Parsons Corporation (PSN) Stock Price & How to Invest

Parsons Corporation is a technology-driven provider of services to the U.S. government and to owners of complex infrastructure. It reports in two segments: Federal Solutions, which delivers cybersecurity, missile defense, intelligence, space and ground systems, geospatial and signals intelligence, environmental remediation, and border and critical-infrastructure security, primarily to the Intelligence Community, the Departments of Defense, Energy, Homeland Security, and agencies like NASA and the FAA; and Critical Infrastructure, which provides program management, design and engineering, and owner's-representative support for large physical and digital projects worldwide. Federal Solutions has historically contributed a bit over half of revenue and Critical Infrastructure the rest, so the company sits at the intersection of national-security spending and infrastructure investment rather than any single commercial end market.

The investment picture in mid-2026 is a split-screen: strong underlying demand offset by one large contract rolling off. First-quarter 2026 revenue was about $1.5 billion, down roughly 4% year over year and down around 8% on an organic basis, almost entirely because a confidential contract is winding down; excluding that contract, the business grew double digits. At the same time the company posted a record adjusted EBITDA margin near 10.1%, a 1.4x book-to-bill in both segments, and record backlog around $9.3 billion. The stock has fallen sharply from its 52-week high near $89.50 to around $50, reflecting the market's worry that new awards may not refill the confidential-contract hole fast enough, even as management reiterated full-year 2026 guidance and pointed to wins like a $593 million FAA extension and a $500 million U.S. Cyber Command award.

The most immediate risk is concentration: the wind-down of a single confidential contract is enough to turn organic growth negative, showing how much one program can move results. Because the U.S. government and its agencies drive the bulk of revenue, budget delays, continuing resolutions, contract recompetes, and shifting spending priorities are structural risks outside the company's control. The stock's roughly 44% drop from its 52-week high signals that investors are pricing in real uncertainty about replacing lost revenue, and any award-timing slippage could pressure it further. Competition from larger, better-capitalized primes like Leidos and Booz Allen can squeeze win rates on the most attractive work. Finally, the valuation still embeds growth expectations, so if new bookings do not convert to revenue on schedule, the multiple could compress even with healthy margins and backlog.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Parsons Corporation's investor relations page or your broker.

• Revenue (TTM): ~$6.3 billion (FY2025 was ~$6.4 billion; Q1 2026 ~$1.5 billion, down ~4% year over year)
• Net income (FY2025): ~$241 million
• Q1 2026 EPS: ~$0.49 GAAP (adjusted ~$0.79, above consensus)
• Adjusted EBITDA margin (Q1 2026): ~10.1% (a record)
• Backlog: ~$9.3 billion total, ~$6.6 billion funded; book-to-bill ~1.4x
• Market cap: ~$5.8 billion (stock ~$50, down ~44% from a 52-week high near $89.50)
• Forward P/E: ~16x to ~23x depending on the earnings estimate used
• Analyst 12-month target (avg): ~$70 (consensus rating around Buy)

Figures are approximate and tied to the asOf date; verify live numbers before acting. The valuation reflects a company whose margins and backlog are at records while reported revenue is temporarily shrinking because of one contract, so the multiple is essentially a judgment about how quickly new awards convert into revenue. Analyst targets skew above the current price on the backlog and book-to-bill, but that view assumes the confidential-contract gap gets refilled on a reasonable timeline.

There are three common ways to get PSN exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so PSN sits alongside other stocks that express the same thesis.

Walnut takes the basket route. Describe a thesis where PSN fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

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Parsons is a well-run, backlog-rich government and infrastructure technology contractor whose record margins and 1.4x book-to-bill are being masked by the wind-down of one confidential contract, so the story hinges on whether new awards can refill that gap; how much government-spending sensitivity and single-contract concentration fit your portfolio is the real question.

Whether PSN is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is PSN a buy?, and where the stock could go from here in the PSN stock forecast.

For income investors, whether PSN pays a dividend and how the payout looks is covered in does PSN pay a dividend?