Sodexo raises FY2026 outlook after Q3 revenue beats estimates

Sodexo SA reported Q3 revenue of €6.17 billion, beating the €6.04 billion consensus estimate, and raised its full-year organic growth forecast as resilient demand across its global operations offset a cautious macroeconomic backdrop.

"The results reflect resilient demand across the business and the continued focus of our teams on execution," Chief Executive Officer Thierry Delaporte said. "While we entered the quarter with a cautious view of the operating environment, we were able to mitigate a number of risks by capturing opportunities across the portfolio, particularly at Sodexo Live! North America."

Organic revenue rose 2%, sharply above the 0.1% decline analysts had projected. The Rest of the World segment led with 10.6% organic growth, driven by new contract ramp-ups in Energy & Resources and broad-based expansion. Europe posted 0.6% organic growth, while North America slipped 0.1% as contract losses in Education offset gains in Healthcare & Seniors and the Sodexo Live! business. A weaker US dollar reduced reported revenue by 2.5% during the quarter.

The company now expects full-year organic revenue growth of 1.2% to 1.5%, up from its prior range of 0.5% to 1%. It maintained its underlying operating profit margin forecast of 3.2% to 3.4%. Sodexo also repaid a $328 million bond that matured in April using available cash, simplifying its debt structure. Shares rose 6.8% following the announcement.

The guidance raise signals management expects demand momentum to continue despite currency headwinds. Investors will watch Sodexo's Investor Update on July 16 for details on its medium-term ambitions and execution agenda.

This article is for informational purposes only and does not constitute investment advice.