Why Shares of Parsons Are Plunging Today

Parsons shares plummeted 37.11% after the company beat Q2 earnings expectations but significantly downwardly revised its 2026 guidance. Revenue projections were cut from $6.5-6.8B to $6.2-6.5B, and EBITDA guidance was reduced from $615-675M to $500-560M. Management attributed the revisions to divestitures and timing of new awards rather than fundamental business issues. However, a 4% year-over-year backlog increase suggests future growth potential.