Mercury Systems, Inc. filed its Form 10-Q for the first fiscal quarter ended October 2, 2026 with the U.S. Securities and Exchange Commission on November 10, 2026, reporting a return to profitability compared with a net loss in the same period of the prior year.

Key Highlights

  • Net revenues of $253,153 thousand for the first quarter ended October 2, 2026, up from $225,209 thousand in the first quarter ended September 26, 2025, according to the filing.
  • Net income of $13,088 thousand ($0.22 basic earnings per share; $0.21 diluted) versus a net loss of $12,515 thousand ($0.21 basic and diluted loss per share) in the prior-year period.
  • Gross margin of $89,188 thousand for the quarter, compared with $62,899 thousand in the first quarter of the prior year.
  • Long-term debt decreased to $341,500 thousand at October 2, 2026, from $441,500 thousand at July 3, 2026, the filing shows.
  • Cash and cash equivalents of $109,679 thousand at October 2, 2026, down from $214,306 thousand at July 3, 2026.
  • 60,922,200 shares of common stock outstanding as of October 31, 2026, as stated on the filing's cover page.

Mercury Systems Q1 FY2027 Financial Results: Revenue Growth and Return to Profitability

Mercury Systems, Inc. (NASDAQ:MRCY) reported first-quarter results for the period ended October 2, 2026 in its 10-Q filing. According to the filing, net revenues reached $253,153 thousand, an increase from $225,209 thousand in the comparable prior-year quarter ended September 26, 2025. Cost of revenues was $163,965 thousand, yielding a gross margin of $89,188 thousand, compared with $62,899 thousand in the prior-year period.

The company disclosed income from operations of $18,534 thousand for the first quarter of fiscal 2027, contrasting with a loss from operations of $8,597 thousand in the first quarter of fiscal 2026. Total operating expenses were $70,654 thousand, including selling, general and administrative expenses of $43,029 thousand, research and development of $16,051 thousand, amortization of intangible assets of $9,303 thousand, restructuring and other charges of $2,018 thousand, and acquisition costs and other related expenses of $253 thousand. Net income for the quarter was $13,088 thousand, compared with a net loss of $12,515 thousand in the prior-year quarter. Diluted weighted-average shares outstanding were 61,623 thousand.

On the balance sheet, total assets were $2,255,899 thousand at October 2, 2026, versus $2,322,776 thousand at July 3, 2026. Inventory rose to $398,570 thousand from $366,968 thousand. Total shareholders' equity increased to $1,546,676 thousand from $1,497,458 thousand. Long-term debt declined to $341,500 thousand from $441,500 thousand over the same period, the filing disclosed. Stock-based compensation expense recognized in the quarter was $12,171 thousand, and the company reported exercise of stock options generating proceeds reflected in additional paid-in capital.

What Was Disclosed

Mercury Systems filed its quarterly report covering the first fiscal quarter ended October 2, 2026, disclosing revenue of $253,153 thousand, net income of $13,088 thousand, reduced long-term debt of $341,500 thousand, and total assets of $2,255,899 thousand as of the quarter-end date.