Mercury Systems Inc (NASDAQ:MRCY) reported fourth-quarter financial results after the market close on Tuesday. Here’s a rundown of the report.
- Mercury Systems stock is feeling bearish pressure. What’s weighing on MRCY shares?
Mercury Systems Q4 Highlights
- Q4 Revenue: $289.78 million, versus estimates of $266.40 million
- Q4 Adjusted EPS: 37 cents, versus estimates of 38 cents
Mercury Systems reported bookings of $660 million in its fourth quarter, up 33.1% year-over-year, and the company’s backlog grew to over $1.9 billion, up 38.4% year-over-year.
Mercury Systems said it generated $42 million in operating cash flow and $29 million in free cash flow during the quarter. The company ended the period with $214.31 million in total cash and cash equivalents.
“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,” said Bill Ballhaus, chairman and CEO of Mercury Systems.
“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.”
Mercury Systems increased its organic revenue growth target for fiscal 2027 to low double digits. The company expects first-quarter revenue growth to be up high single digits on a year-over-year basis. Mercury noted that it expects first-quarter growth to be the lowest of the year.
MRCY Shares Fall After Earnings
MRCY Price Action: Mercury Systems shares were down 10.50% in Tuesday’s after-hours session, trading at $93.97 at the time of publication, according to Benzinga Pro.
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