The Investor
15 Oct 2026, 15:08
ManpowerGroup Plunges 15% as Q4 Outlook and High Tax Rate Overshadow Improving Q3 Trends
ManpowerGroup (NYSE: MAN) shares fell about 15% after the staffing company reported improved third-quarter results but issued a fourth-quarter earnings outlook that appears to have disappointed investors.
Third-quarter revenue increased 4% year over year to $4.8 billion, or 5% in constant currency and 6% organically in constant currency. Growth was led by the Manpower brand, particularly in the U.S., while Experis trends also improved and the U.S. business returned to growth during the quarter.
Net income rose to $34.1 million, or $0.71 per diluted share, from $18.0 million, or $0.38 per share, a year earlier. Excluding restructuring, transformation and other special items, adjusted EPS was $1.01, representing 24% growth in constant currency.
However, ManpowerGroup forecast fourth-quarter diluted EPS of $1.03 to $1.13 and an unusually high effective tax rate of 44%. The cautious outlook appears to be a major factor behind the sharp stock decline, particularly given continued restructuring and transformation costs.
Management nevertheless said 2026 is becoming an inflection year, citing improving demand, U.S. market-share gains, better trends at Experis and Talent Solutions, and continued progress on its cost-savings program.
The company also announced a leadership transition, with Becky Frankiewicz set to become CEO on January 1, 2027, while current CEO Jonas Prising will move to Executive Chair.
The 15% decline appears to reflect investor concern that near-term earnings improvement may remain constrained by the elevated tax rate, restructuring costs and the pace of the broader turnaround, despite clear improvement in revenue growth and adjusted profitability.
ManpowerGroup (NYSE: MAN) shares fell about 15% after the staffing company reported improved third-quarter results but issued a fourth-quarter earnings outlook that appears to have disappointed investors.
Third-quarter revenue increased 4% year over year to $4.8 billion, or 5% in constant currency and 6% organically in constant currency. Growth was led by the Manpower brand, particularly in the U.S., while Experis trends also improved and the U.S. business returned to growth during the quarter.
Net income rose to $34.1 million, or $0.71 per diluted share, from $18.0 million, or $0.38 per share, a year earlier. Excluding restructuring, transformation and other special items, adjusted EPS was $1.01, representing 24% growth in constant currency.
However, ManpowerGroup forecast fourth-quarter diluted EPS of $1.03 to $1.13 and an unusually high effective tax rate of 44%. The cautious outlook appears to be a major factor behind the sharp stock decline, particularly given continued restructuring and transformation costs.
Management nevertheless said 2026 is becoming an inflection year, citing improving demand, U.S. market-share gains, better trends at Experis and Talent Solutions, and continued progress on its cost-savings program.
The company also announced a leadership transition, with Becky Frankiewicz set to become CEO on January 1, 2027, while current CEO Jonas Prising will move to Executive Chair.
The 15% decline appears to reflect investor concern that near-term earnings improvement may remain constrained by the elevated tax rate, restructuring costs and the pace of the broader turnaround, despite clear improvement in revenue growth and adjusted profitability.
