PSN NYSE Russell 1000 Earnings call
Parsons Corporation (PSN) · Q2 2026 results and valuation
Share price: $50.57 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 29 Jul 2026 and 29 Apr 2026
Net income turned to a loss from a profit last quarter. Management sounded about as positive as a typical company call, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
Turned loss
Net income vs Q1 2026
Outlook given
Net income -15.2M vs 52.9M
Revenue +5.7%
2 · How management spoke
Typical
More upbeat than 61% of company calls
Answers to analysts: cautious, but clearly less so than the script.
Last call it was different: script and answers matched.
3 · What stood out
Parsons Corporation's Federal Solutions bookings increased 51% year-over-year while both segments continued to post strong book-to-bill ratios.
Valuation
Is Parsons Corporation undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 14.9% growth a year (3-year revenue growth), the model's fair value is $118.74 a share — the stock trades 57% below it. Today's price assumes 4.8% growth a year.
Current price
$50.57
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+4.8% for 10 yrs
Fair value / share
$118.74
Buy below
$89.06
Price vs fair value
Undervalued 57%
Price vs buy-below price
Undervalued 43%
Read between the lines
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Guidance
The company expects the investment to generate revenue and cash in the coming quarters and benefit the second half results.
Source quote
“We expect this investment to generate revenue and cash in the coming quarters and benefit the second half results.”
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Guidance
CapEx is expected to increase in the second half of the year to fund investments in classified facilities and enterprise systems upgrades.
Source quote
“Looking ahead, we expect CapEx to increase in the second half as we deliver investments in classified facilities and achieve critical milestones related to enterprise systems upgrades to support...”
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Fading
Capital spending is set to rise in the second half to fund classified facilities and enterprise system upgrades.
Source quote
“So not only will Parsons be doing our traditional areas of transportation, water and environment and urban development, but we're... ...investment in areas, including redundancy and resiliency. Just...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 89% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“Demand remains robust with strong book-to-bill ratios, win rates near 60% and improving margins.”
“Looking ahead, we expect CapEx to increase in the second half as we deliver investments in classified facilities and achieve critical milestones related to enterprise systems upgrades to support Parsons...”
“These provide a solid foundation for accelerated growth in the second half of 2026 and build momentum for 2027 and beyond.”
Full figures
USD · ROIC.AI fundamentals (NYSE:PSN, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.58B | 1.49B | +5.7% | 1.58B | −0.5% |
| Gross profit | 295.2M | 357.4M | −17.4% | 348.4M | −15.2% |
| Operating income | 35.0M | 95.7M | −63.4% | 95.7M | −63.4% |
| Net income | -15.2M | 52.9M | Turned loss | 55.2M | Turned loss |
| EPS | -0.14 | 0.49 | Turned loss | 0.50 | Turned loss |
| P/E today 20.1 | — | 25.9 | — | 32.2 | — |
Topics
Most discussed now
- Parsons has always had very strong operational performance within the federal business.
- Parsons has exited hard-bid construction in its critical infrastructure business and reverted back to program management and design…
- Win rates have remained greater than 60% for the past 3 years, and Parsons has delivered strong profitable organic revenue growth.
- While the lower pass-through has a negative effect on revenue, it benefits the Critical Infrastructure margins, which continue to deliver...
- Organic growth was primarily driven by strong performance in the Middle East, where revenue grew...
Faded since Q1 2026
- Fading Counter unmanned air systems and economy are going to see big increases of greater than $70 billion on the top...
- Fading Adjusted EBITDA margin expanded 50 basis points to a record 10.1%.
- Dropped They've shown tremendous resilience in managing volatility while continuing to deliver Parsons' customers' critical missions.
- Fading One thing that's good about Parsons' portfolio is that no Middle East program represents more than 1.6% of its revenue,...
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Other events · SEC 8-K
- Director or officer change · SEC 8-K