Filing Flows › Mercury Systems (MRCY) › Q2 FY26
Mercury Systems (MRCY) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed Feb 3, 2026
Mercury Systems (MRCY) reported revenue of $233M for the second quarter fiscal 2026 (Q2 FY26), +4% from a year earlier and +3% from the quarter before. Operating margin was -4.6%, net loss $15.1M (6.5% of revenue).
Mercury Systems, Q2 FY26: revenue $233M (+4% year over year), operating margin -4.6%, net loss $15.1M, operating cash flow $51.6M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $233M | +3% | +4% |
| Operating profit | −$10.8M | — | — |
| Net earnings | −$15.1M | — | — |
| Operating cash flow | $51.6M | 24× | -40% |
| Free cash flow | $45.7M | — | -44% |
What changed
Revenue was $232.9M in Q2 FY26, up 4% year over year and up 3% from the previous quarter. Airborne was the largest line at 36% of revenue. Land added $14.3M year over year (up 32%), 146% of the total change. Airborne declined 12%.
Gross margin was 26.0%, down 1.2 points from Q2 FY25. Operating costs exceeded revenue by $10.8M, an operating margin of -4.6%. Operating expenses fell 2% while revenue rose 4%. The fastest-growing cost line was Other operating costs (+23%). The quarter ended with a net loss of $15.1M, wider than the previous quarter's $12.5M loss.
Operating cash flow was $51.6M (down 40% year over year). Non-cash charges added back $18.3M of depreciation and amortization and $10.6M of share-based compensation. Working capital and other items added $37.8M. After purchases of property and equipment ($5.9M), free cash flow as the company reports it was $45.7M.
Questions
What was Mercury Systems' revenue in the second quarter fiscal 2026?
Mercury Systems (MRCY) reported revenue of $233M for the second quarter fiscal 2026 (Q2 FY26), +4% from a year earlier and +3% from the quarter before.
Was Mercury Systems profitable in the second quarter fiscal 2026?
Operating loss was $10.8M (-4.6% of revenue) and net loss $15.1M.
Source: Mercury Systems 10-Q on SEC EDGAR.