📊 PSN Key Takeaways
Is Parsons Corp. (PSN) a Good Investment?
Parsons demonstrates strong free cash flow generation ($410.4M) and a solid balance sheet with manageable leverage, but faces significant integration challenges evidenced by a 21.9% decline in net income despite a massive revenue increase of 14,426% (likely acquisition-driven). Thin net margins of 3.8% and modest returns on equity (9.1%) require close monitoring for profitability recovery and margin expansion.
Why Buy Parsons Corp. Stock? PSN Key Strengths
- Strong free cash flow generation of $410.4M with healthy 6.4% FCF margin, indicating robust underlying cash generation capability
- Solid balance sheet with moderate leverage (0.47x D/E ratio) and excellent interest coverage of 8.1x, providing financial stability
- Healthy liquidity position with 1.75x current and quick ratios, supporting operational flexibility and debt servicing capacity
PSN Stock Risks: Parsons Corp. Investment Risks
- Massive revenue spike of 14,426% indicates major acquisition or restructuring; net income declined 21.9% YoY suggesting integration challenges, margin compression, or one-time costs
- Thin net margin of 3.8% and modest returns on equity (9.1%) and assets (4.2%) indicate below-average profitability and capital efficiency
- Operating income growth not keeping pace with revenue growth, signaling potential structural profitability headwinds or acquisition integration issues
Key Metrics to Watch
- Operating margin trend and path to margin expansion post-integration of acquired assets
- Net income and net margin recovery trajectory to ensure profitability stabilization
- Free cash flow sustainability and conversion rate amid integration activities
Parsons Corp. (PSN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Parsons Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
PSN Profit Margin, ROE & Profitability Analysis
PSN vs Technology Sector: How Parsons Corp. Compares
How Parsons Corp. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Parsons Corp. Stock Overvalued? PSN Valuation Analysis 2026
Based on fundamental analysis, Parsons Corp. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Parsons Corp. Balance Sheet: PSN Debt, Cash & Liquidity
PSN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Parsons Corp.'s revenue has grown significantly by 71% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.42 reflects profitable operations.
PSN Revenue Growth, EPS Growth & YoY Performance
PSN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.6B | $64.1M | $0.59 |
| Q2 2025 | $1.6B | $55.2M | $0.50 |
| Q1 2025 | $1.5B | $39.8M | $0.37 |
| Q3 2024 | $1.4B | $33.8M | $0.31 |
| Q2 2024 | $1.4B | -$38.2M | $-0.36 |
| Q1 2024 | $1.2B | $25.6M | $0.23 |
| Q3 2023 | $1.1B | $29.6M | $0.27 |
| Q2 2023 | $1.0B | $18.3M | $0.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Parsons Corp. Dividends, Buybacks & Capital Allocation
PSN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Parsons Corp. (CIK: 0000275880)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PSN
What is the AI rating for PSN?
Parsons Corp. (PSN) has an AI rating of HOLD with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PSN's key strengths?
Claude: Strong free cash flow generation of $410.4M with healthy 6.4% FCF margin, indicating robust underlying cash generation capability. Solid balance sheet with moderate leverage (0.47x D/E ratio) and excellent interest coverage of 8.1x, providing financial stability.
What are the risks of investing in PSN?
Claude: Massive revenue spike of 14,426% indicates major acquisition or restructuring; net income declined 21.9% YoY suggesting integration challenges, margin compression, or one-time costs. Thin net margin of 3.8% and modest returns on equity (9.1%) and assets (4.2%) indicate below-average profitability and capital efficiency.
What is PSN's revenue and growth?
Parsons Corp. reported revenue of $6.4B.
Does PSN pay dividends?
Parsons Corp. does not currently pay dividends.
Where can I find PSN SEC filings?
Official SEC filings for Parsons Corp. (CIK: 0000275880) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PSN's EPS?
Parsons Corp. has a diluted EPS of $2.20.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is PSN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Parsons Corp. has a HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is PSN stock overvalued or undervalued?
Valuation metrics for PSN: ROE of 9.1% (sector avg: 22%), net margin of 3.8% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy PSN stock in 2026?
Our dual AI analysis gives Parsons Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PSN's free cash flow?
Parsons Corp.'s operating cash flow is $478.4M, with capital expenditures of $68.0M. FCF margin is 6.4%.
How does PSN compare to other Technology stocks?
Vs Technology sector averages: Net margin 3.8% (avg: 18%), ROE 9.1% (avg: 22%), current ratio 1.75 (avg: 2.5).