PSN Stock Extends Weekly Losing Streak: Analysts Turn Cautious On 2026 Outlook

Wall Street remains skeptical despite new federal contract wins and steady 2026 guidance.

• Jefferies said that while the company's Critical Infrastructure segment is growing, its federal segment has been impacted by the Confidential program.
• The company forecast fiscal 2026 revenue of $6.5 billion to $6.8 billion and core profit of $615 million to $675 million.
• Parsons said the company delivered double-digit total revenue growth across both the Critical Infrastructure North America and Middle East business units.

Parsons Corp's stock closed down nearly 9% last week, marking its third straight week of decline following a week marred by lower-than-expected quarterly results and Wall Street analysts turning cautious about the company’s growth.

Shares of the company were up nearly 3% so far this year into 2026, compared to the 33% decline witnessed in 2025. 

PSN: Federal Segment Faces Pressure 

On Friday, Jefferies cut the firm's price target on Parsons to $65 from $80 and maintained a ‘Hold’ rating, according to TheFly. The firm said that while its Critical Infrastructure segment is growing, its federal segment has been affected by the Confidential program.

UBS said Parsons is facing an uphill battle for now, but the guidance reset the bar. 

2026 Guidance 

The company forecast fiscal 2026 revenue of $6.5 billion to $6.8 billion and core profit of $615 million to $675 million.

Contract Wins Offer Long-Term Support

The stock has seen investor optimism rise following several federal contract announcements in February, including the company securing a $91 million contract extension for the Overseas Security Installation Services contract administered by the U.S. Department of State.

“From an operations perspective, we won strategic contracts, achieved high win rates of 61%, maintained strong hiring, and had record retention rates,” CEO Carey Smith said. He added that the company delivered double-digit total revenue growth in both Critical Infrastructure North A/merica and Middle East business units.

What Is Retail Thinking?

Retail sentiment on PSN improved to ‘extremely bullish’ from ‘bullish’ a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

Shares of PSN have declined nearly 14% in the last 12 months.

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