ASGN Incorporated (ASGN)
NYSE:ASGN
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ASGN
(NYSE:ASGN)
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Rating:61Neutral
Price Target:
$37.00
▲(4.76% Upside)
Action:ReiteratedDate:02/18/26
Score is led by resilient cash generation and a broadly positive earnings-call outlook (consulting growth, record bookings, strong free cash flow and buybacks), partially offset by deteriorating multi-year revenue/margin trends and a notably weak technical picture with the stock below major moving averages.
Positive Factors
Free Cash Flow Strength
Sustained, high free cash flow provides durable financial optionality: it funds buybacks and strategic M&A, services debt, and cushions operating variability. Strong cash conversion (~0.88 FCF/net income) supports capital allocation and lowers execution risk over the medium term.
Negative Factors
Multi‑Year Revenue Decline
Sustained top‑line contraction over multiple years signals structural demand or competitive pressures in core staffing lines. Persistent revenue decline reduces scale economics, stresses utilization and pricing leverage, and makes margin and earnings recovery more challenging over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Sustained, high free cash flow provides durable financial optionality: it funds buybacks and strategic M&A, services debt, and cushions operating variability. Strong cash conversion (~0.88 FCF/net income) supports capital allocation and lowers execution risk over the medium term.
Read all positive factors
ASGN (ASGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.46B
Dividend YieldN/A
Average Volume (3M)918.39K
Price to Earnings (P/E)18.4
Beta (1Y)0.73
Revenue Growth-4.86%
EPS Growth-25.15%
CountryUS
Employees3,200
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.15
Shares Outstanding41,300,000
10 Day Avg. Volume492,426
30 Day Avg. Volume918,389
Financial Highlights & Ratios
PEG Ratio-0.57
Price to Book (P/B)1.16
Price to Sales (P/S)0.53
P/FCF Ratio7.26
Enterprise Value/Market Cap1.77
Enterprise Value/Revenue0.65
Enterprise Value/Gross Profit2.28
Enterprise Value/Ebitda5.72
Forecast
1Y Price Target
$56.00Price Target Upside58.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)5.03
Revenue Forecast (FY)$4.03B
ASGN Business Overview & Revenue Model
Company Description
ASGN Incorporated provides information technology services and professional solutions in the technology, digital, and creative fields for commercial and government sectors in the United States. It operates through two segments: Commercial and Fede...
How the Company Makes Money
ASGN generates revenue primarily by providing skilled professionals and consulting services to client organizations across commercial and U.S. federal markets. A major revenue stream comes from contract staffing (often called temporary staffing), ...
ASGN Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a predominantly positive operational and strategic narrative: top‑end revenue, strong consulting growth (19.2% y/y), record commercial bookings, higher-than-expected adjusted EBITDA margin (11%), and robust free cash flow and buybacks. Management also announced a strategic acquisition (Quinox) to accelerate digital engineering and offshore delivery, and emphasized AI, platform partnerships, and a unifying rebrand (Everforth). Offsetting items include a meaningful 12% decline in assignment revenues, modest declines and margin pressure in the federal business (−3.7% revenue, −60 bps gross margin), higher-than-anticipated tax and SG&A items, and an expected temporary increase in leverage to ~2.9x post-acquisition. Overall, the positive growth in higher‑margin consulting, strong cash generation, record bookings, and disciplined capital allocation outweigh the near‑term headwinds and timing issues in staffing and government awards.Positive Updates
Revenue at Top End of Guidance
Q4 revenues of $980.1 million were at the top end of guidance and relatively consistent with the prior year period, demonstrating stable top-line execution.
Negative Updates
Assignment (Staffing) Revenue Decline
Assignment revenue totaled $359.2 million, a decline of 12% year-over-year, reflecting continued softness in parts of the commercial staffing business sensitive to macro conditions.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue at Top End of Guidance
Q4 revenues of $980.1 million were at the top end of guidance and relatively consistent with the prior year period, demonstrating stable top-line execution.
Read all positive updates
Company Guidance
ASGN guided Q1 2026 revenue of $960–$980 million (assuming 62 billable days), net income of $25.8–$29.4 million, adjusted EBITDA of $93.5–$98.5 million and an adjusted EBITDA margin of 9.7%–10.1%, noting Q1 typically carries an ≈100‑basis‑point sequential EBITDA‑margin headwind from the annual payroll tax reset and that the quarter’s guidance excludes Quinox and any acquisition/strategic planning expenses; management expects Quinox to deliver low‑to‑mid‑teens revenue growth on ~ $100 million of 2025 revenue (with ~9 months of Quinox included in full‑year results after close) and Quinox adjusted EBITDA margin in the low‑20% range, and projects post‑close net leverage of about 2.9x (targeting ~2.5x over time).ASGN Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
63
Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.98B | 4.10B | 4.45B | 4.58B | 4.01B |
| Gross Profit | 1.08B | 1.18B | 1.28B | 1.37B | 1.14B |
| EBITDA | 343.80M | 400.70M | 464.40M | 500.90M | 440.50M |
| Net Income | 113.50M | 175.20M | 219.30M | 268.10M | 409.90M |
Balance Sheet | |||||
| Total Assets | 3.69B | 3.43B | 3.54B | 3.59B | 3.50B |
| Cash, Cash Equivalents and Short-Term Investments | 102.30M | 205.20M | 175.90M | 70.30M | 529.60M |
| Total Debt | 1.17B | 1.10B | 1.11B | 1.12B | 1.10B |
| Total Liabilities | 1.88B | 1.65B | 1.65B | 1.68B | 1.64B |
| Stockholders Equity | 1.80B | 1.78B | 1.89B | 1.90B | 1.87B |
Cash Flow | |||||
| Free Cash Flow | 288.10M | 364.70M | 417.00M | 270.30M | 159.00M |
| Operating Cash Flow | 327.90M | 400.00M | 456.90M | 307.80M | 193.70M |
| Investing Cash Flow | -343.90M | -35.30M | -40.50M | -510.00M | 246.50M |
| Financing Cash Flow | -29.40M | -333.20M | -310.90M | -256.50M | -184.40M |
ASGN Technical Analysis
Negative
35.32
Price Trends
41.80
Negative
44.60
Negative
47.00
Negative
Market Momentum
-1.09
Negative
35.11
Neutral
18.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASGN, the sentiment is Negative. The current price of 35.32 is below the 20-day moving average (MA) of 37.55, below the 50-day MA of 41.80, and below the 200-day MA of 47.00, indicating a bearish trend. The MACD of -1.09 indicates Negative momentum. The RSI at 35.11 is Neutral, neither overbought nor oversold. The STOCH value of 18.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASGN.
ASGN Risk Analysis
ASGN disclosed 29 risk factors in its most recent earnings report. ASGN reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ASGN Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.82B | 4.18 | 69.72% | 0.80% | 6.98% | -4.56% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $1.46B | 18.42 | 6.26% | ― | -4.86% | -25.15% | |
61 Neutral | $1.87B | 17.57 | 4.88% | ― | 5.56% | -42.38% | |
59 Neutral | $1.94B | 6.07 | 13.41% | ― | -4.13% | 2143.48% | |
54 Neutral | $585.93M | 10.43 | 18.33% | ― | 19.88% | 51.03% | |
48 Neutral | $1.20B | ― | -55.55% | ― | 1.84% | -27.74% |
* Technology Sector Average
ASGN
ASGN
35.32
-24.93
-41.38%
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ASGN Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
ASGN to Acquire Quinnox in Strategic Digital Expansion
Positive
Jan 20, 2026
On January 20, 2026, ASGN announced a definitive agreement to acquire Quinnox Inc., a Chicago-founded digital solutions provider with operations in India and the UK, for $290 million in cash, with closing expected in March 2026 subject to customar...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.