Shares of Parsons Corp (PSN) tumbled 5.04% in Wednesday's trading session following the release of its first-quarter earnings report. The company's revenue fell short of analyst expectations, overshadowing a better-than-expected earnings per share (EPS) performance.

Parsons reported Q1 revenue of $1.55 billion, representing a modest 1.2% year-over-year increase. However, this figure missed Wall Street's estimates of $1.62-1.63 billion by a significant margin. The revenue shortfall was particularly noticeable in the company's Federal Solutions segment, which saw a 7.4% decline compared to the same quarter last year.

On a brighter note, Parsons delivered adjusted earnings per share of $0.78, surpassing the consensus estimate of $0.74. The company also reaffirmed its full-year revenue guidance of $7.0-7.5 billion, which slightly exceeded analysts' expectations. Despite these positive aspects, investors seemed to focus on the revenue miss, leading to the sharp decline in the stock price. The market reaction highlights the importance of meeting or exceeding top-line expectations in the current economic environment.