Mercury Awarded Contracts for U.S. Space and Strategic Weapons Programs

Rhea-AI Summary

Mercury Systems (NASDAQ: MRCY) said it won contracts totaling more than $60 million for two U.S. national security programs announced Jan. 15, 2026. One award is a development contract extension for a large strategic weapons program, continuing work originally awarded in 2023 and running through 2031 with additional flight‑testing unit deliveries. The other is a new contract to supply radiation‑tolerant wideband storage and processing subsystems—now in production with AMD Versal AI Core FPGAs and 4.5 TB drives—marking a second customer for that subsystem after a 2024 award.

Positive

• Contracts totaling $60M+ for space and strategic weapons programs
• Development extension through 2031 for strategic weapons program
• Second customer secured for radiation‑tolerant subsystem in production
• Critical design review completed validating satellite subsystem readiness

Negative

• None.

News Market Reaction

+4.39%

1 alert

+4.39% News Effect

On the day this news was published, MRCY gained 4.39%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Contract awards: more than $60 million Program extension through: 2031 Initial award year: 2023 +4 more

7 metrics

Contract awards more than $60 million Totaling more than $60M for two U.S. space and strategic weapons programs

Program extension through 2031 Strategic weapons development work extended through 2031

Initial award year 2023 Strategic weapons development program initially awarded in 2023

Data storage capacity 4.5 terabyte Radiation-tolerant wideband storage and processing subsystem drives

Programs deployed more than 300 programs Mercury products and solutions deployed in over 300 programs

Countries deployed 35 countries Products and solutions deployed across 35 countries

Global locations more than 20 locations Company has more than 20 locations worldwide

Market Reality Check

Price: $97.10 Vol: Volume 970,839 is 1.41x t...

normal vol

$97.10 Last Close

Volume Volume 970,839 is 1.41x the 20-day average, indicating elevated interest before this announcement. normal

Technical Shares traded above the 200-day MA at 63.03, reflecting a pre-existing uptrend into this contract news.

Peers on Argus

Sector peers like SPR, HXL, ACHR, AIR, and VSEC all showed gains, and space peer...

1 Up

Sector peers like SPR, HXL, ACHR, AIR, and VSEC all showed gains, and space peer PL appeared in momentum scanners up about 4%, but scanner data flagged this as stock-specific rather than a broad sector move.

Historical Context

5 past events · Latest: Jan 13 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 13	Earnings date notice	Neutral	+2.2%	Announcement of upcoming Q2 FY26 earnings release and conference call.
Dec 08	Product capabilities	Positive	+1.9%	Showcased expanding electronic warfare portfolio and new DRF4581L module.
Nov 04	Earnings results	Positive	+3.3%	Q1 FY26 growth, record backlog, and improved cash flow metrics.
Oct 22	Defense contract win	Positive	-4.2%	Award of multi-year contract for multi-mission, multi-domain subsystem.
Oct 14	Earnings date notice	Neutral	+0.5%	Notice of upcoming Q1 FY26 earnings release and webcast details.

Pattern Detected

Positive operational news (contracts, capabilities, earnings growth) has often seen supportive or positive price reactions, with one notable divergence on a prior contract award.

Recent Company History

Over the last several months, Mercury reported Q1 FY26 revenue of $225.2M with a record $1.4B backlog and a new $200M buyback authorization. It also secured a multi-year development contract for a multi-mission subsystem and highlighted expanding electronic warfare capabilities at AOC 2025. Earnings-date notices on Nov. 4, 2025 and Feb. 3, 2026 drew modestly positive reactions. Today’s space and strategic weapons awards extend this theme of growing defense program engagement and backlog support.

Market Pulse Summary

This announcement adds more than $60 million of work tied to U.S. space and strategic weapons progra...

Analysis

This announcement adds more than $60 million of work tied to U.S. space and strategic weapons programs, extending one effort through 2031 and adding a new national security space customer. It reinforces Mercury’s earlier disclosure of a record $1.4B backlog and growing presence in advanced processing for defense. Investors may watch future earnings for visibility on converting these awards into revenue, margin trends, and any further large program wins or follow-on orders.

Key Terms

radiation-hardened, radiation-tolerant, fpga, critical design review

4 terms

radiation-hardened technical

"leverages the company’s expertise in strategic radiation-hardened data and signal processing"

Radiation-hardened describes electronic components and systems built to resist damage or malfunction from ionizing radiation, like cosmic rays or particle emissions. For investors, it signals products that command higher prices and steady niche demand because they last and perform reliably in harsh environments (space, nuclear, high-altitude), similar to choosing a ruggedized vehicle for extreme terrain instead of a regular car.

radiation-tolerant technical

"Mercury’s radiation-tolerant wideband storage and processing subsystem that features AMD Versal"

Radiation-tolerant describes equipment, materials, or components designed to continue working correctly after exposure to ionizing radiation (like X-rays, gamma rays, or energetic particles). For investors, it signals lower risk of failure and longer useful life in high-radiation settings—such as satellites, medical devices, and nuclear plants—so products labeled radiation-tolerant can command premium prices, reduce replacement costs, and open access to specialized markets.

fpga technical

"subsystem that features AMD Versal™ AI Core series FPGAs and 4.5 terabyte"

A field-programmable gate array (FPGA) is a type of computer chip whose internal wiring can be changed after it is made, allowing engineers to program custom hardware functions without designing a new chip. For investors, FPGAs matter because that flexibility lets companies quickly adapt products to new software, standards, or customer needs—like a toolbox that can be rearranged to build different machines—so demand and pricing can shift with trends in data centers, telecommunications, AI, and specialized electronics.

critical design review technical

"The critical design review for that satellite subsystem was recently completed"

A critical design review (CDR) is a formal, high‑level assessment where engineers and independent reviewers confirm a product or system’s detailed plans meet required performance, safety and regulatory needs before committing to full-scale production or implementation. For investors it signals reduced technical and schedule risk—like approving a final blueprint before construction—so passing a CDR often increases confidence in a project’s timeline, budget predictability and likelihood of commercial success.

AI-generated analysis. Not financial advice.

ANDOVER, Mass., Jan. 15, 2026 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a global technology company that delivers mission-critical processing to the edge, today announced contract awards totaling more than $60 million for work associated with two critical U.S. space and strategic weapons programs.

In December, Mercury was awarded a development contract extension in support of a large strategic weapons program that leverages the company’s expertise in strategic radiation-hardened data and signal processing. Initially awarded in 2023, Mercury’s development work on the program will now continue through 2031 and include the delivery of additional flight-testing units.

In December, Mercury was also awarded a new contract from an innovative space systems prime contractor to produce subsystems for a U.S. national security space program. This is the second customer to adopt Mercury’s radiation-tolerant wideband storage and processing subsystem that features AMD Versal™ AI Core series FPGAs and 4.5 terabyte data storage drives, which were recently released into production. Mercury received the first contract for the subsystem in 2024 for another U.S. satellite program. The critical design review for that satellite subsystem was recently completed, validating that it meets all requirements and is ready to enter production.

“Mercury is proud to support these critical U.S. national security missions,” said Roya Montakhab, Senior Vice President of Integrated Processing Solutions. “The Mercury Processing Platform features unique capabilities that deliver enhanced performance and resiliency for space and strategic weapons programs, and these awards highlight the increasing demand for our technology in these domains.”

Mercury Systems – Innovation that matters^®
Mercury Systems is a global technology company that delivers mission-critical processing to the edge, making advanced technologies profoundly more accessible for today’s most challenging aerospace and defense missions. The Mercury Processing Platform allows customers to tap into innovative capabilities from silicon to system scale, turning data into decisions on timelines that matter. Mercury’s products and solutions are deployed in more than 300 programs and across 35 countries, enabling a broad range of applications in mission computing, sensor processing, command and control, and communications. Mercury is headquartered in Andover, Massachusetts, and has more than 20 locations worldwide. To learn more, visit mrcy.com. (Nasdaq: MRCY)

Forward-Looking Safe Harbor Statement
This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the Company's focus on enhanced execution of the Company's strategic plan. You can identify these statements by the words “may,” “will,” “could,” “should,” “would,” “plans,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” “likely,” “forecast,” “probable,” “potential,” and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs, the timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, effects of any U.S. federal government shutdown or extended continuing resolution, effects of geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in or cost increases related to completing development, engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in, or in the U.S. government’s interpretation of, federal export control or procurement rules and regulations, including tariffs, changes in, or in the interpretation or enforcement of, environmental rules and regulations, market acceptance of the Company's products, shortages in or delays in receiving components, supply chain delays or volatility for critical components, production delays or unanticipated expenses including due to quality issues or manufacturing execution issues, adherence to required manufacturing standards, capacity underutilization, increases in scrap or inventory write-offs, failure to achieve or maintain manufacturing quality certifications, such as AS9100, failure to achieve or maintain qualified business systems, such as those required by the DFARS, the impact of supply chain disruption, inflation and labor shortages, among other things, on program execution and the resulting effect on customer satisfaction, inability to fully realize the expected benefits from acquisitions, restructurings, and operational efficiency initiatives or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, effects of shareholder activism, increases in interest rates, changes to industrial security and cyber-security regulations and requirements and impacts from any cyber or insider threat events, changes in tax rates or tax regulations, changes to interest rate swaps or other cash flow hedging arrangements, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, litigation, including the dispute arising with the former CEO over his resignation, unanticipated costs under fixed-price service and system integration engagements, and various other factors beyond our control. These risks and uncertainties also include such additional risk factors as are discussed in the Company's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 27, 2025 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

INVESTOR CONTACT
Tyler Hojo, CFA
Vice President, Investor Relations
Tyler.Hojo@mrcy.com

MEDIA CONTACT
Turner Brinton
Senior Director, Corporate Communications
Turner.Brinton@mrcy.com

FAQ

What contracts did Mercury Systems (MRCY) announce on January 15, 2026?

Mercury announced contracts totaling $60 million+ for two U.S. space and strategic weapons programs, including a development extension and a new subsystem award.

How long will Mercury’s development work on the strategic weapons program continue for MRCY?

The development contract extension continues Mercury’s work through 2031 and includes delivery of additional flight‑testing units.

What subsystem is Mercury supplying under the new MRCY contract for national security space?

Mercury will produce a radiation‑tolerant wideband storage and processing subsystem using AMD Versal AI Core FPGAs and 4.5 TB data drives.

Is the Mercury satellite subsystem ready for production according to the Jan. 15, 2026 announcement?

Yes; the critical design review for the earlier satellite subsystem was completed and validated it is ready to enter production.

Does the Jan. 15, 2026 release state how many customers have adopted Mercury’s subsystem?

The release says this is the second customer to adopt Mercury’s radiation‑tolerant wideband storage and processing subsystem.

What technology components did Mercury highlight for the new subsystem in the MRCY announcement?

The subsystem features AMD Versal AI Core series FPGAs and 4.5 terabyte data storage drives, now released into production.