRCY · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Revenue by product line (quarter ended 2026-07-03)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Integrated Subsystems | $137.8M | 47.6% | +8.2% |
| Airborne | $109.8M | 37.9% | -10.3% |
| Modules and Sub-assemblies | $87.0M | 30.0% | -9.1% |
| Land | $65.2M | 22.5% | +22.2% |
| Components | $65.0M | 22.4% | +29.9% |
| Other | $55.3M | 19.1% | +2.7% |
| Naval | $37.3M | 12.9% | +41.9% |
| Space | $22.2M | 7.7% | +28.7% |
| Total revenue | $289.8M | 100% | — |
The lines above cover 200% of total revenue.

## Customer concentration

Period ended 2026-07-03: 15%, 11%, 10% of revenue from unnamed direct customers (10-K, filed 2026-08-18).

## Company outlook (8-K filed 2026-08-18)

- "Of the July 3, 2026 total backlog, $1.0 billion represents orders expected to be recognized as revenue within the next 12 months. 50 Minuteman Road, Andover, Massachusetts 01810 U.S.A. | +1-(978)-256-1300 | www.mrcy.com | X: @MRCY Mercury Reports Fourth Quarter and Fiscal 2026 Results, Page 3 Conference Call Information Management will host a conference call and simultaneous webcast at 5:00 p.m."
- "ET on Tuesday, August 18, 2026, to discuss Mercury's quarterly financial results, business highlights and outlook."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.30 | $0.27 | +11.6% | $245.0M | 12 |
| Next quarter (ends 2026-12-31) | $0.35 | $0.33 | +4.3% | $258.7M | 12 |
| Current fiscal year (ends 2027-06-30) | $1.67 | $1.55 | +8.1% | $1.09B | 12 |
| Next fiscal year (ends 2028-06-30) | $2.23 | $2.15 | +3.8% | $1.21B | 10 |