Mercury Systems, Inc. (NASDAQ:MRCY) is among the 10 Best Performing Defense Stocks So Far in 2026. The company’s shares are up 34% year-to-date as of the close on May 22. Several analysts have adjusted their price targets on the stock this month following the company’s third-quarter results.
Recent updates include Goldman Sachs, which on May 11 raised its price target on the stock to $68 from $60 but maintained a Sell rating. The adjustment came as part of the firm revising its model post the company’s third-quarter earnings report.
On May 10, Jefferies also hiked its price target on Mercury Systems, Inc. to $95 from $80 after the company raised its full-year guidance for 2026 during the earnings call. The firm reiterated its Hold rating on the stock. Earlier on May 7, Canaccord Genuity increased its price target by $4 to $106 while maintaining a Buy rating.
Quarterly revenue was reported at $236 million, representing an 11.5% organic increase. Adjusted earnings per share came in at $0.27 compared to $0.06 during the same period last year. Bookings grew by $348 million in Q3, taking the backlog to a record $1.6 billion.
Mercury Systems, Inc. now anticipates top-line growth for fiscal 2026 in the mid-single digits, up from initial estimates of low single digits. Adjusted EBITDA margin for the full year is expected in the mid-teens, against earlier forecasts of near mid-teens. Moreover, the company sees positive free cash flow ahead in the fourth quarter.
Mercury Systems, Inc. provides mission-critical processing that helps enhance the accessibility of advanced technologies used in complex aerospace and defense missions.
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