Parsons (NYSE:PSN) Announces Quarterly Earnings Results

Parsons (NYSE:PSN) posted its quarterly earnings data on Wednesday. The company reported $0.75 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.81 by ($0.06), FiscalAI reports. The business had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.68 billion. Parsons had a net margin of 3.79% and a return on equity of 11.81%. The business’s revenue for the quarter was down 7.5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.78 EPS.

Here are the key takeaways from Parsons’ conference call:

• Delivered strong 2025 results with 12% total revenue growth (8% organic excluding a confidential contract), a company-record 9.6% adjusted EBITDA margin, and 100% free cash flow conversion, while repurchasing shares and completing strategic M&A.
• Federal Solutions profitability weakened — full-year adjusted EBITDA fell ~32% and Q4 federal adjusted EBITDA declined due to lower volume on a fixed-price confidential contract and execution challenges on a remote program.
• Won multiple large awards in Q4 and early Q1 (notably a $392M biometrics contract, a $200M classified contract, a $125M HPC contract, a >$100M Nammo industrial contract, a $593M early FAA extension, and an intent-to-award up to $500M), supporting backlog and near-term revenue visibility.
• Strengthened capabilities via acquisitions — closed Applied Sciences in Q4 and announced the all-cash acquisition of Altamira (up to $375M), adding cleared talent and AI/ML, signals, and software expertise to bolster federal/intelligence offerings.
• 2026 guidance targets $6.5–6.8B revenue and $615–675M adjusted EBITDA but factors in an expected ~$345M headwind from the concluding confidential contract; company reiterates mid-single-digit organic growth and a goal of double-digit margins by 2028.

Parsons Price Performance

Shares of PSN traded up $1.52 during mid-day trading on Friday, reaching $64.19. The company had a trading volume of 355,961 shares, compared to its average volume of 1,226,734. The company has a market capitalization of $6.84 billion, a price-to-earnings ratio of 29.10, a P/E/G ratio of 3.37 and a beta of 0.66. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.67 and a current ratio of 1.75. The company’s 50 day simple moving average is $66.62 and its 200 day simple moving average is $76.21. Parsons has a 1-year low of $54.56 and a 1-year high of $89.50.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on PSN. Robert W. Baird cut their target price on Parsons from $100.00 to $82.00 and set an “outperform” rating for the company in a research report on Monday, December 8th. Truist Financial reaffirmed a “buy” rating and set a $85.00 price objective (down previously from $90.00) on shares of Parsons in a research report on Thursday. William Blair upgraded shares of Parsons from a “market perform” rating to an “outperform” rating in a research note on Thursday, November 20th. Citigroup boosted their target price on shares of Parsons from $86.00 to $88.00 and gave the company a “buy” rating in a research report on Tuesday, January 13th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Parsons in a report on Monday, December 29th. Twelve analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, Parsons has an average rating of “Moderate Buy” and an average target price of $83.92.

Institutional Trading of Parsons

Hedge funds and other institutional investors have recently modified their holdings of the stock. NewEdge Advisors LLC lifted its stake in shares of Parsons by 38.0% in the 1st quarter. NewEdge Advisors LLC now owns 959 shares of the company’s stock valued at $57,000 after acquiring an additional 264 shares during the last quarter. Jones Financial Companies Lllp increased its holdings in Parsons by 433.9% in the 1st quarter. Jones Financial Companies Lllp now owns 1,260 shares of the company’s stock worth $75,000 after purchasing an additional 1,024 shares in the last quarter. Sivia Capital Partners LLC bought a new position in Parsons in the second quarter valued at about $228,000. Prudential Financial Inc. boosted its stake in shares of Parsons by 40.9% during the second quarter. Prudential Financial Inc. now owns 5,945 shares of the company’s stock valued at $427,000 after purchasing an additional 1,725 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. boosted its stake in shares of Parsons by 176.0% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 828 shares of the company’s stock valued at $59,000 after purchasing an additional 528 shares in the last quarter. Institutional investors own 98.02% of the company’s stock.

Parsons Company Profile

Parsons Corporation (NYSE: PSN) is a technology-driven engineering, construction, technical and professional services firm. The company delivers end-to-end solutions that span feasibility studies, design and engineering, construction management, system integration and ongoing operations support. Parsons serves both government and commercial clients and focuses on critical infrastructure, defense, security, intelligence and environmental programs.

Core services include program and construction management for transportation systems, water and environmental infrastructure, cybersecurity and advanced systems integration.