Mercury Systems Exceeds Q2 Earnings Expectations with Strong Growth Metrics
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
0mins
Should l Buy MRCY?
Source: seekingalpha
- Significant Performance Growth: Mercury Systems reported Q2 revenue of $233 million, a 4.4% year-over-year increase, with adjusted EBITDA of $30 million, reflecting a robust 36.3% growth in profitability metrics.
- Record Orders and Backlog: The company achieved bookings of $288 million and a backlog nearing $1.5 billion, representing an 8.8% year-over-year increase, indicating sustained strong market demand and future growth potential.
- Strong Cash Flow Performance: Free cash flow for Q2 was $46 million, primarily driven by a $61 million reduction in net working capital, showcasing ongoing improvements in cash management and operational efficiency.
- Strategic Expansion Plans: Mercury Systems expanded its manufacturing capacity by 50,000 square feet in Phoenix, Arizona, to support ramp production for common processing architecture programs, aiming to enhance market competitiveness and address future demand.
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Analyst Views on MRCY
Wall Street analysts forecast MRCY stock price to fall
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 89.300
Low
49.00
Averages
81.20
High
102.00
Current: 89.300
Low
49.00
Averages
81.20
High
102.00
About MRCY
Mercury Systems, Inc. is a technology company that delivers mission-critical processing power to the edge where signals and data are collected to solve the most pressing aerospace and defense challenges. The Mercury Processing Platform is the unique advantage the Company provides to its customers. It comprises the technologies the Company has developed and acquired that bring integrated, mission-critical processing capabilities to the edge. Its processing platform spans the full breadth of signal processing from the RF front end to the human-machine interface to rapidly convert meaningful data, gathered in the most remote and hostile environments, into critical decisions. It allows the Company to offer standard products and custom solutions from silicon to system scale, including components, modules, subsystems, and systems, and it embodies the customer-centric approach the Company takes to delivering capabilities that are mission-ready, secure, software-defined, and open and modular.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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