Kelly Services beats Q2 adjusted EPS estimates, raises 2026 revenue outlook
Result drivers
- Segment improvement - Underlying revenue performance improved in ETM and SET segments, with each showing at least 300 bps better results versus the prior quarter
- Discrete impacts - Reduced demand from U.S. federal government contractors in SET and from three large commercial customers in ETM accounted for most of the reported revenue decline
- Cost discipline - Adjusted EBITDA margin improved from the prior quarter due to stable gross profit rate and continued SG&A discipline, including benefits from acquisition integration and technology modernization
Quarterly results and outlook
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US specialty talent solutions provider's Q2 revenue from services fell 5.8% yr/yr, underlying decline was 0.6%
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Adjusted EPS for Q2 beat analyst expectations
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Company raised fiscal 2026 revenue outlook, expects low-to-mid-single digit decline
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Kelly raises 2026 revenue outlook to a low-to-mid single digit decline
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Company expects Q3 underlying revenue growth of 1%-2%, total revenue flat to down 2% y/y
