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Parsons Corp(PSN)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$43.07
09/25/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Advisory Performance History (Simulated)Advisory Performance History info

Upturn Advisory & Investor View for PSN

09/25/2026: PSN (1-star) is currently NOT-A-BUY. Pass it for now.

Parsons Corp is a mid-cap company providing engineering and technology solutions to the federal defense and global infrastructure markets. Its primary strength lies in its ability to combine traditional engineering services with high-value cybersecurity and AI-driven intelligence solutions. The investment story revolves around organic growth in these high-margin technology segments and strategic acquisitions that strengthen its government footprint. However, investors face risks related to revenue concentration in U.S. government contracts and the potential for project-related cost overruns. Parsons is best suited for growth-oriented investors who want exposure to federal defense and modern infrastructure, though it is not a fit for those seeking dividend income.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorStrong fitParsons offers consistent double-digit growth driven by mission-critical government and infrastructure contracts.
Momentum investorStrong fit while signal remains positiveThe stock often exhibits strong price trends aligned with federal budget news and contract wins.
Value investorMixed fitThe company's valuation often reflects its growth prospects, leaving less room for deep-value plays.
Dividend investorWeak fitThe company does not pay a dividend, prioritizing capital reinvestment instead.
Low-risk investorMixed fitGovernment contracts provide stability, but project-specific risks and sector volatility remain.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highThe stock reacts sharply to federal budget cycles and large contract awards.
Valuation riskMediumHigh growth expectations can lead to premium pricing compared to slower-growing engineering peers.
Competition risk (Defense/Gov)HighLarge prime contractors compete aggressively for the same multi-billion dollar federal awards.
Business qualityStrongA deep backlog and high barriers to entry in defense intelligence define high franchise quality.
Dividend incomeLow / noneThis stock is not suitable for investors seeking immediate cash flow.
Execution riskMediumLarge-scale infrastructure projects carry inherent risks of cost overruns and timeline delays.

Price Behavior

Steep Decline
PRICE PATH

Steep Decline

The stock price has dropped sharply with strong downward pressure.

Extreme Price Shocks
PRICE STABILITY

Extreme Price Shocks

The stock has experienced exceptionally large and disruptive price movements during the period.

Analysis of Past Performance

Type Stock
Historic Profit -25.46%
Avg. Invested days 48
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
PSN receives a 3-star rating, supported by solid analyst coverage. The rating is constrained by soft unit economics, and weak price momentum.

Company Fundamentals

★★★★★
PSN has moderate overall fundamentals (3 stars), with moderate financial health, moderate growth momentum, and solid ownership. In FY2025 versus FY2024, moderate earnings growth (+2.6%) and solid cash generation (FCF margin 6.4%) are partially offset by negative revenue growth (-5.7%), soft profitability (net margin 3.8%), modest insider ownership of 1.44%.

Financial Health Rating

★★★★★
PSN's financial health is supported by solid cash strength, including free-cash-flow generation (6.4% of revenue). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is PSN's strongest growth driver at +2.6% FY2025 versus FY2024 (moderate, 3 stars). By comparison, while revenue growth (-5.7%, negative) and free-cash-flow growth (-13.5%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 106.3% and approximately 52.6% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 1.44% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

Newport Trust Co. 46.22%
BlackRock Inc 4.98%
Wellington Management Company LLP 4.31%
Swedbank AB 3.44%
Morgan Stanley - Brokerage Accounts 2.40%

Unit Economics (Per $1K Revenue)

★★★★★
PSN generates approximately $225 of gross profit, $66 of operating income, and $64 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: 19.25%

Quantitative Style Profile

★★★★★
PSN has a liquid, relatively low-volatility profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedLow VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 4.60B USD
Price to earnings Ratio 29.7
1Y Target Price 59.36
Price to earnings Ratio 29.7
1Y Target Price 59.36
Volume (30-day avg) 1.1M shares
Beta 0.7
52 Weeks Range 36.26 - 89.50
Updated Date 09/26/2026
52 Weeks Range 36.26 - 89.50
Updated Date 09/26/2026
Dividends yield (FY) -
Basic EPS (TTM) 1.45

How Company Makes Money

Business areaWhat it includesRetail investor read
Federal SolutionsCybersecurity, intelligence, and defense technology services for the U.S. government.Steady, long-term revenue stream from high-security defense contracts.
Critical InfrastructureDesign, engineering, and program management for roads, transit, and water projects.Benefits from long-term public works funding and urbanization trends.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 29.7
Forward PE 14.68
Enterprise Value 6.05B
Price to Sales(TTM) 0.73
Enterprise Value 6.05B
Price to Sales(TTM) 0.73
Enterprise Value to Revenue 0.96
Enterprise Value to EBITDA 12.88
Shares Outstanding 106.81M
Shares Floating 56.18M
Shares Outstanding 106.81M
Shares Floating 56.18M
Percent Insiders 1.44
Percent Institutions 106.3

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Parsons Corp

Exchange NYSE
Headquarters Chantilly, VA, United States
IPO Launch date 2019-05-08
President, CEO & Chairwoman Ms. Carey A. Smith
Sector Technology
Industry Information Technology Services
Full time employees 21000
Full time employees 21000

Parsons Corporation provides design, engineering and technical services, and smart and agile software for the United States federal government and critical infrastructure customers worldwide. It operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment offers critical technologies, such as cyber; air and missile defense; intelligence; aviation modernization; electronic warfare; space ground systems, cislunar, A-PNT, and classified sensors; geospatial and signals intelligence; environmental remediation; border security and counter-drug, critical infrastructure protection; counter unmanned air systems; biometrics; and bio surveillance solutions. This segment also provides software and hardware, and technical expertise; satellite ground systems support and operations, flight dynamics, data fusion and analytics, platform system integration, directed energy, joint all-domain operations, and command and control systems; digital landscape, including full-spectrum cyber, defensive cyber operations, information operations, and analytics; and electronic warfare, multi-domain operations, mission support and national to tactical operations, as well as cyber solutions and products. The Critical Infrastructure segment develops digital solutions for aviation, rail and transit, bridges, roads, highways, and urban destinations. This segment also provides planning, engineering, and management services for complex infrastructure comprising bridges, tunnels, roads and highways, and water and wastewater systems; intelligent transportation systems, utilities, environmental remediation, emerging contaminants, aviation, and rail and transit, as well as ParsonsX, a digital transformation organization; and multi-disciplinary design, technical, and management solutions. Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.