Financial Data and Key Metrics Changes - ASGN reported revenues of $1,010,000,000 for Q3 2025, a decrease of 1.9% year over year, but at the high end of guidance expectations [23] - Adjusted EBITDA was $112,600,000 with an adjusted EBITDA margin of 11.1% [25] - Net income for the quarter was $38,100,000 [25] - Free cash flow was $72,000,000, representing a conversion rate of approximately 64% of adjusted EBITDA [27] Business Line Data and Key Metrics Changes - The IT consulting business accounted for approximately 63% of total revenues, up from 58% in the same period last year [5] - Commercial consulting revenues totaled $334,900,000, an increase of 17.5% year over year [23] - Federal segment revenues were $300,100,000, a decrease of 3.9% year over year [24] - Assignment revenues decreased by 13.2% year over year, reflecting softness in parts of the commercial segment sensitive to macroeconomic changes [23] Market Data and Key Metrics Changes - Consumer and industrial accounts saw mid-teens growth year over year, driven by materials, utilities, and consumer discretionary clients [10] - Healthcare industry revenues increased by high single digits year over year, supported by healthcare provider and pharmaceutical clients [11] - Financial services, TMT, and business services experienced year-over-year declines [11] Company Strategy and Development Direction - The company is focusing on AI and digital advancement, with ongoing investments in AI reflecting a commitment to enterprise technology re-platforming [7] - ASGN is actively tracking changes to the H1B application process, believing it will positively impact the company [8] - The company plans to host an Investor Day on November 20 to discuss its strategy and unveil new three-year financial targets [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for IT services despite macroeconomic conditions, noting strong quarterly bookings [6] - The government shutdown has had an immaterial impact on operations, but it may slow down new awards and ramp-up activities [40] - The company anticipates that increased defense budgets will benefit its federal segment in the future [62] Other Important Information - The gross margin for Q3 2025 was 29.4%, an increase of 30 basis points year over year [24] - SG&A expenses for the quarter were $212,200,000, including $4,200,000 in acquisition and integration expenses [25] - The company repurchased 900,000 shares at an average price of $51.46, with approximately $423 million remaining under its share repurchase authorization [27] Q&A Session Summary Question: H1B situation and its impact - Management believes that tighter H1B regulations will increase the importance of onshore and nearshore technical capabilities, benefiting ASGN [35][36] Question: Federal government segment and shutdown impact - The government shutdown is causing caution in the fourth quarter guidance, primarily affecting new awards and ramp-up activities [41][42] Question: Demand for software implementations - Continued demand is noted in data and AI, particularly with platforms like Snowflake and Databricks, as well as Workday and ServiceNow [46][47] Question: Pricing dynamics and competition - ASGN competes with major firms like Accenture and sees stable pricing due to the quality of its services and unique accelerators [77][78] Question: Federal contracts and margins - The increase in cost-reimbursable contracts is not impacting margins significantly; it reflects the natural ebb and flow of contracts [71][73]

Core Viewpoint - IBM Common Stock (NYSE:IBM) is highlighted as a trending stock due to its multiple revenue streams and exposure to AI and tokenization, making it a "defensive" investment option in the current market environment [1][2]. Group 1: Company Overview - IBM underwent a management change in 2020, shifting its focus significantly towards AI and enterprise architecture, which includes a consulting arm that aids in governance and regulatory compliance [2]. - The company is deeply integrated with financial institutions, leveraging its consulting capabilities to remain relevant in decision-making processes related to AI [2]. Group 2: Market Position and Strategy - IBM is positioned as a key player in the emerging themes of tokenization and market access, which are expected to gain traction alongside AI developments [2]. - The company’s multiple revenue streams encompass AI, tokenization, and operational efficiency, allowing it to mitigate macroeconomic uncertainties through recurring enterprise workloads [2]. Group 3: Investment Sentiment - There is a belief that while IBM has potential as an investment, other AI stocks may offer higher returns with limited downside risk, indicating a competitive landscape in the AI sector [3].

Core Viewpoint - CGI Inc. has announced a conditional agreement to acquire Comarch Polska SA, enhancing its presence in the European public sector market [1][2]. Expansion of Workforce and Capabilities - The acquisition will integrate over 460 professionals from Comarch Polska, increasing CGI's workforce in Poland and the Baltic region to approximately 1,500 experts [2][3]. - This move is expected to strengthen CGI's public sector capabilities and accelerate growth in a digitally mature European market [4]. Public Sector Strengthening - Comarch Polska has been providing IT solutions for public administration since 1993, including ERP platforms and managed technology services [5]. - The merger will allow CGI to deploy its proprietary digital solutions across Poland and enhance support for agencies in health, agriculture, and social security [5][8]. Regional Expansion Strategy - The acquisition will enhance CGI's ability to deliver integrated digital transformation for priority public missions and improve service delivery to government agencies [7]. - CGI's AI capabilities are expected to further enhance the efficiency of government operations [8]. Opportunities for Employees and Clients - The combination of CGI and Comarch Polska is anticipated to open global opportunities for employees and clients, strengthening services and delivering greater value [9].

Core Insights - IBM has shown signs of recovery after a significant pullback, but it is underperforming the tech sector while slightly outperforming the S&P 500 [2][4] - Comparisons with other IT service companies like Cognizant and Infosys may be misleading; Oracle, Microsoft, and Amazon are more relevant benchmarks for IBM's current state [3] - The stock has experienced significant intraday highs but has struggled to maintain a close above key resistance levels, indicating potential consolidation points [4][5] Technical Analysis - The highest close for IBM was at 295, with intraday highs reaching 301.04, but it could not sustain above these levels [4] - A consolidation area near 272 has emerged, suggesting a potential support level for bulls [4] - The stock is currently within a downward sloping channel, and a close above 281-282 would be a positive indicator for upward momentum [6][7] Options Strategy - A complex options strategy is proposed to capitalize on near-term higher implied volatility while providing some upside exposure [8][9] - The strategy involves a bearish put calendar and a short call vertical, aiming for a credit of about 0.7, with a break-even point at $300.70 [12][13] - This setup allows for profitability if the stock declines, particularly if it falls to around 250, while still offering some protection if the stock remains below the 300 strike [13][14]

Core Insights - Castellum Inc. has made a strategic addition to its contract portfolio by adding Special Item Number/SIN 54151S to a new General Services Administration/GSA Multiple Award Schedule/MAS contract, enhancing its competitive position in the market [1][2]. Group 1: Contract Expansion - The addition of SIN 54151S allows Castellum's subsidiary, Specialty Systems Inc./SSI, to compete for contracts specifically related to information technology professional services, which is a significant expansion of its capabilities [2][3]. - This strategic move is part of Castellum's broader strategy to enhance its competitive reach and access more full-and-open opportunities as a large business while still benefiting from small business set-asides through mentor-protégé joint ventures [3]. Group 2: Business Operations - Castellum Inc. provides services in various sectors, including cybersecurity, information technology, electronic & information warfare, and information operations, indicating a diverse operational focus [4].

Core Insights - Atos successfully delivered essential services for the World Para Swimming Championships in Singapore and the World Para Athletics Championships in New Delhi, reinforcing values of inclusion and sporting excellence [1][2][3] Event Details - The World Para Swimming Championships took place from September 21 to 27, 2025, featuring 585 athletes from 74 nations and attracting approximately 19,000 spectators [2] - The World Para Athletics Championships occurred from September 27 to October 5, 2025, with over 1,000 athletes from more than 100 countries competing in 186 medal events [3] Technological Contributions - Atos provided critical data management, IT systems, and operational technology services, enhancing the readiness and deployment capabilities for both events [4] - The company utilized its extensive experience in adaptive sports to ensure fair competition by managing athlete classifications [3][4] Company Background - Atos has over 30 years of experience in serving major sports events, consistently delivering technology excellence across various scales of competitions [6] - The company is a long-standing partner of the Olympic and Paralympic movements, providing IT services for significant events like the Paris 2024 Olympic Games and UEFA Euro 2024 [7] Operational Excellence - Atos implemented on-venue results systems for accurate timing, scoring, and real-time graphic integration for broadcasting [8]

Core Viewpoint - Tata Consultancy Services (TCS) is pursuing a distinct artificial intelligence (AI) strategy with a $6.5 billion investment in building and managing data centers, setting it apart from its peers in the IT services industry [1][2][4]. Group 1: TCS's AI Strategy - TCS plans to build a 1GW AI data center in India, marking its most significant shift since going public in 2004 [2][4]. - The company aims to become the "world's largest AI-led tech services company" by expanding its presence across the AI technology cycle [4]. - TCS will sell solutions to various clients, including pure-play AI providers, deep tech companies, hyperscalers, the Indian government, and local enterprises [5]. Group 2: Analyst Reactions - Analysts are divided on TCS's strategy, with some viewing it as a small step in the context of global AI investments and India's reliance on US tech giants [7]. - Concerns have been raised about limited synergies with TCS's existing service offerings, as the data center will function as a sovereign colocation site with low technology intensity [8][9]. - Some analysts believe that while this direction could create new revenue streams, it may negatively impact margins, with TCS management indicating it could take 18 to 24 months to generate related revenues [10][11]. Group 3: Competitors' Strategies - Competitors like Infosys, HCL Technologies, Wipro, and Tech Mahindra are integrating AI into their existing software services rather than pursuing a separate infrastructure strategy [3][6]. - Infosys is focusing on enterprise AI projects, having delivered over 2,500 GenAI and 200 agentic AI client projects [11]. - HCL Technologies reported $100 million in AI revenue, becoming the first of the big five to classify business from AI [13]. - Wipro is embedding AI in its solutions and has developed over 200 AI agents and platforms [16]. - Tech Mahindra is working on indigenous AI models for government use, aligning with the India AI Mission [18]. Group 4: Financial Performance - The top five IT services companies, including TCS, Infosys, HCLTech, Wipro, and Tech Mahindra, reported revenues of $7.47 billion, $5.08 billion, $3.64 billion, $2.6 billion, and $1.59 billion, respectively, with sequential growth rates of 0.61%, 2.73%, 2.79%, 0.65%, and 1.41% [19].

Pakistan's Tech Landscape - Pakistan's digital dream hinges on understanding and improving current systems for Gen Z and Gen Alpha [3] - The country has approximately 30,000 registered tech companies, with 6,000 involved in exports [10] - IT-enabled services and IT services exports are the second largest for Pakistan, contributing about $38 billion annually [10][35] - Roughly half a million freelancers contribute around $500 million to Pakistan's economy each year [10] - Domestic e-commerce has grown to $5 billion annually [13][14] - Pakistani startups have raised $1 billion through venture capital from 2019 to 2022 [14] Challenges and Opportunities - Less than 10% of the 50,000 computer science and engineering graduates in Pakistan are employable, highlighting a quality of education gap [15] - Pakistan has a low entrepreneurship ratio with only 7 million SMEs compared to Nigeria's 40 million [16] - There's a low taxpayer to population ratio, with only 7 million active taxpayers and a significant portion filing zero returns [17][18] - Pakistan's exports are significantly lower than Singapore's despite a much larger population, indicating low productivity per capita [19][20] Recommendations for Improvement - The industry needs to shift from focusing solely on IT services exports to domestic innovation and digital transformation of local businesses [36][37] - Focus on improving teachers' ability to teach and curate content, connecting student welfare to teacher performance [21][22][23] - The industry needs to fix Pakistan's policies when it comes to education and technology [25] - The industry needs to focus inwards, improve fundamentals, and prioritize "Made in Pakistan" before looking outwards [40]

Core Insights - Nearly three-quarters of IT and industry leaders now prioritize revenue growth as the main driver of AI initiatives, surpassing cost savings (54%) and increased customer satisfaction (56%) [1][2] - The survey indicates a significant shift in the perception of AI, evolving from a tool for efficiency to a catalyst for innovation and growth [2] - 81% of respondents express concerns about their current IT infrastructure's ability to support advanced AI applications [2][5] AI Adoption and Challenges - 60% of organizations are still in the early-to-mid stages of AI implementation, while only 8% report fully integrated, mature AI deployments [5] - Security remains a top concern, with 90% of leaders citing data privacy leakage as critical and 68% identifying regulatory compliance as a major barrier [5] - Talent shortages are a significant challenge, with 52% of leaders identifying it as a top issue, second only to security and infrastructure concerns [5] Agentic AI Insights - There is a notable gap in knowledge and readiness for agentic AI, with 41% of respondents only slightly familiar and 23% very familiar with the concept [5] - Only 26% are ready and actively investing in agentic AI, while 33% acknowledge the need for greater understanding before committing resources [5] - Opinions on agentic AI are divided, with 33% believing it's too soon to gauge its impact, 26% considering it useful but risky, and 27% viewing it as highly promising [5] Company Commitment - ePlus is dedicated to helping organizations navigate the complexities of scaling AI beyond pilot projects and building infrastructure that ensures peak performance, security, and reliability [2][3] - The company provides guidance, expertise, and adaptable solutions to empower leaders in overcoming challenges and seizing new opportunities in AI [3]

Core Insights - Atos Group's Q3 performance aligns with the full year profitability and cash trajectory, indicating a stable financial outlook [3] - The Genesis plan is being implemented to restore strong financial performance, consisting of a two-part project [3] Financial Performance - The management emphasizes that the focus is currently on improving the top line, alongside maintaining cash and cost management [3]