Update shared on04 Sep 2025
Analysts highlight a Q4 earnings beat driven by a one-time revenue pull-forward and a surge in bookings, but maintain a conservative long-term outlook and reiterate their Buy stance, leaving the price target unchanged at $65.43.
Analyst Commentary
- Q4 earnings significantly exceeded expectations due to a $30M revenue pull-forward.
- FY26 revenue outlook remains conservative, excluding any further pull-forward effects.
- Mercury Systems experienced a 70% quarter-over-quarter increase in bookings.
- Bullish analysts view recent results as evidence of a progressing turnaround for the company.
- Continued recommendation to remain long on the stock given the improving performance trajectory.
What's in the News
- Mercury Systems announced a new production agreement with AeroVironment to deliver additional BADGER systems supporting the U.S. Space Force’s SCAR program, providing FPGA-based signal acquisition and digital beamforming solutions.
- Selected by the U.S. Department of Defense for an $8.5 million IBAS Program contract, Mercury will develop a next-generation RF signal conditioning multi-chip package to enhance X-band AESA radar performance while significantly reducing size, weight, and power requirements.
- Mercury Systems was added to multiple growth-focused Russell indexes, including the Russell 2000 Growth, 2500 Growth, 3000 Growth, and related indexes.
- The company was dropped from the Russell 2000 Defensive and Value-Defensive Indexes.
Valuation Changes
Summary of Valuation Changes for Mercury Systems
- The Consensus Analyst Price Target remained effectively unchanged, at $65.43.
- The Discount Rate for Mercury Systems remained effectively unchanged, moving only marginally from 7.93% to 7.95%.
- The Future P/E for Mercury Systems remained effectively unchanged, moving only marginally from 110.85x to 110.89x.
Disclaimer
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