TacticScaleWhat Parsons Does & How It Makes Money (PSN)
Updated October 2026 · reflects Parsons's latest reported financials
Engineering and technology services firm for U.S. defense and infrastructure. Parsons earns revenue from service and technology contracts with U.S.
How Parsons makes money
Parsons earns revenue from service and technology contracts with U.S. government agencies, mainly defense and intelligence, and from fees for planning, engineering, and program management work on infrastructure projects. It also sells software, hardware and digital solutions that support these contracts.
What Parsons does
Parsons Corporation, founded in 1944 and headquartered in Chantilly, Virginia, is a technology and engineering services provider with two segments. Federal Solutions serves U.S. defense, intelligence and civil agencies with capabilities in cyber and information operations, air and missile defense, counter-unmanned air systems, electronic warfare, space ground systems and cislunar work, geospatial and signals intelligence, biometrics, border security and environmental remediation. It supplies software, hardware and technical expertise for command and control and joint all-domain operations. Critical Infrastructure provides planning, engineering, design and management services for bridges, tunnels, roads, rail and transit, aviation, utilities, and water and wastewater systems. It also develops digital solutions such as intelligent transportation systems, and its ParsonsX organization focuses on digital transformation. Together, the two segments give Parsons exposure to both national security budgets and infrastructure spending.
Products & services
- Cyber and defensive cyber operations
- Air and missile defense and counter-drone systems
- Space ground systems and satellite operations support
- Electronic warfare and signals intelligence
- Infrastructure engineering and program management
- ParsonsX digital transformation
What is Parsons worth?
On an owner-earnings DCF, Parsons's most-likely value is about $76 versus a recent price near $45 (69% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$37) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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