Mercury Reports Record First-Quarter Fiscal 2027 Revenue and Bookings

The Tip Desk · November 10, 2026 · 3 min read

Fiscal 2027 first-quarter revenue was a record $253 million, while bookings reached $370 million, up 48.0% from a year earlier, and backlog approached $2.1 billion.

Mercury Systems (MRCY), the aerospace and defense electronics company, reported record first-quarter fiscal 2027 revenue of $253 million and bookings of $370 million for the period ended October 2, 2026, with bookings up 48.0% from a year earlier.

The book-to-bill ratio was 1.46. Total backlog approached $2.1 billion, an approximate $637 million increase from a year ago, with more than $1.0 billion of orders expected to be recognized as revenue in the next 12 months.

Revenue was a record $253 million for the first quarter of fiscal 2027, compared with $225 million in the first quarter of fiscal 2026. Sequentially, revenue was below the $290 million recorded in the fourth quarter of fiscal 2026. Bookings also declined from a record $660 million in that fourth quarter, when book-to-bill was 2.28.

GAAP results swung to net income of $13 million, or $0.21 a share, from a $13 million net loss, or $0.21 a share, a year earlier. Adjusted earnings were $0.52 a share, compared with $0.26 a share in the year-ago quarter. Adjusted EBITDA was a record $56 million, up 58.6% from $36 million a year earlier, with an adjusted EBITDA margin of 22.3%. That margin compared with 16.7% in the fourth quarter of fiscal 2026.

Gross margin was $89.2 million, compared with $62.9 million a year earlier. Income from operations was $18.5 million, versus an $8.6 million operating loss in the year-ago quarter. Selling, general and administrative expense was $43.0 million. Research and development expense was $16.1 million. Restructuring and other charges were $2.0 million.

Chairman and CEO Bill Ballhaus said the quarter reflected robust organic growth and margins in line with the company’s target profile.

Cash flows used in operating activities were $14 million, compared with $2 million provided a year earlier. Free cash flow was an outflow of $24 million, versus an outflow of $4 million a year earlier. Those figures reversed the fourth quarter of fiscal 2026, when operating cash flow provided $42 million and free cash flow was $29 million. Cash and cash equivalents fell to $109.7 million from $214.3 million at July 3, 2026, after $100 million of credit-facility payments and $10.4 million of property-and-equipment purchases. Net debt was $232 million, down 19% from a year earlier.

On November 10, 2026, Mercury formalized Dave Farnsworth’s role as chief operating officer in addition to his responsibilities as chief financial officer. The company said he has been effectively operating in that capacity for quite some time.

Backlog at July 3, 2026 was over $1.9 billion. The October 2, 2026 total therefore continued the sequential build from that July level.