Parsons (NYSE:PSN – Get Free Report) posted its earnings results on Wednesday. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of $0.76 by ($0.82), FiscalAI reports. The company had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.61 billion. Parsons had a net margin of 3.62% and a return on equity of 11.52%. The firm’s revenue for the quarter was down .5% on a year-over-year basis. During the same quarter last year, the business posted $0.78 EPS.
Here are the key takeaways from Parsons’ conference call:
- 2026 guidance was reduced: Revenue guidance fell by $300 million at the midpoint to $6.2 billion–$6.5 billion, while adjusted EBITDA guidance was reduced by $115 million to $500 million–$560 million. The changes reflect $118 million of charges, slower infrastructure ramp-up, and federal contract funding and award delays.
- Underlying bookings and backlog remained strong. Second-quarter awards rose 24% year over year to $1.9 billion, producing a 1.2x book-to-bill ratio, while backlog reached $9.3 billion, including $6.6 billion funded. Federal Solutions bookings increased 51% and Critical Infrastructure achieved its 23rd consecutive quarter with book-to-bill at or above 1.0x.
- Normalized profitability improved, led by Critical Infrastructure. Normalized adjusted EBITDA rose 8% to $161 million, with margin expanding 70 basis points to 10.1%; Critical Infrastructure margin increased 140 basis points to 11.9%, supported by favorable mix, Middle East growth, and accretive acquisitions.
- Parsons is reshaping its portfolio by divesting two lower-margin advisory contracts and exiting two difficult remote programs, while absorbing a $41 million joint-venture charge following historic weather-related disruption. Management expects these actions to improve long-term margins and reduce risk, but the remote-contract divestiture remains subject to approval and is expected to close in the third quarter.
- Technology-led federal demand remains a key growth driver. The company won major missile defense, cyber, space, and Navy awards, with four of its five quarterly contracts exceeding $100 million incorporating artificial intelligence; management expects federal margins to expand to 9.4% in the second half as product sales and accretive contracts ramp.
Parsons Stock Up 6.1%
PSN traded up $2.48 on Thursday, hitting $42.80. 2,139,782 shares of the company were exchanged, compared to its average volume of 1,311,291. Parsons has a twelve month low of $36.26 and a twelve month high of $89.50. The company has a market cap of $4.58 billion, a price-to-earnings ratio of 20.53, a price-to-earnings-growth ratio of 1.96 and a beta of 0.66. The company has a current ratio of 1.75, a quick ratio of 1.75 and a debt-to-equity ratio of 0.55. The firm has a 50-day moving average price of $55.45 and a two-hundred day moving average price of $58.38.
Trending Headlines about Parsons
- Positive Sentiment: Parsons reported a 1.2x quarterly book-to-bill ratio, with contract awards up 24% year over year. Federal Solutions bookings increased 51%, while total backlog reached approximately $9.3 billion, supporting future revenue visibility. Parsons Reports Second Quarter 2026 Results
- Positive Sentiment: Critical Infrastructure revenue rose 5% year over year, and Parsons cited continued demand, Middle East-related resilience and strategic contract wins as factors supporting its long-term growth outlook. Parsons Reports Second Quarter 2026 Results
- Neutral Sentiment: Barclays lowered its PSN price target from $70 to $60 but maintained an “overweight” rating. The revised target still implies substantial upside, although the reduction signals increased near-term caution following the results. Barclays Price Target Update
- Negative Sentiment: Parsons reported quarterly EPS of negative $0.06, versus the consensus estimate of $0.76 and $0.78 a year earlier. Revenue was approximately $1.59 billion, slightly below the $1.61 billion consensus and down about 1% year over year. Parsons Reports Q2 Loss
- Negative Sentiment: Management cut fiscal 2026 revenue guidance to $6.2 billion-$6.5 billion from expectations of roughly $6.7 billion. Portfolio-shaping actions and charges tied to a joint-venture program contributed to the quarterly loss, raising concerns about execution and earnings visibility. Parsons Slashes Full-Year Guidance
- Negative Sentiment: The earnings shock drove PSN to a new 52-week low, indicating that investors are prioritizing the near-term profit and guidance deterioration over the company’s healthy bookings and backlog. Parsons Reaches New 12-Month Low
Insider Buying and Selling at Parsons
In related news, Director Mark Keith Holdsworth acquired 10,000 shares of the firm’s stock in a transaction dated Tuesday, May 12th. The stock was acquired at an average price of $51.27 per share, for a total transaction of $512,700.00. Following the purchase, the director owned 39,918 shares of the company’s stock, valued at $2,046,595.86. This represents a 33.42% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Carey A. Smith acquired 12,500 shares of the stock in a transaction dated Friday, May 8th. The shares were bought at an average cost of $49.97 per share, with a total value of $624,625.00. Following the completion of the transaction, the chief executive officer owned 575,376 shares of the company’s stock, valued at approximately $28,751,538.72. This represents a 2.22% increase in their position. The SEC filing for this purchase provides additional information. Insiders have purchased 32,500 shares of company stock valued at $1,637,325 in the last quarter. Corporate insiders own 1.31% of the company’s stock.
Institutional Investors Weigh In On Parsons
Large investors have recently modified their holdings of the company. Aster Capital Management DIFC Ltd acquired a new stake in shares of Parsons in the 4th quarter valued at $25,000. Los Angeles Capital Management LLC purchased a new position in Parsons in the fourth quarter valued at $32,000. NewEdge Advisors LLC increased its holdings in Parsons by 38.0% in the first quarter. NewEdge Advisors LLC now owns 959 shares of the company’s stock valued at $57,000 after buying an additional 264 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in Parsons by 176.0% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 828 shares of the company’s stock valued at $59,000 after buying an additional 528 shares in the last quarter. Finally, UMB Bank n.a. raised its stake in Parsons by 59.6% in the fourth quarter. UMB Bank n.a. now owns 972 shares of the company’s stock valued at $60,000 after buying an additional 363 shares in the last quarter. 98.02% of the stock is owned by hedge funds and other institutional investors.
Analyst Ratings Changes
A number of equities research analysts have recently weighed in on the company. Truist Financial reaffirmed a “buy” rating and issued a $60.00 price objective (down from $75.00) on shares of Parsons in a research note on Thursday. BNP Paribas Exane set a $65.00 target price on Parsons and gave the company an “outperform” rating in a report on Wednesday, May 27th. KeyCorp downgraded Parsons from an “overweight” rating to a “sector weight” rating in a research report on Tuesday, April 14th. Barclays cut their price target on shares of Parsons from $70.00 to $60.00 and set an “overweight” rating on the stock in a research note on Thursday. Finally, Robert W. Baird reissued a “neutral” rating and set a $60.00 price target on shares of Parsons in a research report on Monday, April 13th. Nine analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $71.36.
Get Our Latest Research Report on Parsons
About Parsons
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.
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