Mercury Systems Q4 FY2026 Results
Mercury Systems Inc. (NASDAQ:MRCY) released its fourth‑quarter fiscal 2026 financials on 19‑08‑2026. The company posted adjusted earnings per share (EPS) of $0.37 for the quarter ended July 3, 2026, which fell short of the analyst consensus estimate of $0.39 and triggered a 14.4% decline in the stock price.
Revenue for the quarter reached a record $289.78 million, representing a 6.1% year‑over‑year increase and surpassing the $265.39 million forecast. Despite the earnings miss, the top‑line beat expectations.
Bookings surged to $660 million, a 93.1% rise from the prior year, delivering a book‑to‑bill ratio of 2.28. The strong order intake expanded the backlog to more than $1.9 billion, up 38.4% YoY.
Adjusted EBITDA for Q4 was $49 million, yielding an EBITDA margin of 16.7%. The company generated $42 million of operating cash flow and $29 million of free cash flow during the quarter.
For the full fiscal year 2026, Mercury Systems reported total revenue of $984 million, up from $912 million in FY2025. Adjusted EPS for the year improved to $1.06, reversing an adjusted loss per share of $0.64 recorded in the prior year. Full‑year bookings amounted to $1.5 billion, with a book‑to‑bill ratio of 1.57.
Chairman and CEO Bill Ballhaus stated, "We delivered fourth quarter fiscal 2026 results that were ahead of our expectations, with record bookings, record backlog, record revenue, the highest EBITDA margin of the year, and robust free cash flow. Based on our solid execution and strong demand signals, we enter fiscal year 2027 with enhanced visibility and are increasing our outlook for organic growth."