Sodexo forecasts slower revenue growth in 2026 on US challenges

Sodexo SA

23/10/2025 06:00

Oct 23 (Reuters) - French food caterer Sodexo EXHO.PA on Thursday said it expects a slowdown in revenue growth in 2026 compared to 2025, amid challenges, particularly in the U.S market.

"For fiscal 2026, we remain laser-focused on addressing these challenges, with clear action plans already underway," CEO and Chairwoman Sophie Bellon said in a statement.

The group now sees 2026 organic revenue growth of between 1.5% and 2.5%, from 3% and 4% previously, and expects underlying operating profit margin to be slightly lower than 2025.

Sodexo expects modest gains from existing customers and new clients, plus a boost from an accounting change tied to the renewal of a major contract.

The company, which generates roughly half of its revenue in North America, issued a profit warning in March citing weak performance in education and healthcare in the region.

Lower enrollment in the group's portfolio of universities, mainly concentrated in the U.S. Northeast and Midwest, is putting pressure on revenue growth.

Revenues for the full-year 2025 came in at 24.07 billion euros ($28.07 billion), while organic growth stood at 3.3%, slightly higher than the 3.1% expected by analysts.

($1 = 0.8575 euros)

 (Reporting by Hugo Lhomedet and Dimitri Rhodes in Gdansk; Editing by Mrigank Dhaniwala)

 ((hugo.lhomedet@thomsonreuters.com))