Parsons Reports Mixed Q1 2026 Results with Strategic Acquisition and Strong Book-to-Bill
PSN is trading near its 52-week low of $49.38 (8.3% above the low).
Summary
Parsons reported a decline in Q1 2026 GAAP revenue and EPS, but saw increased Adjusted EBITDA, driven by the $340M Altamira acquisition and a strong 1.4x book-to-bill ratio, signaling future growth despite current GAAP headwinds.
Key Events · Earnings and Guidance · PSN
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Q1 2026 Financial Performance
Revenue decreased by 4.1% to $1.49 billion, and diluted EPS fell by 18.3% to $0.49 compared to Q1 2025. However, Adjusted EBITDA increased by 1.4% to $150.9 million, indicating improved operational profitability.
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Strategic Acquisition of Altamira Technologies
The company acquired Altamira Technologies Corporation for $340 million in cash on January 14, 2026, significantly enhancing its Federal Solutions segment with advanced analytics and cyber capabilities. This acquisition was largely funded by a $330 million borrowing under a credit agreement.
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Strong Awards and Book-to-Bill Ratio
Year-to-date awards increased by 16.5% to $2.06 billion, resulting in a robust book-to-bill ratio of 1.4. Total backlog grew by 2.6% to $9.31 billion, signaling strong future revenue generation.
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Increased Long-Term Debt
Long-term debt increased by $275.1 million to $1.51 billion as of March 31, 2026, primarily due to borrowings to fund recent acquisitions, including Altamira Technologies.
Analysis · PSN · Technology
Parsons Corporation's Q1 2026 results show a mixed financial picture, with a decline in GAAP revenue and diluted EPS, but an increase in Adjusted EBITDA, driven by strategic acquisitions and strong new contract awards. The company's GAAP diluted EPS of $0.49 for Q1 2026 is a notable decrease from $0.60 in Q1 2025, contrasting with recent news reports of strong adjusted EPS. The acquisition of Altamira Technologies for $340 million in January 2026 significantly expanded Parsons' defense and intelligence capabilities, contributing to a substantial increase in long-term debt. The robust year-to-date awards of $2.06 billion and a book-to-bill ratio of 1.4 indicate strong future revenue potential, particularly in the Critical Infrastructure segment.
How filings like this one have moved
In the 30 days to Sep 15, 2026, 35.6% of the 1100 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.43%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, PSN was trading at $53.49 on NYSE in the Technology sector, with a market capitalization of approximately $5.5B. The 52-week trading range was $49.38 to $89.50. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.