TacticScaleWhat Mercury Systems Does & How It Makes Money (MRCY)
Updated October 2026 · reflects Mercury Systems's latest reported financials
Defense electronics maker of processing, RF, and electronic warfare subsystems. It sells components, modules, and integrated subsystems mainly to defense prime contractors, equipment manufacturers, and governments, along with some commercial aerospace customers.
How Mercury Systems makes money
It sells components, modules, and integrated subsystems mainly to defense prime contractors, equipment manufacturers, and governments, along with some commercial aerospace customers. Revenue comes from designing and manufacturing hardware that these customers build into larger defense and aerospace platforms.
What Mercury Systems does
Mercury Systems sits one layer beneath the big-name defense primes, supplying the electronic building blocks inside their platforms. Its lineup spans the whole stack: individual components like power amplifiers, oscillators, filters, converters, and monolithic microwave integrated circuits; mid-level modules such as embedded processing boards, digital receivers, and transceivers; and fully integrated subsystems. The company also has specialized niches, including digital radio frequency memory units for electronic warfare, radar simulation and test systems, and signals intelligence and EO/IR payloads for small drones. Founded in 1981 as Mercury Computer Systems and renamed in 2012, it is headquartered in Andover, Massachusetts, and operates across the United States, Europe, and Asia Pacific.
Products & services
- RF and microwave components (power amplifiers, filters, MMICs)
- Embedded processing boards and switched fabrics
- Digital RF memory units for electronic warfare
- Radar environment simulation and test systems
- Signals intelligence and EO/IR payloads for small UAVs
- Integrated RF and microwave multi-function assemblies
What is Mercury Systems worth?
On an owner-earnings DCF, Mercury Systems's most-likely value is about $28 versus a recent price near $79 (65% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$12) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
Related companies
Honeywell Aerospace (HONA) · AeroVironment (AVAV) · China Marine Information Electronics (600764.SS) · Lockheed Martin (LMT) · Mercury General (MCY)