Mercury Systems announced on January 15 2026 that it has secured more than $60 million in new contracts for U.S. space and strategic weapons programs. The awards were actually granted in December 2025, but the company disclosed them in its January 15 announcement. The total value includes a development‑contract extension that will run through 2031 and a new subsystem contract for a second customer in the space program.
The development‑contract extension, originally awarded in 2023, now extends through 2031, providing a predictable revenue stream for Mercury’s radiation‑hardened data and signal‑processing technology. The long‑term nature of the award underscores the U.S. government’s confidence in Mercury’s Common Processing Architecture (CPA) and its ability to deliver high‑performance, radiation‑tolerant solutions for strategic weapons systems.
The new subsystem contract, awarded in 2024, incorporates AMD Versal AI Core series FPGAs and 4.5 TB of storage—an unprecedented combination for Mercury’s wide‑band platform. The critical design review has been completed, clearing the way for production and flight testing units. This contract demonstrates the platform’s scalability and the company’s growing footprint in the space sector.
These awards reinforce Mercury’s strategic shift from low‑margin custom development to high‑margin production of its CPA‑based solutions. The long‑term extension and the new subsystem order are expected to generate recurring revenue, support margin expansion, and strengthen the company’s backlog, which reached $1.4 billion at the end of Q1 FY2026. The contracts also validate Mercury’s technology and position the company to capture additional demand in the defense and space markets, where geopolitical tensions and increased defense spending are driving procurement.
Senior Vice President of Integrated Processing Solutions Roya Montakhab said the contracts “highlight the growing demand for our technology in critical national security programs.” Analysts have noted the awards as evidence of Mercury’s execution strength and its ability to secure high‑value, long‑term contracts, which should bolster investor confidence in the company’s growth trajectory.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.