Kelly Services Q4 revenue falls, EPS misses estimates

Kelly Services

12/02/2026 12:38

Overview

Specialty talent provider's Q4 revenue fell 11.9% yr/yr due to lower demand in key segments

Adjusted EPS for Q4 missed analyst expectations

Company completed $10 mln share repurchases in Q4

Outlook

Company expects Q1 2026 revenue to decline 11% to 13% year-over-year

Kelly anticipates modest revenue growth and EBITDA margin expansion in H2 2026

Company forecasts Q1 2026 adjusted EBITDA margin of approximately 1.5%

Result Drivers

DEMAND DECLINE - Revenue fell 11.9% due to lower demand in ETM and SET segments, impacted by reduced demand from U.S. federal government contractors and three large commercial customers

TECHNOLOGY INITIATIVE - Completion of a significant milestone in technology modernization, expected to enhance efficiency and growth

EXPENSE OPTIMIZATION - Adjusted SG&A expenses declined 11.1% due to expense optimization initiatives including acquisition integration and technology modernization

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
$1.10 bln
Q4 Adjusted EPS
Miss
$0.16
$0.44 (4 Analysts)
Q4 EPS
-$3.69
Q4 Operating Income
-$700,000


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 71.5% above its February 11 closing price of $9.91

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release: ID:nGNX18xy7Q

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)