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Parsons (PSN) guidance and outlook
Parsons (PSN) narrowed its guidance on Oct 28, 2026: Revenue $6.2B–$6.5B for FY2026; EBITDA $510M–$550M for FY2026. Parsons' 10-Q filed Jul 29, 2026 makes 11 forward-looking statements.
Guidance and outlook
Latest guidance
| Metric | Period | Range | Change |
|---|---|---|---|
| Revenue | FY2026 | $6.2B–$6.5B | reaffirmed |
| EBITDA | FY2026 | $510M–$550M | reaffirmed |
From the earnings release filed Oct 28, 2026 (8-K on EDGAR).
Forward-looking statements, 10-Q filed Jul 29, 2026
- Congress generally appropriates funds for our U.S. federal government customers on a yearly basis, even though their contracts with us may call for performance that is expected to take a number of years to complete.
- We expect to recognize $3.8 billion of our funded backlog at June 30, 2026 as revenues in the following twelve months.
- In the case of a termination for convenience, we would not receive anticipated future revenues, but would generally be permitted to recover all or a portion of our incurred costs and fees for work performed.
- Our ability to effectively deliver on project engagements and successfully assist our customers affects our ability to win new contracts and drives our financial performance.
- On January 14, 2026, the Company acquired a 100% ownership interest in Altamira Technologies Corporation ("ATC"), a privately owned company, for approximately $339 million in cash and up to an additional $45 million in the event an earn out EBITDA target is exceeded.
- In addition, we have also historically experienced higher bid and proposal costs in the months leading up to the U.S. federal government fiscal year-end as we pursue new contract opportunities expected to be awarded early in the following U.S. federal government fiscal year as a result of funding appropriated for that U.S. federal government fiscal year.
- We discuss Adjusted EBITDA because our management uses this measure for business planning purposes, including to manage the business against internal projected results of operations and measure the performance of the business generally.
- Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
- Additionally, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect tax payments, debt service requirements, capital expenditures and certain other cash costs that may recur in the future, including, among other things, cash requirements for working capital needs and cash costs to replace assets being depreciated and amortized.
- The decrease in Federal Solutions revenue for the three months ended June 30, 2026 compared to the corresponding period last year was primarily driven by our confidential contract operating at a reduced volume as a result of the Department of State reorganization issued May 29, 2025 and write downs on projects.
- Net days sales outstanding, which we refer to as net DSO, is calculated by dividing (i) accounts receivable (net of project accruals, billings in excess of revenue and accounts payable) by (ii) average revenue per day (calculated by dividing trailing twelve months revenue by the number of days in that period).
Parsons' latest quarter
Parsons, Q3 2026: revenue $1.7B (+2% year over year), operating margin 6.3%, net earnings $54.2M, operating cash flow $269M. The chart follows the revenue to costs, profit and cash.
Questions
Did Parsons raise or lower its guidance?
Parsons (PSN) narrowed its guidance on Oct 28, 2026: Revenue $6.2B–$6.5B for FY2026; EBITDA $510M–$550M for FY2026.
What does Parsons expect?
Congress generally appropriates funds for our U.S. federal government customers on a yearly basis, even though their contracts with us may call for performance that is expected to take a number of years to complete. We expect to recognize $3.8 billion of our funded backlog at June 30, 2026 as revenues in the following twelve months. In the case of a termination for convenience, we would not receive anticipated future revenues, but would generally be permitted to recover all or a portion of our incurred costs and fees for work performed.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.