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Mercury Systems shares slide after record $660 million Q4 bookings

Revenue rose to $289.8 million, but adjusted EPS missed and after-hours trading reflected the timing gap between bookings and financial conversion.

Sunday, August 23, 2026 · Written up by our desk · Results

Mercury Systems (NASDAQ: MRCY) reported record fiscal fourth-quarter bookings of $660.0 million, but the stock fell sharply after hours, with shares closing down 7.4% at $105.00 and trading about 11.9% lower near $92.50 later in the session, according to Yahoo Finance.

Revenue increased 6.1% to $289.8 million and beat consensus, but adjusted earnings of $0.37 per share missed estimates and were down from $0.47 a year earlier. The company also pointed to timing effects from having 14 weeks in fiscal Q4 2026 versus 13 weeks in fiscal Q4 2025, which affected year-over-year comparisons across revenue, bookings, adjusted EPS, and adjusted EBITDA.

Mercury Systems’ bookings surged 93.1% with a 2.28 book-to-bill ratio, and backlog rose to more than $1.9 billion, up 38.4%. The company expects about $1.0 billion of that backlog to convert into revenue over the next 12 months, but said some recent orders consolidated quantities that would otherwise have been booked and recognized in fiscal 2027.

For outlook, Mercury Systems expects fiscal 2027 revenue to approach $1.1 billion and adjusted EBITDA to approach $200 million, implying nearly double-digit revenue growth with a high-teens margin. Full-year operating cash flow declined to $102 million from $139 million, as adjusted EBITDA in the quarter fell to $49 million from $51 million, with the margin dropping to 16.7% from 18.8%, Yahoo Finance reported.

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