Jefferies Lowers Price Target for Parsons Corporation (NYSE:PSN) Amid Q1 Revenue Miss

Font: Financial Modeling Prep  • May 03, 2026

• Jefferies maintains a "Hold" rating on Parsons Corporation (NYSE:PSN) but has lowered its price target to $55.00 from $65.00.
• Parsons reported a Q1 2026 revenue of $1.49 billion, missing analyst estimates, with net income declining to $53.00 million.
• Despite the revenue miss, Parsons exceeded earnings expectations with $0.79 per share and achieved a record adjusted EBITDA of $151.00 million, alongside a growing $9.30 billion order backlog.

On May 3, 2026, leading investment firm Jefferies updated its view on Parsons Corporation (NYSE:PSN), a prominent technology company serving the defense, intelligence, and infrastructure markets. Jefferies maintains a "Hold" rating on the stock but has lowered its price target to $55.00 from $65.00. This adjustment comes as Parsons trades at $50.87 per share, reflecting current market valuations and future outlook.

The lowered price target reflects some of Parsons' recent operational challenges. For the first quarter of 2026, Parsons reported revenue of $1.49 billion, which missed analyst estimates and represented a 4% decrease from the previous year. As reported by GlobeNewswire, net income also declined by $13.00 million to $53.00 million for the quarter, impacting overall financial performance.

Despite the revenue miss, Parsons demonstrates underlying financial strength, supporting the "Hold" rating. As highlighted by Zacks, Parsons surpassed earnings expectations, reporting $0.79 per share against an estimate of $0.70. The company also achieved a record first-quarter adjusted EBITDA of $151.00 million, a key measure of profitability before interest, taxes, depreciation, and amortization, indicating robust operational efficiency.

Parsons' future outlook appears stable, bolstered by its total order backlog growing to a record $9.30 billion. Parsons also reports a strong book-to-bill ratio of 1.4x. This crucial ratio signifies that the company is securing new contracts faster than it is completing existing ones, which suggests significant potential for future revenue growth and has led Parsons to reiterate its 2026 guidance, reinforcing investor confidence.