Parsons Corporation serves the US federal government as its dominant customer with strong free cash flow conversion of 122% and a Piotroski F-Score of 7/9, but a confirmed death cross, 16% short interest, and revenue declining at -4% make this a technically challenged situation despite attractive analyst-implied upside of 25%.
Thesis pillars
- Federal Government Revenue Concentration↓Deteriorating
- Death Cross Confirmed Downtrend↓Deteriorating
- Strong Fcf Conversion Beat Streak↑Improving
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 11, 2026· older than 90 days
Parsons Corporation (PSN) Stock Analysis
Recovery setup
Technology · Information Technology Services
Sell if holding. Analyst target reached at $52.41 — A.R:R 0.0:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: U.S. federal government.
Parsons delivers technology and program management services across Federal Solutions (51% of revenue) and Critical Infrastructure (49%) segments, serving the U.S. military, intelligence community, and global infrastructure clients. The company generated $6.4 billion in fiscal... Read more
Sell if holding. Analyst target reached at $52.41 — A.R:R 0.0:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: U.S. federal government. Chart setup: Death cross but MACD improving, RSI 81. Score 5.6/10, moderate confidence.
Passes 6/9 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 97d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: speculative.
About Parsons Corporation
About Parsons Corporation
Parsons generated $6.4 billion in revenue during fiscal 2025, with Federal Solutions contributing 51% and Critical Infrastructure 49% of total segment revenue. Federal Solutions serves the U.S. military, intelligence, and civilian agencies across cyber, space, missile defense, and electronic warfare programs; Critical Infrastructure manages large-scale transportation, water, and urban development projects for governments and private sector owners globally. Total backlog stood at $8.7 billion at December 31, 2025, with a 61% overall contract win rate during the year.
Parsons earns the majority of its revenue from government contracts — time-and-materials, cost-plus, and fixed-price structures — across both segments. In Federal Solutions, the company serves agencies including the Department of War, Intelligence Community, Missile Defense Agency, and NASA, and holds the prime TEAMS Next contract at the MDA providing engineering and management support for integrated missile defense. Critical Infrastructure generates fees from program management, engineering design, and owner's-representative roles on complex projects for transportation authorities in Los Angeles, New York, Paris, and Ontario as well as Gulf Cooperation Council developers including the Royal Commission for Riyadh City and Dubai Municipality. Revenue concentration exists at the federal level: one customer set within the federal government exceeded 20% of total 2025 revenue, and the volume of work on a large confidential contract was significantly reduced in 2025 and is winding down.
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Parsons faces structural dependence on U.S. federal government spending: the 10-K discloses that the U.S. government and its agencies represent substantially all of the revenue of the Federal Solutions segment, which accounted for 51% of fiscal 2025 revenue. Government contracts are subject to unilateral termination for convenience, non-renewal of options, and annual appropriations risk — Congress funds most programs year by year even when contract performance spans multiple years. Continuing resolutions and budget constraints in prior years have caused agencies to reduce or delay awards, and the 10-K identifies these mechanisms as recurring risks to both segments.
See also: Technology · Information Technology Services
From Parsons Corporation's most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated Nov 3, 2026Recent Developments — Parsons Corporation
Latest news
- NEWS Royal Commission for Riyadh City Selects Parsons-Led Joint Venture for Riyadh Metro Red Line Extension — fiscal.ai Nov 3, 2026 positive
- NEWS Parsons JV Riyadh Metro Transit Consultants Selected To Provide Project And Construction Management On The Riyadh Metro — benzinga Nov 3, 2026 positive
- NEWS Persimmon Plc Announces Admission of Shares to Trading — fiscal.ai Nov 2, 2026 neutral
- NEWS Parsons shares drop 38% following $118 million in charges and lower 2026 outlook - TechStock² — TechStock² Jul 29, 2026 negative
- NEWS Why Shares of Parsons Are Plunging Today - Yahoo Finance — Yahoo Finance Jul 29, 2026 negative
Latest item Nov 3, 2026 · Generated 2026-11-05T11:49:11Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWCustomerfederal government customer set10-K Item 1A: 'One customer set within the federal government exceeded 20% of Parsons' revenue during 2025'
- HIGHCustomerU.S. federal government10-K Item 1A: 'The U.S. federal government and its agencies...represents substantially all of the revenue of our Federal Solutions segment'
Material Events(8-K, last 90d)
- 2026-03-17Item 5.02MEDIUMCHRO Susan Balaguer announced retirement effective April 1, 2026; succeeded by Soo Lagasse in same role effective April 1, 2026. Balaguer to remain in advisory role through May 2026 and receives $250,000 one-time cash bonus.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $52.41 — A.R:R 0.0:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: U.S. federal government. Chart setup: Death cross but MACD improving, RSI 81. Prior stop was $48.74. Score 5.6/10, moderate confidence.
Analyst target: $52.60 (+0.4% upside). Prior stop was $48.74. Stop-loss: $48.74.
Concentration risk — Customer: U.S. federal government; Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.2).
Parsons Corporation trades at a P/E of 38.5 (forward 15.4). TrendMatrix value score: 6.7/10. Verdict: Sell.
19 analysts rate PSN, with a consensus score of 4.2/5. 11 analysts publish price targets averaging $60.
What does Parsons Corporation do?Parsons delivers technology and program management services across Federal Solutions (51% of revenue) and Critical...
Parsons delivers technology and program management services across Federal Solutions (51% of revenue) and Critical Infrastructure (49%) segments, serving the U.S. military, intelligence community, and global infrastructure clients. The company generated $6.4 billion in fiscal 2025 revenue and held an $8.7 billion backlog at year-end. A 99.6% re-compete win rate in 2025 reflects high contract retention.