Abstract
Parsons Corp will post its quarterly results on February 11, 2026 Pre-Market; this preview compiles the latest reported quarter’s metrics and current-quarter forecasts on revenue, margins, and adjusted EPS, alongside segment trends and prevailing analyst views.
Market Forecast
Consensus tracking and company-guided projections indicate revenue for this quarter is expected at $1.67 billion, with EBIT around $119.21 million and adjusted EPS near $0.79; forecasts imply year-over-year revenue decline of 5.11% and adjusted EPS decline of 13.29%, while EBIT is projected to grow 2.20%. Margin implications suggest a mixed setup, with revenue softness alongside modest operating resilience. Parsons Corp’s main lines—Critical Infrastructure and Federal Solutions—remain the core of revenue, with management focus on executing funded backlog and cost control; growth momentum is expected to be steadier in Federal Solutions due to resilient U.S. government demand. The most promising segment near term is Federal Solutions, supported by robust defense, cyber, and intel demand; quarterly revenue was recently $788.61 million, and demand outlook is positive as contract activity remains healthy year over year.
Last Quarter Review
Parsons Corp reported last quarter revenue of $1.62 billion, a gross profit margin of 22.19%, GAAP net profit attributable to shareholders of $64.12 million, a net profit margin of 3.95%, and adjusted EPS of $0.86, with year-over-year adjusted EPS down 9.47%. Net profit improved sequentially by 16.10%, reflecting better mix and operating execution despite softer top-line versus estimates. Main business performance showed Critical Infrastructure at $833.14 million and Federal Solutions at $788.61 million; Federal Solutions continued to benefit from solid federal funding dynamics and contract renewals, while Critical Infrastructure performance remained anchored by transportation and water programs.
Current Quarter Outlook (with major analytical insights)
Main business execution and margin trajectory
Parsons Corp’s main business spans Critical Infrastructure and Federal Solutions, which together anchor the quarter’s revenue guidance near $1.67 billion. With a prior-quarter gross margin of 22.19% and net profit margin of 3.95%, the current quarter’s expected EBIT of $119.21 million suggests management is seeking to sustain operating discipline amid a forecast top-line contraction of 5.11% year over year. A key swing factor in margins is labor mix and pass-through rates on cost-reimbursable contracts; more design and advisory scope in Critical Infrastructure or higher technical content in Federal Solutions could support gross margin, while elevated subcontracting could compress it. Given the last quarter’s sequential net profit improvement, we expect stable to slightly better operating conversion if revenue delivery aligns with funded backlog burn. Investors should watch how much of the revenue base is tied to lower-margin pass-through versus higher-value engineering and cyber services, as this will drive adjusted EPS cadence relative to the projected $0.79.
Federal Solutions as the near-term growth engine
Federal Solutions, at $788.61 million last quarter, is positioned to be the near-term growth engine due to resilient demand across defense, cyber, space, and intelligence programs. The company’s forecast shows EBIT growth of 2.20% year over year despite revenue pressure, which aligns with potential mix benefits from higher-margin cyber and mission-critical services. Contract timing remains crucial; on-ramps and task orders in large IDIQ vehicles can accelerate late in the quarter, lifting revenue recognition and improving overhead absorption. Should award momentum continue, Federal Solutions may deliver outperformance versus the top-line forecast, with the added benefit of stickier multi-year programs that bolster visibility. The key risk is potential delays in federal appropriations or continuing resolutions, which could push revenue to subsequent quarters, but historically these have tended to defer rather than permanently reduce demand in this segment.
Critical Infrastructure normalization and backlog conversion
Critical Infrastructure delivered $833.14 million last quarter, reflecting ongoing work in transportation, water, and digital infrastructure. The forecasted revenue contraction this quarter suggests pacing effects from project phasing and client scheduling rather than a structural slowdown. Mix will be central to margin outcomes: design-heavy and program management work typically carries better gross margins than construction management with higher pass-through. If project milestones align and change orders are approved on time, gross margin could hold near the 22.00% range. Conversely, a higher share of lower-margin pass-through or extended procurement cycles could weigh on profitability, aligning with the anticipated dip in adjusted EPS to $0.79. Monitoring award announcements and backlog conversion rates will be key indicators for how Critical Infrastructure contributes to consolidated performance.
Factors most likely to influence stock performance this quarter
Two quantitative markers will shape investor reaction: adjusted EPS versus the $0.79 forecast and revenue versus the $1.67 billion expectation. A beat on EBIT or gross margin, even with in-line revenue, would likely be viewed favorably given the guided year-over-year decline in revenue and adjusted EPS. The second factor is the mix between Federal Solutions and Critical Infrastructure; a stronger Federal Solutions contribution could raise confidence in countercyclical demand and margin durability. Finally, commentary on backlog growth, award momentum, and the timing of federal appropriations will color the forward view; investors will parse whether the current revenue softness is temporary timing or an early sign of slower award conversion.
Analyst Opinions
Across recent institutional commentary, the balance of views tilts bullish, emphasizing resilient federal demand and margin execution despite near-term revenue variability. Positive opinions highlight the potential for Federal Solutions to offset timing-related pressure in infrastructure and to support EBIT growth of 2.20% year over year, with adjusted EPS around $0.79 viewed as a base rather than a peak. Analysts also point to sequential improvement in net profit, evidenced by the 16.10% quarter-on-quarter increase last quarter, as support for near-term operating momentum. The optimistic camp expects stable to improving gross margin given ongoing mix shifts to higher-value services, and sees any appropriation-related delays as deferrable rather than destructive to demand. Overall, the prevailing view is that Parsons Corp can navigate a choppy revenue backdrop while defending profitability metrics near current forecasts.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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