#revenue growth #Switzerland #Zurich #Adecco Group #EBITA

Adecco Group Reports Impressive Financial Results for Q1 2026

The Adecco Group has released its financial results for the first quarter of 2026, showcasing robust growth and a significant enhancement in market position. This announcement, categorized under ad hoc financial reporting compliant with SIX Swiss Exchange regulations, highlights several key aspects of its performance during this period.

Key Highlights

• - Revenue Growth: The group reported an impressive 5.3% year-over-year organic revenue growth. This strong performance was fueled by improved efficiency and strategic execution across all markets.
• - Market Share Increase: Adecco experienced a substantial 365 basis point increase in market share, with its brand specifically gaining 210 basis points against primary competitors.
• - Regional Performance: Revenue growth varied by Global Business Unit (GBU). Adecco recorded an overall increase of 7% year-over-year, with notable enhancements in regions such as North America (+15%), Asia-Pacific (+8%), and EMEA regions excluding France (+7%).
• - Financial Ratios: The gross margin stood at 18.8%, reflecting a slight decrease of 40 basis points year-on-year, mainly due to current business composition. Notably, the EBITA reached €148 million, representing a 24% year-over-year increase, and a solid EBITA margin of 2.6% was recorded.

Despite the challenges faced by Akkodis and LHH, which reported a 1% decline in revenues year-on-year, the overall outlook remains positive, with Adecco's significant growth overshadowing these declines.

Strong Cash Flow and Profitability

The company also indicated a healthy cash conversion rate of 94% over the past twelve months, correlating with an operating cash flow of -€178 million as capital absorption aligned with standard seasonal trends. The ND/EBITDA ratio is recorded at -0.2x, reflecting a consistent de-leveraging strategy initiated at the end of 2025.

Strategic Execution and Future Outlook

CEO Denis Machuel commented on the group’s performance, stating: “Our strategic approach, coupled with rigorous execution, has provided us with a strong start to 2026 while maintaining our momentum. Growth alongside cost discipline is enhancing our profitability. This is our fourth consecutive quarter of 5.3% year-on-year growth, enabling us to achieve a significant market share gain.”

Machuel further emphasized the essential role of technology in their strategy. The implementation of AI in recruitment processes has led to increased vacancy coverage rates and reduced time-to-hire metrics, enhancing both candidate and recruiter experiences.

In conclusion, Adecco's current trajectory suggests a sustained strong performance driven by organizational efficiency and strategic market positioning. Moving forward, the group's focus on enhancing its technological infrastructure and maintaining cost discipline is expected to continue fostering growth and profitability in an increasingly competitive environment.