Mercury Systems (NASDAQ:MRCY) Stock Price Expected to Rise, Robert W. Baird Analyst Says

Key Points

• Robert W. Baird raised Mercury Systems’ price target to $130 from $120 and maintained an “outperform” rating, implying approximately 23.8% upside from the reported $105 share price. Analysts overall have a “Moderate Buy” consensus with an average target of $105.30.
• Mercury Systems reported quarterly revenue of about $289.8 million, exceeding estimates of $266.1 million and rising 6.1% year over year. However, adjusted EPS of $0.37 narrowly missed consensus and declined from $0.47 a year earlier, while the company reported a fiscal-year GAAP net loss.
• Demand indicators were strong: quarterly bookings reached a record $660 million and backlog surpassed $1.9 billion. Still, weaker profitability and lower full-year cash generation have tempered investor reaction despite the robust order pipeline.

Mercury Systems (NASDAQ:MRCY - Get Free Report) had its price objective lifted by analysts at Robert W. Baird from $120.00 to $130.00 in a report released on Wednesday,Benzinga reports. The firm presently has an "outperform" rating on the technology company's stock. Robert W. Baird's price target would indicate a potential upside of 23.81% from the stock's current price.

A number of other equities research analysts also recently issued reports on the company. Truist Financial raised Mercury Systems to a "strong-buy" rating in a research report on Friday, May 1st. JPMorgan Chase & Co. upped their target price on Mercury Systems from $99.00 to $101.00 and gave the company a "neutral" rating in a research report on Monday, July 13th. The Goldman Sachs Group upped their price objective on Mercury Systems from $60.00 to $68.00 and gave the stock a "sell" rating in a research report on Monday, May 11th. Weiss Ratings restated a "sell (d-)" rating on shares of Mercury Systems in a research report on Friday, July 17th. Finally, Canaccord Genuity Group boosted their price objective on shares of Mercury Systems from $102.00 to $106.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Two investment analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $105.30.

Mercury Systems Stock Performance

MRCY opened at $105.00 on Wednesday. The company has a debt-to-equity ratio of 0.40, a current ratio of 3.19 and a quick ratio of 2.15. The business has a fifty day simple moving average of $108.73 and a 200 day simple moving average of $94.85. Mercury Systems has a 1 year low of $62.78 and a 1 year high of $128.45. The company has a market capitalization of $6.30 billion, a PE ratio of -437.50 and a beta of 0.95.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last posted its earnings results on Tuesday, August 18th. The technology company reported $0.37 earnings per share for the quarter, missing analysts' consensus estimates of $0.38 by ($0.01). The firm had revenue of $289.78 million for the quarter, compared to analyst estimates of $266.09 million. Mercury Systems had a positive return on equity of 2.22% and a negative net margin of 1.46%.The firm's quarterly revenue was up 6.1% compared to the same quarter last year. During the same period in the prior year, the business posted $0.47 EPS. Research analysts expect that Mercury Systems will post 0.33 EPS for the current year.

Insider Activity at Mercury Systems

In related news, Director Howard L. Lance sold 9,250 shares of the company's stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $99.76, for a total value of $922,780.00. The transaction was disclosed in a document filed with the SEC, which is available at this link. 1.40% of the stock is currently owned by insiders.

Institutional Trading of Mercury Systems

Several institutional investors and hedge funds have recently modified their holdings of the stock. Osaic Holdings Inc. boosted its position in shares of Mercury Systems by 53.2% during the second quarter. Osaic Holdings Inc. now owns 599 shares of the technology company's stock valued at $32,000 after buying an additional 208 shares during the last quarter. Leonteq Securities AG bought a new position in Mercury Systems during the 4th quarter valued at $35,000. Hollencrest Capital Management purchased a new position in Mercury Systems during the 4th quarter worth $37,000. Public Employees Retirement System of Ohio bought a new stake in shares of Mercury Systems in the 2nd quarter worth $43,000. Finally, Federated Hermes Inc. purchased a new stake in shares of Mercury Systems in the second quarter valued at about $43,000. 95.99% of the stock is owned by hedge funds and other institutional investors.

Mercury Systems News Roundup

Here are the key news stories impacting Mercury Systems this week:

• Positive Sentiment: Demand indicators were exceptionally strong. Fourth-quarter bookings reached a record $660 million, up 93.1% year over year, producing a 2.28 book-to-bill ratio. Backlog exceeded $1.9 billion, an increase of approximately 38.4%, supporting future revenue visibility. Mercury Systems Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Fourth-quarter revenue rose 6.1% to approximately $290 million, exceeding the roughly $266 million analyst estimate. Fiscal 2026 revenue increased to $984 million from $912 million, while the company indicated stronger organic growth expectations.
• Neutral Sentiment: Management reported fiscal 2026 adjusted EBITDA of $49 million for the quarter, a 16.7% margin, and $29 million of quarterly free cash flow. However, full-year operating and free cash flow were below fiscal 2025 levels, tempering the benefit of the strong order pipeline. Mercury Systems Q4 2026 Earnings Call Transcript
• Negative Sentiment: Profitability disappointed investors. Adjusted EPS was $0.37, below the $0.38 consensus cited by some data providers and down from $0.47 a year earlier. GAAP EPS fell to approximately $0.01 from $0.27, and fiscal 2026 ended with a $29.7 million GAAP net loss. The weaker earnings quality and lower cash generation appear to have driven the selloff despite record bookings. Mercury Systems drops as Q4 EPS miss overshadows record bookings

About Mercury Systems

Mercury Systems, Inc NASDAQ: MRCY is a technology company that designs, manufactures and markets secure processing subsystems for aerospace and defense applications. The company's products are built to address the stringent security, safety and reliability requirements of mission-critical programs, with a focus on radar, electronic warfare, intelligence and other sensor and processing functions. Mercury's offerings encompass rugged embedded computing modules, high-performance radio frequency (RF) and microwave components, digital signal processing subsystems and secure networking solutions.

Since its origins in advanced signal processing, Mercury Systems has expanded its capabilities through a combination of internal development and targeted acquisitions.

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