Kelly Services beats Q2 adjusted EPS estimates, raises 2026 revenue outlook

Kelly Services

06/08/2026 12:46

Overview
US specialty talent solutions provider's Q2 revenue from services fell 5.8% yr/yr, underlying decline was 0.6%
Adjusted EPS for Q2 beat analyst expectations
Company raised fiscal 2026 revenue outlook, expects low-to-mid-single digit decline

Outlook
Kelly raises 2026 revenue outlook to a low-to-mid single digit decline
Company expects Q3 underlying revenue growth of 1%-2%, total revenue flat to down 2% y/y
Kelly sees Q4 revenue growth in mid-to-upper single digits and adjusted EBITDA margin near 4%

Result Drivers
SEGMENT IMPROVEMENT - Underlying revenue performance improved in ETM and SET segments, with each showing at least 300 bps better results versus the prior quarter
DISCRETE IMPACTS - Reduced demand from U.S. federal government contractors in SET and from three large commercial customers in ETM accounted for most of the reported revenue decline
COST DISCIPLINE - Adjusted EBITDA margin improved from the prior quarter due to stable gross profit rate and continued SG&A discipline, including benefits from acquisition integration and technology modernization

Company press release: ID:nGNX1SN6Pt

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$1 bln
 
Q2 Adjusted EPS
Beat
$0.37
$0.24 (3 Analysts)
Q2 EPS
 
$0.31
 
Q2 Operating Income
 
$16.10 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the employment services peer group is "buy"
Wall Street's median 12-month price target for Kelly Services Inc is $17.00, about 11.7% above its August 5 closing price of $15.22
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 7 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)