Mercury Systems Inc (MRCY) Stock Analysis
Industrials · Aerospace & Defense
Sell if holding. Engine safety override at $94.05: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.6/10. Specifically: Below-average business quality.
Mercury Systems makes mission-critical processing systems for aerospace and defense, deployed in 300+ programs across 35 countries with $912M in fiscal 2025 revenue. Products span components to integrated subsystems for C4I, sensor processing, electronic warfare, and radar, sold... Read more
Sell if holding. Engine safety override at $94.05: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.6/10. Specifically: Below-average business quality. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 4.6/10, moderate confidence.
Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 83d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Recent Developments — Mercury Systems Inc
Latest news
- JANA Partners Decreases Stake In Markel Group To 75,307 Shares; Mercury Systems To 4,107,424 Shares — benzinga May 15, 2026 neutral
- Goldman Sachs Maintains Sell on Mercury System, Raises Price Target to $68 — benzinga May 11, 2026 negative
- Canaccord Genuity Maintains Buy on Mercury System, Raises Price Target to $106 — benzinga May 7, 2026 positive
- Mercury Sys Q3 Adj. EPS $0.27 Beats $0.07 Estimate, Sales $235.759M Beat $209.866M Estimate — benzinga May 5, 2026 positive
- Earnings Scheduled For May 5, 2026 — benzinga May 5, 2026 neutral
Generated 2026-05-20T21:06:21Z.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerU.S. government and defense programs97%10-K Item 1A: 'to the U.S. government, as well as foreign governments, accounted for approximately 97%, 95% and 98% of our total net revenues in fiscal years 2025'
- MEDIUMCustomerRTX Corporation13%10-K Item 1A: 'In fiscal 2025, RTX Corporation accounted for 13% of our total net revenues and both Lockheed Martin and U. S. Navy accounted for 10% of our total net revenues.'
- MEDIUMCustomerLockheed Martin10%10-K Item 1A: 'In fiscal 2025, RTX Corporation accounted for 13% of our total net revenues and both Lockheed Martin and U. S. Navy accounted for 10% of our total net revenues.'
- HIGHSuppliersole-source suppliers for FPGAs, ASICs, processors10-K Item 1A: 'Several components used in our products are currently obtained from sole-source suppliers... dependent on a limited number of key vendors for certain critical components such as FPGAs'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
3 floor-breakers
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Unprofitable operations — net margin -1.5%. Quality floor flags this regardless of sector context.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $94.05: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.6/10. Specifically: Below-average business quality. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $87.74. Score 4.6/10, moderate confidence.
Take-profit target: $93.19 (-1.2% upside). Prior stop was $87.74. Stop-loss: $87.74.
Concentration risk — Customer: U.S. government and defense programs (97.0%); Concentration risk — Supplier: sole-source suppliers for FPGAs, ASICs, processors; Target reached (-7.5% upside).
Mercury Systems Inc trades at a P/E of N/A (forward 60.6). TrendMatrix value score: 5.7/10. Verdict: Sell.
15 analysts cover MRCY with a consensus score of 4.0/5. Average price target: $100.
What does Mercury Systems Inc do?Mercury Systems makes mission-critical processing systems for aerospace and defense, deployed in 300+ programs across...
Mercury Systems makes mission-critical processing systems for aerospace and defense, deployed in 300+ programs across 35 countries with $912M in fiscal 2025 revenue. Products span components to integrated subsystems for C4I, sensor processing, electronic warfare, and radar, sold primarily to defense prime contractors and the U.S. government.