IT services provider ASGN (NYSE:ASGN) beat Wall Street’s revenue expectations in Q1 CY2025, but sales fell by 7.7% year on year to $968.3 million. Guidance for next quarter’s revenue was better than expected at $1 billion at the midpoint, 0.5% above analysts’ estimates. Its non-GAAP profit of $0.92 per share was 2.8% below analysts’ consensus estimates.

Is now the time to buy ASGN? Find out in our full research report (it’s free).

  • Revenue: $968.3 million vs analyst estimates of $962.3 million (7.7% year-on-year decline, 0.6% beat)

  • Adjusted EPS: $0.92 vs analyst expectations of $0.95 (2.8% miss)

  • Adjusted EBITDA: $93.6 million vs analyst estimates of $94.58 million (9.7% margin, 1% miss)

  • Revenue Guidance for Q2 CY2025 is $1 billion at the midpoint, roughly in line with what analysts were expecting

  • Adjusted EPS guidance for Q2 CY2025 is $1.09 at the midpoint, below analyst estimates of $1.25

  • EBITDA guidance for Q2 CY2025 is $104.5 million at the midpoint, below analyst estimates of $112.5 million

  • Operating Margin: 4.8%, down from 6.8% in the same quarter last year

  • Free Cash Flow Margin: 0.7%, down from 6% in the same quarter last year

  • Market Capitalization: $2.44 billion

ASGN’s first quarter results reflected growth in high-margin IT consulting services, partially offsetting ongoing softness in cyclical commercial assignment revenues and continued caution from clients facing macroeconomic uncertainty. CEO Ted Hanson highlighted the company’s resilience, citing a shift in client demand toward efficiency-driven technology solutions, including artificial intelligence (AI), data modernization, and cybersecurity. The recent integration of TopBloc, a Workday partner acquired in March, was noted as a key development, with Hanson stating, “Our Apex and TopBloc teams have already partnered on a number of new consulting opportunities.”

Looking ahead, management provided cautious guidance, pointing to a stable but uncertain demand environment. CFO Marie Perry explained that the company widened its revenue guidance range to reflect potential volatility, driven by factors such as ongoing government cost-cutting initiatives and client hesitancy to increase IT spending. The company expects consulting and technology partnerships to help sustain margins, but acknowledged risks remain around federal contract adjustments and overall macro conditions.

ASGN’s leadership emphasized the company’s ability to adapt to shifting client needs and macroeconomic headwinds through a diversified service mix and flexible cost structure. The following points summarize management’s key insights: