10-Q · July 29, 2026
Parsons reported Q2 revenue of $1.576 billion, down 0.5% year over year but up 5.7% sequentially, while GAAP diluted EPS fell to a $0.14 loss and operating margin compressed to 0.1% from 6.0%. Federal Solutions' $44.596…
Earnings analysis · 10-Q
PSN earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
Parsons delivered a third-quarter revenue beat at $1.651 billion and record adjusted EBITDA of $168 million, while operating cash flow improved to $269 million. However, GAAP diluted EPS of $0.51 materially missed the…
Read full summary
Parsons delivered a third-quarter revenue beat at $1.651 billion and record adjusted EBITDA of $168 million, while operating cash flow improved to $269 million. However, GAAP diluted EPS of $0.51 materially missed the $0.77 consensus estimate, keeping the overall signal mixed. FY2026 revenue and adjusted EBITDA guidance ranges were narrowed with midpoints maintained, and operating cash flow guidance of $430 million-$490 million was reiterated. No material changes to the company’s previously disclosed risk factors were reported.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.51
What stood out
-
Revenue beat and grew year over year
Third-quarter revenue was $1.651 billion, approximately $22 million above the $1.629 billion consensus estimate and up from $1.620 billion in the prior-year quarter.
-
Operating cash flow strengthened
Operating cash flow reached $269 million in the quarter, compared with $41 million in the immediately preceding quarter.
-
Record adjusted EBITDA
Adjusted EBITDA reached a record $168 million, supporting management’s FY2026 adjusted EBITDA guidance midpoint of $530 million.
-
Record backlog supports visibility
Backlog reached a record level, indicating continued demand visibility despite pressure in portions of the federal business.
-
Continued share repurchases
The company repurchased 1,314,695 shares during the quarter at an average price of $46.37 per share, with $265.0 million remaining under the repurchase authorization.
What to watch
-
GAAP EPS materially missed estimates
GAAP diluted EPS was $0.51 versus the $0.77 consensus estimate, an unfavorable variance of $0.26 per share. Transaction costs and other items pressured reported earnings despite the revenue beat.
-
Higher rates increase debt costs
The company had $116.0 million outstanding under its Revolving Credit Facility and $450.0 million under its Term Loan as of September 30, 2026. Related interest rates increased to 5.3% and 5.2%, respectively, from 5.0% and 4.8% at December 31, 2025.
-
Capital allocation reduces flexibility
Management disclosed no material changes to the risk factors in the 2025 Form 10-K. The company nevertheless authorized up to $579.7 million of aggregate share repurchases as of September 30, 2026, which could compete with other uses of capital.
Management's outlook
FY2026 revenue guidance was narrowed to $6.25 billion-$6.45 billion from $6.20 billion-$6.50 billion, maintaining the $6.35 billion midpoint. Adjusted EBITDA guidance was narrowed to $510 million-$550 million, maintaining the $530 million midpoint. Operating cash flow guidance was reiterated at $430 million-$490 million.
Earlier filings 2
10-Q · April 29, 2026
In its Q1 2026 10-Q filing, Parsons Corporation reported a revenue of $1.55 billion, marking a 7.3% decline compared to $1.67 billion in Q4 2025 and a 1.9% decrease versus $1.58 billion in Q1 2025. Gross margins…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.