What went well
  • Revenue of $4.9 billion beat expectations, with organic days-adjusted constant-currency growth of 6%, well above the 3% midpoint guide, marking a meaningful step-change in organic growth.
  • The Manpower brand grew 8% in constant currency (its fifth consecutive quarter of growth), with the U.S. up 16% (eight straight quarters) on strong commercial staffing demand.
  • Adjusted EBITDA rose 15% in constant currency to $103 million with margin up 10 basis points to 2.1%, and adjusted EPS of $0.99 came in above the $0.96 guidance midpoint.
  • Experis (-2%) and Talent Solutions (flat) both improved sequentially from Q1 (-9% and -1%), while permanent recruitment crossed to flat and Northern Europe returned to profit with the U.K. back to growth.
  • The strategic transformation program (targeting $200 million of permanent cost savings by 2028) is tracking well, and the sale of the U.S. Jefferson Wells business advanced portfolio optimization.
  • AI initiatives gained traction: a sales-targeting engine scaling to ~70% of revenue by year-end, AI screening cutting time-to-fill 67%, and partnerships (SoundHound AI, IBM watsonx) driving $50-$100 million of new partnership revenue with ~100 qualified leads.
What went wrong
  • Experis revenue still declined 2% in constant currency and Talent Solutions was flat, so the recovery beyond the Manpower brand remains at a stabilization rather than growth stage.
  • Adjusted EBITDA margin remained thin at 2.1%, and gross profit margin of 16.1% reflected a 60-basis-point year-over-year staffing-margin decline on mix shifts and the sale of the higher-margin U.S. Jefferson Wells business.
  • Free cash flow was still an outflow of $9 million in the quarter (though much improved from a $207 million outflow a year ago), and no shares were repurchased.
  • Restructuring and strategic-transformation charges were $13 million in the quarter (a $0.23 EPS impact) and are expected to run $10-$15 million per quarter through year-end.
  • Right Management declined on lower outplacement activity, France was flat, and the Q3 guide carries a high 44% effective tax rate and a $0.02 FX headwind.

Guidance Changes

MetricPeriodCurrent guidance
Earnings per shareQ3 2026$0.96-$1.06 (includes a $0.02 FX headwind)
Organic days-adjusted CC revenue growthQ3 2026~6% at the midpoint (a continuation of Q2)
Constant-currency revenue growthQ3 20263%-7% (midpoint 5%, impacted by the Jefferson Wells disposition)
Gross profit marginQ3 2026~16.0% (includes full-quarter impact of the higher-margin U.S. disposition)
Adjusted EBITDA marginQ3 2026Up ~10 bps year-over-year at the midpoint
Effective tax rateQ3 2026~44%
Strategic transformation savings2026 / 2027 / 2028~$20M back-office this year, ~$80M in 2027 (front office, weighted Q2-Q4), $200M full-year in 2028
Restructuring/transformation chargesQ3-Q4 2026$10-$15M/quarter (unchanged; ~$13M in Q2)

Performance Breakdown

MetricYoYNote
Reported revenue +7.5% to $4.86B (+6% organic CC) Growing client demand led by the Manpower brand; well above the 3% guide midpoint; system-wide revenue $5.3B.
Adjusted EBITDA / margin +15% CC to $103M / +10 bps to 2.1% Improving demand, operating leverage, and cost discipline.
Reported EPS $1.13 Includes a $0.37 gain on the Jefferson Wells U.S. sale and discontinued-business liquidation, net of $0.23 of restructuring/transformation costs; adjusted EPS was $0.99.
Manpower brand +8% organic CC Fifth consecutive quarter of growth; U.S. up 16% on manufacturing, automotive, aerospace, logistics, and retail demand.
Experis brand -2% organic CC Improved from -9% in Q1 on cloud migration, application development, data, and AI demand; U.S. Experis returned to flat.
Talent Solutions brand Flat organic CC Improved from -1% in Q1, driven by RPO and MSP; Right Management declined on lower outplacement activity.
Gross profit margin 16.1% (staffing -60 bps) Mix shift toward enterprise commercial staffing and the sale of higher-margin U.S. Jefferson Wells; improved sequentially from 16.0%.
Free cash flow -$9M (vs -$207M) Significant year-over-year improvement; strong second-half free cash flow expected.

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
Stabilization to recoveryGradual stabilizationManagement now characterizes the Manpower brand (U.S. and globally, five quarters of growth) as having moved from stabilization into recovery, while Experis, Talent Solutions, and Perm are still stabilizing but with improving, confidence-inspiring trends.
Strategic transformation & cost savingsProgram launchedOn track for $200 million of permanent savings by 2028 (~$20M back-office this year, ~$80M in 2027), with restructuring/transformation charges of ~$13M/quarter and portfolio optimization (Jefferson Wells U.S. sale) improving operating leverage.
AI as effectiveness and growth leverEarly AI deploymentA sales-targeting engine scaling to ~70% of revenue by year-end, AI screening/interview tools cutting time-to-fill 67% (30% of interviews outside business hours), and a partnership strategy positioned as a new value-creation lever.
AI partnership ecosystemSoundHound AI partnershipExpanded with IBM watsonx Orchestrate ('Accelerate Workflow') plus Accenture, SAP, and Microsoft, targeting $50-$100 million of partnership revenue this year and ~100 qualified leads by combining technology, talent, and managed services into integrated, outcome-driven solutions.
U.S. commercial staffing strengthRecoveringU.S. Manpower up 16% (a step-up from 5% in Q1) on high-growth verticals (consumer-goods manufacturing, retail, aerospace, logistics), with early signs of smaller/mid-size 'contingent' customers re-engaging demand.
European recoverySoft, especially Northern EuropeNorthern Europe returned to profit (broad-based improvement) with the U.K. back to growth (+2%); Southern Europe grew 4% (Italy +6%, France flat), reflecting the payoff of prior restructuring actions.
Gross margin trajectoryDeclining on mixStaffing margin stabilizing (16.0%-16.1% across the first nine months) as enterprise-led mix works through; contingent resumption should benefit Manpower margin, and lagging Experis/Perm recovery offers future GP-margin upside.
Capital allocationBuybacks part of the mixNo repurchases in Q2 as the company prioritized deleveraging (net debt improved to $863M with disposition cash); no near-term change expected, but buybacks remain part of the long-term mix.

Q&A Summary

Mark Marcon (Baird) asked how the quarter progressed in key markets (U.S., France) and exit rates, plus whether AI screening is measurably improving fill rates and time-to-hire.
Jack McGinnis said U.S. revenue strength built over the quarter (Manpower +16%, Experis back to flat), France was very stable (flat, in line with industry data), Italy solid, and Japan steady, with no discernible Iran impact; Becky Frankiewicz said nine months into AI interview tools they are seeing a material 67% decrease in time-to-fill, scaling to 70% of revenue by year-end.
Jeff Silber (BMO) asked about the general tone of business from clients and back-half expectations.
Frankiewicz said clients remain resilient amid geopolitical, economic, and demographic uncertainty and are increasingly seeking flexible workforce solutions (Manpower's strength), and that they now struggle to get benefit from (rather than access to) AI, which Experis's partnership strategy addresses as a growth and profit multiplier.
Andy Grobler (BNP Paribas) asked about the temp gross-margin decline (mix vs. price) and when it troughs, plus the Jefferson Wells impact.
McGinnis said staffing margin was very close to expectations (down 60 bps YoY but up sequentially to 16.1%, absorbing ~5-10 bps of Jefferson Wells and above-plan Manpower Enterprise growth), signaling rational, stable pricing; he expects contingent resumption plus recovering Experis/Perm to lift GP margin going forward, and pegged the JW impact at ~10 bps.
George Tong (Goldman Sachs) asked how much performance reflects market recovery versus company actions, and the timing/functions of the $200 million cost savings.
Jonas Prising said ManpowerGroup is executing and leading in many markets (U.S. +16%, double-digit growth in Spain/Canada/Poland/Latin America) via agile vertical targeting; McGinnis detailed the savings ramp (~$20M back-office in 2026, ~$80M in 2027 weighted to Q2-Q4, $200M full-year in 2028) with ~$13M of Q2 program costs.
Ronan Kennedy (for Manav Patnaik, Barclays) asked for a holistic read on stabilization versus recovery and to unpack U.S. Manpower strength.
Prising said Manpower has moved from stabilization into recovery (five quarters of growth) while Experis, Talent Solutions, and Perm are still stabilizing with encouraging trends; Frankiewicz attributed U.S. Manpower strength to both improved demand and real-time targeting of high-growth verticals (manufacturing/consumer goods, retail, aerospace, logistics).
Trevor Romeo (William Blair) asked about internal headcount needs in growth mode and the evolving IT skill demand within Experis.
Prising said the company feels well-positioned with capacity to leverage existing headcount, adding carefully while AI tools boost productivity; Frankiewicz cited demand for infrastructure skills (database architects, data scientists, computer network engineers for data centers) and said the Experis Academy upskills talent to meet demand.
Josh Chan (UBS) asked how to interpret classic early-cycle recovery signs absent a recession, and about resuming contingent demand in the U.S.
Prising said the focus is less on predicting the cycle and more on controllable levers (structural cost actions, portfolio prioritization, higher-value capabilities like the $200M transformation), leveraging ~80 years of adapting to shifting demand; Frankiewicz confirmed early signs of contingent improvement among smaller/mid-size U.S. customers, visible in the pipeline.
Tyler Barishaw (for Tobey Sommer, Truist) asked where AI has brought new business and about the decision not to repurchase shares.
Frankiewicz cited the sales-targeting engine (scaling to 70% of revenue), AI-powered off-hours interviews (30% of interviews), and commercial partnerships (SoundHound, IBM watsonx) as growth/profit multipliers; McGinnis said no near-term capital-allocation change is expected after prioritizing balance-sheet strengthening, but buybacks remain part of the long-term mix.
Mark Marcon (Baird, follow-up) asked about Perm's share of gross profit and the growth/margin outlook for Experis and its partnerships.
McGinnis said Perm was 15.3% of GP (crossed to flat in the quarter), with a normalized range of 15.5%-16.5% (peaked at 20% in 2022); on Experis, he cited improving trends (-2% globally, U.S. flip to slight growth expected in Q3), and Frankiewicz sized partnership revenue at $50-$100 million this year with ~100 qualified leads.

More on ManpowerGroup Inc.

Reported 2026-07-16 · figures from the ManpowerGroup Inc. Q2 2026 earnings call.

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