The magnitude of the guidance reduction and the $118M in charges signal substantial operational headwinds. Monitor the pace of portfolio-shaping divestitures, execution on the confidential contract, and whether further charges materialize. The lowered guidance creates risk of additional downward revisions; wait for more clarity before establishing a position.
Price Chart
Executive Summary
Parsons reported Q2 2026 GAAP diluted EPS of -$0.14 (vs $0.50 YoY) and adjusted diluted EPS of -$0.06 (vs $0.78 YoY), missing consensus of $0.76 by 108%. Revenue of $1.58B was slightly below $1.61B consensus and down 1% YoY. The quarter included $118M in combined portfolio-shaping and joint venture charges, driving a net loss of $15M. Guidance was lowered meaningfully: FY2026 revenue cut from $6.5-6.8B to $6.2-6.5B, adjusted EBITDA from $615-675M to $500-560M, and operating cash flow from $470-530M to $430-490M. The book-to-bill ratio remained solid at 1.2x with $9.3B total backlog.
Key Financial Metrics
Key Facts
- GAAP diluted EPS -$0.14 vs $0.50 YoY; adjusted diluted EPS -$0.06 vs $0.78 YoY
- Revenue $1.58B, down 1% YoY, in line with expectations; organic revenue down 5%
- Net loss attributable to Parsons of $15M vs income of $55M YoY
- Operating income nearly wiped out at $1M, down 99% YoY
- Adjusted EBITDA including charges was $42M, down 72% YoY; ex-charges adj. EBITDA up 8% to $161M
- $118M in charges: $77M from Federal Solutions portfolio-shaping, $41M JV charge in Critical Infrastructure
- Book-to-bill ratio of 1.2x; total backlog flat at $9.3B; funded backlog $6.6B
- FY2026 guidance lowered: revenue $6.2-6.5B (from $6.5-6.8B), adj. EBITDA $500-560M (from $615-675M), operating cash flow $430-490M (from $470-530M)
Financial Impact
FY2026 revenue guidance cut by ~$300M at midpoint, adj. EBITDA guidance cut by ~$115M at midpoint
Risk Factors
- Further charges from portfolio-shaping actions or joint venture programs
- Sustained headwinds from the fixed-price confidential contract
- Execution risk on revised FY2026 targets
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-322054 |
| Document: psn-20260729.htm | 0001193125-26-322054 |
| Document: 0001193125-26-322054-index-headers.html | 0001193125-26-322054 |
| Document: 0001193125-26-322054-index.html | 0001193125-26-322054 |
| Document: 0001193125-26-322054.txt | 0001193125-26-322054 |
| 8-K Data (Synthetic) | 0001193125-26-322054 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 6, 2026 20d ago | Press Release | $42.10 $42.02 | ▼ −0.19% | ▲ +0.05% | $49.99 (+18.74%) |
Sep 29, 2026 27d ago | Press Release | $41.55 $40.97 | ▼ −1.40% | ▼ −1.19% | $49.99 (+20.31%) |
Jul 29, 2026 12w ago | 8-K | $40.32 $43.17 | ▼ −7.07% | ▼ −5.39% | $49.99 (−23.98%) |
Jul 16, 2026 14w ago | GOVT-CONTRACT | $56.05 $55.48 | ▼ −1.02% | ▼ −0.86% | $49.99 (−10.81%) |
Jul 7, 2026 15w ago | Press Release | $56.48 $56.63 | ▲ +0.27% | ▲ +0.57% | $49.99 (−11.49%) |
Jul 1, 2026 16w ago | Press Release | $53.16 $56.29 | ▲ +5.89% | ▲ +6.02% | $49.99 (−5.96%) |
Jun 16, 2026 18w ago | Press Release | $55.66 $54.82 | ▼ −1.51% | ▼ −0.26% | $49.99 (−10.19%) |
Jun 15, 2026 19w ago | Press Release | $55.49 $55.66 | ▲ +0.31% | ▲ +0.90% | $49.99 (−9.91%) |
Jun 9, 2026 19w ago | Press Release | $58.51 $56.47 | ▼ −3.49% | ▼ −1.91% | $49.99 (−14.56%) |
Jun 8, 2026 20w ago | Press Release | $57.83 $58.51 | ▲ +1.18% | ▲ +1.47% | $49.99 (−13.56%) |
US Market Status
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