ManpowerGroup (MAN) Q2 FY26 earnings call: guidance and Q&A

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

What is the general tone of business from clients, how has it changed, and what are the expectations for the second half of the year?

Clients are resilient and increasingly seeking flexible workforce solutions amidst uncertainty. They are struggling to realize value from AI technology, which ManpowerGroup addresses through strategic partnerships combining technology, talent, and workforce expertise. This approach is seen as a growth and profit multiplier.

“customers are increasingly seeking flexible workforce solutions. And as you know, that's where we shine. That's where our business excels, and you're seeing that as we posted our results, particularly in Manpower and the improvement in Experis.”

asked by Jeffrey Silber · answered by Becky Frankiewicz

Can you elaborate on the drivers of the gross margin decline, particularly staffing margin, and when it might stabilize or improve?

Staffing margin decline was primarily due to mix shifts and the Jefferson Wells disposition, but improved sequentially from Q1. Pricing remains rational and stable. Gross profit margin is expected to be stable around 16.0%-16.1% for the first 9 months. Future improvement is expected as Experis and Perm recover and convenience staffing resumes.

“So underlying staffing margin quite stable, considering all of that and also considering the additional growth that we had during the course of the quarter.”

asked by Andrew Grobler · answered by John McGinnis

To what extent does the strong performance reflect underlying market recovery versus company-specific actions, and how will this evolve?

The strong performance reflects both market recovery and effective company execution. Manpower is seen as being in recovery, while Experis and Talent Solutions are stabilizing. The company's ability to target growing industry verticals and adapt agilely to opportunities is a key driver of market-leading growth and share gains.

“We think we're leading the market in many markets. When I look at the strong growth that we're having in the U.S. at 16% for Manpower; double-digit growth in countries like Spain, Canada, Poland, a lot of countries in Latin America; and then high single-digit growth in the U.K. and Italy, along with improving trends in Northern Europe.”

asked by Keen Fai Tong · answered by Jonas Prising

Where is the company in the market cycle (stabilization vs. recovery), and what drives the specific strength of U.S. Manpower?

Manpower is in recovery, while Experis and Talent Solutions are stabilizing. U.S. Manpower's strength comes from improved demand and the company's ability to adapt and target high-growth verticals like manufacturing, consumer goods, retail, aerospace, and logistics, leading to both market growth and share gains.

“Well, I would say, based on our track record now with manpower in the U.S. and Manpower Globally in the fifth quarter, we could say that Manpower has moved from stabilization into a recovery, no question about that.”

asked by John Ronan Kennedy · answered by Jonas Prising

How does the company interpret the macro environment given early cycle recovery signs without a broad recession, and what are the early signs of convenience market improvement in the U.S.?

The company focuses on executing its strategy (cost actions, portfolio prioritization, AI investment) rather than predicting the exact cycle timing, aiming to win in any environment. Early signs of convenience market improvement in the U.S. are observed with smaller to mid-sized customers recreating demand and re-engaging, which is reflected in the pipeline.

“our intent for us is to be the architect of our own future and to take the actions needed to position the business to win in any environment. And with that in mind, our focus is less on predicting the exact timing of or form of a traditional cycle rebound, but more on executing against the levers within our control”

asked by Joshua Chan · answered by Jonas Prising

Can you discuss specific areas where AI has brought new business and the decision not to repurchase shares, and if repurchases will resume?

AI is used internally for sales targeting and interview automation (30% of interviews outside normal hours). Commercially, AI-driven partnerships (SoundHound AI, IBM Watsonx) are creating new revenue streams, with $50M-$100M expected this year and nearly 100 qualified leads. No immediate changes to capital allocation, but share repurchases are expected to be part of the mix in the future, leveraging a strengthened balance sheet.

“we're in progress of delivering between $50 million to $100 million this year from partnership-driven revenue. And I think most importantly or maybe equally importantly, we have almost 100 qualified leads in our pipeline.”

asked by Tyler Barishaw · answered by Becky Frankiewicz