What were the key takeaways from ASGN’s earnings call?

What is ASGN's gross profit margin?

What guidance did ASGN's management provide for the next earnings period?

What does ASGN do and what are its main business segments?

Did ASGN beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for ASGN year over year?

What is the market's earnings forecast for ASGN next quarter?

What were the key takeaways from ASGN's earnings call?

- **Revenue Growth**: Q3 2025 revenue $1.01B, IT consulting at 63% of total. Commercial consulting up 17.5% YoY.
- **AI Momentum**: 70% of AI projects require platform integration; ASGN accelerators reduce timelines by 25%.
- **Financial Strength**: Adjusted EBITDA $112.6M (11.1% margin); free cash flow $72M. Q4 guidance cautious on Federal due to shutdown.
- **Strategic Positioning**: Benefits from H-1B tightening; leading in data/AI, application development, and federal defense work.
- **Risks**: Softness in staffing; potential delays in Federal awards from government shutdown.

**【CEO Summary Section】**
- Q3 2025 revenue reached $1.01 billion, with IT consulting contributing 63% (up from 58% YoY). Commercial consulting revenue grew 17.5% YoY to $334.9 million.
- Bookings: Commercial consulting at 1.2x TTM book-to-bill; Federal segment awards $461 million (1x TTM). Federal backlog $3.1 billion (2.6x TTM coverage).
- AI investment highlights: 70% of client AI projects require deep platform integration; ASGN's accelerators reduce project timelines by 25%.
- H-1B visa impact: Tighter regulations favor onshore/nearshore delivery, aligning with ASGN's capabilities.

**【President's Industry & Project Insights】**
- **Commercial Performance**: Consumer/industrial up mid-teens YoY; healthcare +high single digits YoY. Sequential growth in healthcare, consumer/industrial, TMT.
- **Federal Segment**: Defense/intel 70% of revenues; DHS projects drive 12% YoY growth. Federal bookings 1.5x Q3 2025.
- **Key Projects**: Fortune 500 data platform modernization (Databricks, AWS), FBI DNA analytics, crop insurance modernization (3-year $376M contract).

**【CFO Financial Commentary】**
- Q3 2025: GAAP net income $38.1M, adjusted EBITDA $112.6M (11.1% margin). Free cash flow $72M (64% conversion).
- Margins: Commercial segment 33.2% (up 40bps YoY); Federal 20.3% (down 40bps YoY). SG&A $212.2M (+2.3% YoY).
- Q4 Guidance: Revenue $960M-$980M; adjusted EBITDA $102M-$107M (10.6%-10.9% margin). Share buybacks $46M Q3, $423M remaining.

**【Q&A Highlights】**
- **Government Shutdown**: Minimal impact to date; cautious on Q4 Federal bookings due to award delays.
- **AI ROI Challenges**: 70% of projects require enterprise platform integration; ASGN's accelerators reduce risk/time-to-value.
- **Competitive Dynamics**: Pricing stable in consulting; staffing faces headwinds as clients prioritize outcomes over augmentation.
- **One Big Beautiful Bill**: Defense funding increases expected to flow into 2026 revenues via new contracts.
- **Accelerators Pricing**: Exploring standalone pricing for AI tools like Pathfinder, but early days.

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