Sodexo (SW) Q3 2026 TU earnings summary

Executive summary

• Q3 FY 2026 revenue reached €6,174 million, with organic growth of 2.0%, surpassing expectations despite a negative currency effect of -2.5%.

• Strong performance was driven by Sodexo Live! in North America and robust project activity in the Rest of the World.

• Rest of the World delivered +10.6% organic growth, while North America and Europe saw more modest changes.

• Upgraded full-year organic revenue growth guidance to 1.2%-1.5% from 0.5%-1% previously.

• Underlying operating profit margin guidance maintained at 3.2%-3.4%.

Financial highlights

• Q3 revenue: €6,174 million, up +0.9% year-over-year, with organic growth of +2.0%, a -2.5% currency effect, and +1.4% M&A impact.

• 9M FY26 revenue: €18,191 million, down -2.2% year-over-year, with organic growth of +1.8%.

• Negative currency impact for the first nine months of FY26 was -4.4%, mainly due to US dollar depreciation.

• Sodexo Live! delivered over 15% organic growth in Q3, significantly above expectations.

• Volume growth improved to 0.5% for the nine-month period, up from 0.2%.

Outlook and guidance

• Fiscal 2026 organic revenue growth guidance raised to 1.2%-1.5% (previously 0.5%-1%).

• Operating profit margin guidance unchanged at 3.2%-3.4% due to ongoing investments and business mobilization/demobilization.

• Currency effect on full-year revenues estimated at -3%; scope change at +0.5%.

• Pricing and inflation expected to remain stable into early FY 2027, with food inflation slightly pressured but labor inflation declining.

• Cautious approach for Q4 due to tougher comparables and macro/geopolitical uncertainties.