ASGN beats Q2 revenue and profit estimates on strong growth in IT consulting segment

Overview

• ASGN Q2 revenue of $1.02 bln beats analyst expectations, per LSEG data

• Adjusted EPS of $1.17 exceeds analyst estimates, per LSEG data

• Co repurchased 200,000 shares for $9.5 mln during the quarter

Outlook

• ASGN sees Q3 2025 revenue between $992 mln and $1.012 bln

• Company expects Q3 2025 net income in the range of $35.8 mln to $39.4 mln

• ASGN projects Q3 2025 adjusted EBITDA of $108.5 mln to $113.5 mln

• Company notes macroeconomic uncertainty impacting discretionary spending

Result Drivers

• IT CONSULTING GROWTH - IT consulting revenues reached 63% of total revenues, driven by demand for cloud and data solutions

• TOPBLOC CONTRIBUTION - Recent acquisition TopBloc performed above expectations

• MACROECONOMIC IMPACT - Commercial segment faced softness in assignment revenues due to macroeconomic uncertainties

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy."

• Wall Street's median 12-month price target for ASGN Inc is $59.00, about 15.7% above its July 22 closing price of $49.73

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw7KGyVsa