Parsons Q4 revenue falls 8%, misses estimates

Parsons

11/02/2026 11:37

Overview

Disruptive tech provider's Q4 revenue fell 8%, missing analyst expectations

Adjusted EPS for Q4 missed analyst expectations

Company achieved record adjusted EBITDA despite lower revenue volume

Outlook

Parsons sees 2026 revenue between $6.5 bln and $6.8 bln

Parsons expects 2026 adjusted EBITDA of $615 mln to $675 mln

Parsons projects 2026 cash flow from operations at $470 mln to $530 mln

Result Drivers

REVENUE DECLINE - Q4 revenue fell 8% due to lower volume on a confidential contract, but excluding this, revenue grew in key markets

COST MANAGEMENT - Improved adjusted EBITDA margin driven by effective cost management and accretive contracts

CONTRACT WINS - Parsons won four single-award contracts worth more than $100 million each in Q4

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$1.60 bln
$1.67 bln (13 Analysts)
Q4 Adjusted EPS
Miss
$0.75
$0.79 (13 Analysts)
Q4 Net Income
$56 mln
Q4 Adjusted EBITDA
Miss
$153 mln
$159.26 mln (10 Analysts)
Q4 Operating income
$105 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 3 "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 $88.00, about 25.3% above its February 10 closing price of $70.21

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nGNX9h9H3f

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.)