MRCY
Mercury Systems, Inc.

Mercury Systems, Inc.MRCY

Industrials · Aerospace & Defense
73.55USD
+12.20%
Nov 08, 2026
MRCY overview ready
Supplier of ruggedized embedded processing and RF electronics to defense primes
Mercury is a defense-electronics picks-and-shovels supplier: it designs and manufactures secure embedded processing, RF and microwave, signal-processing, chip-scale integrated, and mission-computing subsystems for aerospace and defense platforms.
Primary theme is lagging
Defense / Drones is lagging (+0.2pp vs SPY over 21 sessions; 13 of 25 members ahead of SPY).
Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Demanding valuation
The price embeds expectations that run ahead of the cash the business currently produces.
Unremarkable fundamentals
Primary risk
Dependence on U.S. Government defense spending and procurement cycles.
Market Nov 6Filing Jul 3Price action Nov 7Research Oct 16

Conviction Level

PriceAction5.4BusinessPerformance4.0BusinessQuality4.2Valuation2.6ThemeMomentum1.0Decelerating — Revenue is still growing (+6.1% YoY), but growth has slowed, down from +12%. Diluted EPS fell 96% year over year to $0.01. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
+0.2pp
Theme return
−4.8%
Beating SPY
13 of 25
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryConstructive

Structure is constructive on both timeframes without excessive extension — a reasonable entry location.

Key Financials

Market Cap
$4.4B
Avg Volume (60D)
648.4K
60 sessions
Revenue Growth YoY
+7.9%
FY2026 vs FY2025
Gross Margin
+28.6%
Trailing twelve months
Operating Margin
+0.0%
Trailing twelve months
Free Cash Flow Yield
+1.5%
Distance from 200DMA
-19.1%
Next Earnings
2026-11-10
P/E
N/M
Market metrics as of Nov 6, 2026
Financial results for the period ended Jul 3, 2026
Filed balance-sheet data as of Jul 3, 2026

Business Performance

Decelerating

Revenue is still growing (+6.1% YoY), but growth has slowed, down from +12%. Diluted EPS fell 96% year over year to $0.01.

Latest reported: Q4 FY2026, ended Jul 3
Revenue growthSlowing
+6.1%
$290M in Q4 FY2026 · YoY
YoY growth, last 4 quarters
  1. +10%
  2. +4.4%
  3. +12%
  4. +6.1%
Earnings growthDeclining
-96%
Diluted EPS $0.01 vs $0.27 a year earlier · GAAP, from the earnings release
Too few comparable EPS quarters: a loss or a turn to profit has no meaningful percentage.
Operating marginStable
5.0%
-3.6 pp YoY · gross margin 30.6% (-0.5 pp)

Business Quality

4.2 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Both valuation perspectives agree this company is expensive.
Mercury Systems, Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of the cash the business currently produces. It trades at a 1.5% free-cash-flow yield, which requires sustained delivery to be justified.

What changed

  • MRCY rose 12.2% in one session
    MRCY closed +12.2% while the broad market was close to flat (+0.3%).
    2026-11-06

Company Research

Thesis
Mercury is a defense-electronics picks-and-shovels supplier: it designs and manufactures secure embedded processing, RF and microwave, signal-processing, chip-scale integrated, and mission-computing subsystems for aerospace and defense platforms. MRCY has a genuine, direct fit with the Defense Rearmament and Industrial Base narrative.
Opportunity
High opportunity
Defense modernization and weapons-production programs require ruggedized, trusted processing, RF/microwave, sensing, and mission-computing electronics that can be integrated into missile, air-defense, airborne, naval, and multi-domain systems.
Key risk
Dependence on U.S. Government defense spending and procurement cycles.

Economic classification

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Business & Markets

Industrials · Aerospace & Defense
What they do

Mercury Systems designs and manufactures secure embedded processing, RF/microwave, signal-processing, and mission-computing electronics for aerospace and defense platforms, supplying components, modules, and subsystems to prime contractors and OEMs.

How it earns

The company generates revenue primarily through transactional sales of hardware components and subsystems to defense and aerospace customers.

Products & services
Power amplifiers and limiters
Switches
Oscillators
Filters
Equalizers
Digital and analog converters
Chips
Monolithic microwave integrated circuits
Memory and storage devices
Embedded processing boards
Switched fabrics and boards
Digital receivers
Customers & end markets
Defense prime contractors
Original equipment manufacturers (OEMs)
Government agencies
Commercial aerospace companies
Market position

Niche supplier specializing in ruggedized, secure defense electronics and embedded processing subsystems.

Demand drivers
Medium cyclicality

Demand is influenced by defense budgets and government procurement cycles, which can fluctuate with geopolitical and budgetary changes.