Mercury Systems Beats Estimates, Raises Full-Year Outlook

Mercury Systems reported fiscal first-quarter 2027 adjusted earnings of 52 cents per share and revenue of about $253 million, beating analyst estimates as revenue rose 12.4% year over year. Bookings climbed 48% to a record $370 million, lifting backlog to roughly $2.1 billion, with more than $1 billion expected to convert to revenue over the next 12 months. Profitability improved, including adjusted EBITDA of $56 million, and the company raised its fiscal 2027 outlook, citing strong demand and execution. However, free cash flow was negative $24 million amid inventory investment, and shares fell in after-hours trading despite the earnings beat.