ManpowerGroup Q3 Revenue Rises 4% as Growth Broadens Across Brands

ManpowerGroup reported broader growth across its staffing brands in the third quarter of 2026, with revenue rising 4% to $4.8 billion and adjusted profitability increasing faster than sales. The company said improving demand, cost discipline and strategic actions supported operating leverage, while its fourth-quarter outlook calls for continued revenue growth.

Revenue increased 5% in constant currency and 6% on an organic constant-currency basis. Systemwide revenue, which includes revenue generated by franchise offices, was $5.3 billion. Franchise offices generated $481.1 million of revenue and $4.2 million of franchise fees included in ManpowerGroup’s reported revenue.

Reported EBITA rose 20% to $89 million, or 22% in constant currency, while adjusted EBITA increased 12% to $107 million, or 14% in constant currency. The reported EBITA margin expanded 20 basis points to 1.8%, and the adjusted margin increased 10 basis points to 2.2%.

Reported operating profit was $82 million, representing a 1.7% margin. Excluding specified items, operating profit was $100 million and the margin was 2.1%.

Diluted earnings per share rose 84% to $0.71, or 88% in constant currency. Adjusted EPS increased 22% to $1.01, or 24% in constant currency. Adjustments included $16.4 million of restructuring and strategic transformation costs, a $1.7 million charge related to the disposition of U.S. Jefferson Wells, and a $0.2 million noncash currency-translation loss associated with hyperinflationary Argentina.

Gross margin declined 70 basis points to 15.9%. However, the company said year-over-year SG&A leverage improved as it maintained cost discipline.

Growth Broadens Across Brands

Manpower remained the strongest of the company’s three principal brands. Its revenue grew 6% on a reported basis and 7% organically in constant currency, broadly in line with its 8% organic constant-currency growth in the second quarter. The company identified the U.S. as a key contributor.

Experis revenue declined 3% as reported but was flat organically in constant currency, improving from a 2% decline in the second quarter. ManpowerGroup said Experis returned to growth in the U.S., describing the result as an important milestone.

Talent Solutions revenue increased 1% both as reported and organically in constant currency, compared with flat organic constant-currency performance in the previous quarter. Growth in recruitment process outsourcing and managed service provider offerings was partly offset by lower Right Management revenue as outplacement activity declined.

Americas Leads Regional Performance

The Americas, which accounted for 26% of revenue, generated $1.2 billion in third-quarter sales. Revenue rose 13% as reported, 12% in constant currency and 14% organically in constant currency. Operating unit profit increased 25% to $47 million, while adjusted operating unit profit rose 21% to $52 million. The adjusted operating unit profit margin expanded 30 basis points to 4.2%.

Southern Europe, ManpowerGroup’s largest segment at 46% of revenue, posted a 1% increase in revenue to $2.2 billion, or 2% growth in constant currency. Operating unit profit declined 2% to $65 million, while adjusted profit was flat at $69 million. The adjusted margin decreased 10 basis points to 3.1%.

Northern Europe represented 18% of revenue and generated $861 million, up 5% as reported and 6% in constant currency. Operating unit profit was $8 million, with a 0.9% margin. The presentation said year-over-year profit comparisons were not meaningful, while the adjusted margin improved by 110 basis points.

Revenue in the Asia Pacific Middle East segment declined 1% to $515 million but increased 4% in constant currency. Operating unit profit fell 10% to $24 million, or 4% in constant currency, while the margin increased 50 basis points to 4.6%.

Fourth-Quarter Outlook

For the fourth quarter, ManpowerGroup expects total revenue to increase 3% to 7% both as reported and in constant currency, with organic constant-currency growth of 4% to 8%. The company projects an EBITA margin of 2.2% to 2.4%, an operating profit margin of 2.1% to 2.3%, and a gross margin of 15.8% to 16.0%.

Fourth-quarter EPS is expected to range from $1.03 to $1.13, with no anticipated currency impact. The underlying guidance excludes restructuring and strategic transformation program costs and assumes a 44% tax rate.

By region, the company expects Americas revenue growth of 7% to 11%, Southern Europe revenue ranging from flat to 4% growth, Northern Europe growth of 8% to 12%, and Asia Pacific Middle East growth of 1% to 5%.

Management said year-to-date performance and fourth-quarter expectations support its view of 2026 as an inflection point. Its global strategic transformation program expanded to the U.K. during the third quarter and remains on track, according to the presentation, to deliver $200 million in cost savings in 2028.

The company is also expanding AI-enabled talent screening and developing go-to-market partnerships that combine technology, talent and services. ManpowerGroup said its PowerSuite platform is intended to help develop and deploy AI capabilities at scale.

At September 30, 2026, total debt stood at $1.10 billion. The company reported a net debt-to-EBITDA ratio of 2.58 and a fixed-charge coverage ratio of 3.00 under its revolving credit agreement, compared with covenant limits of no more than 3.5 and no less than 1.5, respectively.

ManpowerGroup cautioned that its outlook remains subject to economic and geopolitical uncertainty, trade-policy developments, changes in labor demand, the effect of AI on labor markets, currency movements and the execution of its strategic and technology initiatives.