Adecco beat EPS estimates of €0.71 with €0.76 but missed on gross margin expectations
Revenue grew 3.9% organically year-on-year to €5,958 million
EBITA margin expanded to 3.8% with strong operating leverage
Company expects continued positive momentum in Q1 2026 but with foreign exchange headwinds
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Adecco Group AG, the world's leading staffing company, on Wednesday reported fourth quarter results that exceeded analyst expectations on earnings, though gross margin performance fell short of guidance, raising concerns about profitability trends, with the Swiss-based company posting adjusted EPS of €0.76 while gross margin of 19.1% came in below expectations. The company's revenue grew 3.9% year-on-year on an organic basis to €5,958 million, slightly ahead of the 3.6% consensus estimate and up from 3.8% growth in the third quarter. Despite beating earnings expectations, the margin concerns have tempered market enthusiasm, particularly as Adecco guided for gross margin to remain sequentially stable in the first quarter of 2026, below analyst expectations of 19.4%. CEO Denis Machuel highlighted a 'strong finish to the year with ongoing positive momentum and a third consecutive quarter of growth,' noting that rigorous execution through 2025 delivered 245 basis points of market share gains, strong operating leverage, and cashflow, driving an improvement in leverage. By business unit, Adecco revenues grew 4.9% organically, led by 21% growth in the Americas and 7% growth in APAC, while Akkodis revenues declined 1% and LHH grew 2%.
Earnings before interest, taxes, depreciation, and amortization, commonly known as EBITDA ( EE-bit-dah, EB-it-dah), is a measure of a company's profitability of the operating business only, thus before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset bas...
Gross margin, or gross profit margin, is the difference between revenue and cost of goods sold (COGS), divided by revenue. Gross margin is expressed as a percentage. Generally, it is calculated as the selling price of an item, less the cost of goods sold (e.g., production or acquisition costs, not ...
Swiss multinational human resource consulting company
The Adecco Group is a Swiss–French company based in Zürich, Switzerland. It is the world's second largest human resources provider and temporary staffing firm. It is a Fortune Global 500 company and is listed on the SIX Swiss Exchange.
Staffing is the process of finding the right worker with appropriate qualifications or experience and recruiting them to fill a job position or role. Through this process, organizations acquire, deploy, and retain a workforce of sufficient quantity and quality to create positive impacts on the organ...
Earnings are the net benefits of a corporation's operation. Earnings are also the amount on which corporate tax is due. For an analysis of specific aspects of corporate operations several more specific terms are used as EBIT (earnings before interest and taxes) and EBITDA (earnings before interest,...
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry AMD stock surges 14% on Meta AI partnership deal Bitcoin slips, wipes out 50% from October record high at session low Wall Street ends higher on tech rebound ahead of State of the Union address Software stocks rebound as Anthropic partnerships ease AI disruption fears (South Africa Philippines Nigeria) Adecco beats estimates but margin concerns weigh on outlook By Maria Ponnezhath Author Maria Ponnezhath Earnings Published 02/25/2026, 01:48 AM Adecco beats estimates but margin concerns weigh on outlook 0 ADEN -1.62% Investing.com -- Adecco Group AG (SIX:ADEN) on Wednesday reported fourth quarter results that exceeded analyst expectations on earnings, though gross margin performance fell short of guidance, raising concerns about profitability trends. The world’s leading staffing company posted adjusted EPS of €0.76, beating the consensus estimate of €0.71 by 7%. Revenue grew 3.9% YoY on an organic basis to €5,958 million, slightly ahead of the 3.6% consensus estimate and up from 3.8% growth in the third quarter. However, gross margin of 19.1% came in below the company’s guidance for sequential stability, missing expectations of 19.3% for the first quarter of 2026. The company reported adjusted EBITA of €225 million, up 20% YoY and 3% above consensus of €219 million. The EBITA margin expanded 60 basis points to 3.8%, reflecting strong operating leverage as productivity per selling employee rose 11%. SG&A expenses improved to 15.4% of sales from 16.2% in the third quarter. "We had a strong finish to the year with ongoing positive momentum and a third consecutive quarter of growth, achieving a 3.8% margin in Q4," said CEO Denis Machuel. "Rigorous execution through 2025 delivered 245 basis points of market share gains, strong operating leverage and cashflow, driving an improvement in leverage." By business unit, Adecco revenues grew 4.9% organically, led by 21% growth in the Americas and 7% growth in APAC. Akkodis...
