olivLaw · US equity research
Parsons Corporation PSN
Services-Computer Integrated Systems Design · SIC 7373 · Vertical: Services-Computer Integrated Systems Design (SIC 7373)
Parsons provides technology solutions and engineering services for defense, intelligence and critical infrastructure, serving government and private clients. The company reported revenue of 6.4 billion dollars in fiscal 2025 and remains in focus because of new contract awards and portfolio-reshaping actions in 2026.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Parsons Corporation (PSN) stock was 52.41 USD (+1.26% on the day), with market capitalisation 5.5 bn USD, P/E 38.2 on diluted EPS of 1.37 USD over the last 12 months, beta 0.84, 52-week range 40.32–86.61 USD. Latest reported quarter (Q3 2026): revenue of 1.7 bn USD (+1.8% YoY), net income of 54.2 m USD (−15.5% YoY), diluted EPS 0.51 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 68.9
- strong (55–70)
- Bollinger (20, 2)
- 40.57 – 54.13
- in the upper half of the band · %B 0.87 · band width 28.6%
- SMA 50 / 200
- 45.91 / 53.66
- mixed trend
- MACD (12, 26, 9)
- 2.05 / 1.38
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +24.5% | −1.1% | +25.6 pp | — |
| 3 months | +9.7% | −0.5% | +10.1 pp | — |
| 6 months | +1.4% | +4.4% | −3.0 pp | — |
| Year to date | −15.2% | +12.3% | −27.5 pp | — |
| 1 year | −34.1% | +13.5% | −47.7 pp | −33.2% |
| 3 years | −14.9% | +76.4% | −91.4 pp | −27.7% |
| 5 years | +42.1% | +63.7% | −21.5 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.7 bn | 1.6 bn | 1.6 bn | 1.6 bn | 1.6 bn | 1.5 bn | 1.6 bn | 1.7 bn |
| Cost of revenue | 1.4 bn | 1.2 bn | 1.2 bn | 1.3 bn | 1.2 bn | 1.1 bn | 1.3 bn | 1.3 bn |
| SG&A | 264.6 m | 244.1 m | 252.1 m | 260.2 m | 259.8 m | 267.9 m | 260.2 m | 285.5 m |
| Operating income | 99.8 m | 109.2 m | 95.7 m | 108.0 m | 105.2 m | 95.7 m | 1.3 m | 103.8 m |
| Depreciation & amortisation | 25.7 m | 27.4 m | 28.6 m | 29.8 m | 30.6 m | 35.9 m | 36.6 m | 34.1 m |
| Interest expense | 12.5 m | 12.2 m | 12.6 m | 13.5 m | 13.0 m | 16.0 m | 16.4 m | 16.3 m |
| Pre-tax income | 88.1 m | 100.8 m | 89.2 m | 97.8 m | 94.7 m | 81.3 m | 3.8 m | 87.9 m |
| Income tax | 18.7 m | 19.0 m | 18.7 m | 16.0 m | 19.9 m | 16.1 m | 4.2 m | 20.4 m |
| Net income | 54.2 m | 66.2 m | 55.2 m | 64.1 m | 55.6 m | 52.9 m | -15.2 m | 54.2 m |
| Diluted EPS | 0.49 | 0.60 | 0.50 | 0.59 | 0.51 ≈ | 0.49 | -0.14 | 0.51 |
| Operating cash flow | 126.8 m | -11.8 m | 159.8 m ≈ | 162.9 m ≈ | 167.5 m | -3.7 m | 57.6 m ≈ | 268.7 m ≈ |
| Capex | 18.8 m | 13.5 m | 9.4 m ≈ | 13.1 m ≈ | 31.9 m | 14.9 m | 16.1 m ≈ | 17.9 m ≈ |
| Share repurchases | 15.0 m | 25.0 m | 15.0 m ≈ | 25.0 m ≈ | 60.0 m | 35.0 m | 15.0 m ≈ | 60.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 47 percentile of its own 30-quarter history (min 25.0, median 42.6, max 62.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.6 bn | 4.0 bn | 3.9 bn | 3.7 bn | 4.2 bn | 5.4 bn | 6.8 bn | 6.4 bn |
| Revenue YoY | +18.0% | +11.1% | −0.9% | −6.6% | +14.6% | +29.7% | +24.0% | −5.7% |
| Net income | 222.3 m | 120.5 m | 98.5 m | 64.1 m | 96.7 m | 161.1 m | 235.1 m | 241.1 m |
| Net income YoY | +128.4% | −45.8% | −18.2% | −35.0% | +50.9% | +66.7% | +45.9% | +2.6% |
| Diluted EPS | 2.78 | 1.30 | 0.97 | 0.59 | 0.87 | 1.42 | 2.12 | 2.20 |
| Diluted EPS YoY | +139.7% | −53.2% | −25.4% | −39.2% | +47.5% | +63.2% | +49.3% | +3.8% |
| net % | 6.2% | 3.0% | 2.5% | 1.8% | 2.3% | 3.0% | 3.5% | 3.8% |
| Free cash flow | 255.4 m | 152.6 m | 255.1 m | 184.5 m | 206.9 m | 367.3 m | 474.4 m | 410.4 m |
Reported results vs expectations
Loading…
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 466.4 m USD
- Financial debt
- 1.2 bn USD
- Net debt
- 771.4 m USD
- Equity
- 2.8 bn USD
- Total assets
- 5.8 bn USD
- Debt / equity
- 0.45x
- Current ratio
- 1.75x
- ROE
- 9.1%
- ROA
- 4.3%
- FCF margin
- 6.4%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 3.9 bn | 3.7 bn | 4.2 bn | 5.4 bn | 6.8 bn | 6.4 bn | SEC (XBRL)· 11 Feb 2026verified |
| Cost of revenue | 3.0 bn | 2.8 bn | 3.2 bn | 4.2 bn | 5.3 bn | 4.9 bn | SEC (XBRL)· 11 Feb 2026verified |
| Gross profit | 876.9 m ≈ | 852.8 m ≈ | 946.7 m ≈ | 1.2 bn ≈ | 1.4 bn ≈ | 1.4 bn ≈ | SEC (XBRL)· 11 Feb 2026derived |
| SG&A | 729.1 m | 757.2 m | 777.4 m | 869.9 m | 955.0 m | 1.0 bn | SEC (XBRL)· 11 Feb 2026verified |
| Operating income | 177.8 m | 132.4 m | 185.7 m | 288.4 m | 428.1 m | 418.1 m | SEC (XBRL)· 11 Feb 2026verified |
| Depreciation & amortisation | 128.0 m | 144.2 m | 120.5 m | 120.0 m | 99.3 m | 116.5 m | SEC (XBRL)· 11 Feb 2026verified |
| EBITDA | 305.8 m ≈ | 276.7 m ≈ | 306.2 m ≈ | 408.3 m ≈ | 527.3 m ≈ | 534.6 m ≈ | SEC (XBRL)· 11 Feb 2026derived |
| Interest expense | 21.0 m | 17.7 m | 23.2 m | 31.5 m | 51.6 m | 51.3 m | SEC (XBRL)· 11 Feb 2026verified |
| Pre-tax income | 161.4 m | 112.6 m | 166.2 m | 264.1 m | 367.7 m | 382.5 m | SEC (XBRL)· 11 Feb 2026verified |
| Income tax | 42.5 m | 23.6 m | 39.7 m | 56.1 m | 77.0 m | 73.6 m | SEC (XBRL)· 11 Feb 2026verified |
| Net income | 98.5 m | 64.1 m | 96.7 m | 161.1 m | 235.1 m | 241.1 m | SEC (XBRL)· 11 Feb 2026verified |
| Diluted EPS | 0.97 | 0.59 | 0.87 | 1.42 | 2.12 | 2.20 | SEC (XBRL)· 11 Feb 2026verified |
| Weighted average diluted shares | 101.2 m | 112.1 m | 113.5 m | 115.1 m | 112.2 m | 109.7 m | SEC (XBRL)· 11 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 483.6 m | 342.6 m | 262.5 m | 272.9 m | 453.5 m | 466.4 m | SEC (XBRL)· 11 Feb 2026verified |
| Receivables | 698.6 m | 598.3 m | 717.3 m | 915.6 m | 1.1 bn | 1.1 bn | SEC (XBRL)· 11 Feb 2026verified |
| Current assets | 1.8 bn | 1.6 bn | 1.7 bn | 2.1 bn | 2.5 bn | 2.7 bn | SEC (XBRL)· 11 Feb 2026verified |
| Property, plant & equipment, net | 121.0 m | 104.2 m | 96.1 m | 99.0 m | 111.6 m | 151.1 m | SEC (XBRL)· 11 Feb 2026verified |
| Goodwill | 1.3 bn | 1.4 bn | 1.7 bn | 1.8 bn | 2.1 bn | 2.2 bn | SEC (XBRL)· 11 Feb 2026verified |
| Intangibles (excl. goodwill) | 246.0 m | 207.8 m | 254.1 m | 275.6 m | 349.9 m | 325.9 m | SEC (XBRL)· 11 Feb 2026verified |
| Total assets | 3.9 bn | 3.8 bn | 4.2 bn | 4.8 bn | 5.5 bn | 5.8 bn | SEC (XBRL)· 11 Feb 2026verified |
| Accounts payable | 225.7 m | 196.3 m | 201.4 m | 242.8 m | 207.6 m | 250.5 m | SEC (XBRL)· 11 Feb 2026verified |
| Short-term debt | 50.0 m | 0 | — | 0 | 463.4 m | 0 | SEC (XBRL)· 11 Feb 2026verified |
| Long-term debt | 540.0 m | 591.9 m | 743.6 m | 746.0 m | 784.1 m | 1.2 bn | SEC (XBRL)· 11 Feb 2026verified |
| Current liabilities | 1.2 bn | 1.0 bn | 1.1 bn | 1.4 bn | 1.9 bn | 1.5 bn | SEC (XBRL)· 11 Feb 2026verified |
| Total liabilities | 2.1 bn | 1.9 bn | 2.1 bn | 2.4 bn | 3.0 bn | 3.0 bn | SEC (XBRL)· 11 Feb 2026verified |
| Equity | 1.9 bn | 1.9 bn | 2.1 bn | 2.4 bn | 2.5 bn | 2.8 bn | SEC (XBRL)· 11 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 289.2 m | 205.6 m | 237.5 m | 407.7 m | 523.6 m | 478.4 m | SEC (XBRL)· 11 Feb 2026verified |
| Capex | 34.0 m | 21.1 m | 30.6 m | 40.4 m | 49.2 m | 68.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Free cash flow | 255.1 m ≈ | 184.5 m ≈ | 206.9 m ≈ | 367.3 m ≈ | 474.4 m ≈ | 410.4 m ≈ | SEC (XBRL)· 11 Feb 2026derived |
| Investing cash flow | -346.4 m | -240.9 m | -417.5 m | -376.0 m | -556.7 m | -255.6 m | SEC (XBRL)· 11 Feb 2026verified |
| Financing cash flow | 348.2 m | -106.5 m | 100.4 m | -21.9 m | 218.7 m | -214.1 m | SEC (XBRL)· 11 Feb 2026verified |
| Dividends paid | 0 | 0 | — | — | — | — | SEC (XBRL)· 23 Feb 2022verified |
| Share repurchases | 0 | 21.7 m | 22.0 m | 11.0 m | 25.0 m | 125.0 m | SEC (XBRL)· 11 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 53 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 5.5 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet45
- Valuation79
- Quality28
- Growth48
- Returns85
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 34.97 – 121.41 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)70.15 – 121.41 (Mid 89.28)WACC 8.4% · starting FCFF 456.9 m USD · terminal value share of EV 77%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -5.5%
- Peers: EV/Sales34.97 – 98.85 (Mid 51.98)10 companies used · median multiple 1.0x · quartiles 0.8x – 1.8xCACI, CREX, DAIC, FUSE, GDDY, KD, LDOS, OTEX, RBBN, SAIC
- Peers: EV/EBITDA37.65 – 55.37 (Mid 44.17)6 companies used · median multiple 12.9x · quartiles 11.4x – 15.6xASUR, CACI, GDDY, LDOS, SAIC, WAY
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 53/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 22.2% | 0 (on a fixed band) | 11% |
| EBIT margin · Quality | 4.8% | 65 (vs peers) | 9% |
| FCF margin · Quality | 6.5% | 26 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 14.9% | 60 (on a fixed band) | 17% |
| Revenue growth (YoY) · Growth | -5.7% | 24 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | 2.4x | 43 (vs peers) | 6% |
| Current ratio · Balance sheet | 1.6x | 47 (on a fixed band) | 6% |
| EV/Sales · Valuation | 1.0x | 63 (vs peers) | 17% |
| FCF yield · Valuation | 7.4% | 100 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 3.1% | 85 (on a fixed band) | 4% |
Score groups
- Balance sheet45/100 · 2/2 factors with a value
- Growth48/100 · 2/2 factors with a value
- Quality28/100 · 3/3 factors with a value
- Returns85/100 · 1/1 factors with a value
- Valuation79/100 · 2/2 factors with a value
Memo
Parsons Corporation (PSN). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 6.4 bn USD in 2025; YoY growth -5.7%; net margin 2.3%; ROE 5.7%; net debt/EBITDA 2.4x.
The estimated value range is 37.65–98.85 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 51.98 USD, the price of 52.41 USD leaves a potential of -0.8% (value / price − 1) and a margin of safety of -0.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 53/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF yield: 7.4%
- Shareholder yield (distributions): 3.1%
What contradicts it
- Gross margin: 22.2%
- FCF margin: 6.5%
- Revenue growth (YoY): -5.7%
Versus the vertical median
Services-Computer Integrated Systems Design (SIC 7373) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LDOSLeidos Holdings, Inc. | 16.6 bn | 12.2 | 28.2% | 8.0% | +3.1% | −29% / +26% |
| GDDYGoDaddy Inc. | 14.3 bn | 16.2 | — | 18.6% | +8.3% | −7% / +18% |
| CACICACI International Inc | 14.0 bn | 25.9 | 12.5% | 5.5% | +10.9% | +2% / +97% |
| JKHYJack Henry & Associates, Inc. | 12.6 bn | 25.7 | 24.0% | 19.8% | +7.1% | +3% / +13% |
| IONQIonQ, Inc. | 11.3 bn | — | -60.8% | -553.3% | +201.9% | −40% / +142% |
| OTEXOpen Text Corp | 6.4 bn | 10.3 | 16.2% | 12.3% | +1.5% | −21% / −34% |
| SAICScience Applications International Corporation | 6.3 bn | 17.6 | 25.7% | 5.1% | −2.9% | +75% / +28% |
| WAYWaystar Holding Corp. | 5.7 bn | 42.9 | 3.7% | 10.7% | +16.5% | −20% / unavailable |
| PSNParsons Corporation | 5.5 bn | 38.2 | 5.7% | 2.3% | −5.7% | −34% / −15% |
| KDKyndryl Holdings, Inc | 3.7 bn | 48.9 | 6.8% | 0.5% | +0.2% | −35% / −7% |
| AGYSAgilysys, Inc. | 3.5 bn | 78.5 | 13.6% | 12.9% | +15.9% | −0% / +42% |
| NTCTNetscout Systems Inc | 2.8 bn | 23.3 | 7.5% | 13.7% | +4.5% | +42% / +90% |
| AURAurora Innovation, Inc. | 2.6 bn | — | -45.7% | -13,328.6% | unavailable | −3% / +86% |
| PONYPony AI Inc. | 2.1 bn | — | -10.3% | -148.9% | +20.0% | −65% / unavailable |
| OSPNOneSpan Inc. | 872.9 m | 13.2 | 26.8% | 27.5% | +0.0% | +94% / +136% |
| TLSTelos Corporation | 378.2 m | — | -14.9% | -8.1% | +52.2% | −12% / +23% |
| SLPSimulations Plus, Inc. | 374.2 m | 46.7 | 6.2% | 9.9% | +13.1% | unavailable / unavailable |
| SMRTSmartrent, Inc. | 307.5 m | — | -7.6% | -11.0% | −12.9% | −6% / −48% |
| ASURAsure Software, Inc. | 293.6 m | — | -1.9% | — | +24.3% | +22% / +22% |
| VEEAVeea Inc. | 281.2 m | — | — | -2,491.9% | +56.6% | −55% / −98% |
| RBBNRibbon Communications Inc. | 275.9 m | 22.5 | 5.0% | 2.3% | +1.3% | −46% / −28% |
| KDKKodiak AI, Inc. | 220.7 m | — | — | -4,259.6% | −74.6% | −82% / unavailable |
| UISUnisys Corp | 171.4 m | — | — | -21.7% | −2.9% | −12% / −51% |
| AIOSAIOS Tech Inc. | 138.9 m | — | -208.9% | -4,359.1% | −98.5% | −87% / −86% |
| MRLNMerlin, Inc. | 91.5 m | — | — | — | unavailable | −92% / unavailable |
1- and 3-year price returns: for PSN from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 34.85 Total return -34% · Per year -34% | 61.33 Total return 17% · Per year 17% | 92.00 Total return 76% · Per year 76% |
| 3 years | 41.26 Total return -21% · Per year -8% | 80.97 Total return 54% · Per year 16% | 132.27 Total return 152% · Per year 36% |
| 5 years | 48.86 Total return -7% · Per year -1% | 106.91 Total return 104% · Per year 15% | 190.15 Total return 263% · Per year 29% |
- Exit P/E± 20.24
- Net margin± 14.17
- Annual revenue growth± 10.58
- Annual dilution± 1.19
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 8-K (28 Oct 2026 · results), 10-Q (28 Oct 2026).
In brief
Parsons provides technology solutions and engineering services for defense, intelligence and critical infrastructure, serving government and private clients. The company reported revenue of 6.4 billion dollars in fiscal 2025 and remains in focus because of new contract awards and portfolio-reshaping actions in 2026.
SWOT
Strengths
- The company has a high win rate and long-standing relationships with government clients 1.
- The portfolio spans six growing markets and includes differentiated capabilities in cyber, missile defense and infrastructure 1.
- Backlog grew compared with the prior year, giving visibility into future revenue 2.
Weaknesses
- Reliance on a single government client and a shrinking confidential contract create high revenue concentration 1.
- Second quarter 2026 results showed large program charges and losses on joint venture work 3.
- Margins in Federal Solutions fell and operating cash flow dropped compared with the prior year 3.
Opportunities
Risks
- Dependence on the federal governmenthigh
The U.S. government is the largest customer, and a deterioration in relations could affect revenue 1.
- Reduction of the confidential contracthigh
Work volume on a major contract is shrinking, which weighs on Federal Solutions revenue 2.
- Charges on programs and joint ventureshigh
Charges on programs planned for divestiture and on a joint venture project reduced quarterly results 3.
- Delays in government fundingmedium
Annual appropriations and continuing resolutions can delay payments and project starts 1.
- Risks in conflict regionsmedium
Operations in the Middle East can be affected by political and military instability 13.
Investment thesis
What would need to be true (bull case)
- If backlog and win rates hold, future revenue could become more predictable, and growth in Critical Infrastructure could offset pressure in Federal Solutions 23.
- Portfolio reshaping could improve long-term margins if weak programs are divested without further charges 3.
- Demand for missile defense and cyber security could generate new multi-year contracts 13.
What would break the thesis
- If program charges and joint venture losses recur, profitability could stay below expectations 3.
- Concentration on one government client and the reduction of a large contract could weigh on revenue in coming quarters 12.
- Lower operating cash flow and inventory investment could limit financial flexibility if demand slows 3.
What to watch
- Evolution of adjusted EBITDA margin after removing chargesQ3 2026
- Book-to-bill ratio and the funded share of backlogQ3 2026
- Timing of the divestiture of Federal Solutions programs2026
- Updated revenue and EBITDA guidance for fiscal 2026next 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 8-K (28 Oct 2026 · results), 10-Q (28 Oct 2026).
The business
Parsons operates through two reportable segments, Federal Solutions and Critical Infrastructure, and offers systems integration, program management, design engineering and product development. According to the 2025 annual report, Federal Solutions contributed 51% of revenue and Critical Infrastructure 49% 1. The company describes six growing end markets, including cyber and electronic warfare, space and missile defense, critical infrastructure protection, transportation, water and environment, and urban development 1.
The Federal Solutions segment supplies advanced technology to U.S. government agencies, mainly for intelligence, defense and space missions. The U.S. government and its agencies account for substantially all of the segment's revenue 1. Parsons also noted that one federal customer set exceeded 20% of its revenue in 2025, and a large confidential contract is winding down 1.
The Critical Infrastructure segment provides planning, engineering, design, program management and digital services for bridges, highways, rail, water and wastewater, with state, municipal and private clients. Engineering News Record ranked the company as the number one program manager in the world 1. In 2026 the segment recorded solid organic growth in the Middle East 3.
Segments
Federal Solutions
The segment delivers solutions for defense, intelligence, electronic warfare, space systems and missile defense through the Defense & Intelligence and Engineered Systems business units 1. In the second quarter of 2026 revenue fell 6% year over year, and adjusted EBITDA was negative because of charges on programs planned for divestiture 3.
Critical Infrastructure
The segment covers transportation, water, environment and urban development projects, with a steadier margin than Federal Solutions. In the second quarter of 2026 revenue rose 5% year over year, driven by growth in the Middle East 3.
Market context
Parsons serves markets funded largely by government budgets for defense, intelligence and infrastructure, as well as investment in transport and water systems. For the first six months of 2026 the company reported a book-to-bill ratio of 1.3, which points to solid demand for its services 2. Demand for AI-enabled solutions, cyber security and missile defense is cited as a main growth direction 13.
The market is fragmented, with many competitors ranging from small specialists to large multinational firms. Public funding remains sensitive to budget negotiations, continuing resolutions and political change, which can affect contract timing 1.
Trends
- Demand for missile defense and spacetailwind
Programs such as Golden Dome and missile system contracts could support growth in Federal Solutions if funding holds 13.
- Infrastructure projects in the Middle Easttailwind
Organic growth in the region points to solid demand for infrastructure projects, even with regional tensions 3.
- Uncertain federal budgetsheadwind
Delays in budget approval and continuing resolutions can postpone government contracts and reduce predictable revenue 1.
- Portfolio reshapingmixed
Divesting some programs could improve long-term profitability, but it generated losses and significant charges in 2026 3.
Competitive position
Parsons competes on technical expertise, innovation, the ability to deliver cost-effective services on time, its reputation and personnel with security clearances 1. The sources do not name specific competitors; competition comes from a large number of firms, from niche companies to multibillion-dollar corporations 1.
The company argues that its recent high win rate and re-compete contracts are important competitive advantages 1. The main pressure remains pricing and lower margins on contracts with high material and subcontract volume 3.
- Niche government engineering and services firms
The sources mention a large number of small and mid-sized firms without naming them.
- Large multibillion-dollar defense services corporations
Competition also comes from large companies whose names are not given in the sources.
- Construction and infrastructure management firms
In the Critical Infrastructure segment, competition comes from firms with experience in large projects.
- Electronic warfare and cyber technology providers
The advanced defense technology market also includes specialist companies that the sources do not name.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- FlowX.AI numește un nou Chief Marketing Officer. Mike Parsons vine de la QualitanceEconomedia · 04 Nov 2026 · RO
- Kane Parsons, creatorul „Backrooms”: Ascensiunea tânărului YouTuber care a devenit regizor fenomen la Hollywood - JurnalulSurge — Google News · 18 Sept 2026 · RO
- Parsons’ Pullback May Give Defense and Infrastructure Investors a Second LookYahoo Finance — News · 07 Sept 2026 · EN
- Everyone’s Chasing AI Defense Names. Parsons (PSN) Just Landed a Seabed-to-Space Contract and an Upgrade.Yahoo Finance — News · 28 Aug 2026 · EN
- Kane Parsons becomes youngest film-maker to open at No 1 in the US with BackroomsThe Guardian World · 01 Jun 2026 · RO
SEC filings
- Current report28 Oct 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report28 Oct 2026
- Current report28 Oct 2026Results of operations · Financial statements and exhibits
- Quarterly report29 Jul 2026
- Current report29 Jul 2026Results of operations · Financial statements and exhibits
- Current report29 Apr 2026Results of operations · Financial statements and exhibits
- Quarterly report29 Apr 2026
- Current report15 Apr 2026Shareholder vote
- Current report17 Mar 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Proxy statement02 Mar 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Parsons Corporation · 11 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Parsons Corporation · 29 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Parsons Corporation · 29 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.