Mercury Systems Inc. raised its full-year 2026 revenue guidance on Tuesday following the release of its fiscal 2026 first-quarter earnings results. The company, which provides mission-critical electronics for aerospace and defense applications, reported adjusted earnings per share of $1.12, exceeding consensus estimates of $1.08.
Revenue for the quarter totaled $245 million, a 7% year-over-year increase. The company reaffirmed its full-year revenue guidance range of $980 million to $1.02 billion, up from prior guidance of $950 million to $990 million. Mercury attributed the upward revision to strong demand for its radar, electronic warfare, and avionics solutions, particularly from U.S. Department of Defense programs.
During the earnings call, Mercury executives outlined plans to expand production capacity and accelerate research and development in advanced sensors and secure communications. Chief Executive Mark Aslett emphasized the company’s focus on long-term growth in both domestic and international markets, citing geopolitical tensions as a driver of sustained demand.
The company also announced a 10% increase in its quarterly dividend to $0.33 per share, effective in the second quarter. Mercury’s backlog remains robust at $1.8 billion, supporting visibility into future revenue streams.
Shares of Mercury Systems were up 3.2% in after-hours trading following the release of the earnings call.
