Oct 15, 2026 earnings call — Leadership change and transformation progress
Reported revenues of $4.8 billion with organic constant currency growth of 6%.
Revenue $4.8B (est $4.9B) · EPS $1.01 (est $1.01)
Key quotes
"I am delighted to share that as part of the board's long term succession planning, Becky Frankiewicz will become our next chief executive officer."
"And alongside that commercial momentum, we are making meaningful progress on our transformation agenda, and remain confident in our commitment to deliver $200 million in permanent cost savings in 2028."
"We continue to expand our AI enabled talent screening capabilities extending our scale across key markets, including Italy and The US in Q3. Now reaching 70% of our revenue."
Analyst Q&A 8
France revenue drop and outlook
Q (Andrew Steinerman · JPMorgan): Why did Manpower France revenues dip and is France on a different recovery path than other major countries? Also, what caused October year-over-year trends to improve in France?
A: Management said France saw market volatility but the company has been successful targeting opportunity areas and staying on top of the market. They noted some political uncertainty and month-to-month volatility (weak in June/July, strength in September) and said that gives confidence for October and the fourth quarter.
"But I would say, overall, we have been very successful at targeting areas, that show opportunity and that commercial agility and that focus is what allows us to stay on top of the market." — Jonas Prising (CEO·CHAIR)
Leadership change and transformation commitment
Q (Mark Marcon · Baird): Why make the leadership transition now, and is Becky fully committed to the transformation plan and the target to raise margins (about 110-basis points)? Also, are you worried about diesel and interest rates hurting French industrial sentiment?
A: They said the transition was thoughtful and planned by the board and builds on continuity and talent development. Becky said she is fully committed to the April transformation plan and delivering the cost savings; management said they are monitoring market conditions and that employer confidence in France remains solid today.
"We are delivering strong year to date performance." — Becky Frankiewicz (PRESIDENT)
U.S. Manpower growth and Right Management impact
Q (Andy Grobler · BNP Paribas): Is Manpower US strength broadening to more clients and other parts of the US business? And is Right Management running above average activity such that it could remain a headwind to group gross margins as markets recover?
A: They said Manpower US growth is broadening: they are winning new logos, the pipeline is robust, Experis returned to growth this quarter, and Talent Solutions remains strong. On Right Management, they said restructuring-driven revenue momentum has slowed and Right is inflecting to modest revenue declines, so its contribution will be smaller but manageable and tied to improving staffing momentum.
"So I would say, you know, what we have really been seeing from Right Management over the last 2 years is revenue momentum on restructuring activity." — John Thomas McGinnis (CFO)
Experis drivers and buyback timing
Q (Kartik Mehta · Northcoast): Is Experis growth coming from general IT spending or AI projects, and could the momentum carry into 2027? Also, when might the company feel comfortable resuming share repurchases?
A: They said Experis growth is driven by both tech spending and AI projects, which are increasingly converging, with early strength in the U.S. and hopeful global expansion. On buybacks, management said they are taking it one step at a time, focusing on strengthening the balance sheet now, do not expect repurchases in the immediate future, but would consider returning as momentum continues.
"Increasingly, the answer to that is both, because they are increasingly converging." — Becky Frankiewicz (PRESIDENT)
Can growth accelerate above current rate?
Q (Trevor Romeo · William Blair): Is the roughly 6% organic constant currency growth a ceiling, or can consolidated growth accelerate as the recovery progresses? Also, any update on the large business tax question in France for next year?
A: They said they do not view 6% as a top; commercial staffing momentum could be followed by further acceleration as professional services, perm and RPO pick up. On the France budget/tax, they said it is too early to tell and the draft budget needs full parliamentary review so it is premature to call.
What drives Q4 margin improvement
Q (Ronan Kennedy · Barclays): Which factors give you the most confidence for incremental earnings growth into 2027, and what drives the stronger EBITDA conversion in the fourth quarter?
A: They said confidence comes from commercial agility and shifting into verticals with profitable growth, and from their strategy showing results as they close 2026. For Q4, they said the 20 basis point EBITDA improvement is driven by stable staffing margins, the enterprise mix shift largely worked through, seasonal GP dollar improvement after summer holidays, and ongoing cost discipline.
"What that means is we have been talking about the enterprise mix shift that is largely worked its way through, and you see that in the stable GPU margin for the second half of the year here." — John Thomas McGinnis (CFO)
SG&A cuts and Americas growth change
Q (Josh Chan · UBS): What is driving SG&A down while revenue grows, and how sustainable is that cost discipline? Also, why might Americas growth decelerate into Q4?
A: They said cost reductions come from prior difficult actions and transformations (back office and now front office) that reduce the permanent cost structure, and they will keep cost discipline as the transformation progresses. On the Americas, they said underlying associate-on-assignment demand remains strong and the Q4 year-over-year change partly reflects anniversary comparisons (including a very strong prior period in Latin America).
"But we continue to hold the line on costs." — John Thomas McGinnis (CFO)
Germany demand and competitiveness after realignment
Q (Tobey Sommer · Truist): Where is demand coming from in Germany, and will the realignment make you more competitive versus bigger peers and allow higher EBITDA margins at lower gross margins?
A: They said Germany is showing commercial momentum after prior actions, with growth in verticals such as automotive where they have strong client relationships. Management said the realignment is building a resilient, agile and diversified company that should be competitive across markets thanks to scale and the transformation.
"So this is a perfect example, actually, of our intention around focusing on verticals where we believe we have the right relationship and capabilities to deliver." — Becky Frankiewicz (PRESIDENT)