Parsons Corporation (PSN) AI Stock Analysis

Parsons Corporation is a provider of integrated solutions and services across the defense, intelligence, and critical infrastructure sectors. The company serves clients in North America, the Middle East, and globally through two primary segments: Federal Solutions and Critical Infrastructure. Within Federal Solutions, Parsons offers cybersecurity, offensive and defensive cyber platforms, and intelligence services for the U.S. Department of Defense and intelligence agencies. It also delivers space situational awareness, geospatial intelligence, satellite ground systems, small satellite integration, and missile defense and C5ISR solutions, which include integrated air and missile defense systems, data fusion analytics, and directed energy technologies.

From FY2021 to FY2025, Parsons delivered a 5-year revenue compound annual growth rate of 10.2%. Annual revenue expanded from $3.66B in FY2021 to a peak of $6.75B in FY2024, before falling 5.7% to $6.36B in FY2025. Despite the top-line contraction in FY2025, operating margin improved to 6.6% and net income reached $241.1M, representing an EPS of $3.08. Over the trailing twelve months ended June 30, 2026, revenue stood at $6.29B with an operating margin of 2.2% and EPS of $1.45. For the latest quarter ended June 30, 2026, quarterly revenue fell 0.5% year-over-year and quarterly earnings declined 17.9%.

As of June 30, 2026, Parsons held $266.0M in cash and short-term investments against total debt of $1.63B, resulting in net debt of $1.37B. The company reported a current ratio of 1.66 and a debt-to-equity ratio of 0.62 on shareholders' equity of $2.63B. In FY2025, operating cash flow was $478.4M and free cash flow reached $410.4M. Capital expenditures totaled $68.0M for FY2025, while share buybacks were $125.0M, contributing to a 3.4% reduction in share count over five years.

Parsons carries a market capitalization of $4.72B and an enterprise value of $6.05B. The stock trades at a trailing price-to-earnings ratio of 30.4x and a forward P/E of 14.7x, compared to medians of 28.1x and 18.8x, respectively, for its US-listed Technology peers. Its enterprise value-to-EBITDA stands at 12.9x, below the peer median of 16.6x, while its price-to-sales ratio of 0.7x compares to 2.8x for peers. Over the past year, PSN fell 46.9%, trailing the S&P 500 (SPY) gain of 16.8%.

Wall Street coverage includes 9 Strong Buy, 2 Buy, and 3 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target is $58.36, representing a 32.2% upside compared to the last close of $44.15 on October 16, 2026. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $6.36B and EPS of $2.44, representing a 22.9% drop in earnings. Parsons has beaten EPS estimates in 2 of the last 4 quarters, and its next earnings date is October 28, 2026.

This page is an AI-written research summary of Parsons Corporation (PSN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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