Mercury Systems, Inc. (MRCY) Stock

Mercury Systems, Inc. (MRCY) is a Technology stock trading at $94.24 (as of 2026-08-20), with a market capitalization of $5.67B. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Mercury Systems, Inc. designs and manufactures components, modules, and integrated subsystems used in aerospace and defense, including radio frequency and microwave devices, embedded processing boards, and related electronics. It also develops digital RF memory and sensor-related technologies for defense and intelligence customers, supplying programs across defense contractors and commercial aviation.

Understand Mercury Systems, Inc.: how it makes money

Mercury Systems makes and sells aerospace and defense electronics components, modules, and subsystems, and it earns money when these products are purchased and delivered as part of active defense and commercial aviation programs.

Mercury’s profit model depends on converting long-cycle customer commitments into delivery revenue, with a majority of revenue recognized over time (Percentage-of-Completion Revenue as Overtime Revenue is 60%) supported by Remaining Performance Obligations of 1.6B.

Business quality (Weak): Program-based exposure is visible in Remaining Performance Obligations (1.6B) and Book-to-Bill Ratio (1.48), but profitability is thin (operating margin 2.2%), so execution and contract changes matter.

Bull case

  • Backlog visibility supports future revenue: Remaining Performance Obligations is 1.6B, which helps show how much work is already committed on existing programs.
  • Demand appears to be outpacing billings: Book-to-Bill Ratio is 1.48, which indicates orders are running ahead of revenue being billed.
  • Long-duration contract structure: Percentage-of-Completion Revenue as Overtime Revenue is 60%, suggesting revenue is often recognized over time rather than only at point-in-time delivery.

Bear case

  • Thin operating margins: Operating margin is 2.2%, which leaves less room for cost increases, production inefficiencies, or timing issues.
  • Revenue can be sensitive to engineering changes and delivery timing: The presence of Net Adverse Engineering Change Proposal Change Impact on Revenue implies engineering change activity can affect reported revenue.
  • Geographic concentration risk: Domestic Revenue Mix is 88.0%, meaning a large share of revenue is tied to domestic markets.
Valuation — source: SEC EDGAR (first-party)
Price$94.24
Market Cap$5.67B
EV / EBITDA74.7
Price / Book3.78
Price / Sales5.76
FCF Yield1.2%
DCF Value (model)$34.37
DCF Upside vs Price-63.5%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$983.62M
Net Margin-3.0%
Revenue Growth (YoY)7.9%
EPS Growth (YoY)-23.1%
FCF Growth (YoY)-42.8%
Financial Health — source: SEC EDGAR
Altman Z-Score4.97 (safe)
Valuation vs Sector & Industry
Sector P/E (Technology)33.9
Industry P/E (Electronic Equipment)39.4
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($650.38M)
Institutional Holders Tracked10
Company
SectorTechnology
IndustryElectronic Equipment
CEOWilliam L. Ballhaus
Employees2,364
CountryUS
IPO Date1998-01-30

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MRCY earnings history · MRCY institutional & insider holders · MRCY KPIs & operating metrics · MRCY financials · MRCY investor presentations & press releases · MRCY SEC filings · MRCY peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.