Mercury Systems Q4 Results Beat Expectations, Multiple Analysts Raise Price Targets

Mercury Systems reported fourth-quarter financial results on Tuesday, with mixed performance.

The company reported quarterly earnings per share of 37 cents, below the analyst consensus estimate of 38 cents. The company reported quarterly sales of $289.782 million, exceeding the analyst consensus estimate of $266.403 million.

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

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

Mercury Systems stock fell 10.3% in premarket trading to $94.18.

The following analysts adjusted their price targets on Mercury Systems following the earnings release.

Piper Sandler analyst Clarke Jeffries maintained an Overweight rating on the stock and raised the price target from $126 to $131.

Baird analyst Peter Arment maintained an Outperform rating on the stock and raised the price target from $120 to $130.

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