Jefferies analyst Sheila Kahyaoglu sets a new price target of $85 for NASDAQ:MRCY, indicating a slight optimism amidst challenges.Mercury Systems experiences a significant stock price decline despite a second-quarter sales beat, highlighting ongoing net losses and margin pressures.The company's gross margins are expected to improve by 2028, but management's reluctance to raise guidance has led to investor disappointment.Mercury Systems, Inc. (NASDAQ:MRCY) is a technology company that provides secure and saf ...

Truist raised the firm’s price target on Mercury Systems (MRCY) to $109 from $102 and keeps a Buy rating on the shares. The company beat consensus across the board, with free cash flows coming in materially ahead of the Street, the analyst tells investors in a research note. The management is focused on improving working capital through supply chain, accelerating customer deliveries, and demand planning, Truist added. Published first on TheFly – the ultimate source for real-time, market-moving breaking f ...

If you want full access to all our reports, data, and investing ideas, join The Aerospace Forum , the #1 aerospace, defense, and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.Mercury Systems, Inc. ( MRCY ), a provider of chips for the defense industry, tumbled 25 as net losses persisted despite beating analyst estimates. The stock price has advanced 36.5% since my last report , inDhierin-Perkash Bechai is an aerospace ...

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.Mercury Systems, Inc. ( MRCY ), a provider of chips for the defense industry, tumbled 25 as net losses persisted despite beating analyst estimates. The stock price has advanced 36.5% since my last report inDhierin-Perkash Bechai is an aerospace, de ...

Core Insights - Mercury Systems (MRCY) reported adjusted earnings of 16 cents per share for Q2 fiscal 2026, exceeding the Zacks Consensus Estimate by 128.6% and significantly up from 7 cents per share in the same quarter last year [1] - Revenues for the second quarter reached $232.87 million, marking a 4.4% year-over-year increase and surpassing the Zacks Consensus Estimate by 12.29% [1] Q2 Details - Total bookings for Q2 fiscal 2026 were $288 million, resulting in a book-to-bill ratio of 1.23 [2] - The company achieved a record backlog of $1.5 billion, which is an 8.8% increase year over year [2] Q2 Operating Details - Adjusted EBITDA for Q2 fiscal 2026 was $30 million, a 36.3% increase from $22 million in Q2 fiscal 2025 [3] - The adjusted EBITDA margin improved to 12.9% year over year [3] - GAAP net loss for the quarter was $15.1 million, with a diluted loss per share of 26 cents, compared to a net loss of $17.6 million and a loss per share of 30 cents in the prior year [3] Balance Sheet & Cash Flow - As of December 26, 2025, cash and cash equivalents were $335 million, up from $304.7 million as of September 26, 2025 [4] - Long-term debt remained unchanged at $591.5 million [4] - Cash flow from operations was $51.6 million, a significant increase from $2.2 million in the previous quarter [4] - Free cash flow for Q2 fiscal 2026 was $45.7 million, compared to negative $4.4 million in Q1 fiscal 2026 [4] Fiscal 2026 Outlook - The company maintains its full-year fiscal 2026 outlook, expecting low single-digit annual revenue growth and an adjusted EBITDA margin approaching the mid-teens [5] - Anticipates positive free cash flow for the year, with Q3 revenues expected to decline year over year, followed by a ramp-up in Q4 [5] - Q3 adjusted EBITDA margin is projected to approach double digits, while Q4 is expected to have the highest adjusted EBITDA margin of the fiscal year [5] Zacks Rank & Stocks to Consider - MRCY currently holds a Zacks Rank 4 (Sell) [6] - Other stocks in the aerospace sector with better rankings include CAE (Rank 2), Innovative Solution (Rank 1), and Bae Systems (Rank 2) [6]

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Core Insights - Mercury Systems reported revenue of $232.87 million for the quarter ended December 2025, reflecting a year-over-year increase of 4.4% and a surprise of +12.29% over the Zacks Consensus Estimate of $207.39 million [1] - The company's EPS for the quarter was $0.16, significantly higher than the $0.07 reported in the same quarter last year, resulting in an EPS surprise of +128.57% compared to the consensus estimate [1] Revenue Performance - Net Revenue from Sensor & Effector - Radar was $53.72 million, exceeding the two-analyst average estimate of $34.55 million, with a year-over-year change of +14% [4] - Net Revenue from Sensor & Effector - Electronic Warfare reached $27.48 million, surpassing the average estimate of $20.07 million, marking a year-over-year increase of +14.9% [4] - Net Revenue from Other was reported at $36.85 million, slightly below the average estimate of $39.5 million, showing a year-over-year decline of -11.2% [4] - Total Net Revenue from Sensor & Effector was $105.16 million, compared to the average estimate of $74.32 million, indicating a year-over-year change of +12.9% [4] - Net Revenue from C4I was $90.87 million, slightly below the average estimate of $93.33 million, with a year-over-year change of +2.7% [4] - Net Revenue from Other Sensor & Effector was $23.95 million, exceeding the average estimate of $19.7 million, representing a year-over-year increase of +8.2% [4] Stock Performance - Shares of Mercury Systems have returned +15.5% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

William L. Ballhaus: Thanks, Tyler. Good afternoon. Thank you for joining our Q2 FY 2026 earnings call. We delivered Q2 results that were ahead of our expectations, with solid year-over-year growth in backlog, revenue, and adjusted EBITDA and robust free cash flow. Our ability to accelerate progress on a number of our customers' high-priority programs once again contributed to strong results this quarter, including record first-half revenue. Today, I'll cover three topics. First, some introductory comments ...

Mercury Systems (MRCY) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +128.57%. A quarter ago, it was expected that this maker of processing systems and software would post earnings of $0.08 per share when it actually produced earnings of $0.26, delivering a surprise of +225%.Over th ...