William Blair Has Negative Forecast for Parsons Q3 Earnings

Key Points

• William Blair has downgraded its Q3 2025 earnings estimate for Parsons Corporation from $0.80 to $0.65 per share, impacting the overall earnings forecast for the year.
• Parsons recently reported a Q2 earnings per share of $0.78, which was higher than expected, but experienced a revenue decline of 5.1% year-over-year.
• Analyst ratings for Parsons are generally positive, with a consensus of "Buy" and a target price averaging $88.70 despite adjustments in price targets from various investment firms.

Parsons Corporation (NYSE:PSN - Free Report) - Analysts at William Blair cut their Q3 2025 earnings estimates for shares of Parsons in a research report issued on Thursday, August 14th. William Blair analyst L. Dipalma now expects that the company will earn $0.65 per share for the quarter, down from their previous estimate of $0.80. The consensus estimate for Parsons' current full-year earnings is $3.58 per share. William Blair also issued estimates for Parsons' Q4 2025 earnings at $0.80 EPS and FY2025 earnings at $2.85 EPS.

Parsons (NYSE:PSN - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The company reported $0.78 earnings per share for the quarter, topping analysts' consensus estimates of $0.74 by $0.04. The firm had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.60 billion. Parsons had a return on equity of 12.36% and a net margin of 3.70%. The business's quarterly revenue was down 5.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.84 earnings per share.

A number of other research firms have also recently commented on PSN. The Goldman Sachs Group decreased their target price on shares of Parsons from $90.00 to $80.00 and set a "buy" rating for the company in a research report on Wednesday, June 4th. Stifel Nicolaus began coverage on shares of Parsons in a research note on Tuesday, June 24th. They set a "buy" rating and a $81.00 price objective for the company. Bank of America reduced their target price on Parsons from $100.00 to $95.00 and set a "buy" rating for the company in a research note on Tuesday, June 3rd. Baird R W upgraded Parsons from a "hold" rating to a "strong-buy" rating in a research note on Thursday, August 7th. Finally, Raymond James Financial upgraded Parsons from a "market perform" rating to a "strong-buy" rating and set a $90.00 price objective for the company in a research note on Tuesday, July 8th. Two equities research analysts have rated the stock with a hold rating, eight have given a buy rating and two have given a strong buy rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $88.70.

Parsons Price Performance

Shares of PSN stock opened at $79.76 on Friday. Parsons has a twelve month low of $54.56 and a twelve month high of $114.68. The company has a current ratio of 1.61, a quick ratio of 1.61 and a debt-to-equity ratio of 0.47. The stock has a fifty day simple moving average of $73.52 and a two-hundred day simple moving average of $68.05. The stock has a market capitalization of $8.52 billion, a price-to-earnings ratio of 35.61, a P/E/G ratio of 5.02 and a beta of 0.58.

Hedge Funds Weigh In On Parsons

A number of institutional investors and hedge funds have recently bought and sold shares of PSN. Boothbay Fund Management LLC purchased a new stake in Parsons in the 2nd quarter valued at $424,000. Brevan Howard Capital Management LP boosted its holdings in Parsons by 309.8% in the 2nd quarter. Brevan Howard Capital Management LP now owns 17,710 shares of the company's stock valued at $1,271,000 after purchasing an additional 13,388 shares during the last quarter. Balyasny Asset Management L.P. grew its stake in shares of Parsons by 59.9% in the 2nd quarter. Balyasny Asset Management L.P. now owns 106,441 shares of the company's stock valued at $7,639,000 after buying an additional 39,854 shares during the period. AQR Capital Management LLC increased its holdings 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 buying an additional 639,481 shares during the last quarter. Finally, California State Teachers Retirement System lifted its holdings in Parsons by 1.6% in the second quarter. California State Teachers Retirement System now owns 44,512 shares of the company's stock valued at $3,195,000 after acquiring an additional 690 shares during the last quarter. 98.02% of the stock is currently owned by institutional investors and hedge funds.

About Parsons

Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment provides critical technologies, such as cybersecurity; missile defense; intelligence; space launch and ground systems; space and weapon system resiliency; geospatial intelligence; signals intelligence; environmental remediation; border security, critical infrastructure protection; counter unmanned air systems; biometrics and bio surveillance solutions to U.S.

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