Key Highlights

  • PSN shares are indicated down 3.26% at $49.00 in premarket, against a prior close of $50.65.
  • Q3 revenue of $1.65 billion rose 2%, and adjusted EPS of $0.89 beat estimates.
  • Backlog hit a record $9.4 billion, and total awards rose 14% for a book-to-bill of 1.1x.
  • CFO Matt Ofilos steps down November 6, with former CFO George Ball named interim.
  • 2026 revenue guidance was narrowed to $6.25 billion to $6.45 billion.

Parsons (NYSE:PSN) shares are indicated down 3.26% at $49.00 in premarket after third-quarter results that beat on revenue and adjusted earnings were overshadowed by a CFO resignation and a narrowed full-year outlook. Revenue of $1.65 billion, up 2%, topped the roughly $1.62 billion consensus, and adjusted EPS of $0.89 beat estimates. Shares closed Tuesday at $50.65, down 0.16%.

Parsons, founded in 1944 and headquartered in the Washington, D.C. area, is a technology-driven solutions provider for national security and critical infrastructure markets. Its Federal Solutions segment covers cyber and electronic warfare, space and geospatial intelligence, missile defense and C5ISR, while Critical Infrastructure covers engineering, program management, intelligent transportation, aviation, rail and water. It is led by CEO Carey Smith.

Leadership Change Takes Focus

CFO Matt Ofilos is stepping down on November 6 for a new opportunity, and former CFO and board member George Ball becomes interim CFO. Investors also weighed execution concerns around the Edmonton rail project. GAAP EPS of $0.51 missed by about $0.02.

Management narrowed 2026 revenue guidance to $6.25 billion to $6.45 billion, roughly in line with the $6.36 billion consensus. The company also said the guidance review had not yet been presented in the portion of the call available at publication.

Record Backlog and Margins

Adjusted EBITDA rose 6% to $168 million, and the margin expanded 40 basis points to a record 10.2%. Operating cash flow was $269 million. Total awards rose 14% for a consolidated book-to-bill of 1.1x, and year-to-date book-to-bill is 1.2x.

Federal solutions awards rose 53%, a 1.2x book-to-bill, and federal bookings are up 47% year to date. Critical infrastructure held a 1.0x book-to-bill for the 24th straight quarter and delivered record Q3 revenue and an adjusted EBITDA margin above 11% for the first time.

Portfolio Moves and Contract Wins

Parsons signed a definitive agreement to divest its remote location contracts and is finalizing the contract novation, which management said de-risks the portfolio and frees resources for higher-margin work. Notable awards included a $495 million ceiling national security contract, with $37 million booked in the quarter, and a Cyber Command production contract whose ceiling was raised to $750 million. Full-rate production of JCHK has begun.

The technology sector ETF is up about 0.6% in premarket. The 52-week range runs from $36.26 to $88.00.