ManpowerGroup Inc.

What they do

ManpowerGroup provides contingent staffing, permanent recruitment, IT professional resourcing, outsourcing, and workforce consulting. Its brands include Manpower (staffing and recruitment), Experis (IT resourcing and project services), and Talent Solutions (RPO, MSP, and Right Management). The company operates roughly 2,100 offices worldwide.

Revenue drivers

• Manpower staffing — Contingent staffing and permanent recruitment; the largest revenue contributor and cited as having 'very strong revenue growth' in Q2 2026.
• Experis IT resourcing — IT professional resourcing and project services; trends improved in Q2 2026, driven by the United States, after prior quarters of decline.
• Talent Solutions (RPO, MSP, Right Management) — Recruitment process outsourcing, managed service programs, and outplacement; MSP showed 'ongoing solid growth' and RPO activity strengthened.
• Geographic segments — Americas, Southern Europe, Northern Europe, and APME; Q2 2026 revenue growth was led by the United States, Latin America, APME, and select European countries.

Recent performance

In Q2 2026 (three months ended June 30, 2026), ManpowerGroup reported revenues of $4.9 billion, up 8% as reported and 6% constant currency year-over-year. Net earnings were $53.5 million versus a net loss of $67.1 million in the prior-year quarter; diluted EPS was $1.13 compared to a loss of $1.44. Adjusted EPS was $0.99, excluding items that positively impacted EPS by $0.14. For fiscal 2025, revenue was $17.96 billion with a net loss of $13.3 million and diluted EPS of -$0.29. In Q2 2026, foreign exchange had a 1.7% favorable impact on revenues from services.

Strategy

Management is executing a global strategic transformation program focused on improving productivity and expanding AI capabilities. The company is leveraging strategic partnerships to unlock higher-value solutions and concentrating commercial efforts on verticals with the best growth opportunities. Management stated that 2026 represents an 'important inflection point' for repositioning the business for long-term profitable growth. The sale of the Jefferson Wells U.S. business for $100 million (net cash proceeds of $88 million) is part of portfolio actions.

Risks

• Economic cyclicality — Demand for staffing is sensitive to macroeconomic conditions; downturns can cause revenue to fall faster than selling and administrative expenses, pressuring profit.
• European exposure — A significant portion of revenue comes from Europe, where volatile economic conditions, labor legislation, and geopolitical risks could reduce demand.
• Foreign currency volatility — Currency movements (notably the U.S. dollar) can materially impact reported revenue and earnings, as seen with a 1.7% favorable FX impact in Q2 2026.
• Transformation execution risk — Failure to implement strategic transformation initiatives and technology investments could hurt competitiveness and financial results.

Outlook

Management expects diluted EPS for Q3 2026 between $0.96 and $1.06, including an estimated 2 cent unfavorable currency impact and a 44% effective tax rate. They maintain that 2026 is an inflection point, with improving demand trends across key markets. Continued cost discipline and improving Experis and RPO trends support the view of long-term durable profitable growth.