Earnings Releases·Nov 10, 2026, 4:01 PM ET

Mercury Systems — First Quarter Fiscal 2027 Earnings Summary

Revenue rose 12.4% year-over-year to $253 million, while GAAP net income turned positive at $13 million ($0.21/share) compared to a $13 million loss in Q1 FY26; adjusted EBITDA surged 58.6% to $56 million and adjusted EPS doubled to $0.52.
Management raised its fiscal 2027 outlook driven by record bookings of $370 million (up 48.0% YoY) and a 1.46 book-to-bill ratio, with total backlog reaching approximately $2.1 billion, including over $1.0 billion scheduled for revenue recognition within 12 months.
Net debt decreased 19% year-over-year to $232 million, though operating cash flow turned negative at $14 million and free cash flow outflow widened to $24 million compared to prior year inflows.
Strategic updates include the formalization of Dave Farnsworth as Chief Operating Officer alongside his CFO role, while the company maintains a neutral stance on risks such as supply chain disruptions, geopolitical events, and potential government shutdowns.