Parsons (NYSE:PSN) Issues Earnings Results

Parsons (NYSE:PSN) released its earnings results on Wednesday. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of $0.76 by ($0.82), FiscalAI reports. Parsons had a net margin of 3.62% and a return on equity of 11.52%. The company had revenue of $1.59 billion for the quarter, compared to the consensus estimate of $1.61 billion. During the same period in the prior year, the company earned $0.78 earnings per share. The firm’s revenue was down .5% on a year-over-year basis.

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 Price Performance

Shares of NYSE:PSN traded down $22.80 on Wednesday, hitting $39.23. The company’s stock had a trading volume of 8,563,056 shares, compared to its average volume of 1,280,443. The company has a market capitalization of $4.20 billion, a PE ratio of 18.82, a PEG ratio of 1.87 and a beta of 0.66. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.75 and a quick ratio of 1.75. The company has a 50-day simple moving average of $55.67 and a 200 day simple moving average of $58.58. Parsons has a 1 year low of $36.26 and a 1 year high of $89.50.

Insider Transactions at Parsons

In related news, CEO Carey A. Smith acquired 12,500 shares of the firm’s stock in a transaction that occurred on Friday, May 8th. The shares were bought at an average cost of $49.97 per share, for a total transaction of $624,625.00. Following the completion of the transaction, the chief executive officer owned 575,376 shares in the company, valued at approximately $28,751,538.72. This trade represents a 2.22% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director George L. Ball acquired 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 13th. The stock was bought at an average price of $50.00 per share, for a total transaction of $500,000.00. Following the completion of the transaction, the director owned 150,383 shares of the company’s stock, valued at $7,519,150. The trade was a 7.12% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders acquired 32,500 shares of company stock valued at $1,637,325. 1.31% of the stock is owned by corporate insiders.

Institutional Trading of Parsons

A number of hedge funds have recently made changes to their positions in the stock. Dimensional Fund Advisors LP grew its position in Parsons by 1.8% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,712,937 shares of the company’s stock worth $105,863,000 after acquiring an additional 30,351 shares in the last quarter. Channing Capital Management LLC lifted its stake in Parsons by 16.8% during the fourth quarter. Channing Capital Management LLC now owns 1,484,039 shares of the company’s stock worth $91,714,000 after purchasing an additional 213,312 shares during the last quarter. AQR Capital Management LLC lifted its stake in Parsons by 151.5% during the second quarter. AQR Capital Management LLC now owns 1,061,614 shares of the company’s stock worth $75,173,000 after purchasing an additional 639,481 shares during the last quarter. 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 worth $85,636,000 after purchasing an additional 318,841 shares in the last quarter. Finally, Invesco Ltd. boosted its holdings in shares of Parsons by 5.7% in the 3rd quarter. Invesco Ltd. now owns 672,530 shares of the company’s stock worth $55,766,000 after purchasing an additional 35,973 shares in the last quarter. 98.02% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

PSN has been the topic of several recent research reports. TD Cowen reaffirmed a “buy” rating on shares of Parsons in a report on Wednesday. Jefferies Financial Group restated a “hold” rating on shares of Parsons in a research report on Wednesday, July 8th. William Blair reaffirmed an “outperform” rating on shares of Parsons in a report on Wednesday. Weiss Ratings cut shares of Parsons from a “hold (c)” rating to a “hold (c-)” rating in a research note on Friday, May 15th. Finally, Truist Financial cut their price target on shares of Parsons from $85.00 to $75.00 and set a “buy” rating for the company in a report on Monday, April 20th. Nine investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, Parsons currently has an average rating of “Moderate Buy” and an average price target of $75.82.

Key Headlines Impacting Parsons

Here are the key news stories impacting Parsons this week:

• Positive Sentiment: Parsons reported a 1.2x second-quarter book-to-bill ratio, with contract awards up 24% year over year. Federal Solutions bookings increased 51%, while total backlog reached $9.3 billion, including $6.6 billion of funded backlog. Parsons Reports Second Quarter 2026 Results
• Positive Sentiment: Critical Infrastructure revenue increased 5% year over year, and the company cited continued demand and portfolio-shaping actions intended to prioritize more profitable, sustainable growth.
• Positive Sentiment: The opening of the Gordie Howe International Bridge, for which Parsons served as owner’s engineer, highlights the company’s infrastructure expertise and may support its reputation in large transportation projects. Parsons Celebrates the Opening of the Gordie Howe International Bridge
• Neutral Sentiment: Trading in PSN was briefly halted under a limit-up/limit-down pause, reflecting unusually volatile conditions rather than a fundamental corporate announcement.
• Neutral Sentiment: Insiders reportedly made purchases in recent months, while institutional positioning was mixed, with some large investors adding shares and others reducing exposure.
• Negative Sentiment: Parsons reported a quarterly loss of $0.06 per share, far below the approximately $0.74–$0.76 analyst expectations and down from $0.78 earned a year earlier. Revenue of roughly $1.6 billion also fell short of estimates and declined about 1% year over year. Parsons Reports Q2 Loss, Lags Revenue Estimates
• Negative Sentiment: Fiscal 2026 revenue guidance was reduced to $6.2 billion–$6.5 billion versus roughly $6.7 billion expected by analysts. Results were also affected by portfolio-shaping charges and costs tied to a joint-venture program, while Federal Solutions revenue declined 6%.
• Negative Sentiment: Market-wide risk aversion intensified as oil surged amid renewed U.S.-Iran tensions and investors awaited the Federal Reserve’s interest-rate decision, creating an additional headwind for PSN.

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.