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Adecco: Strong Q4 Results Drive Confidence for 2026

The company delivered a robust Q4 performance, with revenues reaching EUR 6 billion, up 3.9% year-on-year, and gross profit growing 4% to EUR 1.1 billion. The gross margin remained healthy at 19.1%, stable year-on-year on an organic basis. Earnings per share (EPS) came in at 0.708, beating analyst estimates of 0.61. The strong performance was driven by Adecco's flexible placement revenues, which increased by 4%, and outsourcing, which was up 14%. The group's EBITA margin, excluding one-offs, rose 60 basis points year-on-year, demonstrating operational leverage.

ADEN.SW

CHF 21.4

1.9%

A-Score: 4.9/10

Publication date: February 25, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Full-Year Revenue Growth Revenues rose 1.3% year-on-year to EUR 24.5 billion, with a stable gross margin of 19.2%.
  • Q4 Revenue Surge Q4 revenue hit EUR 6 billion (+3.9 YoY), driven by a 4.9% increase in Adecco’s flexible placement and 14% outsourcing growth.
  • EBITA Margin Expansion Q4 EBITA margin improved 60 basis points to 3.8% (EUR 225 million), reflecting strong cost discipline and operational efficiency.
  • Free Cash Flow Strength Full-year operating free cash flow reached EUR 613 million, with a 102% cash conversion ratio, despite growth in revenue.
  • AI & Productivity Gains AI initiatives improved fill rates and time-to-submit metrics, enhancing productivity by 12% in Q4 and supporting market share gains.

Segment Performance

Adecco delivered a strong performance, with revenues at EUR 4.8 billion, up 4.9%. Akkodis' revenues were 1% lower, but sequentially improved, while LHH's revenues were up 2%. Professional Recruitment Solutions revenues were 3% lower, but the company took share in a subdued market. As Denis Machuel noted, "We see pretty good momentum, particularly on flex," driven by market conditions and Adecco's strong sales and delivery engine.

Cash Flow and Financing

The group's cash flow performance was strong, with a cash conversion ratio of 102% and operating free cash flow of EUR 613 million. Free cash flow was EUR 483 million, beating expectations. The company's net debt to EBITDA ratio stands at 4.51, and the dividend yield is 4.66%. The P/E ratio is 14.1, and the EV/EBITDA ratio is 10.07, indicating a reasonable valuation.

Outlook and Guidance

The company expects continued positive momentum in volumes in Q1, with gross margin and SG&A expenses, excluding one-offs, to be broadly stable sequentially. The guidance implies a stable operational performance, and the company's agility advantage value creation path is expected to drive future growth. Analysts estimate next year's revenue growth at 3.8%, and the company's strong track record and guidance suggest it is well-positioned to achieve this target.

Adecco's A-Score