The massive bookings surge and raised FY27 outlook dominate the narrative. Traders should watch the conference call for specific FY27 revenue guidance and margin targets. The $150M debt paydown improves the balance sheet. This is a demand-driven inflection point for a defense electronics supplier.
Price Chart
Executive Summary
Mercury Systems reported Q4 FY26 (Jul 3, 2026) revenue of $290M (+6.1% YoY) and GAAP EPS of $0.01, well below the $0.38 consensus estimate. However, the headline miss is misleading: the company delivered record bookings of $660M (93% YoY growth), record backlog of $1.9B, and guided for increased organic growth in FY27. The stock will likely react to the massive demand signal and raised outlook, not the GAAP EPS miss.
Key Financial Metrics
Key Facts
- Record Q4 FY26 bookings of $660M, up 93.1% YoY, with book-to-bill of 2.28
- Record backlog of over $1.9B, up 38.4% YoY
- Record Q4 revenue of $290M, up 6.1% YoY
- GAAP EPS $0.01 vs consensus $0.38 (miss), but adjusted EPS was $0.37
- Adjusted EBITDA of $49M with 16.7% margin; operating cash flow $42M, FCF $29M
- Full FY26 revenue $984M (+7.9% YoY), adjusted EPS $1.06 vs loss of $0.64 in FY25
- Management increasing FY27 organic growth outlook based on strong demand signals
- Debt reduced by $150M during Q4, ending at $441.5M
Financial Impact
Record bookings ($660M) and backlog ($1.9B) signal strong future revenue visibility; GAAP EPS miss is non-operational due to non-cash charges and stock compensation
Risk Factors
- GAAP EPS miss vs consensus could cause short-term volatility
- Execution risk on converting $1.9B backlog to revenue on schedule
- Defense budget uncertainty and potential government shutdowns
- Supply chain and component availability risks
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3347220 |
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
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers