Mercury Systems stock falls after mixed Q4 earnings

Mercury Systems, Inc. (MRCY) saw its stock price decline sharply following the release of its fourth-quarter fiscal 2026 results. Despite achieving record quarterly revenue of $290 million and record bookings of $660 million, the defense technology company reported weakened profitability. Adjusted earnings per share (EPS) fell to $0.37, missing analyst estimates of $0.38.

In addition to the earnings report, recent SEC filings indicate insider selling. CEO William Ballhaus sold 24,144 shares, valued at approximately $2.69 million, to cover tax withholding obligations. Chief Accounting Officer Douglas Munro also sold shares in mid-August to cover similar tax obligations related to equity award vesting.

The company reported a total backlog exceeding $1.9 billion at the end of the fiscal year and raised its organic growth outlook, even as GAAP net income fell to $1 million from $16 million in the prior year's period.