MRCY
Mercury Systems, Inc.

Mercury Systems, Inc.MRCY

Industrials · Aerospace & Defense
83.88USD
-2.07%
Sep 23, 2026
MRCY overview ready
Cross-Platform Supplier of Secure RF and Embedded Computing Electronics
Mercury is a direct, cross-platform supplier of secure RF, signal-processing, embedded-computing, and integrated electronics products that primes incorporate into defense sensors, electronic-warfare suites, avionics, weapons, C4I, and space programs.
Strong narrative exposure
Exposed to the Defense Rearmament and Industrial Base narrative through Defense Electronics and Sensing — component supplier.
Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, 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 defense spending cycles.
Market Sep 22Filing Jul 3Price action Sep 22Research Jul 29

Conviction Level

NarrativeHeat8.3ThemeHeat7.6PriceAction3.4Valuation2.4CompanyPosition9.3
Price
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Price Action

Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
EntryWeak / unconfirmed recovery

The daily chart may be improving, but the weekly fast averages have not been reclaimed — the recovery is not yet confirmed on the higher timeframe.

Key Financials

Market Cap
$5.0B
Avg Volume (60D)
734.4K
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
+1.3%
Distance from 200DMA
-8.3%
Next Earnings
2026-11-03
P/E
N/M
Market metrics as of Sep 22, 2026
Financial results for the period ended Jul 3, 2026
Filed balance-sheet data as of Jul 3, 2026

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 1.3% free-cash-flow yield, which requires sustained delivery to be justified.

Company Research

Thesis
Mercury is a direct, cross-platform supplier of secure RF, signal-processing, embedded-computing, and integrated electronics products that primes incorporate into defense sensors, electronic-warfare suites, avionics, weapons, C4I, and space programs.
Opportunity
High opportunity
Procurement and production-rate expansion for radar, electronic warfare, mission computing, secure embedded processing, sensors, and command-and-control electronics used across missile defense, aircraft, naval, space, and autonomous-defense programs.
Key risk
Dependence on defense spending cycles.

Narrative & Theme

Defense Rearmament and Industrial Base
Part of Defense Electronics and Sensing, with strong fit.
Its strongest fit is instead an unlisted sibling theme: Defense Electronics and Sensing. This is more precise than treating Mercury as a generic munitions or drone beneficiary.
Narrative HeatHeating up8.3 / 10
Theme HeatHeating up7.6 / 10

Business & Markets

Industrials · Aerospace & Defense
What they do

Mercury Systems designs, manufactures, and sells electronic components, modules, and subsystems primarily for aerospace and defense applications, serving prime contractors, OEMs, government, and commercial aerospace customers.

How it earns

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

Products & services
Power amplifiers and limiters
Embedded processing boards
Monolithic microwave integrated circuits
Digital and analog converters
Customers & end markets
Defense prime contractors
Original equipment manufacturers
Government agencies
Commercial aerospace companies
Market position

Niche supplier specializing in defense electronics components and subsystems.

Demand drivers
Medium cyclicality

Business is influenced by defense spending cycles and aerospace market demand.