Mercury Systems Q3 FY2026: Record Bookings, Strong Guidance

Mercury Systems Q3 FY2026 earnings exceeded expectations with record bookings of $348 million and a book-to-bill of 1.48. Revenue surged by 11.5% organically, reaching $236 million, and adjusted EBITDA soared by 46% to $36 million with a 15.3% margin. Backlog swelled to $1.6 billion, up 18%. The company accelerated $25 million in revenue, boosted by supply chain improvements and new capacity in Phoenix. Domestic sales, accounting for 88% of the mix, grew by 17%. Mercury is focusing on execution, production growth, expanding margins, and increasing free cash flow. Analysts praised the strong bookings and positive outlook, with CEO Bill Ballhaus citing broad demand across radar, space, and effectors amid global defense budget increases. Guidance was revised upwards, with full-year revenue growth now expected to be mid-single digits, adjusted EBITDA margins in the mid-teens, and positive free cash flow in Q4. Mercury is well-positioned to capitalize on defense needs and secure more edge-processing wins. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/45930588e7e24103