Mercury Systems, Inc. reported its financial results for the first quarter of fiscal year 2027, which ended October 2, 2026. The company announced record revenue for the quarter, which totaled approximately $253 million. This figure represents a 12.4% increase compared to the first quarter of fiscal 2026, which was $225 million.
Mercury also reported record bookings for the quarter, totaling $370 million. This amount is a 48.0% increase year-over-year. The company generated a book-to-bill ratio of 1.46 for the quarter, indicating that bookings exceeded billings. The total backlog at the end of the quarter was approaching $2.1 billion, an increase of $637 million from the previous year. Of this total backlog, over $1.0 billion represents orders expected to be recognized as revenue within the next 12 months.
In terms of profitability, the company reported GAAP net income of $13 million for the quarter. Diluted earnings per share were $0.21. The company also reported an adjusted EBITDA of $56 million, which is a 58.6% increase from the prior year. The adjusted EBITDA margin was 22.3%. Cash flows used in operating activities were $(14) million, and free cash flow was $(24) million.
In other company news, the company announced that David E. Farnsworth has been formalized in his role as Chief Operating Officer, in addition to his existing responsibilities as Executive Vice President and Chief Financial Officer. On November 4, 2026, the company announced that Douglas Munro, the Senior Vice President and Chief Accounting Officer, would be leaving the company on November 13, 2026. Brian Caulfield has been appointed as the acting Chief Accounting Officer effective November 13, 2026. Mr. Caulfield joined the company in 2014 and most recently served as Corporate Controller.
