At a glance
Mercury Systems Inc is worth $4.73B. Revenue grew 7.9% to $983.6M in fiscal 2026, at a loss; over 5 years it has grown 1.3% a year. It pays no dividend; it spent $23.3M buying back its shares over FY2022–FY2026. The stock returned +1.3% over the past year with dividends reinvested and +9.3% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 34.0% in the 2020 crash (S&P 500: 33.7%) and 41.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 1 month and 35 months after the lows.
The business in plain English
Mercury Systems is based in Andover, Massachusetts. It makes electronics that process signals and data inside military and aerospace equipment. Its products range from single components, such as amplifiers, switches and microwave chips, to circuit boards and complete rugged computer systems. They go into radar, electronic warfare (detecting, jamming or deceiving enemy signals), avionics (aircraft electronics), weapons and command-and-control networks. Many must be small, light and low-power enough for aircraft, drones and ships.
Mercury mostly works as a supplier to the big US and European defense contractors. It also sells to the US government and to commercial aerospace companies. Defense-related sales made up about 97% of revenue in fiscal 2026, which ended July 3, 2026. It makes money in two ways. It sells standard products that it develops with its own research spending to many customers. It also builds custom solutions to one customer's needs, which can lead to production runs lasting many years.
Revenue was $983.6 million in fiscal 2026. By end use, radar brought in about 19% and electronic warfare about 11.5%. By product type, components made up about 21%. Naval work accounted for about 11% and space about 8%. US customers generated about 86% of sales. International and foreign military sales (sales to allied governments arranged through the US government) made up the other 14%.
Price history
The interactive chart needs JavaScript.
MRCY +1.3% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Components | $205.1M | 20.9% |
| Radar End User Applications | $188.8M | 19.2% |
| Other Sensor And Effector Applications | $145.7M | 14.8% |
| Other End User Applications | $136.1M | 13.8% |
| Electronic Warfare End User Applications | $113.3M | 11.5% |
| Naval | $110.6M | 11.2% |
| Space | $78.0M | 7.9% |
By geography
| US | $843.7M | 85.8% |
| International/Foreign Military Sales | $140.0M | 14.2% |
Latest results
- In Q4 FY2026 (ended Jul 3, 2026), revenue was $289.8M, up 6.1% from a year earlier, and net income was $798K (-95.1%).
- For fiscal 2026, revenue was $983.6M (+7.9% year over year; +1.3% a year from FY2021 to FY2026) with a -3% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +1.3% watch |
|---|---|
| Operating margin | 0% weak |
| Free cash flow margin | 6.9% watch |
| Return on equity (FY2026) | -2% weak |
| Return on assets (FY2026) | -1.3% weak |
| Cash and investments | $214.3M (debt isn’t tagged in a standard way in the filings, so net cash can’t be shown) |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $924.0M | $62.0M | $51.6M |
| FY2022 | $988.2M | $11.3M | $-46.5M |
| FY2023 | $973.9M | $-28.3M | $-60.0M |
| FY2024 | $835.3M | $-137.6M | $26.1M |
| FY2025 | $912.0M | $-37.9M | $119.0M |
| FY2026 | $983.6M | $-29.7M | $68.1M |
Valuation snapshot
| Market value | $4.73B |
|---|---|
| P/E ratio | — |
| Dividend yield | 0% |
Rank among 1514 US companies
Market value at each year end
Mercury Systems’s market value went from $1.24B at the end of 2016 to $4.73B on Oct 28, 2026, about 3.8 times as much; since the end of 2025 it is up 8%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $4.73B | +7.7% |
| 2025 | $4.39B | +75.2% |
| 2024 | $2.50B | +15.5% |
| 2023 | $2.17B | -16.4% |
| 2022 | $2.59B | -16.8% |
| 2021 | $3.12B | -36.8% |
| 2020 | $4.93B | +28.5% |
| 2019 | $3.84B | +67.7% |
| 2018 | $2.29B | -7.6% |
| 2017 | $2.48B | +99.9% |
| 2016 | $1.24B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| MRCY price data to Oct 28, 2026 | +7.6% | +1.3% | +29.9% | +9.3% | +11.1% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +7.6% |
| 2025 | +73.8% |
| 2024 | +14.8% |
| 2023 | -18.3% |
| 2022 | -18.7% |
| 2021 | -37.5% |
| 2020 | +27.4% |
| 2019 | +46.1% |
| 2018 | -7.9% |
| 2017 | +69.9% |
| 2016 | +64.6% |
| 2015 | +36.9% |
| 2014 | +27.1% |
| 2013 | +19.0% |
| 2012 | -30.8% |
| 2011 | -27.7% |
| 2010 | +66.9% |
| 2009 | +74.5% |
| 2008 | -60.8% |
| 2007 | +20.6% |
| 2006 | -35.2% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 61.4% over that stretch · deepest drop along the way 84.5%, back to its old high 23.3 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 34% over that stretch · deepest drop along the way 34%, back to its old high 1.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 23.2% over that stretch · deepest drop along the way 41.8%, back to its old high 35.3 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 30 sales ($38.9M), 3 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 24, 2026 | William L Ballhaus Chairman, President & CEO, Director | sell | $9.4M |
| Aug 25, 2026 | William L Ballhaus Chairman, President & CEO, Director | sell | $9.4M |
| Aug 21, 2026 | William L Ballhaus Chairman, President & CEO, Director | sell | $6.0M |
| Aug 26, 2026 | William L Ballhaus Chairman, President & CEO, Director | sell | $3.4M |
| Aug 19, 2026 | William L Ballhaus Chairman, President & CEO, Director | sell | $2.7M |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 14.4% | Jun 30, 2026 |
| STATE STREET CORPORATION | 6.4% | Mar 31, 2026 |
| Vanguard Portfolio Management | 4.99% | Sep 30, 2026 |
| WILLIAM BLAIR INVESTMENT MANAGEMENT, LLC | 4.2% | Sep 30, 2025 |
ETFs with the most weight in MRCY
| GCAD Gabelli Commercial Aerospace and Defense ETF | 5.15% |
| FFND One Global ETF | 0.79% |
| ITA iShares U.S. Aerospace & Defense ETF | 0.46% |
| PPA Invesco Aerospace & Defense ETF | 0.41% |
| VIOV Vanguard S&P Small-Cap 600 Value ETF | 0.34% |
| NUSC Nuveen ESG Small-Cap ETF | 0.27% |
| KOMP SPDR S&P Kensho New Economies Composite ETF | 0.24% |
| NATO Themes Transatlantic Defense ETF | 0.23% |
What could go wrong
- Almost all sales depend on defense budgets. About 97% of fiscal 2026 revenue came from defense programs. Congress funds these one year at a time, so budget delays, stopgap funding, shutdowns or canceled programs can cut or postpone Mercury's sales.
- Orders may outpace Mercury's ability to deliver. New bookings have risen sharply. If Mercury can't add capacity, keep quality up and get parts on time from suppliers and contract manufacturers, it could face penalties, thinner margins and lost business.
- Reliance on certain large customers and programs. Mercury's order backlog is concentrated in certain customers and programs. Losing a large customer or program could hurt results. The government can also cut or end a contract Mercury supplies under, however well Mercury performs.
- Thin profits leave little room for cost increases. Mercury posted a net loss in fiscal 2026, and operating income was close to zero. Higher prices for labor, chips and memory, or trade restrictions and export controls, could squeeze profits further.
- Technology shifts and cheaper substitutes. Mercury builds on commercial chip technology that changes quickly. If it falls behind, or customers switch to cheaper off-the-shelf substitutes, it could lose orders and market share and face pressure on prices.
- Possible write-downs of acquisition-related assets. Mercury carries a significant amount of goodwill (the premium paid for acquired companies) and other intangible assets. If its business or prospects weaken, it may have to write these down, causing large accounting losses.
Recent events
- Other company announcement
- Major agreement signed; Investor presentation or announcement
- Quarterly results released
- Quarterly results released
- Quarterly results released
- Major agreement signed; Quarterly results released; New debt or financial obligation; Other company announcement
For income and retirement investors
Mercury Systems has never paid a cash dividend, and its 10-K says it does not expect to in the foreseeable future. The dividend yield was 0% as of October 28, 2026. Income investors would rely entirely on share price gains and would have to sell shares to raise cash. Buybacks have been small: about $23.3 million across fiscal 2022 to 2026, including about $15.0 million in fiscal 2026. The share count still rose about 6% between October 2021 and July 2026, diluting existing owners.
The stock has fallen hard in downturns. It fell about 85% from a December 2007 peak to a December 2008 low, then took about 23 months to recover. In the 2020 COVID crash it fell 34% but regained that level in about a month. In the 2022 bear market it fell about 42% and did not return to its March 2022 peak until September 2025. Single stocks carry more risk than diversified funds.
Questions investors ask
Does Mercury Systems pay a dividend?
No. Mercury Systems has never paid a cash dividend on its common stock, and its 10-K says it does not expect to pay one in the foreseeable future. Its dividend yield was 0% as of October 28, 2026. The company has bought back some stock, about $15.0 million worth in fiscal 2026. Even so, the share count rose about 6% between October 2021 and July 2026.
How does Mercury Systems make money?
Mercury sells electronics that process signals and data inside military and aerospace equipment. Its products range from components and circuit boards to complete rugged computer systems. About 97% of fiscal 2026 revenue came from defense work. Most of that came from supplying large US and European defense contractors, and some came from direct sales to governments. Radar applications brought in about 19% of the year's $983.6 million revenue, and electronic warfare about 11.5%. US customers accounted for about 86%.
Is Mercury Systems profitable?
No, not under standard accounting rules (GAAP). Mercury lost $29.7 million, or $0.50 per share, in fiscal 2026, after net losses in each of fiscal 2023, 2024 and 2025. It did generate about $68.1 million of free cash flow in fiscal 2026. That is the cash left over after running the business and paying for equipment. On the company's own adjusted measure, which leaves out certain costs, earnings were $1.06 per share.
Is Mercury Systems stock volatile?
Yes. As of October 28, 2026, its one-year beta was about 2.0. Beta compares a stock's swings with the overall market's, so the stock tended to move roughly twice as much as the market. It fell as much as 41% from a high during that year. It dropped about 85% in the 2008 financial crisis and about 42% in the 2022 bear market. Over the 10 years to October 28, 2026, the share price gained about 11.1% a year on average.
Are Mercury Systems insiders selling stock?
Yes. Insider filings reviewed for October 29, 2025 to October 29, 2026 show 35 sales worth about $43.5 million and no purchases. The largest were by William L. Ballhaus, the chairman, president and CEO. In August 2026 he made individual sales worth between about $2.7 million and $9.4 million. Only 3 of the 35 sales were made under pre-arranged trading plans. Insiders sell for many reasons, such as taxes or diversification.