Adecco reported first-quarter 2026 results on Wednesday that exceeded expectations. Group revenue reached €5.66bn, compared to the €5.56bn anticipated by the consensus.

Organic growth came in at 5.3%, topping analyst forecasts. The group highlighted growth across all regions, with more pronounced increases in the Iberian Peninsula, the Nordics, North America, Latin America, and Asia.

This momentum confirms the group's ability to outperform a labor market still considered uncertain. Adecco claims to have gained significant market share, both at the group level and for its primary brand.

Profitability is also improving. Adjusted EBITA rose 12% year-over-year to €148m, while net income reached €69m, surpassing forecasts. This progress reflects volume growth and disciplined cost management.

A More Than 30-Year Low

However, the market is clearly seeing the glass as half-empty following what might have otherwise looked like a show of strength: shares fell more than 10% during morning trading in Zurich.

Among the negative factors, the gross margin declined to 18.8%, penalized by a 7% drop in permanent placements, which are typically more profitable than temporary staffing.

For the second quarter, Adecco indicated that positive volume momentum continued at the start of the period. Nevertheless, the group anticipates a gross margin slightly lower than that of the first quarter, citing typical seasonal effects.

Investors are punishing the more cautious guidance for the second quarter, which includes an expected decline in gross margin and rising overhead costs. According to Jefferies, these factors could imply a downward revision of approximately 5% to the Q2 EBIT consensus.

One must look back to the mid-1990s to find the stock trading below CHF16. Adecco is dragging its rivals down in its wake: Britain's Hays was down 2.5% in morning trading, while the Dutch firm Randstad plunged more than 6%.