Parsons (NYSE:PSN) Announces Earnings Results

Parsons (NYSE:PSN) released its quarterly earnings data on Wednesday. The company reported $0.75 EPS for the quarter, missing the consensus estimate of $0.81 by ($0.06), FiscalAI reports. The company had revenue of $1.60 billion during the quarter, compared to analysts’ expectations of $1.68 billion. Parsons had a return on equity of 11.98% and a net margin of 3.69%.The company’s revenue for the quarter was down 7.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $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 NYSE PSN traded up $1.02 on Thursday, hitting $61.27. The company’s stock had a trading volume of 775,448 shares, compared to its average volume of 1,177,145. The company has a debt-to-equity ratio of 0.46, a current ratio of 1.67 and a quick ratio of 1.67. The company has a market capitalization of $6.52 billion, a price-to-earnings ratio of 28.11, a price-to-earnings-growth ratio of 3.93 and a beta of 0.66. Parsons has a 12-month low of $54.56 and a 12-month high of $89.50. The stock has a 50 day moving average of $67.05 and a 200-day moving average of $76.30.

Key Stories Impacting Parsons

Here are the key news stories impacting Parsons this week:

• Positive Sentiment: Full‑year operational strength: Parsons reported record adjusted EBITDA ($609M) and record net income ($241M) for FY2025, plus improved adjusted EBITDA margin and several cash metrics that show profitability momentum — highlights from the company release. Parsons Reports Fourth Quarter and Fiscal Year 2025
• Positive Sentiment: Large contract wins: Management said Parsons won 15 contracts worth $100M+ each (matching last year’s record), supporting medium/long‑term backlog potential. Parsons Reports Fourth Quarter and Fiscal Year 2025
• Neutral Sentiment: Earnings call and slides: Management held its Q4/FY2025 call and posted a slide deck and transcript detailing segment performance and priorities — useful for investors wanting management’s explanation of near‑term outlook. Parsons (PSN) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Q4 revenue and EPS missed expectations: Q4 EPS was $0.75 vs. consensus ~ $0.81 and revenue was $1.60B vs. ~$1.68B — revenue down ~8% year‑over‑year; these misses are the immediate catalyst for today’s selloff. Parsons Q4 Earnings Data and Call
• Negative Sentiment: Backlog decline and contract headwinds: Deep‑dive reporting and management commentary highlighted a declining backlog and softer wins in some segments, pressuring near‑term revenue visibility and contributing to the negative market reaction. PSN Q4 Deep Dive: Backlog Declines and Missed Estimates Amid Contract Headwinds
• Negative Sentiment: Market reaction and analyst coverage: Coverage notes and independent writeups point to the Q4 miss plus guidance ambiguity as drivers of a sharp intraday drop in the stock; investor focus will be on whether FY2026 guidance (revenue range provided) and upcoming wins restore confidence. Why Parsons Corporation’s (PSN) Stock Is Down 9.78%

Institutional Trading of Parsons

A number of hedge funds have recently added to or reduced their stakes in the business. AQR Capital Management LLC increased its stake in shares of Parsons by 151.5% during the 2nd quarter. AQR Capital Management LLC now owns 1,061,614 shares of the company’s stock valued at $75,173,000 after acquiring an additional 639,481 shares during the last quarter. Alyeska Investment Group L.P. acquired a new position in Parsons during the third quarter worth approximately $38,880,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Parsons by 44.7% in the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,032,760 shares of the company’s stock valued at $85,636,000 after purchasing an additional 318,841 shares during the last quarter. Primecap Management Co. CA boosted its holdings in shares of Parsons by 44.8% in the 4th quarter. Primecap Management Co. CA now owns 650,700 shares of the company’s stock valued at $40,213,000 after purchasing an additional 201,400 shares during the last quarter. Finally, Nomura Holdings Inc. grew its stake in shares of Parsons by 1,760.7% during the 3rd quarter. Nomura Holdings Inc. now owns 158,349 shares of the company’s stock valued at $13,130,000 after buying an additional 149,839 shares during the period. 98.02% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Stifel Nicolaus lowered their target price on shares of Parsons from $94.00 to $90.00 and set a “buy” rating on the stock in a research note on Tuesday, December 23rd. Barclays boosted their price target on shares of Parsons from $70.00 to $78.00 and gave the stock an “overweight” rating in a research report on Friday, January 23rd. TD Cowen upgraded shares of Parsons from a “hold” rating to a “buy” rating and cut their price objective for the company from $90.00 to $75.00 in a report on Wednesday, December 10th. Raymond James Financial lowered Parsons from a “strong-buy” rating to a “market perform” rating in a research report on Friday, December 5th. Finally, Jefferies Financial Group reaffirmed a “hold” rating on shares of Parsons in a report on Thursday, January 15th. Twelve analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $84.62.

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.