Mercury Systems Slides After Earnings Despite Record Bookings and Backlog

Mercury Systems (MRCY) is down 16.8% today. Here is some analysis on what might have caused this price movement.

Analysis: The selloff appears tied to a mixed reaction to Mercury Systems’ fourth-quarter and fiscal 2026 results. While the company posted record bookings, backlog, and revenue, investors may be focusing on weaker year-over-year profitability and cash metrics in the quarter, along with a lower GAAP earnings figure than a year earlier.

Details:

Fourth-quarter revenue rose to about $290 million, and bookings surged to $660 million, producing a 2.28 book-to-bill ratio and lifting backlog above $1.9 billion.

Even with that demand strength, fourth-quarter GAAP earnings fell to $0.01 per share from $0.27 a year earlier, while adjusted EPS declined to $0.37 from $0.47.

Quarterly adjusted EBITDA slipped to $49 million from $51 million, and fourth-quarter free cash flow eased to $29 million from $34 million.

For the full year, revenue and adjusted EBITDA improved, but operating cash flow and free cash flow were both below fiscal 2025 levels, which could be contributing to the negative read-through.

Sources:

Mercury Systems, SEC, StockTitan

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$MRCY Insider Trading Activity

$MRCY insiders have traded $MRCY stock on the open market 10 times in the past 6 months. Of those trades, 0 have been purchases and 10 have been sales.

Here’s a breakdown of recent trading of $MRCY stock by insiders over the last 6 months:

PARTNERS MANAGEMENT, LP JANA has made 0 purchases and 3 sales selling 452,057 shares for an estimated $41,412,245.
HOWARD L LANCE has made 0 purchases and 3 sales selling 14,082 shares for an estimated $1,352,703.
ORLANDO D CARVALHO sold 7,000 shares for an estimated $625,527
DAVID E. FARNSWORTH (EVP, CFO) sold 3,625 shares for an estimated $307,660
STUART KUPINSKY (EVP, CLO & Corp Sec) sold 2,287 shares for an estimated $191,091
DOUGLAS MUNRO (SVP, CAO) sold 582 shares for an estimated $48,629

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.

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$MRCY Hedge Fund Activity

We have seen 215 institutional investors add shares of $MRCY stock to their portfolio, and 201 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

T. ROWE PRICE INVESTMENT MANAGEMENT, INC. added 1,332,961 shares (+507.3%) to their portfolio in Q2 2026, for an estimated $163,061,119
SEGALL BRYANT & HAMILL, LLC added 1,029,491 shares (+inf%) to their portfolio in Q2 2026, for an estimated $125,937,634
FMR LLC added 938,435 shares (+103.8%) to their portfolio in Q2 2026, for an estimated $114,798,753
SIXTH STREET PARTNERS MANAGEMENT COMPANY, L.P. added 627,581 shares (+inf%) to their portfolio in Q2 2026, for an estimated $76,771,983
WILLIAM BLAIR INVESTMENT MANAGEMENT, LLC removed 604,541 shares (-61.4%) from their portfolio in Q2 2026, for an estimated $73,953,500
AMERIPRISE FINANCIAL INC removed 492,601 shares (-49.7%) from their portfolio in Q2 2026, for an estimated $60,259,880
AMERICAN CAPITAL MANAGEMENT INC added 486,064 shares (+inf%) to their portfolio in Q2 2026, for an estimated $59,460,209

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$MRCY Government Contracts

We have seen $37,042,558 of award payments to $MRCY over the last year.

Here are some of the awards which we have have seen pay out the most over the last year:

CREATE PHASE 1: $6,999,784
NON-RECURRING ENGINEERING (NRE) DVMC-U: $4,513,750
DATA TRANSFER UNIT: $3,572,736
DATA TRANSFER UNIT: $3,349,440
DATA TRANSFER UNIT: $3,298,997

To track government contracts to publicy traded companies, check out Quiver Quantitative's government contracts dashboard. You can access data on government contracts through the Quiver Quantitative API government contracts endpoint.

$MRCY Price Targets

Multiple analysts have issued price targets for $MRCY recently. We have seen 3 analysts offer price targets for $MRCY in the last 6 months, with a median target of $80.0.

Here are some recent targets:

Noah Poponak from Goldman Sachs set a target price of $68.0 on 05/11/2026
Austin Moeller from Canaccord Genuity set a target price of $106.0 on 05/07/2026
Sheila Kahyaoglu from Jefferies set a target price of $80.0 on 04/07/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.