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    MAN
    Earnings call· Jun 2026(Q2 FY26)

    ManpowerGroup Q2 FY26 earnings call MAN

    Jul 16, 2026 Source

    Executive summary

    ManpowerGroup Q2 FY26 — Strong Revenue Growth and Strategic Transformation Progress

    ManpowerGroup delivered strong Q2 FY26 results, with revenue exceeding expectations and significant constant currency growth driven by its Manpower brand. The company is making substantial progress on its global strategic transformation program, aiming for considerable cost savings and portfolio optimization. While gross margins were impacted by mix shifts and a divestiture, management expressed confidence in continued momentum and operating leverage through strategic execution and AI integration.

    Highlights

    5

    • Reported revenues of $4.9 billion, up 6% in constant currency, exceeding expectations.

    • Adjusted EBITDA increased 15% in constant currency to $103 million, with margin expanding 10 basis points year-over-year to 2.1%.

    • Manpower brand delivered its fifth consecutive quarter of growth, with revenue up 8% in constant currency, driven by strong U.S. performance (up 16%).

    • Experis and Talent Solutions showed encouraging sequential improvement, with Experis U.S. revenue flat (vs. -15% in Q1) and Talent Solutions U.S. up 6%.

    • Global strategic transformation program on track to deliver $200 million in permanent cost savings by 2028, with $14 million in charges this quarter.

    Concerns

    3

    • Staffing gross margin declined 60 basis points year-over-year, primarily due to mix shifts and the sale of the higher-margin U.S. Jefferson Wells business.

    • Free cash flow was an outflow of $9 million in Q2, though an improvement from $207 million outflow in the prior year.

    • Permanent recruitment activity resulted in a 10 basis point decline in gross margin, though improved from Q1.

    Guidance & targets

    19
    CategoryTargetConfidence
    Earnings per share
    $0.96 to $1.06
    high materiality
    High
    Foreign currency impact on EPS
    $0.02 unfavorable
    medium materiality
    High
    Organic days adjusted constant currency revenue growth
    6%
    high materiality
    High
    Constant currency revenue growth
    5%
    high materiality
    High
    Gross profit margin
    16%
    medium materiality
    High
    EBITDA margin
    up 10 basis points
    medium materiality
    High
    Effective tax rate
    44%
    low materiality
    High
    Weighted average shares
    $47.9 million
    low materiality
    High
    Restructuring and strategic transformation program charges
    $10 million to $15 million
    medium materiality
    High
    Permanent cost savings
    $200 million
    high materiality
    High
    Front office transformation benefits
    $80 million
    medium materiality
    High
    Back office transformation benefits
    $20 million
    medium materiality
    High
    Manpower U.S. revenue growth
    similar rate to Q2
    medium materiality
    Medium
    Experis U.S. revenue trend
    continued improvement, slight growth
    medium materiality
    Medium
    France revenue trend
    flat to slight growth
    medium materiality
    Medium
    Italy revenue growth
    low to mid-single-digit percentage
    medium materiality
    Medium
    Japan revenue growth
    similar level to Q2
    medium materiality
    Medium
    Free cash flow
    strong
    medium materiality
    Medium
    Perm GP as % of total GP
    15.5% to 16.5%
    low materiality
    Medium

    Segment performance

    13
    SegmentRevenueYoYQoQMargin
    ManpowerGroup Total
    Reported revenues were ahead of expectations, reflecting improving demand and operating leverage.
    System-wide revenue: $5.3 billion
    		$4.9 billion6% (constant currency)——
    Manpower Brand
    Delivered its fifth consecutive quarter of growth, with positive momentum in manufacturing, automotive, aerospace, logistics, and retail. Strong performance in the U.S. (16% growth).
    Gross profit share: 65%Organic constant currency gross profit growth: 5%
    		—8% (constant currency)——
    Experis Brand
    Showed encouraging improvement from Q1's 9% decline, driven by sustained demand for specialized capabilities in cloud migration, application development, data, and AI.
    Gross profit share: 19%Organic constant currency gross profit growth: -6%
    		—-2% (organic constant currency)——
    Talent Solutions Brand
    Delivered sequential improvement from Q1's 1% decline, with RPO showing sequential revenue trend improvement and MSP seeing solid growth, partially offset by Right Management declines.
    Gross profit share: 16%Organic constant currency gross profit growth: -4%
    		—flat (organic constant currency)——
    Americas
    Comprised 25% of consolidated revenue. Restructuring charges of $3 million in the U.S. and Mexico.
    OUP margin: 3.7%
    		$1.2 billion14% (organic constant currency)—$45 million OUP
    U.S. (within Americas)
    Largest country in Americas (59% of segment revenue). Manpower brand showed strong market performance with 8 consecutive quarters of growth. Experis U.S. improved from 15% decline in Q1. Talent Solutions growth driven by RPO and MSP.
    OUP margin: 3.3%Manpower brand gross profit share: 29%Manpower brand revenue growth: 16% (days adjusted)Experis brand gross profit share: 38%Experis U.S. revenue growth: flat (organic days adjusted)Talent Solutions gross profit share: 33%Talent Solutions revenue growth: 6%
    		$714 million8% (organic days adjusted)—$24 million OUP
    Southern Europe
    Comprised 47% of consolidated revenue. Restructuring charges of $4 million largely in France and Italy.
    OUP margin: 3.4%
    		$2.3 billion4% (constant currency)—$79 million OUP
    France (within Southern Europe)
    Comprised 51% of Southern Europe segment. Revenue trends were stable.
    OUP margin: 2.6%
    		$1.2 billionflat (constant currency)—$31 million OUP
    Italy (within Southern Europe)
    Business is executing well and leads in the market.
    OUP margin: 6.7%
    		$522 million6% (days adjusted constant currency)—$35 million OUP
    Northern Europe
    Comprised 17% of consolidated revenue. Represents year-over-year OUP improvement during the last 3 quarters due to significant actions taken.
    		$825 million2% (organic constant currency)—$2 million OUP
    U.K. (within Northern Europe)
    Largest market in Northern Europe (33% of segment revenue), crossed back over to growth.
    		—2% (days adjusted constant currency)——
    Asia Pacific Middle East (APME)
    Comprised 11% of total company revenue.
    OUP margin: 4.6%
    		$519 million5% (constant currency)—$24 million OUP
    Japan (within APME)
    Largest market in APME (57% of segment revenue).
    		—4% (days adjusted constant currency)——

    Operational metrics

    25
    Adjusted EBITDA
    $103 million15% increase (constant currency)
    Q2 FY26

    Reflects improving demand trends and operating leverage.

    Adjusted EBITDA margin
    2.1%up 10 basis points year-over-year
    Q2 FY26

    Came in at the midpoint of guidance range.

    Organic days adjusted constant currency revenue growth
    6%well above midpoint guidance range of 3% growth
    Q2 FY26

    Driven by the Manpower business.

    Adjusted EPS
    $0.99above guidance midpoint
    Q2 FY26

    Compared to guidance midpoint of $0.96.

    Gross profit margin
    16.1%improved sequentially from Q1 (16.0%)
    Q2 FY26

    Within guidance range, absorbing Jefferson Wells disposition and additional growth.

    Staffing margin reduction
    60 basis pointsyear-over-year
    Q2 FY26

    Improvement from 70 basis point decline in Q1.

    Permanent recruitment activity gross margin impact
    10 basis points declineyear-over-year
    Q2 FY26

    Improved from 20 basis point drag in Q1, actually crossed to flat overall in Q2.

    Other services gross margin impact
    10 basis points decrease
    Q2 FY26

    Impacted gross profit margin.

    Consolidated gross profit growth
    1%organic constant currency year-over-year
    Q2 FY26

    Improvement from 3% decline in Q1.

    Adjusted SG&A expense constant currency decrease
    1%year-over-year
    Q2 FY26

    Largely consisted of reductions in operational costs and dispositions, partially offset by currency changes.

    Adjusted SG&A expenses as percentage of revenue
    14.1%
    Q2 FY26

    In constant currency.

    Restructuring and strategic transformation program charges
    $14 million
    Q2 FY26

    Offset by gain on sale of Jefferson Wells U.S. business of $30 million. Actual spend for the quarter was about $13 million.

    Days sales outstanding
    56 daysflat from prior year
    Q2 FY26

    At quarter end.

    Capital expenditures
    $6 million
    Q2 FY26

    For the second quarter.

    Cash balance
    $181 million
    Q2 FY26

    At quarter end.

    Total debt
    $1.04 billion
    Q2 FY26

    At quarter end.

    Net debt
    $863 millionimproved sequentially
    Q2 FY26

    Allocated capital from business sales to pay down revolver.

    Total gross debt to trailing 12 months adjusted EBITDA
    $2.5 million
    Q2 FY26

    Debt ratio at quarter end.

    Total debt to total capitalization
    33%
    Q2 FY26

    Debt ratio at quarter end.

    AI-powered sales targeting engine scale
    70%
    FY26

    On track to scale to almost 70% of revenues by year-end.

    AI-powered screening and interview experiences scale
    70%
    FY26

    On track to scale to 70% of revenues by year-end, improving fill rates and accelerating time to hire.

    Time to fill decrease (AI-powered tools)
    67%
    Q2 FY26

    Achieved using early-in-the-funnel interview tools over nine months.

    Partnership-driven revenue
    $50 million to $100 million
    FY26

    Expected from new go-to-market alliances.

    Qualified leads for partnership-driven revenue
    almost 100
    Q2 FY26

    In the pipeline for partnership-driven revenue.

    Interviews taking place outside normal business hours (AI-powered)
    30%
    Q2 FY26

    AI-powered automation enabled these interviews.

    Deals & partnerships

    4
    Jefferson Wells U.S. businessdivestiture

    Sale completed during the second quarter, part of portfolio optimization to prioritize core, higher-return opportunities.

    SoundHound AIpartnership

    Partnership for voice and conversational AI, expanding beyond the U.S. to improve customer and employee experiences.

    IBM (Watsonx Orchestrate)partnership

    Launched 'Accelerate workflow built with IBM Watsonx Orchestrate' to help clients unlock value by designing workflows, implementing solutions, providing talent, and managing deployment. Positions Experis to move clients beyond AI pilots to scalable execution.

    Accenture, SAP, Microsoftpartnership

    Strengthening relationships to broaden capabilities, create new routes to market, and position the business for future growth.

    Risks & headwinds

    4
    Mix shifts impacting gross marginQ2 FY26

    60 basis point reduction in staffing margin year-over-year

    Mitigation: Disciplined pricing and focus on higher-value opportunities; expectation for Experis and Perm recovery to improve mix.

    Impact of Jefferson Wells U.S. business disposition on gross marginQ2 FY26

    5 basis points reduction in staffing margin

    Mitigation: Strategic decision to focus on core, higher-return opportunities; the impact was absorbed within guidance.

    Declining permanent recruitment activityQ2 FY26

    10 basis point decline in gross margin year-over-year

    Mitigation: Improvement from Q1 trend, with perm activity crossing to flat overall in Q2, indicating potential recovery.

    Decreased outplacement activityQ2 FY26

    Impacted Right Management gross profit declines

    Mitigation: Offset by strong growth in RPO and MSP within Talent Solutions.

    Q&A highlights

    7

    How did revenue trends progress throughout Q2 in key markets like the U.S. and France, and are AI-powered screening tools showing measurable improvements in fill rates and time to hire?

    Revenue trends in the U.S. showed strong building momentum, with Manpower growing 16% and Experis becoming flat. France and Italy remained stable. AI-powered interview tools have led to a 67% decrease in time to fill, with plans to scale to 70% of revenues by year-end.

    “we're seeing a 67% decrease in our time to fill. And so that has been material for us, one for our speed, but also for our ability to delight our candidates, which is important in a talent-constrained market.”

    asked by Mark Marcon · answered by Becky Frankiewicz

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Transformation and Portfolio Optimization

    ManpowerGroup is actively executing a global strategic transformation program aimed at delivering $200 million in permanent cost savings by 2028. This program focuses on optimizing the cost base and aligning capacity with client demand, with $20 million in back-office savings expected in FY26 and $80 million from front-office initiatives in FY27. The company also completed the sale of its Jefferson Wells U.S. business in Q2, prioritizing investments in core, higher-return opportunities.

    02

    AI Integration for Enhanced Productivity and Commercial Opportunities

    The company is leveraging AI in two key areas: enhancing internal effectiveness and creating new commercial opportunities. AI-powered sales targeting engines are being scaled to 70% of revenues by year-end, improving sales conversion. AI-powered screening and interview experiences are also on track to cover 70% of revenues, leading to a 67% decrease in time to fill and accelerating time to hire. These tools are driving both growth and profit multipliers for the business.

    03

    Partnership Strategy for AI-Driven Solutions

    ManpowerGroup is building strategic alliances with industry leaders like SoundHound AI and IBM to create new revenue streams and expand its addressable market. The partnership with SoundHound AI is gaining traction, particularly in healthcare, while the collaboration with IBM Watsonx Orchestrate focuses on combining technology implementation, workforce transformation, and specialized AI talent to deliver scalable AI execution for clients. These partnerships are generating significant pipeline momentum, with $50 million to $100 million in partnership-driven revenue expected this year and nearly 100 qualified leads.

    04

    Market Recovery and Share Gains in Key Regions

    The company observes an early cycle recovery, particularly in its Manpower brand, which has shown five consecutive quarters of growth globally and eight quarters in the U.S. Management attributes this to strong execution, agile targeting of high-growth verticals like manufacturing, automotive, aerospace, logistics, and retail, and effective adaptation to market shifts. The U.S. Manpower brand grew 16% in Q2, indicating both market recovery and successful share capture.

    05

    Improving Trends in Experis and Talent Solutions

    Experis, the technology resourcing business, showed encouraging improvement, with its global revenue decline narrowing to 2% (from 9% in Q1) and U.S. revenue becoming flat (from -15% in Q1). This is driven by sustained demand for specialized capabilities in cloud migration, application development, data, and AI. Talent Solutions also saw sequential improvement, with its RPO business showing stable revenue and MSP experiencing solid growth, partially offset by declines in Right Management.

    AI-generated summary of the company’s earnings call. Not investment advice.