Parsons Corporation (PSN)
For informational purposes only. Not financial advice. Analysis by Sedat Aydin, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Parsons Corporation (PSN) trades at $52.51 with AI Score 48/100 (Weak). Parsons Corporation delivers integrated solutions across defense, intelligence, and critical infrastructure markets. Market cap: $5.62B, Sector: Industrials.
Last analyzed: Feb 8, 2026Parsons Corporation (PSN) Industrial Operations Profile
Parsons Corporation (PSN) is a leader in providing integrated solutions for defense, intelligence, and critical infrastructure, leveraging its expertise in cybersecurity, space solutions, and infrastructure engineering to capitalize on growing government and commercial demand, offering investors a stable, diversified, and technologically advanced industrial play.
Investment Thesis
Parsons Corporation presents a notable research candidate due to its strategic positioning in high-growth sectors like defense, intelligence, and critical infrastructure. The company's expertise in cybersecurity and space solutions aligns with increasing government spending in these areas. With a P/E ratio of 19.18 and a profit margin of 6.0%, Parsons demonstrates financial stability. Key value drivers include continued contract wins in the Federal Solutions segment and expansion of its intelligent transportation systems offerings. The company's beta of 0.67 suggests lower volatility compared to the market. Growth catalysts include upcoming government infrastructure spending initiatives and ongoing demand for cybersecurity solutions, making PSN an attractive long-term investment.
Based on FMP financials and quantitative analysis
Key Highlights
- Market Cap of $7.42B indicates a strong and established presence in the industrials sector.
- P/E Ratio of 19.18 suggests a reasonable valuation relative to its earnings.
- Profit Margin of 6.0% demonstrates the company's ability to generate profit from its revenue.
- Gross Margin of 22.0% reflects the efficiency of its operations and cost management.
- Beta of 0.67 indicates lower volatility compared to the market, making it a potentially stable investment.
Competitors & Peers
Strengths
- Strong market position in defense, intelligence, and critical infrastructure sectors.
- Diversified revenue streams from both federal and commercial markets.
- Expertise in high-growth areas such as cybersecurity and space solutions.
- Long-term contracts and strong relationships with government agencies.
Weaknesses
- Reliance on government spending, which can be subject to political and budgetary changes.
- Exposure to project delays and cost overruns.
- Competition from larger and more diversified companies.
- Potential for reputational damage from cybersecurity breaches or project failures.
Catalysts
- Ongoing: Government infrastructure spending initiatives driving demand for Parsons' services.
- Ongoing: Increasing global demand for cybersecurity solutions.
- Upcoming: Potential contract wins in the Federal Solutions segment.
- Ongoing: Expansion of intelligent transportation systems offerings.
- Ongoing: Growth in the space and geospatial solutions market.
Risks
- Potential: Economic downturns and reduced government spending could negatively impact revenue.
- Potential: Increased competition from larger and more diversified companies.
- Potential: Cybersecurity threats and data breaches could damage the company's reputation.
- Potential: Changes in government regulations and policies could affect contract opportunities.
- Ongoing: Project delays and cost overruns could impact profitability.
Growth Opportunities
- Expansion in Cybersecurity Solutions: The increasing sophistication of cyber threats and rising government spending on cybersecurity present a significant growth opportunity for Parsons. The global cybersecurity market is projected to reach $300 billion by 2027. Parsons can leverage its expertise in offensive and defensive cybersecurity platforms to secure lucrative contracts with the U.S. Department of Defense and other government agencies. This expansion will drive revenue growth and enhance the company's reputation as a trusted cybersecurity provider.
- Infrastructure Modernization Projects: Governments worldwide are investing heavily in infrastructure modernization, creating opportunities for Parsons to deploy its intelligent transportation systems and infrastructure engineering services. The global smart cities market is expected to reach $2.5 trillion by 2025. Parsons can capitalize on this trend by offering innovative solutions for transportation management, aviation, and rail systems, securing long-term contracts and expanding its market share.
- Growth in Space and Geospatial Solutions: The increasing importance of space-based assets for national security and commercial applications drives demand for Parsons' space and geospatial solutions. The global space economy is projected to reach $1 trillion by 2040. Parsons can leverage its expertise in geospatial intelligence, threat analytics, and satellite ground systems to win contracts with the National Geospatial-Intelligence Agency and other space-related organizations.
- Increased Government Spending on Defense: Ongoing geopolitical tensions and rising defense budgets create opportunities for Parsons to expand its defense-related services. The global defense spending is expected to reach $2.2 trillion in 2026. Parsons can leverage its expertise in missile defense, C5ISR solutions, and integrated air and missile defense to secure contracts with the U.S. Department of Defense and other defense agencies.
- Smart Cities Initiatives: The global trend towards urbanization and the need for sustainable infrastructure are driving the adoption of smart city technologies. Parsons can leverage its expertise in intelligent transportation systems, smart cities software, and critical infrastructure cyber protection to help cities become more efficient, resilient, and livable. This includes implementing advanced traffic management systems, smart grids, and other technologies to improve urban infrastructure and quality of life.
Opportunities
- Increased government spending on infrastructure modernization and cybersecurity.
- Expansion into new geographic markets and service offerings.
- Acquisition of complementary businesses to enhance capabilities and market share.
- Leveraging technology advancements to develop innovative solutions.
Threats
- Economic downturns and reduced government spending.
- Increased competition from new entrants and existing players.
- Cybersecurity threats and data breaches.
- Changes in government regulations and policies.
Competitive Advantages
- Strong relationships with government agencies and long-term contracts create a barrier to entry.
- Specialized expertise in cybersecurity, space solutions, and critical infrastructure provides a competitive advantage.
- Integrated solutions approach offers comprehensive services that are difficult for competitors to replicate.
- Established reputation and track record of successful project delivery enhance customer trust and loyalty.
About PSN
Founded in 1944, Parsons Corporation has evolved from an engineering firm into a global provider of technology-driven solutions for defense, intelligence, and critical infrastructure markets. The company operates through two primary segments: Federal Solutions and Critical Infrastructure. The Federal Solutions segment delivers cybersecurity, intelligence, and space solutions to the U.S. Department of Defense and the intelligence community. These solutions include offensive and defensive cybersecurity platforms, geospatial intelligence, and missile defense systems. The Critical Infrastructure segment focuses on intelligent transportation systems, aviation, rail, smart cities, and infrastructure engineering services for both public and private sector clients. Parsons' services extend to program management, environmental solutions, and critical infrastructure cyber protection. With its headquarters in Centreville, Virginia, Parsons has a significant presence in North America, the Middle East, and other international markets. The company's ability to integrate advanced technologies and provide comprehensive solutions positions it as a key partner for government and commercial clients seeking to address complex challenges in a rapidly evolving world.
What They Do
- Provides cybersecurity and intelligence services to the U.S. Department of Defense and intelligence community.
- Offers space and geospatial solutions, including satellite launch and integration.
- Delivers missile defense and C5ISR solutions.
- Provides technology services for energy production, aviation, and healthcare systems.
- Offers intelligent transportation system management and smart cities software.
- Provides engineering services for infrastructure projects.
- Delivers program management and environmental solutions to private and public sector clients.
Business Model
- Generates revenue through long-term contracts with government agencies and commercial clients.
- Provides integrated solutions combining technology, engineering, and project management expertise.
- Focuses on high-growth sectors such as defense, intelligence, and critical infrastructure.
- Employs a diversified business model with revenue streams from both federal and commercial markets.
Industry Context
Parsons Corporation operates in the industrial machinery sector, which is experiencing growth driven by increased infrastructure spending and technological advancements. The demand for cybersecurity and intelligence solutions is rising due to global security concerns. The competitive landscape includes companies like AOS, CAE, DCI, FLS, and GNRC, each vying for market share in specialized areas. Parsons differentiates itself through its integrated solutions approach, combining expertise in both federal and critical infrastructure markets. The industry is characterized by long-term contracts and high barriers to entry, favoring established players like Parsons.
Key Customers
- U.S. Department of Defense
- United States intelligence community
- National Geospatial-Intelligence Agency
- Transportation authorities and rail entities
- Private-sector industrial clients and public utilities
Financials
Chart & Info
Parsons Corporation (PSN) stock price: $52.51 (-0.31, -0.47%)
Latest News
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Wall Street Rally Cools As Trump Urges Other Nations To Join War: What's Moving Markets Monday?
benzinga · Mar 16, 2026
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Nebius and Parsons have been highlighted as Zacks Bull and Bear of the Day
Zacks · Feb 20, 2026
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Why Parsons Stock Plummeted Today
Motley Fool · Feb 11, 2026
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Earnings Scheduled For February 11, 2026
benzinga · Feb 11, 2026
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for PSN.
Price Targets
Consensus target: $80.82
MoonshotScore
What does this score mean?
The MoonshotScore rates PSN's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
Wall Street Rally Cools As Trump Urges Other Nations To Join War: What's Moving Markets Monday?
Nebius and Parsons have been highlighted as Zacks Bull and Bear of the Day
Why Parsons Stock Plummeted Today
Earnings Scheduled For February 11, 2026
Latest Parsons Corporation Analysis
Parsons Corporation Stock: Key Questions Answered
What does Parsons Corporation do?
Parsons Corporation is a global provider of integrated solutions and services in the defense, intelligence, and critical infrastructure markets. The company operates through two segments: Federal Solutions and Critical Infrastructure. The Federal Solutions segment offers cybersecurity, intelligence, and space solutions to the U.S. Department of Defense and the intelligence community. The Critical Infrastructure segment focuses on intelligent transportation systems, aviation, rail, smart cities, and infrastructure engineering services for both public and private sector clients. Parsons integrates advanced technologies and provides comprehensive solutions to address complex challenges for government and commercial clients.
Is PSN stock worth researching?
PSN stock presents a potentially attractive investment opportunity given its strategic positioning in high-growth sectors like defense, intelligence, and critical infrastructure. The company's expertise in cybersecurity and space solutions aligns with increasing government spending in these areas. With a P/E ratio of 19.18 and a profit margin of 6.0%, Parsons demonstrates financial stability. However, investors may want to evaluate potential risks such as reliance on government spending and increased competition. Overall, PSN offers a balanced risk-reward profile for long-term investors.
What are the main risks for PSN?
The main risks for Parsons Corporation include reliance on government spending, which can be subject to political and budgetary changes. Increased competition from larger and more diversified companies poses a threat to market share. Cybersecurity threats and data breaches could damage the company's reputation and financial performance. Changes in government regulations and policies could affect contract opportunities. Project delays and cost overruns could impact profitability. Investors should carefully consider these risks before investing in PSN stock.
What are the key factors to evaluate for PSN?
Parsons Corporation (PSN) currently holds an AI score of 48/100, indicating low score. The stock trades at a P/E of 30.0x, near the S&P 500 average (~20-25x). Analysts target $80.82 (+54% from $52.51). Key strength: Strong market position in defense, intelligence, and critical infrastructure sectors.. Primary risk to monitor: Potential: Economic downturns and reduced government spending could negatively impact revenue.. This is not financial advice.
How frequently does PSN data refresh on this page?
PSN prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven PSN's recent stock price performance?
Recent price movement in Parsons Corporation (PSN) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. The current analyst target of $80.82 implies 54% upside from here. Notable catalyst: Strong market position in defense, intelligence, and critical infrastructure sectors.. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Should investors consider PSN overvalued or undervalued right now?
Determining whether Parsons Corporation (PSN) is overvalued or undervalued requires examining multiple metrics. Its P/E ratio is 30.0. Analysts target $80.82 (+54% from current price), suggesting analysts see upside potential. Compare valuation ratios (P/E, P/S, EV/EBITDA) against sector peers for a comprehensive view.
What research should beginners do before buying PSN?
Before investing in Parsons Corporation (PSN), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data is based on the most recent available information.
- Future performance is subject to market conditions and company-specific factors.