Parsons (NYSE:PSN) Issues Earnings Results

Parsons (NYSE:PSN) posted its earnings results on Wednesday. The company reported $0.79 earnings per share for the quarter, topping analysts’ consensus estimates of $0.70 by $0.09, FiscalAI reports. Parsons had a net margin of 3.62% and a return on equity of 11.52%. The firm had revenue of $1.49 billion for the quarter, compared to analyst estimates of $1.50 billion. During the same period in the previous year, the firm posted $0.60 EPS. The company’s revenue for the quarter was down 4.1% compared to the same quarter last year.

Here are the key takeaways from Parsons’ conference call:

• Parsons reported a record adjusted EBITDA margin of 10.1% (driven by a 10.8% CI margin), citing improved execution and contributions from accretive acquisitions.
• Total backlog reached a record $9.3 billion with funded backlog of $6.6 billion, a robust enterprise book-to-bill of 1.4x and an additional $11 billion of awarded contracts not yet booked.
• Management closed the acquisition of Altamira (up to $375M) to expand signals‑intelligence, space and missile‑warning capabilities and said M&A remains the primary capital deployment tool with 2–4 deals expected this year.
• The company reaffirmed 2026 guidance but trimmed Q2 expectations due to award timing; meanwhile, SG&A rose ~10% from acquisition/transaction costs and DSO increased by 14 days, reflecting some short‑term working capital pressure.
• Parsons emphasized resilience in the Middle East—all 7,500 regional employees are safe, the region delivered solid results and management expects continued post‑conflict demand for defense, infrastructure and reconstruction work.

Parsons Trading Down 0.3%

Shares of NYSE:PSN traded down $0.13 during trading on Friday, reaching $50.28. The stock had a trading volume of 1,127,838 shares, compared to its average volume of 1,280,813. The firm’s fifty day moving average is $56.93 and its 200 day moving average is $67.75. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.75 and a current ratio of 1.75. Parsons has a 52 week low of $49.38 and a 52 week high of $89.50. The stock has a market cap of $5.32 billion, a price-to-earnings ratio of 24.07, a P/E/G ratio of 1.57 and a beta of 0.73.

Institutional Investors Weigh In On Parsons

A number of institutional investors have recently modified their holdings of PSN. Public Employees Retirement System of Ohio raised its holdings in Parsons by 0.9% during the third quarter. Public Employees Retirement System of Ohio now owns 17,029 shares of the company’s stock worth $1,412,000 after buying an additional 144 shares during the last quarter. Kennedy Capital Management LLC raised its holdings in Parsons by 0.4% during the fourth quarter. Kennedy Capital Management LLC now owns 47,680 shares of the company’s stock worth $2,947,000 after buying an additional 194 shares during the last quarter. NewEdge Advisors LLC raised its holdings in Parsons by 38.0% during the first quarter. NewEdge Advisors LLC now owns 959 shares of the company’s stock worth $57,000 after buying an additional 264 shares during the last quarter. Bank of Montreal Can raised its holdings in Parsons by 5.4% during the fourth quarter. Bank of Montreal Can now owns 7,003 shares of the company’s stock worth $433,000 after buying an additional 360 shares during the last quarter. Finally, UMB Bank n.a. raised its holdings in Parsons by 59.6% during the fourth quarter. UMB Bank n.a. now owns 972 shares of the company’s stock worth $60,000 after buying an additional 363 shares during the last quarter. 98.02% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of research firms have weighed in on PSN. Citigroup reduced their target price on shares of Parsons from $70.00 to $65.00 and set a “buy” rating on the stock in a report on Thursday. Truist Financial reduced their target price on shares of Parsons from $85.00 to $75.00 and set a “buy” rating on the stock in a report on Monday, April 20th. UBS Group reduced their target price on shares of Parsons from $104.00 to $95.00 and set a “buy” rating on the stock in a report on Thursday, February 12th. Barclays reduced their target price on shares of Parsons from $78.00 to $70.00 and set an “overweight” rating on the stock in a report on Tuesday, March 31st. Finally, Zacks Research raised shares of Parsons from a “strong sell” rating to a “hold” rating in a research note on Monday, April 13th. Nine investment 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, Parsons has a consensus rating of “Moderate Buy” and a consensus target price of $78.17.

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.