Alight’s first quarter results were received positively by the market, reflecting stable execution amid a challenging demand environment. Management credited the performance to strong client retention, with CEO David Guilmette highlighting successful renewals with major clients like Starbucks and US Foods. The company reported that nearly 80% of clients are now using AI-enabled features, and emphasized that operational improvements, particularly in service delivery and implementation processes, contributed to margin expansion. Although project revenue remained soft, management noted that core recurring revenue provided stability during the period.

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

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Alight’s Q1 Earnings Call

• Scott Schoenhaus (KeyBanc Capital Markets) asked about the ongoing softness in project revenue and how management views trends for the rest of the year. CEO David Guilmette noted that project work remains subdued, especially in M&A-related services, but expects more clarity after client discussions in the second quarter.
• Scott Schoenhaus (KeyBanc Capital Markets) also inquired about pipeline growth and expansion areas. Guilmette explained that pipeline strength is broad-based, with notable momentum in leave and navigation solutions.
• Kyle Peterson (Needham & Company) questioned whether sales cycles are lengthening due to macro uncertainty. Guilmette responded that while some deals may take longer, core buying patterns have not materially changed.
• Kyle Peterson (Needham & Company) followed up on capital allocation and share buybacks. CFO Jeremy Heaton stated that the company will remain opportunistic with its $261 million in available authorization while prioritizing balance sheet strength.
• Pete Christiansen (Citi) asked about the pace of revenue under contract and any impact from implementation delays. Heaton confirmed that renewals are pacing well and there have been no material reschedulings, supporting confidence in forward revenue visibility.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the pace of adoption for Alight’s new self-service and AI-powered platforms, (2) client renewal activity and execution on the remaining renewal pipeline, and (3) trends in discretionary project revenue as macro conditions evolve. Progress in operational efficiency and further margin improvement will also be important indicators of sustained performance.

Alight currently trades at $5.57, up from $5.24 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

The Best Stocks for High-Quality Investors

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.