Mercury Systems Q4 Results Beat Estimates, Shares Fall 10.5% After Hours

Mercury Systems Inc reported its fourth-quarter financial results after Tuesday's market close. Here's an overview of the report.

Mercury Systems stock is facing bearish pressure. What is dragging MRCY shares down?

Mercury Systems Q4 Highlights

Fourth-quarter revenue: $289.78 million, beating the $266.4 million estimate

Fourth-quarter adjusted EPS: 37 cents, missing the 38-cent estimate

Mercury Systems reported fourth-quarter bookings of $660 million, up 33.1% year-over-year, with the company's backlog growing 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 total cash and cash equivalents of $214.31 million.

"We delivered fiscal 2026 fourth-quarter results that exceeded expectations, with record bookings, record backlog, record revenue, full-year highest EBITDA margin, and strong free cash flow," said Bill Ballhaus, Chairman and CEO of Mercury Systems.

"With our solid execution and strong demand signals, we enter fiscal 2027 with greater visibility and have raised our organic growth guidance."

Mercury Systems raised its fiscal 2027 organic revenue growth target to low-single-digit growth. The company expects first-quarter revenue growth to be up high-single digits year-over-year. Mercury noted it expects first-quarter growth to be the lowest of the year.

MRCY Shares Fall After Hours

MRCY stock performance: Mercury Systems shares fell 10.50% in Tuesday's after-hours trading, trading at $93.97 at the time of writing.