ManpowerGroup Inc

ManpowerGroup reported second-quarter 2026 adjusted earnings of 99 cents per share, beating the Zacks Consensus Estimate by 3.1% and rising 26.9% from the year-ago quarter, on revenues of $4.86 billion that topped the consensus mark by 3.8% and rose 7.5% year over year, or 5.8% in constant currency. Regional growth was broad-based: Americas revenues rose 14.4% year over year to $1.21 billion, led by a 29% increase in Other Americas to $498 million, while U.S. revenues grew 6% to $714.3 million; Southern Europe revenues rose 7.4% to $2.31 billion, Northern Europe revenues increased 3.9% to $825.5 million, and Asia-Pacific Middle East revenues declined 1.2% on a reported basis to $518.7 million but rose 5% in constant currency. Gross profit rose 2.2% year over year to $780.3 million, though gross margin fell 80 basis points to 16.1% on business mix changes and the sale of the higher-margin Jefferson Wells U.S. business, while selling and administrative expenses fell 15.3% to $668.3 million from $789.0 million, lifting operating profit to $112 million from a $25.3 million loss a year earlier. Management is targeting $200 million in permanent cost savings by 2028 through its transformation program and AI-led productivity initiatives, and maintained its semi-annual dividend at 72 cents per share, with first-half dividend payments of $33.5 million versus $33.3 million a year earlier. The company's cash balance fell to $180.6 million at the end of the second quarter of 2026 from $871 million at the end of 2025, reflecting $585.8 million in long-term debt repayments, with operating activities using $129 million in the first half even as second-quarter free cash flow narrowed to a $9-million outflow from $207 million a year earlier.

Korn Ferry reported fiscal second-quarter revenues of $764.6 million, up 6.9% year on year and 2.3% above analysts' expectations, scoring the highest guidance raise among its professional staffing and HR solutions peers. Across the 8 professional staffing and HR solutions stocks tracked, group revenues beat consensus estimates by 2.3% and next-quarter revenue guidance came in 3.9% above expectations, though share prices in the group are down 6.3% on average since the latest earnings results. ManpowerGroup posted the strongest quarter, with revenues of $4.86 billion, up 7.5% year on year and 2.9% above expectations, and its stock is up 46% since reporting, trading at $56.96. Barrett Business Services delivered the weakest performance against analyst estimates, with revenues of $319.3 million, up 3.8% year on year and in line with expectations, alongside a significant miss on EPS, sending its stock down 21.2% to $31.61. Alight reported revenues of $511 million, down 3.2% year on year but 2.8% above expectations, and logged the group's weakest guidance update, with its stock down 33.3% at $11.46, while First Advantage reported revenues of $448.8 million, up 14.9% year on year and 8.2% above expectations, delivering the biggest estimate beat, fastest revenue growth, and highest full-year guidance raise of the group. Korn Ferry's stock is down 12.3% since reporting and currently trades at $71.97.

Employers expect global hiring momentum to strengthen slightly heading into the final quarter of 2026, according to ManpowerGroup's latest Employment Outlook Survey of 39,878 employers across 42 countries. The global Net Employment Outlook for Q4 2026 stands at 29%, up two points from the previous quarter and six points from the same period last year. Among employers planning to add staff, 62% cite changing roles and skills as the primary driver, including branching into new areas, new expertise demanded by advancing technology, and shifts in the skills their services require. Forty-three percent of employers globally plan to increase staffing between October and December, compared with 14% anticipating reductions, while 41% expect staffing levels to remain unchanged. The survey also finds that 45% of employers are increasing entry-level hiring compared with 2025, against 20% pulling back, and that construction and real estate and finance and insurance report the strongest hiring intentions at 36%, followed by information at 35%. Regionally, the Americas posts the strongest outlook at 36%, with Brazil at 53%, Panama at 49%, Mexico at 41%, and the United States at 36%, while India leads all countries at 54%, followed by Vietnam at 36% and China at 34%.

ManpowerGroup topped Q2 earnings among seven professional staffing and HR solutions companies tracked, with revenues of $4.86 billion, up 7.5% year on year and exceeding analyst expectations by 2.9%. The group's revenues beat consensus estimates by 2.3% on average, while next-quarter guidance came in 2% below. First Advantage also outperformed with revenues of $448.8 million, up 14.9% and beating estimates by 8.2%, while Barrett Business Services was the weakest, with revenues of $319.3 million, up 3.8% but missing EPS estimates significantly. Robert Half reported revenues of $1.34 billion, down 2.4% but beating estimates by 1%, and Insperity posted revenues of $1.69 billion, up 1.7% and topping expectations by 0.7%. Since reporting, ManpowerGroup shares have risen 59.2% to $62.13, while Barrett shares have fallen 14.9% to $34.15.

Professional staffing and HR solutions stocks reported a strong second quarter, with the seven companies tracked beating revenue consensus estimates by 2.3% on average, though next quarter's revenue guidance came in 2% below expectations. Alight reported revenues of $511 million, down 3.2% year over year, beating estimates by 2.8% but issuing weak guidance that sent its stock down 22.1% to $13.38. ManpowerGroup posted revenues of $4.86 billion, up 7.5% year over year and 2.9% above estimates, with its stock up 44.2% to $56.26. Barrett Business Services reported revenues of $319.3 million, up 3.8% year over year and in line with estimates, but missed EPS significantly and its stock fell 21.8% to $31.39. First Advantage reported revenues of $448.8 million, up 14.9% year over year and 8.2% above estimates, with its stock up 3.1% to $21.20. Robert Half reported revenues of $1.34 billion, down 2.4% year over year but beating estimates by 1%, with its stock up 11.3% to $42.15.

ManpowerGroup delivered second-quarter 2026 revenues of $4.9 billion, representing 6% constant currency growth and beating expectations, driven by accelerating client demand and strategic execution. System-wide revenue, including franchises, reached $5.3 billion, while adjusted EBITDA margin improved 10 basis points year-over-year to 2.1%. The Manpower brand posted its fifth consecutive quarter of growth with an 8% constant currency increase, led by a 16% surge in the U.S., while Experis narrowed its decline to 2% and Talent Solutions stabilized. The company completed the sale of its Jefferson Wells U.S. business and advanced a global transformation program targeting $200 million in permanent cost savings by 2028. For the third quarter, ManpowerGroup guided for adjusted earnings per share of $0.96 to $1.06 and organic constant currency revenue growth of 6% at the midpoint.

ManpowerGroup shares surged to a four-year high after the global staffing company reported better-than-expected second-quarter results. The stock reached an intraday record of $53 before closing up 32.37 percent at $51.65. The company swung to a net income of $53.5 million from a net loss of $67.1 million a year earlier, while revenues rose 7.5 percent to $4.86 billion. Excluding one-time items, earnings per share came in at $0.99, a 27 percent constant-currency increase. Management also issued an upbeat third-quarter outlook, projecting earnings per share between $0.96 and $1.06, up from $0.38 in the prior-year period.

Several stocks made big moves in midday trading following earnings reports and analyst actions. ManpowerGroup surged 33% after calling for third-quarter revenue to rise 2% to 6%, above the FactSet consensus of 1.7%, and posting adjusted earnings of 99 cents per share on revenue of $4.9 billion, topping estimates. Abbott Laboratories jumped almost 11% as it raised its full-year adjusted earnings guidance to a range of $5.45 to $5.60 per share, above the FactSet consensus of $5.47. UnitedHealth rose 4% after reporting adjusted earnings of $6.38 per share on revenue of $112.03 billion, beating LSEG estimates, and hiked its full-year outlook. Taiwan Semiconductor Manufacturing shed 2% despite beating second-quarter earnings estimates, as it raised full-year capital expenditures to between $60 billion and $64 billion and announced an additional $100 billion investment in Arizona. AtaiBeckley jumped 33% after Eli Lilly agreed to buy the psychedelic drugmaker for $2.8 billion, or $6.75 per share in cash, with potential milestone payments of up to $2.50 per share. GE Aerospace dropped 4% even after beating second-quarter earnings and revenue estimates and raising full-year guidance. United Airlines fell more than 1% as softer-than-expected third-quarter guidance of $2.50 to $3.50 per share, below the FactSet estimate of $3.53, overshadowed an earnings beat. J.B. Hunt Transport Services jumped almost 7% after reporting earnings of $1.91 per share on revenue of $3.5 billion, exceeding FactSet estimates. Cintas gained 6.5% following a Bank of America upgrade to buy, while Cinemark and Imax fell about 4% and 2% respectively after Wells Fargo downgraded both to equal weight. AST SpaceMobile tumbled more than 16% on plans to offer $1 billion of convertible senior notes due 2034.

Zacks Equity Research identifies Korn Ferry, ManpowerGroup, and Kelly as staffing stocks poised for growth despite industry headwinds. The staffing industry is gradually recovering to pre-pandemic levels, driven by remote work adoption and technological advancements. Korn Ferry reported 5% year-over-year revenue growth in its fiscal fourth quarter, with net income up 13.9%, and holds $1.9 billion in remaining fees under contract. ManpowerGroup leverages AI to boost commercial scale, generating nearly $200 million in incremental revenues in France, and targets $200 million in permanent cost savings by 2028. Kelly expanded through a major managed service provider program with a North American oil and gas company and maintains a strong current ratio of 1.59 with no current debt. Over the past year, the Zacks Staffing Firms industry declined 5%, underperforming the S&P 500's 26.5% gain.

ManpowerGroup Chair and CEO Jonas Prising will co-chair the World Economic Forum's Annual Meeting of the New Champions 2026 in Dalian, China, from June 23 to 25. The meeting, known as Summer Davos, convenes leaders from business, government, academia, and civil society under the theme "Innovating at Scale" to discuss translating technological breakthroughs into broad-based economic benefit. Prising will participate in a panel titled "AI Everywhere, Not at Once" on June 23, examining the gap between AI deployment and measurable business impact alongside panelists including Xue Lan, Dean of Schwarzman College at Tsinghua University, Feng Junlan, Chief Scientist of China Mobile, and Roli Agrawal, Chief Strategy Officer at NTT Data. ManpowerGroup's delegation also includes François Lançon, Regional President for Asia Pacific and Middle East, and other senior leaders, and the company brings recent research such as the Experis CIO Outlook 2026 and the Q3 2026 Employment Outlook Survey, which shows China's Net Employment Outlook at 33%, above the global average of 26%.