Parsons (59P) AI Stock Analysis

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Parsons

(Frankfurt:59P)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Backlog and bookings strengthRecord backlog, funded backlog, and positive book-to-bill indicate sustained customer demand and provide revenue visibility beyond the current quarter. This supports future contract conversion, improves planning confidence, and strengthens Parsons’ position in competitive government-services procurements.

Negative Factors

Broad margin compressionRecent gross and net margin deterioration shows that revenue scale has not translated proportionately into profit, reducing earnings quality and returns on capital. If margins remain pressured, Parsons may have less capacity to reinvest, absorb execution issues, or deliver its longer-term double-digit margin objective.

Parsons (59P) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 5.26B
Dividend Yield: ―
Average Volume (3M): 153
Price to Earnings (P/E): 36.4
Beta (1Y): 0.57
Revenue Growth: -7.57%
EPS Growth: -64.23%
Country: Germany
Employees: 21,000
Sector: Technology
Sector Strength: 61
Industry: Information Technology Services

Parsons Business Overview & Revenue Model

Company Description

Parsons Corporation is a global provider of comprehensive solutions and services, primarily operating in the defense, intelligence, and critical infrastructure sectors. Its reach extends across North America, the Middle East, and other international...

Parsons Earnings Call Summary

Earnings Call Date:Oct 28, 2026(Q3-2026)|% Change Since:3.73%|Next Earnings Date:Feb 17, 2027

Earnings Call SentimentPositive

The call was strongly positive overall. Highlights significantly outweighed the challenges, with record profitability, strong cash generation, healthy bookings, record backlog, substantial national security awards and a large pipeline. The principal concerns were slower revenue conversion from protested awards, geopolitical and appropriation uncertainty, moderated infrastructure growth, joint venture execution risks and the CFO transition.

Positive Updates

Third-Quarter Commitments Exceeded

Management stated that revenue, adjusted EBITDA, adjusted EBITDA margin and operating cash flow all exceeded third-quarter commitments. Demand remained healthy across Federal Solutions and Critical Infrastructure despite a challenging macroeconomic backdrop.

Negative Updates

Federal Solutions Organic Growth Remains Modest

Including the confidential contract, total Federal Solutions revenue increased 2% year-over-year and declined 3% organically. Management said awards are taking longer to convert to revenue and that the timing of protests and funding decisions could delay program ramps.

Company Guidance

For fiscal year 2026, Parsons now expects revenue in the range of $6.25 billion to $6.45 billion, adjusted EBITDA between $510 million and $515 million, and operating cash flow of $430 million to $490 million; Federal Solutions is expected to reach about 9.7% adjusted EBITDA margin in Q4, with 9.4% for the second half and total year normalized adjusted EBITDA margin just north of 9% or 6.7%, including the adjustments from Q2. For 2027, the company has not provided formal guidance but expects Federal Solutions to grow faster than Critical Infrastructure, products to increase between 20% to 30%, and products to have margins north of 20%; its long-term guidance is mid-single digit or better growth and double-digit margins by 2028.

Parsons Risk Analysis

Parsons disclosed 56 risk factors in its most recent earnings report. Parsons reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Parsons Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:59P against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAIC	84Outperform	$6.39B	17.56	25.89%	0.98%	-0.78%	3.90%
LDOS	73Outperform	$16.33B	11.67	28.04%	1.31%	2.67%	4.32%
CACI	72Outperform	$14.35B	26.39	12.37%	―	10.12%	7.58%
TLS	68Neutral	$562.53M	-63.63	-9.67%	―	36.75%	68.67%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DXC	60Neutral	$2.37B	20.88	3.67%	―	-2.81%	-67.00%

* Technology Sector Average

Performance Comparison

DE:59P and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:59P	Parsons Corp	45.87	-25.13	-35.39%
CACI	Caci International	643.88	57.57	9.82%
SAIC	Science Applications International Corp.	151.24	65.30	75.99%
LDOS	Leidos Holdings Inc	131.11	-55.52	-29.75%
DXC	Dxc Technology Company	14.85	2.39	19.18%
TLS	Telos Corporation	7.72	2.00	34.97%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Parsons AI Stock Analysis