Parsons (PSN) Earnings Date & Reports

Key Takeaways

• Parsons Corporation (PSN) is scheduled to report second quarter 2026 results before the market opens on Wednesday, July 29, 2026.
• Wall Street consensus estimates call for earnings of $0.76 per share on revenue of approximately $1.61 billion, according to Yahoo Finance data.
• Management previously signaled a "lowered Q2 cadence" due to the timing of recent contract awards, setting tempered near-term expectations.
• The company enters the quarter with record total backlog of $9.3 billion and $11 billion in awarded but unbooked contracts, providing strong multi-year revenue visibility.
• Analysts maintain a Moderate Buy consensus rating with an average price target near $69, though several firms have trimmed targets in recent months.
• Investors will closely monitor adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margins, free cash conversion, and any updates to full-year 2026 guidance.

Earnings Context and Why It Matters

Parsons Corporation occupies a unique position at the intersection of national security and global infrastructure, serving U.S. federal agencies and commercial clients with technology-driven engineering, cybersecurity, and defense solutions. The upcoming Q2 2026 report arrives at a pivotal moment. The company delivered a mixed first quarter in April — beating earnings per share (EPS) expectations by $0.09 but missing on revenue — and the stock has since traded well below its 52-week high of $89.50. With a record $9.3 billion backlog and a $54 billion pipeline of opportunities, Parsons has a compelling growth narrative, yet rising costs tied to acquisitions and working capital pressures have introduced uncertainty. This report will test whether the company's operational momentum can translate into bottom-line results and stabilize investor confidence.

Earnings Expectations

For the second quarter of fiscal 2026, consensus estimates compiled by Yahoo Finance from 13 analysts point to adjusted earnings of $0.76 per share, down from $0.78 in the same quarter last year. Revenue is expected to reach approximately $1.61 billion, representing modest year-over-year growth of roughly 1.4% from the $1.58 billion reported in Q2 2025. The EPS estimate range spans from $0.70 on the low end to $0.90 on the high end, reflecting some divergence in analyst views. Notably, estimates have been revised downward in recent weeks — the consensus stood at $0.83 just 90 days ago — suggesting analysts have tempered expectations in response to the company's own cautious commentary about second-quarter phasing.

Key metrics beyond the headline numbers include the book-to-bill ratio, which measures the value of new contract awards relative to revenue recognized. In Q1 2026, Parsons posted an enterprise-wide book-to-bill of 1.4x, and management has guided for a figure above 1.0x in Q2. Investors will also scrutinize adjusted EBITDA margins, which hit a record 10.1% in Q1, and free cash conversion, which stood at 102% on a trailing twelve-month basis. DSO (days sales outstanding, a measure of how quickly the company collects cash from customers) rose to 72 days in Q1, and any further deterioration could raise concerns about working capital management.

The company's full-year 2026 guidance, reaffirmed in April, projects revenue of $6.5 billion to $6.8 billion, bracketing the consensus estimate of approximately $6.65 billion. Any update to this range will be a central focus of the earnings call.

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Market Reaction and Investor Sentiment

Heading into the Q2 2026 release, sentiment around Parsons is cautiously optimistic but tempered. The stock has declined approximately 37% from its 52-week high of $89.50 and currently trades in the mid-to-high $50s, near its 50-day moving average but below its 200-day moving average. Following the Q1 2026 report on April 29, shares dropped roughly 3% despite the EPS beat, as the revenue miss and cautious second-quarter commentary weighed on investor enthusiasm.

Several Wall Street firms have reduced their price targets in recent months, including Truist (from $85 to $75), Barclays (from $78 to $70), and KeyCorp, which downgraded the stock to Sector Weight. Still, the broader analyst consensus remains favorable, with nine Buy ratings and six Hold ratings. Recent insider purchases by the CEO and a director have been interpreted by some market participants as a vote of confidence. The key risk factor heading into the report is whether the company's conservative second-half-weighted guidance proves accurate and whether cost pressures from the Altamira Technologies acquisition begin to ease.

Forward Outlook and Key Factors to Monitor

Beyond the Q2 headline numbers, several forward-looking themes will shape the investment narrative for Parsons in the second half of 2026 and into 2027.

Backlog Conversion and Revenue Realization. With $9.3 billion in total backlog — of which 71% is funded, the highest proportion since the company's initial public offering (IPO) — and an additional $11 billion in awarded but not yet booked contracts, Parsons has exceptional revenue visibility. The critical question is how quickly these awards convert to recognized revenue. Management has indicated that the second half of 2026 should see a meaningful acceleration, with organic growth in the Federal Solutions segment expected to reach roughly 9% and Critical Infrastructure around 9% in the back half of the year versus approximately 4% and 3%, respectively, in the first half.

Margin Trajectory and Cost Management. The integration of Altamira Technologies, acquired for up to $375 million, adds high-value capabilities in signals intelligence, missile warning, and space exploitation, but it has also contributed to higher selling, general, and administrative (SG&A) expenses. Investors should watch for signs that these costs are beginning to normalize and that Altamira's margin-accretive potential — particularly in product and technology offerings such as the AI-enabled Joint Cyber Hunt Kit — is materializing as projected.

Macro and Policy Tailwinds. Parsons benefits from durable secular demand trends in defense modernization, infrastructure spending, and cybersecurity. The $54 billion pipeline and 60% trailing win rates provide a strong foundation. However, budget uncertainty, geopolitical shifts, and interest rate sensitivity — the company carries a net debt leverage ratio of approximately 2.0x — remain external variables that could influence both award timing and valuation multiples across the government services sector. The company's performance in the Middle East, where it maintains approximately 7,500 employees and guided for 8.5% organic growth, is another area of focus given regional geopolitical complexity.

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