Defense tech · MRCY
Mercury Systems (MRCY) gets 97% of its revenue from the U.S. government
What Mercury Systems reports in its FY2026 10-K, and what federal contract records show.
Summary
Mercury Systems reported that 97% of its FY2026 revenue came from the U.S. government: about $951M by our calculation of $980M in total. That ranks 3rd of the 30 companies we cover that disclose a share. The share was unchanged from FY2025.
Federal agencies obligated $100M in prime contracts to the 2 recipient records we matched to Mercury Systems in federal fiscal year 2025, 100% of it from the Department of Defense. That is far below the revenue the company reports, so the comparison is withheld while we review the match.
Share of revenue over time
Mercury Systems: U.S. government share of revenue, by fiscal year
What Mercury Systems counts as government revenue
- Definition used
- U.S. government and defense primes combined
- Foreign military sales
- Not applicable
- Subcontract work
- Included (work as a subcontractor to other contractors counts)
- Adjusted ex-FMS share
- Same as reported
“… some cases directly, to the U.S. government, as well as foreign governments, accounted for approximately 97%, 97% and 95% of our total net revenues in fiscal years 2026, 2025 and …”
Mercury Systems, FY2026 Form 10-K · read the filing
Overstates pure U.S. government share.
The contract record
Prime contract obligations on USAspending.gov for the 2 recipient records we matched to Mercury Systems (obligations are not revenue).
In FFY2025, 100% of these obligations came from the Department of Defense and 0% from civilian agencies.
Contract obligations by awarding agency, FFY2025
Top 4 awarding sub-agencies; the rest grouped as Other.
| Awarding agency | Obligations | Share |
|---|---|---|
| Department of the Navy | $71.1M | 71% |
| Department of the Air Force | $24.0M | 24% |
| Defense Logistics Agency | $4.8M | 4.8% |
| Department of the Army | $171K | 0.2% |
Obligations by federal fiscal year
| Federal fiscal year | Obligations | Note |
|---|---|---|
| FFY2026 | $52.1M | preliminary DoD data posts with a 90-day delay |
| FFY2025 | $100M | Matched to FY2026 |
| FFY2024 | $98.2M | |
| FFY2023 | $144M | |
| FFY2022 | $142M | |
| FFY2021 | $69.5M |
Largest contracts active in FFY2025
Ranked by total obligated value to date on each award (all years), among awards with activity in FFY2025. Links open the award on USAspending.gov.
| Award | Agency | Description | Obligated to date | Period |
|---|---|---|---|---|
| N0001922C0038Mercury Mission Systems Llc | Department of the Navy | DTU, 1553 DTU, HDVR | $104M | 2022–2027 |
| FA823222F0084Mercury Mission Systems Llc | Department of the Air Force | SMDS FIRST ORDER | $35.5M | 2022–2027 |
| FA863425CB004Mercury Mission Systems Llc | Department of the Air Force | F-15 DATA TRANSFER MODULE (DTM) II MERCURY MISSION SYSTEMS PRODUCTION. | $16.9M | 2025–2028 |
| N0001925F0066Mercury Mission Systems Llc | Department of the Navy | PROCUREMENT OF DATA TRANSFER UNITS, REMOVABLE STORAGE MODULES, AND DOCKING STATION CABLES IN SUPPORT OF THE V-22 AIRCRAFT. | $16.5M | 2025–2027 |
| N0042125F0384Mercury Mission Systems Llc | Department of the Navy | YEAR ONE - P/N 4705-01000-15-103 | $13.4M | 2025–2026 |
| FA823224F0015Mercury Mission Systems Llc | Department of the Air Force | F-16 SECURE MISSION DATA SYSTEM | $8.2M | 2023–2027 |
| N0038325FE903Mercury Mission Systems Llc | Department of the Navy | TRANSFER UNIT,PROGR | $6.4M | 2025–2027 |
| N0001925F0016Mercury Mission Systems Llc | Department of the Navy | NRE FOR DTU PARTIAL RE-DESIGN | $6.4M | 2025–2027 |
| N0042125F0611Mercury Mission Systems Llc | Department of the Navy | NON-RECURRING ENGINEERING | $6.4M | 2025–2029 |
| N0042124F1088Mercury Mission Systems Llc | Department of the Navy | YEAR ONE - P/N 4705-01000-15-103 | $5.6M | 2024–2026 |
Recipients we matched to Mercury Systems
These USAspending recipient records are rolled into the figures above. Readers can check each one; if a match looks wrong, tell us.
| Recipient name | UEI | How matched | FFY2025 obligations |
|---|---|---|---|
| MERCURY MISSION SYSTEMS LLC | GELNG3K35FA5 | USAspending parentMERCURY SYSTEMS INC | $100M |
| PHYSICAL OPTICS CORPORATION | DG3AB4E8R4D8 | USAspending parentMERCURY SYSTEMS INC | — |
Peers
Related analysis
-
Company exposure · latest annual reports
Ten public companies get at least 80% of their revenue from Washington. Only one of the five biggest contractors is among them.
We read the latest 10-K of 40 companies that sell to the U.S. government. The ones most exposed to a budget fight are mostly mid-size service and technology firms, not the household-name primes.
-
Signature analysis · obligation ratio
What companies say vs. what the contracts show: for eighteen of 22 companies, a year of federal contracts comes to less than the government revenue they report
We matched each company's subsidiaries to federal contract records on USAspending.gov and divided a year of contract obligations by the U.S. government revenue in its 10-K. Most results fall below 1.0. Five are withheld while we check the match.
-
Contract record · movers
Contract obligations: BWX Technologies up 233.6%, Leonardo DRS down 57.3% in FFY2026
Federal contract obligations to 25 of 35 covered companies rose in FFY2026 through July 3, 2026 compared with the same period of FFY2025. Obligations are commitments, not revenue, but they show where agencies are putting new money.
-
How-to · reading filings
How to read a 10-K's government revenue disclosure: one question, many definitions
We read the latest annual report of 40 companies that sell to the U.S. government. Ten gave no company-wide percentage, and the rest defined “U.S. government” in different ways. Here is what to look for before you compare them.
-
Definitions · latest annual reports
Five of the sixteen defense companies we cover count foreign military sales as U.S. government revenue. Only General Dynamics says how much.
We read how each defense and aerospace company's 10-K defines its U.S. government revenue. Where a company discloses its foreign military sales, we take them out. Where it doesn't, we say so instead of guessing.
-
Filing watch · weekly
Filing watch: CACI International's new 10-K mentions budget and contract risks 7 times, up from 1
39 covered companies filed a 10-K or 10-Q in the past 90 days. We count how often each filing mentions continuing resolutions, shutdowns, termination for convenience and other federal budget risks, and compare it with the company's previous filing of the same type.
-
Recurring analysis · share changes
The biggest shifts in federal dependence: AeroVironment up 19 points, Boeing down 14
We lined up up to five years of 10-K figures for every company that reports a U.S. government share. Most moved by a few points. The big moves have different causes, and the cause matters more than the size.
Sources
- Mercury Systems, FY2026 annual report (U.S. government share) (accessed October 15, 2026)
- Mercury Systems, FY2025 annual report (U.S. government share) (accessed October 16, 2026)
- SEC XBRL company facts for Mercury Systems (revenue history) (accessed October 16, 2026)
- USAspending.gov recipient profile: Mercury Mission Systems Llc (accessed October 16, 2026)
- USAspending.gov API, prime contract awards (award types A–D) (accessed October 16, 2026)
- Federal Exposure methodology