HIGHBuilt-inCustomer
97%
U.S. government and foreign governments
“10-K Item 1A: 'to the U.S. government, as well as foreign governments, accounted for approximately 97%, 97% and 95% of our total net revenues'”
MRCY · Concentration risk · 10-K extracted
Mercury Systems (MRCY) concentration risks
Updated
The most significant concentration Mercury Systems discloses is U.S. government and foreign governments at 97%, classified HIGH by disclosed size. Below: the full set from the latest 10-K — verbatim quotes, filing references, and a synthesis of what these exposures mean together.
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Source: Mercury Systems’s SEC Form 10-K filed — view the filing on SEC EDGAR ↗
At a glance
Disclosed-size breakdown · 5 disclosed concentrations
HIGH2
MEDIUM0
LOW3
Disclosed concentrations
Each card carries a disclosed-size chip (HIGH / MEDIUM / LOW — how large the exposure is as a share of revenue, not how dangerous it is) and a nature tag: Built-in(the company’s own model, geography, or products) or Outside party (an external customer, supplier, or distributor it relies on).
HIGHOutside partySupplier
sole-source suppliers
“10-K Item 1A: 'Several components used in our products are currently obtained from sole-source suppliers.'”
LOWOutside partyCustomer
15%
RTX Corporation
“10-K Item 1A: 'In fiscal 2026, RTX Corporation accounted for 15% of our total net revenues'”
LOWOutside partyCustomer
11%
Lockheed Martin
“10-K Item 1A: 'Lockheed Martin accounted for 11% of our total net revenues'”
LOWOutside partyCustomer
10%
Northrop Grumman
“10-K Item 1A: 'Northrop Grumman accounted for 10% of our total net revenues'”
TrendMatrix Research · concentration synthesis
What these concentrations mean together
updated 2026-10-18Mercury Systems is structurally tied to government demand: the U.S. government, as well as foreign governments, accounted for approximately 97% of total net revenues (97% a year earlier and 95% the year before that). This is a high-share exposure, but its character is structural, reflecting the defense electronics market rather than a counterparty-specific weakness. Beneath that, prime-contractor concentration is spread across a few names, each a low-share exposure: RTX Corporation accounted for 15% of total net revenues, Lockheed Martin for 11%, and Northrop Grumman for 10%. Each is a dependency, but none is large enough on its own to dominate, and the program-by-program nature of defense work ties them to government budgets. The supply side is the more idiosyncratic risk. Several components used in the company's products are obtained from sole-source suppliers, a high-share dependency with no disclosed percentage. Netting these out, government budget cycles set the baseline, while sole-source components are the item most likely to produce a company-specific shock.
For the engine’s reasoning on MRCY’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.
Industry peers · Aerospace & Defense
Peer concentration profile
| Symbol | Name | HIGH | MEDIUM | LOW | Total |
|---|---|---|---|---|---|
| MRCY● | Mercury Systems Inc | 2 | 0 | 3 | 5 |
| AVAV | AeroVironment, Inc. | 2 | 0 | 0 | 2 |
| AIR | AAR Corp. | 1 | 0 | 1 | 2 |
| ACHR | Archer Aviation Inc. | 1 | 0 | 0 | 1 |
| AXON | Axon Enterprise, Inc. | 0 | 2 | 0 | 2 |
| ATRO | Astronics Corporation | 0 | 0 | 1 | 1 |
Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.