ManpowerGroup Inc. reported a revenue increase of 10.3% for the first quarter of 2026, reaching $4.51 billion compared to $4.09 billion in the same period last year. The company's gross profit also rose to $723 million, up from $698 million, although the gross profit margin decreased to 16.0% from 17.1%. Net earnings fell significantly to $2.5 million, or $0.05 per diluted share, down from $5.6 million, or $0.12 per diluted share, in the prior year. The decline in net earnings was attributed to higher selling and administrative expenses, which increased by 3.7% to $694.7 million, driven by costs associated with a strategic transformation program.
The company experienced notable changes in its operational metrics compared to the previous fiscal period. Accounts receivable decreased to $4.63 billion from $4.77 billion, reflecting lower revenues and changes in currency exchange rates. Cash and cash equivalents also saw a significant decline, dropping to $224.9 million from $871 million at the end of 2025. The company reported cash used in operating activities of $126.3 million, an improvement from $153.2 million in the same quarter last year, indicating better cash management despite the overall decline in net earnings.
Strategically, ManpowerGroup completed the sale of its Jefferson Wells U.S. business for $100 million on April 30, 2026, which is expected to result in a gain recognized in the second quarter of 2026. The company has also implemented a new enterprise resource planning (ERP) system in its France and Italy operations, aimed at enhancing efficiency in procurement and financial processes. This transition reflects the company's ongoing commitment to modernizing its operations and improving service delivery.
Geographically, the Americas segment saw a revenue increase of 5.6%, primarily driven by demand for Manpower staffing services, while Southern Europe experienced a 14.6% revenue increase, bolstered by favorable currency exchange rates and increased demand for staffing services. Northern Europe and APME also reported revenue growth of 8.1% and 7.1%, respectively. However, the company noted a decrease in demand for its Experis interim services across several regions, which negatively impacted overall profitability.
Looking ahead, ManpowerGroup remains cautious about the economic environment, particularly in Europe and the United States, where macroeconomic conditions could affect client demand for workforce solutions. The company anticipates that while some markets show signs of stabilization, the recovery may vary significantly by region. Management emphasized the importance of adapting to changing market conditions and maintaining operational flexibility to navigate potential challenges in the coming quarters.
About ManpowerGroup Inc.
ManpowerGroup Inc. is a global leader in workforce solutions, providing recruitment, assessment, training, career management, outsourcing, and consulting services across industries and regions. Through brands like Manpower, Experis, and Talent Solutions, it connects organizations with skilled talent, supports workforce transformation, and promotes sustainable employment. Its services help clients improve productivity, adapt to labor market trends, and develop human capital worldwide.
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