10-Q · August 7, 2026
ManpowerGroup delivered a substantial year-over-year recovery in Q2 2026, with revenue up 7.5%, operating margin improving to 2.3%, and diluted EPS rising to $1.13 from a $(1.44) loss. Growth was broad across the…
Earnings analysis · 10-Q
MAN earnings analysis
Filed October 30, 2026 · Our reading of the company's report
The latest report
ManpowerGroup delivered solid year-over-year revenue and operating-profit growth in Q3, supported by strong Americas demand and a turnaround in Northern Europe. However, gross margin fell 70 basis points to 15.9%, GAAP…
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ManpowerGroup delivered solid year-over-year revenue and operating-profit growth in Q3, supported by strong Americas demand and a turnaround in Northern Europe. However, gross margin fell 70 basis points to 15.9%, GAAP EPS declined sequentially to $0.71, and nine-month free cash flow was approximately negative $160.6 million. Debt reduction and $922.7 million of available liquidity are positives, but cash has fallen to $233.1 million and the Japan regulatory investigation adds an incremental uncertainty.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.71
What stood out
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Revenue growth continued
Q3 revenue increased 4.4% year over year to $4,840.0 million, although it declined from $4.86 billion in Q2 2026. Management reported 5.6% organic constant-currency growth, led by Manpower staffing demand.
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Operating profit expanded
Operating profit rose 23.7% year over year to $82.3 million, and operating margin improved to 1.7% from 1.4%. Selling and administrative expense declined 2.5% to $685.0 million, helped by lower restructuring and personnel costs.
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EPS improved year over year
GAAP diluted EPS increased to $0.71 from $0.38 a year ago, but declined from $1.13 in Q2 2026. The quarter included $0.30 of unfavorable EPS impact from restructuring, transformation, disposition-related and other items.
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Americas and Northern Europe led
Americas revenue grew 13.5% to $1,246.7 million, while Northern Europe revenue grew 5.4% to $860.6 million. Northern Europe OUP improved to $7.5 million from a $14.9 million loss, with its OUP margin increasing to 0.9% from negative 1.8%.
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Year-to-date profitability rebounded
Nine-month revenue rose 7.3% to $14,210.6 million and operating profit increased 220.4% to $222.6 million. The prior-year period included $88.7 million of goodwill and intangible impairment charges, while 2026 included a $28.3 million gain on the Jefferson Wells U.S. sale.
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Leverage and liquidity improved
Debt declined to $1,103.4 million from $1,677.1 million at December 31, 2025, reducing debt-to-capitalization to 34.0% from 44.9%. Management reported $922.7 million of available liquidity, including $549.6 million under the revolving facility and $140.0 million under the working-capital facility.
What to watch
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Cash generation remained negative
Free cash flow was approximately negative $160.6 million for the first nine months, calculated from $137.0 million of operating cash use and $23.6 million of capital expenditures. Cash declined to $233.1 million from $871.0 million at year-end 2025.
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Margin compression persisted
Gross margin declined 70 basis points year over year to 15.9% from 16.6%, primarily due to business-mix shifts, lower permanent recruitment demand and weaker career-transition margins. Gross profit was $767.3 million, down 0.2% despite 4.4% revenue growth.
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Regional profitability remained uneven
Southern Europe OUP declined to $64.6 million from $65.6 million, while APME OUP declined 10.1% to $23.9 million. France revenue fell 3.5% to $1,132.9 million and APME revenue fell 1.1% to $514.9 million in reported currency.
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New Japan regulatory investigation
The company disclosed an ongoing Japan Fair Trade Commission investigation following a June 2, 2026 inspection of offices associated with its Japanese subsidiary. Management stated that it cannot currently determine the scope, duration or outcome, or whether the matter could materially affect the financial statements.
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Receivables collection risk increased
Accounts receivable declined to $4,619.4 million from $4,770.3 million at year-end, but DSO increased by four days to 59 days. The allowance for expected credit losses rose to $78.5 million from $74.1 million.
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Switzerland remains impairment-sensitive
The annual impairment test found that Switzerland was the only reporting unit whose fair value did not exceed carrying value by more than 10%; its goodwill balance was $32.4 million. Management cautioned that further operating declines could result in additional goodwill impairments.
Management's outlook
The 10-Q does not provide numeric revenue or EPS guidance. Management states that it expects to remain in compliance with financial covenants for the next 12 months and believes liquidity is sufficient to meet near-term obligations.
Earlier filings 4
10-Q · May 8, 2026
ManpowerGroup delivered Q1 2026 earnings that exceeded expectations, reporting revenue of $4.51B and diluted EPS of $0.05, marking significant improvements from the prior quarter. However, a sharp increase in…
10-K · February 23, 2026
ManpowerGroup positions itself as a global leader in workforce solutions with ~2,100 offices in more than 70 countries, emphasizing staffing plus higher‑value Talent Solutions (RPO/MSP/outsourcing) and upskilling…
10-Q · May 2, 2025
ManpowerGroup reported Q1 revenue of $4,090.3M, down from $4,403.3M a year ago, with gross margin roughly stable at ~17.1% but operating margin compressing to ~0.7%. Net earnings fell to $5.6M (diluted EPS $0.12) from…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.