Randstad posts revenue of 6,115 million euros, beats third-quarter forecasts
Key Facts
Staffing company Randstad beat analysts' revenue forecasts in the third quarter of 2026 as organic growth accelerated from the previous quarter, according to its results and published consensus estimates. Quarterly revenue reached 6,115 million euros, compared with 5,810 million euros a year earlier, according to the earnings statement. Analysts had expected revenue of 6,010 million euros for the period, according to the company's consensus estimates page. Organic revenue adjusted for working days rose 3.9% year on year, according to Randstad's results presentation. Growth exceeded analysts' forecast of 2.9% and accelerated from the 1.9% recorded in the second quarter.
Underlying earnings before interest, taxes and amortisation also beat estimates, reaching 211 million euros in the quarter, according to the company's statement. The analyst consensus published by Randstad had forecast this earnings measure, before exceptional items, at 200 million euros. Comparable underlying earnings were 191 million euros in the third quarter a year earlier, with the company reporting an annual increase of 11%. Randstad posted net profit of 110 million euros, compared with 83 million euros a year earlier, according to the same statement. The reported annual increase in net profit was 33%, exceeding the growth rate in underlying earnings before interest, taxes and amortisation.
Randstad attributed part of its performance to accelerating activity among large clients, identifying logistics, e-commerce, aviation and automotive as sectors driving demand. The company said in its results presentation that "75% of markets are growing", with growth broadening across its markets. In the United Kingdom, organic revenue per working day rose 9% year on year in the third quarter, according to the presentation. Latin America recorded organic revenue growth of 13% year on year, also adjusted for working days. Revenue in France, however, continued to decline, falling organically by 3% per working day from a year earlier, according to the earnings statement.
Revenue and earnings growth coincided with a decline in Randstad's underlying gross margin, according to the annual comparison in its financial statement. The margin was 17.8% in the third quarter, compared with 18.4% a year earlier. Underlying diluted earnings per share rose to 0.75 euros during the period, according to figures released by the company. Underlying diluted earnings per share had stood at 0.68 euros in the comparable quarter a year earlier. Randstad reported an annual increase of 10% in this measure, alongside higher underlying earnings despite the decline in its gross margin.
Randstad generated free cash flow of 250 million euros in the third quarter, according to the earnings statement. Free cash flow in the corresponding period a year earlier was 244 million euros, according to the company's comparison. Randstad reported annual growth of 2% in this measure during the period, with free cash flow rising from its comparable level. Free cash flow grew more slowly than the reported increase in net profit. It also lagged growth in underlying earnings before interest, taxes and amortisation during the same quarter.
Randstad's net debt declined at the end of the third quarter, according to figures in the earnings statement. Net debt stood at 1,147 million euros, excluding lease liabilities. That compares with net debt of 1,220 million euros at the end of the third quarter a year earlier. The company reported an annual decline of 6% in net debt excluding lease liabilities. Randstad is scheduled to report its fourth-quarter 2026 results on 17 February 2027, according to the reporting calendar in its statement.