Adecco profit disappoints despite better than expected sales (updated)

Adecco AG

06/08/2026 06:25

Recasts with comments from CEO, share price, details on AI, background
Adecco operating income falls short of expectations
Shares fall more than 7% before paring losses
The third quarter is off to positive start, company says
ZURICH, Aug 6 (Reuters) - Swiss recruitment company Adecco Group ADEN.S missed profit expectations in the second quarter, driving its shares lower on Thursday, even as it reported better than expected sales of €6 billion ($6.93 billion).
The company said it had made progress more quickly than anticipated with AI and aims by the end of this year to have 70% of revenue powered by agentic AI, referring to systems that can act autonomously with only limited human oversight.
Staffing companies such as Adecco are bellwethers for the broader economy, as firms tend to hire when they feel confident about the future and hold back when gloomier.
Apart from economic and geopolitical uncertainty linked to the Iran war, expectations about the growing role of AI have curbed some hiring. Scepticism on what exactly AI can do has also jolted some stock markets.
Addressing a conference call, Adecco CEO Denis Machuel reiterated comments he made last month that AI would not trigger a "jobs apocalypse".
     
SHARES FALL BEFORE PARING LOSSES
Sales beat predictions for a figure of €5.95 billion in the company-gathered consensus, but operating income fell 5% compared with the second quarter of last year to €109 million, undershooting forecasts for €130 million.
Shares fell 7.7% after opening, before paring some losses to trade down 4.4% at 0908 GMT.
Machuel said the group had increased market share and met a target for 50% of revenue to be driven by agentic AI by the end of the second quarter rather than the end of 2026.
"And we have now raised our target to 70% by the end of 2026," he said.
Looking ahead, the group said that positive momentum had continued so far in the third quarter and it expected a modest sequential improvement in gross margin in the period.
Another staffing company, Randstad RAND.AS last month said hiring activity was growing, led by demand in major markets such as the United States and Germany.
ManpowerGroup Inc MAN.N also reported higher revenue and said demand was strong in the United States, Latin America, and parts of Europe.
($1 = 0.8660 euros)

(Writing by Dave Graham, additional reporting by John Revill
Editing by Linda Pasquini and Barbara Lewis)
((dave.graham@thomsonreuters.com; Reuters Messaging: dave.graham.thomsonreuters.com@reuters.net/))