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…
Earnings analysis · 10-Q
MAN earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
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…
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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 Americas and Europe, but APME declined and gross margin fell 80 basis points. The earnings recovery benefited materially from an $88.7M prior-year impairment comparison and a $30.0M asset-sale gain, while cash declined sharply despite lower capex and significant debt repayment.
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
- $1.13
What stood out
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Revenue Growth Accelerated
Second-quarter revenue increased 7.5% year over year to $4,860.2M, or 5.8% in constant currency. Americas was the strongest segment, with revenue up 14.4% to $1,212.3M.
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Operating Profit Rebounded
Operating profit improved to $112.0M from a $(25.3)M loss, and operating margin expanded to 2.3% from (0.6)%. The comparison benefited from the prior-year $88.7M impairment charge and a current-year $30.0M gain on the Jefferson Wells sale.
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EPS Returned to Profit
Diluted EPS improved to $1.13 from $(1.44), while net earnings rose to $53.5M from a $(67.1)M loss. Management said the Jefferson Wells gain and discontinued-business liquidation charge favorably affected EPS by $0.37, partly offset by $0.23 of restructuring and transformation costs.
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Europe Performance Improved
Southern Europe revenue rose 7.4% to $2,308.7M, led by Italy revenue growth of 9.6% and Other Southern Europe growth of 16.2%. Northern Europe also returned to positive OUP of $2.0M versus $(9.0)M in the prior-year quarter.
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Material Debt Reduction
Debt declined to $1,043.5M from $1,677.1M at December 31, 2025, reducing debt to capitalization to 33.1% from 44.9%. The company had $599.6M available under its revolving facility and $150.0M under its working-capital facility.
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Lower Capital Intensity
Six-month capital expenditures fell to $14.8M from $31.3M, while cash used in operating activities improved to $(129.0)M from $(342.8)M. Management attributed the lower capex primarily to reduced investment in capitalized software.
What to watch
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Margin Compression Persists
Gross margin contracted 80 basis points year over year to 16.1%, primarily from staffing and interim mix shifts and the sale of the higher-margin Jefferson Wells U.S. business. Management also cited a 50-basis-point impact from staffing and interim margins.
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Liquidity Buffer Compressed
Cash and cash equivalents fell to $180.6M from $871.0M at December 31, 2025, while six-month operating cash flow remained negative at $(129.0)M. The company also reported six-month net debt repayments of $599.4M.
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APME Remains Under Pressure
APME revenue declined 1.2% to $518.7M and OUP declined 8.9% to $23.9M. Japan revenue fell 7.0%, primarily due to a $30.8M unfavorable currency impact.
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Transformation Costs Continue
The company recorded $22.6M of restructuring costs in the first half, including $6.7M in the quarter, and expects most of the remaining $25.2M reserve to be paid by the end of 2026. Strategic transformation program costs increased $7.1M year over year in the quarter.
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JFTC Investigation Ongoing
The Japan Fair Trade Commission inspected offices associated with the Japanese subsidiary on June 2, 2026, as part of an investigation of the temporary staffing industry. The company stated that the investigation remains ongoing and its potential impact cannot yet be determined.
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No Formal Risk-Factor Update
The filing states that risk factors remain those disclosed in the 2025 Form 10-K, with no new material risk-factor changes identified. However, management continues to flag volatile economic conditions, labor and tax legislation, and execution of strategic transformation initiatives as risks.
Management's outlook
The 10-Q provides no quantitative revenue or EPS guidance; the prior Q3 2026 EPS outlook of $0.96-$1.06 was provided in the July 16 earnings release. Management expects improving activity trends to continue through 2026, expects to remain in covenant compliance for the next 12 months, and expects most of the remaining $25.2M restructuring reserve to be paid by year-end 2026.
Earlier filings 4
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…
10-K · February 16, 2024
ManpowerGroup presents itself as a global leader in workforce solutions with a network of over 2,100 offices across approximately 75 countries and 27,900 full-time equivalent employees as of December 31, 2023. The…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.