ASGN (NYSE:ASGN) Announces Quarterly Earnings Results, Misses Estimates By $0.03 EPS

ASGN (NYSE:ASGN) released its earnings results on Wednesday. The business services provider reported $1.15 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.18 by ($0.03), Zacks reports. The company had revenue of $980.10 million during the quarter, compared to analysts’ expectations of $979.05 million. ASGN had a net margin of 3.28% and a return on equity of 11.42%. The company’s revenue for the quarter was down .5% on a year-over-year basis. During the same quarter last year, the business posted $1.28 earnings per share. ASGN updated its Q1 2026 guidance to 0.930-1.020 EPS.

Here are the key takeaways from ASGN’s conference call:

• ASGN reported strong Q4 results with revenue of $980.1 million at the top of guidance, an adjusted EBITDA margin of 11% (above expectations), and record commercial consulting bookings of $444.4 million with a 1.3x book-to-bill.
• The company agreed to acquire Quinnox for $290 million to bolster digital engineering and offshore delivery (Quinnox ~ $100M revenue with low- to mid-teens growth and low-20s adjusted EBITDA margins); management says the deal is accretive but will raise net leverage to ~2.9x post-close.
• Cash generation remains strong—Q4 free cash flow of $93.7 million and FY free cash flow of $288.1 million—supporting $64.2 million of Q4 buybacks and a newly approved $1 billion share repurchase program while funding M&A and investments.
• The federal segment showed weakness with revenues down 3.7% YoY and gross margin at 19.9% (down ~60 bps) partly due to loss of higher-margin DOGE contracts and delayed award activity from the government shutdown, leaving a trailing federal book-to-bill of 0.9x.
• Management emphasized accelerating AI-driven demand—launching an AI Factory, expanding partnerships (Elastic, Snowflake, ServiceNow, Workday, Wiz), and noting commercial consulting growth of 19.2% YoY—supporting the strategic shift to higher-margin technology and digital engineering work.

ASGN Stock Performance

Shares of NYSE:ASGN traded up $2.35 on Wednesday, reaching $53.12. 758,228 shares of the company’s stock were exchanged, compared to its average volume of 525,597. The firm has a market capitalization of $2.27 billion, a price-to-earnings ratio of 17.89 and a beta of 0.87. The business’s 50-day moving average is $48.73 and its two-hundred day moving average is $48.69. ASGN has a fifty-two week low of $39.25 and a fifty-two week high of $88.15. The company has a quick ratio of 1.99, a current ratio of 1.99 and a debt-to-equity ratio of 0.64.

Institutional Trading of ASGN

An institutional investor recently bought a new position in ASGN stock. Horizon Investments LLC bought a new stake in shares of ASGN Incorporated (NYSE:ASGN) in the third quarter, according to the company in its most recent Form 13F filing with the SEC. The firm bought 10,880 shares of the business services provider’s stock, valued at approximately $515,000. 95.36% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting ASGN

Here are the key news stories impacting ASGN this week:

• Positive Sentiment: Substantial government contracting backlog and recent awards support recurring revenue and visibility; Quiver’s report shows ~ $525.9M of award payments to ASGN over the last year, highlighting the firm’s government exposure and contract wins. ASGN Releases Q4 2025 Earnings
• Positive Sentiment: Apex Systems (an ASGN unit) achieved all six Microsoft Solutions Partner designations, which can support higher-margin services and win rates on enterprise deals. Apex Systems Achieves All Six Microsoft Solutions Partner Designations
• Neutral Sentiment: Top-line roughly in line with expectations: Q4 revenue reported ~$980.1M, essentially flat year-over-year and close to consensus — removes a big revenue surprise but doesn’t offset margin pressure. ASGN Q4 Results (MarketBeat)
• Negative Sentiment: EPS miss and material margin weakness: ASGN reported $1.15 EPS (small miss vs. consensus) and disclosed sizable declines in operating profit and net income year-over-year — Quiver notes operating profit down ~24% and net income down ~41%, which pressures valuation. ASGN Misses Q4 Earnings Estimates
• Negative Sentiment: Q1 2026 guidance slightly below consensus: EPS guide of $0.93–$1.02 vs. consensus ~ $1.01, and revenue guide $960–$980M versus consensus ~$968.7M — the lower end of ranges and modest EPS undercut could weigh on near-term stock performance. ASGN Press Release / Guidance
• Negative Sentiment: Balance sheet and cash flow trends flagged: reported cash fell year-over-year and total liabilities increased, per third-party reporting — these trends reduce financial flexibility and compound concerns from lower profitability. ASGN Q4 Financial Detail (Quiver)

Analyst Ratings Changes

A number of analysts recently weighed in on the company. Truist Financial upped their target price on shares of ASGN from $50.00 to $60.00 and gave the stock a “buy” rating in a research report on Tuesday, January 27th. BMO Capital Markets reaffirmed an “outperform” rating and set a $57.00 price objective on shares of ASGN in a report on Wednesday, December 3rd. UBS Group cut their price target on ASGN from $47.00 to $45.00 and set a “sell” rating for the company in a research note on Thursday, October 23rd. Weiss Ratings restated a “sell (d+)” rating on shares of ASGN in a report on Wednesday, January 21st. Finally, Wells Fargo & Company dropped their price objective on shares of ASGN from $51.00 to $49.00 and set an “equal weight” rating for the company in a research note on Wednesday, January 21st. Two analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Reduce” and an average target price of $51.33.

About ASGN

ASGN Incorporated (NYSE:ASGN) is a leading provider of specialized staffing and professional services, delivering tailored solutions across information technology, digital transformation, engineering and scientific disciplines. Through its diversified portfolio of brands, ASGN connects clients—ranging from life sciences and healthcare firms to technology enterprises and government agencies—with highly skilled consultants, project teams and permanent personnel. The company’s model emphasizes both temporary staffing and long-term consulting engagements to address complex talent and project needs.

ASGN’s service offerings are organized into two main business segments.