| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 58 | 34.5x | 17.3x | Around median | |
Growth | 44 | -5.8% | 7.1% | Around median | |
Quality | 53 | 6.0% | 4.5% | Around median | |
Safety | 59 | 3.3x | 2.6x | Around median | |
Capital Return | 68 | 0.62% | 0.06% | Top tier | |
Momentum | 32 | -50.1% | -1.6% | Bottom tier | |
Sentiment | 90 | 9 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
72% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Parsons Corporation operates in two interconnected markets: Federal Solutions and Critical Infrastructure. In Federal Solutions, it sells cybersecurity, missile defense, space, electronic warfare, and counter-unmanned aircraft services and products, with a portfolio that includes Joint Cyber Hunt Kit, TReX, DroneArmor, OrbitXchange, and GOCaaS; its infrastructure business covers transportation, airports, rail, water, urban development, and program management. Products represented 10% of its federal business in fiscal Q2 2026, while government contracts, long-term frameworks, and engineering projects provided the primary sources of revenue.
In fiscal Q2 2026, revenue reached $1.6 billion, while adjusted revenue grew 8% year over year and 3% organically after excluding the classified contract. Adjusted earnings before interest, taxes, depreciation, and amortization reached $161 million, up 8%, and its margin expanded 70 basis points to 10.1%. Reported results were affected by $118 million of nonrecurring events, consisting of a $77 million loss on two remote contracts held for sale and a $41 million charge related to historic rainfall and schedule delays at a joint venture project, partially offset by a $19 million gain from the sale of two consulting contracts.
The segment mix reflected a clear divergence in fiscal Q2 2026: Critical Infrastructure revenue grew 5%, while its adjusted earnings before interest, taxes, depreciation, and amortization rose 18% to $97 million, with an 11.9% margin. Adjusted Federal Solutions revenue grew 11%, but the segment's adjusted profit declined 5% to $64 million and its margin fell to 8.2% because of lower classified contract volume and a higher share of materials and subcontractors. EDGAR data for fiscal Q1 2026 shows revenue of $1.5 billion, gross profit of $357.4 million, net income of $52.9 million, and earnings per share of $0.49.
The analyst consensus is Buy, with an average target of $47.75, but the wide target range from $17 to $65 reflects substantial disagreement over the impact of the backlog and new contracts versus execution and funding risks. The average target is approximately 47% below the top of the 52-week range of $89.50, and even the highest target is approximately 27% below that peak, consistent with a reassessment following reductions to revenue and profitability guidance; the data does not include a valid earnings multiple that could be used as an additional anchor.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Growth depends on a $9.3 billion backlog, including $6.6 billion funded, and $11 billion of awards not yet booked. Bookings reached $1.9 billion in fiscal Q2 2026, up 24%, and the book-to-bill ratio reached 1.2 times. Execution drivers include Joint Cyber Hunt Kit, the Missile Defense Agency contract, the two Other Transaction Agreements valued at $400 million, and organic growth of 10% in the Middle East.
On August 25, 2026, USCYBERCOM raised the ceiling of the five-year Joint Cyber Hunt Kit contract to $750 million and selected SealingTech as the sole prime contractor. Parsons booked $250 million from the program in fiscal Q1 2026 and completed delivery of 12 low-rate initial production units. The company is targeting delivery of 62 units during fiscal 2026 and 74 units in each of fiscal 2027 and fiscal 2028, making it a defined component of federal product growth.
The company reduced the midpoint of its revenue guidance by $300 million to a range of between $6.2 billion and $6.5 billion. The reduction was divided among $85 million related to divestitures, $125 million related to infrastructure, award timing, and lower pass-through costs, and $90 million related to a contract protest and delayed federal funding. The midpoint of adjusted earnings before interest, taxes, depreciation, and amortization guidance was also reduced by $115 million, but management said underlying performance offset part of the impact of lower revenue volume.
Automated analysis for informational purposes only — not investment advice.
Parsons recorded nonrecurring events totaling $118 million, including a $77 million loss on two remote contracts and a $41 million charge for a joint venture project affected by historic rainfall. The company expects to complete the sale of the two remote contracts in fiscal Q3 2026, while the weather-affected project is expected to reach 90% completion by the end of fiscal 2026. However, three programs in which Parsons is a non-managing partner remain in place through the start of fiscal 2027 and early and mid-fiscal 2028, requiring continued execution monitoring.
Critical Infrastructure adjusted earnings before interest, taxes, depreciation, and amortization reached $97 million in fiscal Q2 2026, up 18%, and its margin reached 11.9%. In Federal Solutions, the corresponding profit was $64 million, down 5%, while the margin was 8.2% because of lower classified contract volume and a higher share of materials and subcontractors. Management expects the federal margin to rise to 9.4% in the second half of fiscal 2026 as products and more profitable contracts grow.
Days sales outstanding reached 76 days at the end of fiscal Q2 2026, affected by lower classified contract volume and the timing of collections in the Middle East. The company also invested approximately $30 million in memory and storage inventory to support production of Joint Cyber Hunt Kit and other products. Trailing twelve-month free cash flow conversion was 74%, while Parsons reaffirmed a target above 100% for fiscal 2026 within operating cash flow guidance of between $430 million and $490 million.