Barclays Has Lowered Expectations for Parsons (NYSE:PSN) Stock Price

Key Points

• Barclays lowered Parsons’ price target from $70 to $60 while maintaining an “overweight” rating, implying approximately 48% upside from the stock’s $40.41 price. Analysts overall rate the stock “Moderate Buy,” with a consensus target of $74.91.
• Parsons reported a quarterly adjusted loss of $0.06 per share, missing the roughly $0.74–$0.76 consensus, while revenue of $1.59 billion slightly missed estimates and declined year over year.
• The company reduced its fiscal 2026 revenue guidance to $6.2 billion–$6.5 billion, below the approximately $6.7 billion consensus, contributing to a sharp sell-off and a new 12-month low despite strong bookings and backlog growth.

Parsons (NYSE:PSN - Get Free Report) had its price target reduced by analysts at Barclays from $70.00 to $60.00 in a research note issued to investors on Thursday,Benzinga reports. The firm currently has an "overweight" rating on the stock. Barclays's price objective points to a potential upside of 48.46% from the stock's current price.

Other equities analysts have also recently issued research reports about the company. Jefferies Financial Group restated a "hold" rating on shares of Parsons in a report on Wednesday, July 8th. KeyCorp downgraded Parsons from an "overweight" rating to a "sector weight" rating in a research report on Tuesday, April 14th. William Blair reiterated an "outperform" rating on shares of Parsons in a research report on Wednesday. TD Cowen reissued a "buy" rating on shares of Parsons in a report on Wednesday. Finally, BNP Paribas Exane set a $65.00 price target on shares of Parsons and gave the stock an "outperform" rating in a research report on Wednesday, May 27th. Nine investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $74.91.

Parsons Stock Down 34.8%

Shares of PSN stock opened at $40.41 on Thursday. The company's fifty day simple moving average is $55.45 and its two-hundred day simple moving average is $58.38. Parsons has a 52 week low of $36.26 and a 52 week high of $89.50. The stock has a market cap of $4.32 billion, a P/E ratio of 19.34, a PEG ratio of 1.96 and a beta of 0.66. The company has a quick ratio of 1.75, a current ratio of 1.75 and a debt-to-equity ratio of 0.55.

Parsons (NYSE:PSN - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The company reported ($0.06) earnings per share for the quarter, missing analysts' consensus estimates of $0.76 by ($0.82). The firm had revenue of $1.59 billion for the quarter, compared to analysts' expectations of $1.61 billion. Parsons had a net margin of 3.62% and a return on equity of 11.52%. The company's revenue for the quarter was down .5% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.78 EPS. Analysts predict that Parsons will post 2.97 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Mark Keith Holdsworth acquired 10,000 shares of the stock in a transaction dated Tuesday, May 12th. The stock was acquired at an average cost of $51.27 per share, with a total value of $512,700.00. Following the purchase, the director directly owned 39,918 shares of the company's stock, valued at approximately $2,046,595.86. This trade represents a 33.42% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Carey A. Smith bought 12,500 shares of the company's stock in a transaction dated Friday, May 8th. The stock was bought at an average price of $49.97 per share, with a total value of $624,625.00. Following the acquisition, 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 position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased 32,500 shares of company stock valued at $1,637,325 over the last ninety days. 1.31% of the stock is owned by insiders.

Institutional Trading of Parsons

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Artisan Partners Limited Partnership boosted its stake in Parsons by 6.2% during the fourth quarter. Artisan Partners Limited Partnership now owns 2,477,159 shares of the company's stock worth $153,088,000 after buying an additional 145,238 shares during the period. Swedbank AB raised its stake in shares of Parsons by 126.8% in the first quarter. Swedbank AB now owns 2,387,643 shares of the company's stock valued at $129,339,000 after acquiring an additional 1,335,102 shares during the period. Dimensional Fund Advisors LP lifted its holdings in shares of Parsons by 10.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,892,400 shares of the company's stock worth $102,494,000 after acquiring an additional 179,463 shares during the last quarter. Channing Capital Management LLC lifted its holdings in shares of Parsons by 16.8% in the 4th quarter. Channing Capital Management LLC now owns 1,484,039 shares of the company's stock worth $91,714,000 after acquiring an additional 213,312 shares during the last quarter. Finally, AQR Capital Management LLC boosted 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 worth $75,173,000 after purchasing an additional 639,481 shares during the period. Hedge funds and other institutional investors own 98.02% of the company's stock.

Key Stories Impacting Parsons

Here are the key news stories impacting Parsons this week:

• Positive Sentiment: Parsons reported continued demand strength, including a 24% year-over-year increase in contract awards, a 1.2x quarterly book-to-bill ratio, and a $9.3 billion total backlog. Federal Solutions bookings increased 51%, while Middle East operations delivered 10% organic revenue growth. Parsons Reports Second Quarter 2026 Results
• Neutral Sentiment: Management said portfolio-shaping actions are intended to prioritize more profitable, sustainable growth. However, those initiatives and charges tied to a joint-venture program affected second-quarter results, making the near-term earnings impact difficult to assess. Parsons Q2 revenue falls to $1.6 billion as net loss hits $15 million
• Negative Sentiment: Parsons reported quarterly adjusted EPS of negative $0.06, far below the approximately $0.74–$0.76 analyst consensus and down from $0.78 a year earlier. Revenue of about $1.59 billion also slightly missed expectations and fell roughly 1% year over year; net income turned into a $15 million loss. Parsons Reports Q2 Loss, Lags Revenue Estimates
• Negative Sentiment: The company lowered fiscal 2026 revenue guidance to $6.2 billion–$6.5 billion, below the roughly $6.7 billion consensus estimate. The outlook reduction, combined with the earnings miss, prompted a significant sell-off and pushed shares to a new 12-month low. Parsons plunges after slashing full-year guidance

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.

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