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1. Company Snapshot

1.a. Company Description

Adecco Group AG, together with its subsidiaries, provides human resource services to businesses and organizations in Europe, North America, Asia Pacific, South America, and North Africa.It offers flexible placement, permanent placement, outsourcing, training, upskilling and reskilling, career transition and workforce transformation, technology consulting and talent, tech academy, digital staffing services, and talent advisory and solutions under the Adecco, Adia, General Assembly, Badenoch + Clark, LHH, pontoon, Spring, and Modis.The company also operates Hired, a talent recruitment platform.


As of December 31, 2021, it operated approximately 4,300 branches in 59 countries and territories.The company was formerly known as Adecco S.A. Adecco Group AG was founded in 1957 and is based in Zurich, Switzerland.

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1.b. Last Insights on ADEN

The Adecco Group faced negative drivers over the recent three months. Changes to the Board of Directors, announced on February 25, 2026, may have raised concerns about leadership stability. Despite progress in scaling agentic AI with an unlimited Agentforce license agreement, announced on March 12, 2026, investors may have questioned the impact on short-term profitability. The company's focus on AI and technology consulting may not have alleviated concerns about its traditional staffing business. Recent announcements did not address any immediate earnings growth or share buyback initiatives.

1.c. Company Highlights

2. 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.

Publication Date: Feb -26

📋 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.

3. NewsRoom

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Le groupe Adecco soutient l'IA agentique à grande vitesse grâce à un accord de licence illimitée d'Agentforce

Mar -12

Source: prnewswire.com

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The Adecco Group beschleunigt den Ausbau agentenbasierter KI mit unbegrenzter Agentforce-Lizenzvereinbarung

Mar -12

Source: prnewswire.com

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The Adecco Group to scale agentic AI at speed with unlimited Agentforce license agreement

Mar -12

Source: prnewswire.com

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Changes to the Adecco Group Board of Directors

Feb -25

Source: prnewswire.com

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The Adecco Group introduces the agility advantage to grow, adapt and lead in the intelligent era

Nov -26

Source:

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The Adecco Group introduces the agility advantage to grow, adapt and lead in the intelligent era

Nov -26

Source: prnewswire.com

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There May Be Some Bright Spots In Adecco Group's (VTX:ADEN) Earnings

Nov -14

Source:

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How the Narrative Surrounding Adecco Group Is Shifting With Analyst Upgrades and New Leadership

Nov -08

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.60%)

6. Segments

Adecco

Expected Growth: 3.5%

Adecco's 3.5% growth is driven by increasing demand for temporary staffing, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, innovative HR solutions, and strong brand recognition contribute to its growth. Furthermore, the rising trend of flexible work arrangements and the need for companies to adapt to changing workforce dynamics also support Adecco's growth momentum.

Akkodis

Expected Growth: 3.8%

Akkodis' 3.8% growth is driven by increasing demand for digital transformation and IT consulting services, particularly in the European market. The company's expertise in cloud, cybersecurity, and data analytics, combined with its strong client relationships and strategic acquisitions, have enabled it to capitalize on this trend.

Lee Hecht Harrison

Expected Growth: 4.2%

Lee Hecht Harrison's 4.2% growth is driven by increasing demand for career transition and talent development services, fueled by the rise of the gig economy and companies' need for agile workforce management. Additionally, the segment benefits from Adecco Group's global reach and reputation, as well as strategic acquisitions and investments in digital platforms.

7. Detailed Products

Permanent Recruitment

Adecco Group AG provides permanent recruitment services, connecting clients with top talent to fill permanent positions.

Temporary Staffing

Adecco Group AG offers temporary staffing solutions, providing clients with flexible workforce solutions to meet changing business needs.

Contractor Management

Adecco Group AG's contractor management services help clients manage their contingent workforce, ensuring compliance and cost savings.

Outsourcing

Adecco Group AG provides outsourcing services, taking over specific business processes or functions, allowing clients to focus on core activities.

Career Transition

Adecco Group AG's career transition services help individuals transition to new roles, providing outplacement support and career guidance.

Talent Development

Adecco Group AG offers talent development services, providing training and development programs to enhance employee skills and performance.

Recruitment Process Outsourcing (RPO)

Adecco Group AG's RPO services provide clients with a comprehensive recruitment solution, managing the entire recruitment process.

8. Adecco Group AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Adecco Group AG is moderate, as there are alternative staffing solutions available in the market, but the company's strong brand and extensive network of clients and candidates provide a competitive advantage.

Bargaining Power Of Customers

The bargaining power of customers is low, as Adecco Group AG has a diverse client base and a strong market position, which reduces the dependence on individual clients.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as Adecco Group AG relies on a network of suppliers for various services, but the company's scale and market position provide some negotiating power.

Threat Of New Entrants

The threat of new entrants is low, as the staffing industry has high barriers to entry, including regulatory requirements, capital requirements, and the need for an established network of clients and candidates.

Intensity Of Rivalry

The intensity of rivalry is high, as the staffing industry is highly competitive, with many established players competing for market share, and Adecco Group AG faces competition from both traditional staffing companies and new digital platforms.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.52%
Debt Cost 3.95%
Equity Weight 49.48%
Equity Cost 10.73%
WACC 7.30%
Leverage 102.11%

11. Quality Control: Adecco Group AG passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Logista

A-Score: 6.9/10

Value: 7.0

Growth: 4.8

Quality: 5.6

Yield: 10.0

Momentum: 4.0

Volatility: 10.0

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Strabag

A-Score: 6.6/10

Value: 7.5

Growth: 4.7

Quality: 6.5

Yield: 8.1

Momentum: 10.0

Volatility: 3.0

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Wallenius Wilhelmsen

A-Score: 6.0/10

Value: 10.0

Growth: 8.2

Quality: 6.7

Yield: 6.2

Momentum: 2.5

Volatility: 2.3

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Serco

A-Score: 5.7/10

Value: 4.2

Growth: 5.1

Quality: 3.3

Yield: 3.1

Momentum: 10.0

Volatility: 8.7

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Adecco

A-Score: 4.9/10

Value: 7.3

Growth: 2.4

Quality: 3.1

Yield: 8.8

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

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Randstad

A-Score: 4.8/10

Value: 5.4

Growth: 2.0

Quality: 3.1

Yield: 10.0

Momentum: 2.0

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.82$

Current Price

19.82$

Potential

-0.00%

Expected Cash-Flows