Parsons (NYSE:PSN) Posts Quarterly Earnings Results, Misses Expectations By $0.06 EPS

Parsons (NYSE:PSN) released its quarterly earnings data on Wednesday. The company reported $0.75 EPS for the quarter, missing analysts’ consensus estimates of $0.81 by ($0.06), FiscalAI reports. Parsons had a return on equity of 11.98% and a net margin of 3.69%.The company had revenue of $1.60 billion for the quarter, compared to analysts’ expectations of $1.68 billion. During the same period in the prior year, the firm posted $0.78 EPS. The firm’s quarterly revenue was down 7.5% on a year-over-year basis.

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 Stock Down 13.1%

Shares of Parsons stock traded down $9.17 on Wednesday, hitting $61.04. 1,545,107 shares of the company’s stock traded hands, compared to its average volume of 1,088,665. The stock has a market cap of $6.50 billion, a P/E ratio of 27.96, a PEG ratio of 3.89 and a beta of 0.66. The firm’s 50-day moving average is $67.51 and its 200 day moving average is $76.41. The company has a quick ratio of 1.67, a current ratio of 1.67 and a debt-to-equity ratio of 0.46. Parsons has a 52-week low of $54.56 and a 52-week high of $89.50.

Wall Street Analyst Weigh In

PSN has been the topic of a number of research reports. KeyCorp upped their price target on Parsons from $76.00 to $80.00 and gave the stock an “overweight” rating in a report on Tuesday, January 20th. William Blair raised shares of Parsons from a “market perform” rating to an “outperform” rating in a research note on Thursday, November 20th. Jefferies Financial Group reaffirmed a “hold” rating on shares of Parsons in a research note on Thursday, January 15th. Raymond James Financial downgraded shares of Parsons from a “strong-buy” rating to a “market perform” rating in a report on Friday, December 5th. Finally, Citigroup upped their target price on Parsons from $86.00 to $88.00 and gave the company a “buy” rating in a research note on Tuesday, January 13th. Twelve investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, Parsons currently has an average rating of “Moderate Buy” and an average price target of $85.54.

Institutional Trading of Parsons

A number of institutional investors and hedge funds have recently modified their holdings of PSN. Los Angeles Capital Management LLC bought a new position in shares of Parsons during the fourth quarter worth about $32,000. NewEdge Advisors LLC grew its position in Parsons by 38.0% in the 1st quarter. NewEdge Advisors LLC now owns 959 shares of the company’s stock worth $57,000 after purchasing an additional 264 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its stake in shares of 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 purchasing an additional 528 shares during the period. Jones Financial Companies Lllp raised its holdings in shares of Parsons by 433.9% during the first quarter. Jones Financial Companies Lllp now owns 1,260 shares of the company’s stock valued at $75,000 after buying an additional 1,024 shares during the last quarter. Finally, EverSource Wealth Advisors LLC raised its holdings in shares of Parsons by 960.5% during the second quarter. EverSource Wealth Advisors LLC now owns 2,068 shares of the company’s stock valued at $148,000 after buying an additional 1,873 shares during the last quarter. 98.02% of the stock is owned by institutional investors and hedge funds.

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.