Mercury Systems reported record performance for the fourth quarter of fiscal 2026, characterized by a massive surge in bookings and revenue growth that exceeded analyst expectations. While adjusted earnings per share were slightly below estimates, the company's turnaround narrative gained traction through significant backlog expansion and a robust outlook for fiscal 2027.
Key Highlights
- Record Q4 bookings of $660 million increased 93.1% year-over-year, resulting in a book-to-bill ratio of 2.28.
- Total backlog climbed to a record $1.9 billion, up 38.4% year-over-year, with $1.0 billion expected to be recognized within the next 12 months.
- Fourth quarter revenue reached a record $289.8 million, up 6.1% year-over-year, while full-year organic revenue grew 7.9%.
- Management provided fiscal 2027 guidance expecting revenue to approach $1.1 billion and adjusted EBITDA to grow approximately 30% to nearly $200 million.