Why Parsons (PSN) Shares Are Trading Lower Today

Gist

Parsons (PSN) shares plunged 21.9% after losing a major FAA contract to Peraton, despite other positive wins, triggering a price target cut and reflecting investor disappointment.

LLM Summary

Parsons' stock dropped sharply after being passed over for a key U.S. air traffic control system upgrade contract, which went to competitor Peraton. Truist lowered its price target, and the market reaction was severe despite Parsons securing a separate $3.5B defense contract. The drop marks one of the largest single-day moves in the stock’s recent history.

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Why Parsons (PSN) Shares Are Trading Lower Today

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Why Parsons (PSN) Shares Are Trading Lower Today

Anthony Lee

Fri, December 5, 2025 at 8:16 PM GMT+1 2 min read

[PSN

-21.49%](/quote/PSN/ "PSN")

What Happened?

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Shares of infrastructure and defense services provider Parsons (NYSE:PSN) fell 21.9% in the afternoon session after the company lost out on a significant government contract to upgrade the U.S. air traffic control system.

The contract was instead awarded to competitor Peraton, an outcome that reportedly surprised investors and removed a key expected catalyst for the company. Following the announcement, Truist Securities lowered its price target on Parsons' stock to $90 from $100, noting the company now faced 'less defined catalysts.' The negative market reaction occurred despite other positive news that Parsons was selected as an awardee for a separate $3.5 billion contract with the Defense Threat Reduction Agency. However, investors appeared to focus more on the loss of the Federal Aviation Administration (FAA) project.

What Is The Market Telling Us

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Parsons’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for Parsons and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 10 months ago when the stock dropped 11.1% on the news that the company reported disappointing fourth quarter earnings: its revenue, EPS, and EBITDA fell short of Wall Street's estimates along with its full-year revenue and EBITDA guidance. Parsons beat analysts' backlog expectations this quarter, but the weaker outlook implies the conversion of its backlog into sales will take longer than anticipated. Overall, this was a tough quarter.

Parsons is down 28% since the beginning of the year, and at $65.16 per share, it is trading 34.1% below its 52-week high of $98.88 from December 2024. Investors who bought $1,000 worth of Parsons’s shares 5 years ago would now be looking at an investment worth $1,817.

Why Parsons (PSN) Shares Are Trading Lower Today
================================================

Why Parsons (PSN) Shares Are Trading Lower Today

Anthony Lee

Fri, December 5, 2025 at 8:16 PM GMT+1 2 min read

[PSN

-21.49%](/quote/PSN/ "PSN")

What Happened?
--------------

Shares of infrastructure and defense services provider Parsons (NYSE:PSN) fell 21.9% in the afternoon session after the company lost out on a significant government contract to upgrade the U.S. air traffic control system.

The contract was instead awarded to competitor Peraton, an outcome that reportedly surprised investors and removed a key expected catalyst for the company. Following the announcement, Truist Securities lowered its price target on Parsons' stock to $90 from $100, noting the company now faced 'less defined catalysts.' The negative market reaction occurred despite other positive news that Parsons was selected as an awardee for a separate $3.5 billion contract with the Defense Threat Reduction Agency. However, investors appeared to focus more on the loss of the Federal Aviation Administration (FAA) project.

What Is The Market Telling Us
-----------------------------

Parsons’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for Parsons and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 10 months ago when the stock dropped 11.1% on the news that the company reported disappointing fourth quarter earnings: its revenue, EPS, and EBITDA fell short of Wall Street's estimates along with its full-year revenue and EBITDA guidance. Parsons beat analysts' backlog expectations this quarter, but the weaker outlook implies the conversion of its backlog into sales will take longer than anticipated. Overall, this was a tough quarter.

Parsons is down 28% since the beginning of the year, and at $65.16 per share, it is trading 34.1% below its 52-week high of $98.88 from December 2024. Investors who bought $1,000 worth of Parsons’s shares 5 years ago would now be looking at an investment worth $1,817.

Why Parsons (PSN) Shares Are Trading Lower Today

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