Parsons (NYSE:PSN) Releases Earnings Results, Beats Expectations By $0.09 EPS

Key Points

• Parsons beat EPS expectations by $0.09, reporting $0.79 EPS vs. consensus $0.70, but quarterly revenue of $1.49 billion missed estimates and was down 4.1% year‑over‑year, even as adjusted EBITDA margin hit a record 10.1%.
• The company reached a record total backlog of $9.3 billion (funded backlog $6.6 billion) with a book‑to‑bill of 1.4x and an additional $11 billion of awarded contracts not yet booked.
• Parsons closed the acquisition of Altamira (up to $375M) and plans 2–4 M&A deals this year, while reaffirming 2026 guidance but trimming Q2 and warning of higher SG&A and a 14‑day rise in DSO that pressures near‑term working capital.

Parsons (NYSE:PSN - Get Free Report) released its earnings results on Wednesday. The company reported $0.79 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.70 by $0.09, FiscalAI reports. The business had revenue of $1.49 billion for the quarter, compared to the consensus estimate of $1.51 billion. Parsons had a return on equity of 11.81% and a net margin of 3.79%.Parsons's quarterly revenue was down 4.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.60 earnings per share.

Here are the key takeaways from Parsons' conference call:

• Parsons reported a record adjusted EBITDA margin of 10.1% (driven by a 10.8% CI margin), citing improved execution and contributions from accretive acquisitions.
• Total backlog reached a record $9.3 billion with funded backlog of $6.6 billion, a robust enterprise book-to-bill of 1.4x and an additional $11 billion of awarded contracts not yet booked.
• Management closed the acquisition of Altamira (up to $375M) to expand signals‑intelligence, space and missile‑warning capabilities and said M&A remains the primary capital deployment tool with 2–4 deals expected this year.
• The company reaffirmed 2026 guidance but trimmed Q2 expectations due to award timing; meanwhile, SG&A rose ~10% from acquisition/transaction costs and DSO increased by 14 days, reflecting some short‑term working capital pressure.
• Parsons emphasized resilience in the Middle East—all 7,500 regional employees are safe, the region delivered solid results and management expects continued post‑conflict demand for defense, infrastructure and reconstruction work.

Parsons Stock Performance

Parsons stock traded down $1.19 during midday trading on Wednesday, reaching $50.66. 2,616,457 shares of the company's stock were exchanged, compared to its average volume of 1,273,107. Parsons has a 52 week low of $49.38 and a 52 week high of $89.50. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.75 and a current ratio of 1.75. The firm has a market cap of $5.36 billion, a price-to-earnings ratio of 23.03, a P/E/G ratio of 1.61 and a beta of 0.73. The stock's 50-day simple moving average is $57.24 and its 200 day simple moving average is $67.87.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Barclays lowered their target price on Parsons from $78.00 to $70.00 and set an "overweight" rating on the stock in a research report on Tuesday, March 31st. UBS Group lowered their target price on Parsons from $104.00 to $95.00 and set a "buy" rating on the stock in a research report on Thursday, February 12th. Zacks Research raised Parsons from a "strong sell" rating to a "hold" rating in a research report on Monday, April 13th. Truist Financial lowered their target price on Parsons from $85.00 to $75.00 and set a "buy" rating on the stock in a research report on Monday, April 20th. Finally, KeyCorp downgraded Parsons from an "overweight" rating to a "sector weight" rating in a research report on Tuesday, April 14th. Nine research 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, Parsons has an average rating of "Moderate Buy" and an average target price of $78.58.

Hedge Funds Weigh In On Parsons

A number of hedge funds and other institutional investors have recently bought and sold shares of PSN. NewEdge Advisors LLC grew its holdings in Parsons by 38.0% during the first quarter. NewEdge Advisors LLC now owns 959 shares of the company's stock worth $57,000 after purchasing an additional 264 shares during the period. Jones Financial Companies Lllp grew its holdings in Parsons by 433.9% during the first quarter. Jones Financial Companies Lllp now owns 1,260 shares of the company's stock worth $75,000 after purchasing an additional 1,024 shares during the period. Sivia Capital Partners LLC bought a new position in Parsons during the second quarter worth about $228,000. Prudential Financial Inc. grew its holdings in Parsons by 40.9% during the second quarter. Prudential Financial Inc. now owns 5,945 shares of the company's stock worth $427,000 after purchasing an additional 1,725 shares during the period. Finally, Northwestern Mutual Wealth Management Co. grew its holdings in Parsons by 176.0% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 828 shares of the company's stock worth $59,000 after purchasing an additional 528 shares during the period. Institutional investors own 98.02% of the company's stock.

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.

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