Compass Group (CPG) Q1 2026 TU earnings summary

Executive summary

• Achieved 7.3% organic revenue growth in Q1 2026, maintaining strong momentum after an exceptional Q4, with robust performances across all regions and sectors.

• Net new business remained in the 4%-5% range for the fifth consecutive year, with client retention above 96%.

• New business wins rose 10% year-over-year to $4 billion, nearly half from first-time outsourcing and the B&I sector.

• Acquisition of Vermaat for $1.7 billion completed in December, enhancing European capabilities, with integration underway.

• AI adoption and exposure to the tech sector are driving growth, especially in B&I.

Financial highlights

• Underlying operating profit growth for 2026 expected at around 10% on a constant currency basis.

• Organic revenue growth guidance for 2026 is around 7%, with 2% profit growth from M&A.

• Annualised new business wins reached $4bn, up 10% year-over-year.

• Total Q1 M&A investment was $1.9bn, including Vermaat.

• Margin progress anticipated, supported by synergies from acquisitions and operating leverage.

Outlook and guidance

• 2026 guidance remains positive and unchanged, with expectations for continued organic growth and margin expansion.

• Modest acceleration in net new business expected in the second half of the year, supported by record new business signings.

• Margin expansion is viewed as a floor for 2026, with potential for further improvement at the half-year update.

• Strategic integration of Vermaat underway, aiming to replicate North America M&A success in Europe.

• Inflation is expected to moderate further into Q3 and Q4.