The massive adjusted EPS beat and raised guidance should drive a strong positive reaction. Watch for follow-through on free cash flow positivity in Q4 and how quickly the backlog converts to revenue.
Price Chart
Executive Summary
Mercury Systems reported Q3 FY2026 adjusted EPS of $0.27, crushing the -$0.09 consensus, with revenue of $235.8M up 11.5% YoY. Record bookings of $348M and raised full-year guidance signal accelerating momentum and margin expansion.
Key Financial Metrics
Key Facts
- Q3 FY2026 adjusted EPS $0.27 vs consensus ($0.09) — 400% beat
- Revenue $235.8M, up 11.5% YoY organically
- Record quarterly bookings $348M, book-to-bill 1.48, backlog $1.6B
- Full-year FY26 revenue guidance raised to approaching mid-single-digit growth
- Adjusted EBITDA $36.1M, up 46% YoY, margin 15.3% vs 11.7%
- GAAP net loss narrowed to $2.9M ($0.04/share) from $19.2M ($0.33)
Financial Impact
Adjusted EPS beat consensus by $0.36 (400%), revenue 12.6% above prior-year quarter, and guidance raised—collectively a material positive catalyst.
Risk Factors
- GAAP net loss continues; negative free cash flow in Q3 (-$1.8M)
- Balance sheet leverage remains (long-term debt $591.5M)
- Litigation mentioned (securities class action) and defense budget dependence
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001049521-26-000021 |
| Document: mrcy-20260505.htm | 0001049521-26-000021 |
| Document: q3fy26earningspresentati.htm | 0001049521-26-000021 |
| Document: 0001049521-26-000021-index-headers.html | 0001049521-26-000021 |
| Document: 0001049521-26-000021-index.html | 0001049521-26-000021 |
| Document: 0001049521-26-000021.txt | 0001049521-26-000021 |
| 8-K Data (Synthetic) | 0001049521-26-000021 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 13, 2026 13d ago | Press Release | $75.69 | awaiting T+20 | — | $79.71 (+5.31%) |
Sep 16, 2026 5w ago | 8-K | $87.25 $76.71 | ▼ −12.08% | ▼ −15.26% | $79.71 (−8.64%) |
Aug 27, 2026 8w ago | Insider Cluster | $88.54 $80.12 | ▼ −9.51% | ▼ −9.02% | $79.71 (−9.97%) |
Aug 25, 2026 8w ago | Insider Cluster | $89.76 $83.18 | ▲ +7.34% | ▲ +7.56% | $79.71 (+11.20%) |
Aug 21, 2026 9w ago | Insider Cluster | $89.59 $83.88 | ▼ −6.37% | ▼ −7.67% | $79.71 (−11.03%) |
Aug 19, 2026 9w ago | Insider Cluster | $94.23 $85.28 | ▲ +9.50% | ▲ +9.50% | $79.71 (+15.41%) |
Aug 19, 2026 9w ago | Insider Cluster | $94.23 $85.28 | ▼ −9.50% | ▼ −9.50% | $79.71 (−15.41%) |
Aug 19, 2026 9w ago | Insider Cluster | $94.23 $85.28 | ▼ −9.50% | ▼ −9.50% | $79.71 (−15.41%) |
Aug 18, 2026 9w ago | Press Release | $101.25 $86.18 | ▼ −14.88% | ▼ −12.93% | $79.71 (−21.27%) |
Jul 28, 2026 12w ago | Press Release | $90.17 | awaiting T+20 | — | $79.71 (−11.60%) |
US Market Status
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