Parsons (NYSE:PSN) Issues Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Parsons (NYSE:PSN) released its quarterly earnings results on Wednesday. The company reported $0.89 EPS for the quarter, beating analysts’ consensus estimates of $0.80 by $0.09, FiscalAI reports. The company had revenue of $1.65 billion for the quarter, compared to analyst estimates of $1.62 billion. Parsons had a net margin of 2.33% and a return on equity of 8.11%. The company’s quarterly revenue was up 1.8% compared to the same quarter last year. During the same quarter last year, the firm posted $0.86 earnings per share.

Here are the key takeaways from Parsons’ conference call:

• Record profitability and cash flow: Third-quarter adjusted EBITDA rose 6% to $168 million, margin expanded 40 basis points to a record 10.2%, and operating cash flow reached $269 million, well above expectations.
• Strong bookings and backlog support growth: Contract awards increased 14% year over year to $1.8 billion, producing a 1.1x book-to-bill ratio, while total backlog reached a record $9.4 billion and funded backlog rose to $6.8 billion, or 73% of total backlog.
• Federal Solutions momentum is building: Federal awards increased 53% year over year, supported by major cyber, missile defense, space, and electronic warfare wins; management expects federal growth to outpace Critical Infrastructure in 2027, although protests are delaying revenue conversion.
• 2026 guidance was narrowed but not raised: Revenue guidance is now $6.25 billion–$6.45 billion and adjusted EBITDA guidance is $510 million–$550 million; operating cash flow guidance remains $430 million–$490 million despite the strong third quarter, reflecting geopolitical uncertainty.
• Execution and leadership risks remain: The company continues to face weather, schedule, contract-modification, and cost risks on its Canadian joint venture, while CFO Matt Ofilos is stepping down and George Ball will serve as interim CFO beginning November 6.

Parsons Stock Performance

PSN traded up $0.97 during trading hours on Friday, hitting $50.30. The stock had a trading volume of 917,899 shares, compared to its average volume of 1,292,933. The company’s fifty day simple moving average is $45.60 and its 200 day simple moving average is $54.25. The stock has a market cap of $5.37 billion, a PE ratio of 36.66, a price-to-earnings-growth ratio of 4.25 and a beta of 0.72. The company has a quick ratio of 1.66, a current ratio of 1.59 and a debt-to-equity ratio of 0.49. Parsons has a 1 year low of $36.26 and a 1 year high of $88.00.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on PSN. Truist Financial reissued a “buy” rating and issued a $60.00 price target (down from $75.00) on shares of Parsons in a research note on Thursday, July 30th. Stifel Nicolaus cut their price objective on shares of Parsons from $79.00 to $66.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. Barclays cut their price objective on shares of Parsons from $70.00 to $60.00 and set an “overweight” rating for the company in a research report on Thursday, July 30th. Weiss Ratings reissued a “sell (d+)” rating on shares of Parsons in a report on Wednesday. Finally, Robert W. Baird raised shares of Parsons from a “neutral” rating to an “outperform” rating and raised their price target for the company from $48.00 to $57.00 in a research note on Friday, August 21st. Eleven analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Parsons presently has an average rating of “Moderate Buy” and a consensus target price of $63.50.

Insider Activity at Parsons

In other news, Director George Ball purchased 20,000 shares of the stock in a transaction on Friday, August 7th. The shares were acquired at an average price of $47.97 per share, for a total transaction of $959,400.00. Following the completion of the transaction, the director directly owned 170,383 shares of the company’s stock, valued at approximately $8,173,272.51. This trade represents a 13.30% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. Insiders own 1.31% of the company’s stock.

Parsons Company Profile

Parsons Corporation (NYSE: PSN) is a technology-driven solutions provider serving government and commercial customers in the defense, intelligence, critical infrastructure and transportation markets. The company develops and integrates solutions for complex security, engineering and infrastructure challenges, combining software, systems engineering, cybersecurity, data analytics and program management capabilities.

Parsons operates through its Federal Solutions and Critical Infrastructure segments.