ASGN Q4 revenue slightly beats expectations

Overview

• IT solutions provider's Q4 revenue slightly beat analyst expectations

• Adjusted EPS for Q4 missed analyst expectations

• Company had announced it would acquire Quinnox Inc. for $290 mln to boost digital engineering

Outlook

• ASGN projects Q1 2026 revenue between $960 mln and $980 mln

• Company expects Q1 2026 adjusted EBITDA between $93.5 mln and $98.5 mln

Result Drivers

• IT CONSULTING - IT consulting revenues increased to 63% of total revenues, driven by growth in the Commercial Segment

• COMMERCIAL SEGMENT GROWTH - Growth in healthcare and consumer industries contributed to Commercial Segment revenue increase

• FEDERAL SEGMENT DECLINE - Federal Government Segment revenues declined due to loss of higher margin contracts

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 $54.50, about 7.3% above its February 3 closing price of $50.77

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw2kjCfWa

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