Operating income jumped roughly 50% to $168.5 million, pushing the operating margin to 31.7% from 23.2% a year earlier. Total operating expenses declined to $362.7 million, and the weighted-average diluted share count fell nearly 19% to 45.9 million after the company repurchased 2.57 million shares for $345.9 million during the quarter.
Within hours of the release, at least eight brokerages raised price targets. TD Cowen moved from $149 to $244, KeyBanc from $195 to a Street-high $270, and BTIG from $160 to $230. Valuation screens still show a discount: Simply Wall St's model puts the fair P/E at 19.8x against a current 17.4x, below both the Professional Services industry average of 22.5x and a peer average of 19.3x. GuruFocus's GF Value sits at $256.56, implying a 43% margin of safety from the pre-earnings price around $145.
The company maintained its $0.375 quarterly dividend, payable September 8 to holders of record August 24, and highlighted new Asset Management tools that extend automation into seating, property tracking, and audit trails. Free cash flow for the first half of 2026 reached $372.7 million at a 33.8% margin, up from $205.6 million and 20.3% a year earlier. Cash and equivalents stood at $198 million at quarter-end against $900 million in long-term debt.