Mercury Systems (MRCY) stock plummeted 13.10% during Wednesday's intraday trading session, extending losses from the previous session.

The sharp decline was driven by investor reaction to the company's second-quarter fiscal 2026 financial results, which revealed a GAAP net loss of $15 million, or a loss of $0.26 per share. This negative bottom-line result overshadowed better-than-expected revenue of $233 million and adjusted earnings per share of $0.16, which beat analyst estimates.

The negative sentiment from the earnings report has continued to weigh on the stock, despite recent analyst price target increases from several financial institutions.