Parsons Q1 adjusted EPS beats estimates, helped by acquisitions

Parsons

29/04/2026 11:47

Overview

US defense and infrastructure tech firm's Q1 revenue fell 4%, slightly missing analyst expectations

Adjusted EPS for Q1 beat analyst expectations

Adjusted EBITDA for Q1 beat estimates and reached a quarterly record

Outlook

Parsons reiterates fiscal 2026 revenue guidance of $6.5 bln to $6.8 bln

Company maintains fiscal 2026 adjusted EBITDA guidance of $615 mln to $675 mln

Parsons expects fiscal 2026 operating cash flow of $470 mln to $530 mln

Result Drivers

CONFIDENTIAL CONTRACT IMPACT - Lower volume on a fixed-price confidential contract drove overall revenue and operating income declines

SEGMENT GROWTH - Excluding the confidential contract, revenue increased due to growth in Critical Infrastructure, Protection, Space and Missile Defense, and Transportation markets

ACQUISITIONS AND EXECUTION - Adjusted EBITDA and margin expansion were driven by improved execution and contributions from accretive acquisitions

Company press release: ID:nGNX8mv8Tn

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
$1.50 bln
$1.51 bln (12 Analysts)
Q1 Adjusted EPS
Beat
$0.79
$0.69 (12 Analysts)
Q1 Net Income
$53 mln
Q1 Adjusted EBITDA
Beat
$151 mln
$141.83 mln (10 Analysts)
Q1 Operating income
$96 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the aerospace & defense peer group is "buy"

Wall Street's median 12-month price target for Parsons Corp is $73.00, about 40.8% above its April 28 closing price of $51.84

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 18 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)