Defense processing & RF subsystems
Mercury Systems
A defense edge-processing and RF-subsystem firm. It supplies mission computing, sensor processing, RF/microwave and rugged servers to 300+ programs across 35 countries, with 80%+ of revenue from primes. FY2025 revenue $912M, backlog $1.4B. It ruggedizes commercial semiconductors to defense grade for primes, a bridge between defense and semiconductors.
MRCY Updated Jul 12, 2026 4 AI consumers· 3 recurring
Per the valuechain.wiki graph, Mercury Systems is directly linked to 4 companies (2 supply, 2 revenue relationships) and reaches 47 companies within two hops; the links are backed by 6 dated sources, 2 of them primary filings (as of 2026-07-12).
Financials & Segments
- Total revenue · FY2025 revenue $912M, $1.4B backlog
- Customer concentration · 80%+ from primes; commercial chips to defense grade.
- Segments · Mission computing/rugged servers · RF/microelectronics · Sensor processing
Revenue from
- RTX High confidence· Market share 13% · FY2025 · 10-K
Supplies signal-processing subsystems into Raytheon (RTX) radars - largest customer at 13% of FY2025 revenue. Feb 2024: up to $96M, three-year LTAMDS subcontract covering nine radars for the US Army and Poland.Confirms EN GlobeNewswire Published Feb 1, 2024: Mercury awarded subcontract for the US Army's LTAMDS radar - Lockheed Martin High confidence· Market share 10% · FY2025 · 10-K (11% FY2024, 13% FY2023)
Defense processing and RF subsystems to primes like Lockheed Martin — representative of the prime channel (80%+ of revenue).Confirms EN GlobeNewswire Published May 10, 2022: Mercury and Lockheed Martin collaborate on sensor processing in Switzerland - 미 해군 (US Navy) High confidence· Market share 10% · FY2025 · 10-K
Direct end customer at 10% of FY2025 revenue; below the 10% disclosure line in FY2023-24. - Primes · defense (mission computing) High confidence
Rugged mission computing and RF to prime defense firms (300+ programs in 35 countries) — the core generating 80%+ of revenue.
Pays to
- NVIDIA Medium confidence
Ruggedizes NVIDIA commercial GPUs/processors into mission computers — the conduit for AI compute entering defense. - Intel Medium confidence
Sources embedded processors from Intel and others — the commercial-silicon cost axis of rugged computing. - RF · microelectronics (undisclosed) Low confidence
RF/microelectronics parts and in-house manufacturing (Phoenix fab) — the cost axis of subsystem performance (undisclosed).
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| Airbus | lead2 | +34.8 | +3.9 | +30.5 | +15 | +18.3 | +4.8 |
| Boeing | lead2 | -6 | -5.4 | +36.8 | -32.1 | +22.7 | -2.2 |
| Leonardo S.p.A. | lead2 | +11.3 | +50.3 | +73.6 | +89.1 | +88.1 | -9.3 |
| Textron | lead2 | +59.9 | -8.2 | +13.7 | -4.8 | +14.1 | -9.3 |
| Korea Aerospace Industries | lead2 | +15.4 | +34.6 | +7 | +5.5 | +217.9 | -24.6 |
| RTX | lead1 | +23.3 | +20 | -14.4 | +40.8 | +61.4 | +10.7 |
| Lockheed Martin | lead1 | +3.2 | +40.5 | -4.3 | +10 | +2.5 | +10.6 |
| Mercury Systems | node | -37.5 | -18.7 | -18.3 | +14.8 | +73.8 | +12.9 |
| Intel | benef1 | +6.1 | -46.6 | +94.6 | -59.6 | +84 | +159.6 |
| NVIDIA | benef1 | +125.5 | -50.3 | +239 | +171.2 | +38.9 | +23.7 |
| AT&S | benef2 | +57.5 | -22 | -27.6 | -41.3 | +188.9 | +334.1 |
| Micron Technology | benef2 | +24.2 | -45.9 | +71.9 | -1 | +240.2 | +256.4 |
| Nan Ya PCB | benef2 | +110.6 | -46.7 | -0.5 | -38.3 | +188.2 | +172.1 |
| Nebius Group | benef2 | · | · | · | · | +202.2 | +170.5 |
| Kioxia | benef2 | · | · | · | · | +1082.1 | +155 |
| Ibiden | benef2 | +30.4 | -19.6 | +51.6 | -38.6 | +261 | +149.3 |
| Lumentum | benef2 | +11.6 | -50.7 | +0.5 | +60.1 | +339.1 | +139.1 |
| Unimicron | benef2 | +133.5 | -30.2 | +35.2 | -19.7 | +175.7 | +138.8 |
| ASE Technology | benef2 | +38.3 | -12.8 | +60.9 | +10.1 | +65.6 | +135.3 |
| Murata Manufacturing | benef2 | -14 | -11.7 | +24.7 | -16.5 | +29.9 | +131.5 |
| Astera Labs | benef2 | · | · | · | · | +25.6 | +86.6 |
| SK hynix | benef2 | -0.4 | -25.6 | +53.9 | +48.6 | +361.1 | +81.6 |
| Corning | benef2 | +5.9 | -11.6 | -1.2 | +60.6 | +87.8 | +77.2 |
| Keysight Technologies | benef2 | +56.3 | -17.2 | -7 | +1 | +26.5 | +61 |
| Samsung Electronics | benef2 | -9 | -14.2 | +20.9 | -26.4 | +212.9 | +59.7 |
| Wistron | benef2 | +7.9 | +9.7 | +272.7 | -1.6 | +22.7 | +57.3 |
| Coherent | benef2 | -10 | -48.6 | +24 | +117.6 | +94.8 | +52.7 |
| Delta Electronics | benef2 | -3.4 | +10.4 | -0.3 | +59.2 | +183.8 | +50.4 |
| Pegatron | benef2 | -5.9 | +0.6 | +35.3 | +21.2 | -23.8 | +43 |
| TSMC | benef2 | +12.1 | -36.7 | +42.3 | +92.6 | +55.9 | +41.9 |
| onsemi | benef2 | +107.5 | -8.2 | +33.9 | -24.5 | -14.1 | +37.4 |
| Monolithic Power | benef2 | +35.5 | -27.8 | +79.8 | -5.6 | +54.5 | +35.5 |
| Analog Devices | benef2 | +21 | -4.9 | +23.4 | +8.8 | +29.8 | +34.8 |
| Eoptolink | benef2 | -10.1 | -27.7 | +136.6 | +197 | +368.8 | +29.1 |
| InnoLight | benef2 | -30.7 | -18.3 | +253.7 | +12 | +468.1 | +25.6 |
| Digital Realty | benef2 | +30.7 | -41 | +39.9 | +35.9 | -10.1 | +23.4 |
| Amphenol | benef2 | +34.4 | -12.5 | +30.8 | +40.7 | +95.3 | +22.7 |
| ABB | benef2 | +23.9 | +7.3 | +18.9 | +39 | +36.1 | +18.4 |
| BlackRock | benef2 | +29.4 | -20.4 | +17.9 | +29.3 | +6.6 | +6 |
| Luxshare Precision | benef2 | -11.9 | -30.2 | -21.2 | +58.8 | +29.3 | +5.6 |
| Nikon | benef2 | +46.2 | +10.9 | +23.1 | +13.7 | +19.7 | -2.4 |
| King Yuan Electronics (KYEC) | benef2 | +26.7 | -7.7 | +132.4 | +38.6 | +171 | -6.7 |
| TE Connectivity | benef2 | +35.1 | -27.7 | +24.6 | +3.5 | +61.1 | -7.3 |
| Recursion Pharmaceuticals | benef2 | · | -55 | +27.9 | -31.4 | -39.5 | -11.2 |
| Mobileye | benef2 | · | · | +23.6 | -54 | -47.6 | -18 |
| BYD Electronics | benef2 | -56.1 | +16 | -0.4 | +60.6 | -19.4 | -24.1 |
YTD as of 2026-09-04 · source: Yahoo Finance
Mercury Systems operates across Defense processing & RF subsystems. It is +12.9% in 2026. The supply side (avg +91.6%) has moved harder than the stock (+12.9%). That is the classic bottleneck pattern: supplier volume leverage is being priced before this layer's own margin. Among connected nodes the furthest ahead is Intel (+159.6%) and the furthest behind is Lockheed Martin (+10.6%). If chain logic explains the gap, the laggard is the next propagation candidate; if not, the link itself deserves a second look. It ruggedizes commercial semiconductors to defense grade for primes, a bridge between defense and semiconductors.
Analysis generated from returns as of 2026-09-04Analyst ratings
Consensus: Buy 2 · Hold 0 · Sell 1 · Avg. target $86 · Price $82.42 (09-04) · Upside +4%