ASGN Inc's stock plummeted 41.11% during intraday trading on Thursday, marking a severe decline for the digital transformation and technology services provider.

The sharp drop followed the company's release of first-quarter 2026 financial results that significantly missed analyst expectations. ASGN reported adjusted earnings per share of $0.69, well below the consensus estimate of $0.98, with revenue of $968.3 million remaining flat year-over-year. The company also issued disappointing second-quarter guidance, forecasting adjusted EPS of $0.72 to $0.90, substantially lower than the $1.28 analyst estimate, with revenue guidance of $970 million to $1.0 billion. Federal government revenue declined due to cuts by the Department of Government Efficiency (DOGE) affecting defense, intelligence, and civilian agencies, while commercial revenue showed only slight growth.

The earnings miss and weak outlook triggered multiple analyst downgrades and price target reductions. Truist Securities downgraded ASGN to Hold from Buy and slashed its price target to $33 from $60, BMO Capital cut the stock to Market Perform from Outperform with a target reduction to $33 from $51, and Wells Fargo lowered its target to $33 from $54. These actions reflected growing concerns about the company's near-term profitability and revenue prospects amid challenging market conditions.