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Makes rugged, secure processing and RF/microwave subsystems embedded in radar, electronic-warfare and sensor systems for defense primes.
Makes rugged, secure processing and RF/microwave subsystems embedded in radar, electronic-warfare and sensor systems for defense primes.
Wins design contracts on specific defense programs, then earns production revenue for the life of that program, so revenue is tied to program schedules and US defense budgets. Fixed-price development work has been costly when it ran over, and the company has been consolidating its operations and refocusing on manufacturing efficiency.
Moat: narrow (customer qualification, IP / patents, process know-how). Designed into major primes' radar/EW programs; requalifying an alternate supplier mid-program is costly.
Headquarters: Andover, Massachusetts, US · Founded: 1981 · Employees: 2,102
Size Mercury Systems (MRCY) is a United States Industrials company (Aerospace & Defense) with a market value of $4.48B, the 1267th largest of 3,117 United States companies the cockpit tracks. Shares closed at $73.55 on 6 Nov 2026.
Performance Over six months the shares fell 18.6%, against -14.9% for the median peer and -1.1% for the United States market (cap-weighted) — 9th lowest of 21 in its peer set.
Growth Revenue grew 7.8% over the last twelve months (peer median +11.4%); the operating margin is 2.1% (peer median 8.0%).
Valuation It trades at 44.2× forward earnings against a peer median of 33.7× (7th most expensive of 17).
Price implies For today's price to make sense, revenue must grow about 60% a year for seven years (Req g). Recent delivered growth is +1%, so the hurdle is +58 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 8.4 points below its cost of capital (9.3% WACC).
Backlog Backlog (remaining performance obligations) was $1.08B at 3 Jul 2026, up 37% on a year earlier — 1.1 years of trailing revenue. Backlog detail →
Short interest Short interest is 9.1% of the free float (15 Oct 2026).
Next results Next results expected around 10 Nov 2026 (exchange calendar; dates can move).
| TTM | FY2026 | FY2025 | FY2024 | FY2023 | |
|---|---|---|---|---|---|
| Revenue | $984M | $984M | $912M | $835M | $974M |
| Revenue growth | — | +8% | +9% | -14% | — |
| Gross profit | $242M | $242M | $213M | $148M | $263M |
| EBITDA | $93.6M | $93.6M | $71.6M | -$31.8M | $91.1M |
| Net income | -$29.7M | -$29.7M | -$37.9M | -$138M | -$28.3M |
| Free cash flow | $64.9M | $64.9M | $117M | $26.1M | -$60.0M |
| Capital expenditure | $34.3M | $34.3M | $19.8M | $34.3M | $38.8M |
| Total debt | $501M | $501M | $656M | $666M | $589M |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Mercury Systems MRCY | $4.48B | -19% | +8% | 2% | 44.2× | 59.6% |
| Curtiss-Wright CW | $17.1B | -36% | +11% | 19% | 27.4× | 16.2% |
| L3Harris LHX | $48.4B | -13% | +7% | 12% | 20.1× | 7.0% |
| Kratos Defense & Security Solutions KTOS | $6.59B | -39% | +26% | 2% | 36.4× | n/a |
| Teledyne Technologies TDY | $28.5B | 0% | +8% | 20% | 22.9× | 15.5% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | MRCY | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -6.3% | +1.9% | 4th lowest of 21 |
| 6-month return | -18.6% | -14.9% | 9th lowest of 21 |
| Distance from 52-week high | -42.7% | -39.5% | 10th lowest of 21 |
| Revenue growth (TTM) | +7.8% | +11.4% | 9th lowest of 20 |
| Operating margin | 2.1% | 8.0% | 8th lowest of 21 |
| Forward P/E | 44.2× | 33.7× | 7th most expensive of 17 |
| Growth the price implies (Req g, 7 yrs) | 59.6% | 21.5% | most demanding of 11 |
| Growth delivered (Del g) | +1.3% | +11.5% | lowest of 11 |
| Hurdle (Req g minus delivered) | +58.3 pp | -0.4 pp | most demanding of 11 |
| ROIC minus cost of capital | -8.4 pp | -1.7 pp | 5th lowest of 20 |
| EV / EBITDA | 50.9× | 16.0× | 2nd most expensive of 11 |
| Net debt / EBITDA | 3.1× | 1.5× | 4th most indebted of 12 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Mercury Systems MRCY | United States | $4.48B | -19% | +8% | 2% | 44.2× | 59.6% | +1.3% |
| Aar AIR | United States | $4.39B | -7% | +22% | 9% | 18.4× | 13.2% | +14.9% |
| Bharat Dynamics BDL.NS | India | $4.12B | -28% | -19% | 10% | 47.2× | n/a | n/a |
| Nanchang Sanrui Intelligence Technology 301696.SZ | China | $4.87B | -14% | +29% | 45% | n/a | 36.1% | +43.7% |
| Avic (Chengdu) UAS 688297.SS | China | $3.93B | -15% | +74% | 0% | 106.5× | n/a | n/a |
| Amentum AMTM | United States | $5.20B | -13% | +11% | 4% | 8.4× | 1.7% | +23.3% |
| RENK R3NK.DE | Germany | $3.84B | -24% | +11% | 13% | 21.1× | 29.8% | +54.5% |
| LIG Defense&Aerospace 079550.KS | South Korea | $5.24B | -65% | +26% | 8% | 20.0× | n/a | n/a |
| Jiangxi Hongdu Aviation Industry 600316.SS | China | $3.77B | -4% | +62% | 0% | 121.0× | 53.4% | +8.0% |
| Glarun Technology 600562.SS | China | $5.43B | +6% | -8% | 21% | 51.7× | n/a | n/a |
| AECC Aero-engine Control 000738.SZ | China | $3.66B | -10% | -3% | 3% | 64.0× | n/a | n/a |
| Avicopter 600038.SS | China | $3.54B | -8% | -6% | 1% | 33.9× | 9.1% | +8.1% |
| Baimtec Material 688563.SS | China | $3.53B | -12% | -1% | 15% | 38.2× | 22.7% | +14.4% |
| QinetiQ QQ..L | United Kingdom | $3.51B | +26% | 0% | 10% | 15.3× | 0.1% | +8.5% |
| AeroVironment AVAV | United States | $5.73B | -33% | +84% | 1% | 33.5× | n/a | n/a |
| Firefly Aerospace FLY | United States | $3.48B | -48% | +179% | -116% | n/a | n/a | n/a |
| Archer Aviation ACHR | United States | $3.42B | -31% | n/a | -13,570% | n/a | n/a | n/a |
| Joby Aviation JOBY | United States | $5.89B | -45% | +118,568% | -754% | n/a | n/a | n/a |
| Karman KRMN | United States | $6.04B | -25% | +50% | 19% | 57.5× | n/a | n/a |
| Hexcel HXL | United States | $6.09B | -16% | +8% | 11% | 29.6× | 23.0% | +4.5% |
| Lisi FII.PA | France | $3.27B | 0% | -8% | 10% | 22.5× | 20.4% | +7.3% |
Mercury Systems reported $1.08B of remaining performance obligations at 3 Jul 2026, up 37% from a year earlier and up 26% from the previous quarter. That is 1.1 years of trailing revenue already under contract. Book-to-bill last quarter: 1.77.