Adecco Group AG

Reported Q2 2026 hard numbers included organic revenue growth of 5.6% year-on-year, gross profit of EUR 1.1 billion, gross margin of 18.6%, EBITA excluding one-offs of EUR 165 million, EBITDA margin of 2.8%, organic drop-down ratio of 64%, adjusted EPS up 31%, and net debt-to-EBITDA of 2.7x, 0.5x better than a year ago. The company said organic gross margin was 20 basis points lower year-on-year, an improvement from 40 basis points lower in Q1. For Q3, management expects a modest sequential improvement in gross margin and SG&A expenses excluding one-offs to be lower sequentially; it also said positive volume momentum has continued quarter-to-date and into August.

Denis Machuel emphasized that the company is gaining share while growing profitably, highlighting a fifth consecutive quarter of growth and 14 quarters out of the last 16 with market share gains. He said Akkodis returning to growth is a positive inflection and framed the AI rollout as central to improving both service quality and productivity. His tone was confident and constructive, repeatedly pointing to stronger execution, better cost-to-serve, and improving momentum.

Valentina Ficaio focused on sequential margin improvement, saying gross margin improved from down 40 basis points in Q1 to down 20 basis points in Q2, helped by outsourcing and a better mix. She noted EBITDA margin expansion to 2.8%, SG&A at 3.2% of revenue versus a 3.5% target, last-12-month cash conversion of 83%, cash flow from operating activities of EUR 23 million, and free cash outflow of EUR 14 million after EUR 37 million of capex. She also said net debt was EUR 235 million lower year-on-year and that the group remains on track toward net debt-to-EBITDA of 1.5x or below by end-2027.

Analysts focused on the Q3 growth outlook, the cost of AI deployment, gross margin inflection timing, restructuring charges, and whether Adecco can keep pace with peers. Management said momentum remained strong into early August, AI costs are controlled through a fixed-cost contract with unlimited volumes, and the 50% revenue-enabled AI target was hit early, with the new target raised to 70% by end-2026. On restructuring, management said there is a spillover into Q3, the charges are partly non-cash, and benefits should start flowing from Q4 onward, especially in Akkodis Germany and Adecco France.