KeyCorp Research Analysts Cut Earnings Estimates for Parsons

Key Points

• KeyCorp trimmed Parsons' Q1 2026 EPS forecast to $0.59 (from $0.61) and lowered FY2026 to $2.88 while maintaining a "Sector Weight" rating, indicating only modest estimate revisions.
• Parsons missed Q4 expectations (EPS $0.75 vs. $0.81; revenue $1.60B vs. $1.68B) and reported revenue down ~7.5% year‑over‑year, pointing to near‑term margin and contract timing risks.
• The company landed multi‑year awards — including a $25M U.S. Coast Guard JV contract and the NYC Newtown Creek tunnel program — which boost backlog, but heavy institutional selling and a current share price around $56.56 contrast with a consensus price target of $79.42.

Parsons Corporation (NYSE:PSN - Free Report) - Stock analysts at KeyCorp dropped their Q1 2026 earnings estimates for shares of Parsons in a research note issued on Tuesday, April 14th. KeyCorp analyst S. Jain now anticipates that the company will earn $0.59 per share for the quarter, down from their prior forecast of $0.61. KeyCorp has a "Sector Weight" rating on the stock. The consensus estimate for Parsons' current full-year earnings is $3.58 per share. KeyCorp also issued estimates for Parsons' Q2 2026 earnings at $0.74 EPS, Q4 2026 earnings at $0.78 EPS and FY2026 earnings at $2.88 EPS.

A number of other research firms have also weighed in on PSN. Jefferies Financial Group reissued a "hold" rating on shares of Parsons in a research report on Thursday, January 15th. Truist Financial reaffirmed a "buy" rating and set a $85.00 target price (down from $90.00) on shares of Parsons in a research report on Thursday, February 12th. Zacks Research raised shares of Parsons from a "strong sell" rating to a "hold" rating in a research report on Monday. Barclays reduced their target price on shares of Parsons from $78.00 to $70.00 and set an "overweight" rating on the stock in a research report on Tuesday, March 31st. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Parsons in a research report on Friday, March 27th. Nine research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $79.42.

Parsons Stock Performance

Parsons stock opened at $56.56 on Thursday. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.75 and a quick ratio of 1.75. Parsons has a 1-year low of $49.38 and a 1-year high of $89.50. The firm has a market capitalization of $5.99 billion, a P/E ratio of 25.71, a price-to-earnings-growth ratio of 1.75 and a beta of 0.73. The company's 50-day moving average is $59.59 and its 200 day moving average is $70.18.

Parsons (NYSE:PSN - Get Free Report) last posted its quarterly earnings data on Wednesday, February 11th. The company reported $0.75 earnings per share for the quarter, missing analysts' consensus estimates of $0.81 by ($0.06). Parsons had a return on equity of 11.81% and a net margin of 3.79%.The firm had revenue of $1.60 billion during the quarter, compared to analysts' expectations of $1.68 billion. During the same period last year, the company earned $0.78 earnings per share. The business's revenue for the quarter was down 7.5% compared to the same quarter last year.

Hedge Funds Weigh In On Parsons

A number of institutional investors have recently modified their holdings of the stock. NewEdge Advisors LLC boosted its stake in shares of Parsons by 38.0% during the first 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. Jones Financial Companies Lllp boosted its stake in shares of Parsons by 433.9% during the first quarter. Jones Financial Companies Lllp now owns 1,260 shares of the company's stock valued at $75,000 after purchasing an additional 1,024 shares in the last quarter. Sivia Capital Partners LLC bought a new position in shares of Parsons during the second quarter valued at approximately $228,000. Prudential Financial Inc. boosted its stake in shares of Parsons by 40.9% during the second quarter. Prudential Financial Inc. now owns 5,945 shares of the company's stock valued at $427,000 after purchasing an additional 1,725 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. boosted its stake in shares of Parsons by 176.0% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 828 shares of the company's stock valued at $59,000 after purchasing an additional 528 shares in the last quarter. 98.02% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Parsons

Here are the key news stories impacting Parsons this week:

• Positive Sentiment: Parsons’ JV with GSI Americas won a $25 million U.S. Coast Guard contract for program management under the Force Design 2028 plan (1-year base + four 1-year options). The award confirms federal demand for Parsons’ program-management capabilities and supports recurring federal revenue potential. GSIA-Parsons $25M USCG Contract
• Positive Sentiment: Parsons was selected as construction manager for NYC’s Newtown Creek combined sewer overflow storage tunnel (a 16‑year, 3.25‑mile program). This is a long‑duration civil infrastructure assignment that supports multi‑year backlog and revenue visibility. NYC Tunnel Project
• Positive Sentiment: Zacks Research upgraded Parsons from “Strong Sell” to “Hold,” removing a bearish rating and potentially supporting buyer interest from retail/income-focused investors. Zacks Upgrade
• Neutral Sentiment: KeyCorp issued very small, mixed EPS tweaks: it trimmed Q1 and FY‑2026 estimates marginally (Q1 to $0.59, FY to $2.88) while nudging Q2 and Q4 estimates up slightly. The firm keeps a “Sector Weight” rating — these changes are small and represent model refinements rather than a large outlook shift.
• Neutral Sentiment: Robert W. Baird reiterated a Neutral rating on PSN, maintaining cautious/market‑weight positioning from another institutional analyst. Baird Reiterates Neutral
• Neutral Sentiment: Coverage pieces reviewing defense contractors’ Q4 results mentioned Parsons in context of peers — useful for relative performance but not a direct catalyst. Defense Contractors Q4 Lookback
• Negative Sentiment: Quiver/filings data show notable institutional reductions in PSN (large share removals by JPMorgan and T. Rowe Price in the latest quarter). Heavy selling by big funds can pressure the stock and signal portfolio rebalancing or loss of conviction. Quiver Institutional Activity
• Negative Sentiment: Parsons missed Q4 revenue and EPS expectations (Q4 revenue $1.60B vs. $1.68B consensus; EPS $0.75 vs. $0.81), and revenue fell ~7.5% y/y — a reminder of near‑term margin/contract timing risks that could cap upside until bookings/backlog visibility improves.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.