Parsons (NYSE:PSN) Releases 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 net margin of 3.69% and a return on equity of 11.98%. The firm had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.68 billion. During the same quarter last year, the business posted $0.78 earnings per share. Parsons’s revenue was down 7.5% compared to the same quarter last year.

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 13.0%

Shares of PSN stock traded down $9.11 during trading on Wednesday, reaching $61.10. The company’s stock had a trading volume of 1,350,917 shares, compared to its average volume of 1,074,431. The company has a market capitalization of $6.51 billion, a price-to-earnings ratio of 28.31, a P/E/G ratio of 3.89 and a beta of 0.66. Parsons has a 1-year low of $54.56 and a 1-year high of $89.50. The stock’s 50-day moving average price is $67.51 and its 200 day moving average price is $76.41. The company has a debt-to-equity ratio of 0.46, a current ratio of 1.67 and a quick ratio of 1.67.

Wall Street Analyst Weigh In

Several equities analysts recently commented on PSN shares. Stifel Nicolaus reduced their target price on Parsons from $94.00 to $90.00 and set a “buy” rating for the company in a research report on Tuesday, December 23rd. Weiss Ratings restated a “hold (c)” rating on shares of Parsons in a research report on Monday, December 29th. William Blair raised shares of Parsons from a “market perform” rating to an “outperform” rating in a report on Thursday, November 20th. Jefferies Financial Group restated a “hold” rating on shares of Parsons in a research report on Thursday, January 15th. Finally, Robert W. Baird cut their price objective on shares of Parsons from $100.00 to $82.00 and set an “outperform” rating on the stock in a research report on Monday, December 8th. Twelve research 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, the company currently has a consensus rating of “Moderate Buy” and an average price target of $85.54.

Institutional Trading of Parsons

Several institutional investors and hedge funds have recently added to or reduced their stakes in PSN. Los Angeles Capital Management LLC purchased a new position in Parsons during the 4th quarter worth $32,000. NewEdge Advisors LLC boosted its holdings in 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 purchasing an additional 264 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position in Parsons by 176.0% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 828 shares of the company’s stock worth $59,000 after purchasing an additional 528 shares during the period. Jones Financial Companies Lllp raised its stake in shares of Parsons by 433.9% during the 1st quarter. Jones Financial Companies Lllp now owns 1,260 shares of the company’s stock worth $75,000 after buying an additional 1,024 shares in the last quarter. Finally, EverSource Wealth Advisors LLC lifted its holdings in shares of Parsons by 960.5% in the 2nd 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 period. 98.02% of the stock is owned by hedge funds and other institutional investors.

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.