Parsons Corporation
PSN Technology Information Technology Services
Parsons Corporation’s revenue for fiscal 2025 (year ended December 2025) was $6.4 billion, down 5.72% from fiscal 2024. In the quarter to June 2026, revenue was flat, EPS fell 126.9%, free cash flow fell 72.4% and total debt rose 19.3%, each against the same quarter a year earlier. Insiders bought in the last twelve months.
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Parsons Corporation (PSN) Altman Z-score
Parsons Corporation's Altman Z-score for fiscal 2025 is 3.06, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 3.06 | (0.65) |
| FY2024 | 3.71 | 0.51 |
| FY2023 | 3.20 | 0.50 |
| FY2022 | 2.70 | 0.37 |
| FY2021 | 2.33 | (0.03) |
| FY2020 | 2.36 | (0.20) |
| FY2019 | 2.56 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.20 | — | 0.24 | |
| Retained earnings / total assets | 0.11 | — | 0.16 | |
| EBIT / total assets | 0.07 | — | 0.24 | |
| Market value of equity / total liabilities | 2.20 | — | 1.32 | |
| Sales / total assets | 1.10 | — | 1.10 | |
| Altman Z-score | Safe zone | 3.06 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 3.14 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| EXLS ExlService Holdings, Inc. compare | 8.6× |
| EPAM EPAM Systems, Inc. compare | 8.1× |
| G Genpact Limited compare | 3.3× |
| INGM Ingram Micro Holding Corporation compare | 3.1× |
| PSN Parsons Corporation | 3.1× |
| SAIC Science Applications International Corporation compare | 2.8× |
| PENG Penguin Solutions, Inc. compare | 2.1× |
| CIFR Cipher Digital Inc. compare | 0.9× |
| GDS GDS Holdings compare | 0.8× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets