The stock's double-digit slide brought the price to $63.22, marking an 18% decline over the past year. According to the financial report, Parsons posted adjusted earnings of 75 cents a share, trailing the 79 cents per share projected by analysts polled by FactSet.

Revenue Hit by Federal Contracting Decline

Total revenue for the quarter fell 8% year-over-year to $1.6 billion, missing the $1.67 billion forecast by Wall Street. The downturn was most pronounced in the federal solutions segment, where revenue plummeted 22% to $784.2 million compared to the same period last year.

The company also reported a $8.7 billion backlog, representing a 2% decrease from previous levels. This contraction in future contracted work, combined with the quarterly revenue miss, fueled the negative investor sentiment surrounding the defense and infrastructure provider.