Hackett Group finds North America, Europe median SG&A costs hit five-year highs in 2025

The Hackett Group’s 2026 SG&A Cost Study found median SG&A rose to 16.2% of revenue in North America and 13.4% in Europe.

• Revenue growth accelerated in fiscal 2025 to 4.4% in North America and 6.5% in Europe, yet most companies saw SG&A ratios rise.
• Companies with SG&A rising faster than revenue fell to 51.6% in North America from 62%, and 53.6% in Europe from 62.5%.
• The operating leverage gap widened; first-quartile SG&A ran at 7.8% of revenue in North America and 6.1% in Europe.
• AI-enabled operating models drove the divergence; a typical $10 billion company could see a $286 million annual SG&A cost advantage.