Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations

in millions, except share and per share data

See the financial measures section on page 35 for further information on the Non-GAAP financial measures of constant currency and organic constant currency.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, (each a "forward-looking statement"). Statements made in this quarterly report that are not statements of historical fact are forward-looking statements. In addition, from time to time, we and our representatives may make statements that are forward-looking. Forward-looking statements are based on management's current assumptions and expectations and are subject to risks and uncertainties that are beyond our control and may cause actual results to differ materially from those contained in the forward-looking statements. Forward-looking statements can be identified by words such as "expect," "anticipate," "intend," "plan," "may," "believe," "seek," "estimate," and other similar expressions. Important factors that could cause our actual results to differ materially from those contained in the forward-looking statements include, among others, the risk factors discussed in Item 1A - Risk Factors in our annual report on Form 10-K for the year-ended December 31, 2025, which information is incorporated herein by reference. Such risks and uncertainties include, but are not limited to, volatile, negative or uncertain economic conditions, particularly in Europe and the United States, including inflation, global trade policies, and geopolitical risk and uncertainty; changes in labor and tax legislation in places we do business; failure to implement strategic transformation initiatives and technology investments; and other factors that may be disclosed from time to time in our SEC filings or otherwise. We caution that any forward-looking statement reflects only our belief at the time the statement is made. We undertake no obligation to update any forward-looking statements to reflect subsequent events or circumstances.

Business Overview

Our business is cyclical in nature and is sensitive to macroeconomic conditions generally. Client demand for workforce solutions and services is dependent on the overall strength of the labor market and secular trends toward greater workforce flexibility within each of the segments where we operate. Improving economic growth typically results in increasing demand for labor, resulting in greater demand for our staffing services while demand for our outplacement services typically declines. During periods of decreased demand, our operating profit is generally impacted unfavorably as we experience a deleveraging of selling and administrative expenses, which may not decline at the same pace as revenues. By contrast, during periods of increased demand, we are generally able to improve our profitability and operating leverage as our cost base can support some increase in business without a similar increase in selling and administrative expenses.

In the third quarter of 2026, we delivered continued revenue growth and improved profitability, driven by strong performance in the Manpower brand, particularly in the United States, and broad-based growth across many of our key markets. Demand trends continued to improve during the quarter, with strong revenue growth in the United States and Northern Europe, including the United Kingdom and Germany, as well as continued growth in Italy and Asia Pacific Middle East. Experis trends improved globally, with the U.S. business returning to organic growth, while Talent Solutions benefited from continued growth in MSP and strengthening RPO activity, partially offset by lower outplacement activity in Right Management. While performance continues to vary across markets and brands, the continued strength in Manpower, improving trends across Experis and Talent Solutions, and progress on our transformation strategy reinforce our belief that 2026 represents an important inflection point for ManpowerGroup and position the business for long-term profitable growth.

During the third quarter of 2026, the United States dollar strengthened on average, relative to the currencies in most of our markets, and overall had an unfavorable impact on our reported results. The changes in the foreign currency exchange rates had a -0.8% unfavorable impact on revenues from services. Substantially all of our subsidiaries derive revenues from services and incur expenses within the same local currency and generally do not have cross-currency transactions, and therefore, changes in foreign currency exchange rates primarily impact reported earnings and not our actual cash flow unless earnings are repatriated. To understand the performance of our underlying business, we utilize constant currency or organic constant currency variances for our consolidated and segment results.

During the third quarter of 2026 compared to the third quarter of 2025, we experienced a 13.5% revenue increase in the Americas, primarily driven by an increase in demand for our Manpower staffing services and the favorable impact of currency exchange rates. During the third quarter of 2026 compared to the third quarter of 2025, we experienced a 1.0% revenue increase in Southern Europe, primarily due to an increase in demand for Manpower staffing services and an increase in demand for our Experis interim services, partially offset by the unfavorable impact of currency exchange rates. During the third quarter of 2026 compared to the third quarter of 2025, we experienced a 5.4% revenue increase in Northern Europe, primarily due to an increase in demand for our Manpower staffing services partially offset by a decrease in demand for our Experis interim services and the unfavorable impact of currency exchange rates. We experienced a -1.1% revenue decrease in APME in the third quarter of 2026 compared to the third quarter of 2025 primarily due to the unfavorable impact of currency exchange rates, partially offset by an increase in demand for our Manpower staffing services and an increase in demand for our Experis interim services.

From a brand perspective, we experienced revenue increases in Manpower and Talent Solutions while Experis experienced a revenue decrease in the third quarter of 2026 compared to the third quarter of 2025. In our Manpower brand, the revenue increase was primarily due to increased demand for staffing services. In our Talent Solutions brand, the revenue increase was primarily due to increased demand for our MSP and RPO businesses. The revenue decrease in our Experis brand was primarily due to the sale of our Jefferson Wells U.S. business, which represented a portion of our Experis interim services business.

In the third quarter of 2026, our gross profit margin decreased 70 basis points compared to the third quarter of 2025, primarily attributable to decreases in our staffing and interim margins due to business mix shifts, decreased demand in our permanent recruitment business, and decreased margins in our career transition business.

Our operating profit increased 23.7% in the third quarter of 2026 and our operating profit margin increased 30 basis points compared to the third quarter of 2025. Operating profit margin increased in the third quarter of 2026 primarily due to lower selling and administrative expenses as a percent of revenue driven by less restructuring and lower personnel costs as we see the impact of previous restructuring actions taken, partially offset by lower gross profit margins, increased strategic transformation program costs and increased demand for our Manpower staffing services.

Operating Results - Three Months Ended September 30, 2026 and 2025

The following table presents selected consolidated financial data for the three months ended September 30, 2026 as compared to 2025.

The year-over-year increase in revenues from services was 4.4% (5.2% in constant currency and 5.6% in organic constant currency) primarily attributed to:

The year-over-year 70 basis point decrease in gross profit margin was primarily attributed to:

The -2.5% decrease in selling and administrative expenses in the third quarter of 2026 compared to the third quarter of 2025 (-2.0% in constant currency and -1.3% in organic constant currency) was primarily attributed to:

Selling and administrative expenses as a percent of revenues decreased 100 basis points in the third quarter of 2026 compared to the third quarter of 2025 due primarily to:

Interest and other expenses, net is comprised of interest, foreign exchange gains and losses and other miscellaneous non-operating income and expenses, including those associated with noncontrolling interests. Interest expense, net was $20.2 in the third quarter of 2026 compared to $17.1 in the third quarter of 2025 primarily due to increased interest expense on €500.0 notes due December 2030. Foreign exchange loss, net was $1.3 in the third quarter of 2026 compared to $2.4 in the third quarter of 2025. Miscellaneous income, net was $7.2 in the third quarter of 2026 compared to $5.8 in the third quarter of 2025.

We recorded income tax expense at an effective rate of 49.8% for the three months ended September 30, 2026, as compared to an effective tax rate of 66.0% for the three months ended September 30, 2025. The 2026 rate as compared to the 2025 rate was favorably impacted by the higher level and overall mix of earnings due in part to fewer restructuring costs recorded in the quarter as compared to the amount recorded in 2025. The 49.8% effective tax rate for the three months ended September 30, 2026 was higher than the United States Federal statutory rate of 21% primarily due to the overall mix of earnings, tax losses in certain countries for which we did not recognize a corresponding tax benefit due to valuation allowances, the French exceptional corporate income tax surcharge, and the French business tax.

Net earnings per share - diluted was $0.71 in the third quarter of 2026 compared to net earnings per share - diluted of $0.38 in the third quarter of 2025. The current year quarter included restructuring costs, strategic transformation program costs, an adjustment related to the sale of our Jefferson Wells U.S. business, and Argentina hyperinflationary related non-cash currency translation losses, which negatively impacted earnings per share by $0.30 in the third quarter of 2026 compared to restructuring costs and a non-cash currency translation charge related to our Argentina business which unfavorably impacted net earnings per share - diluted by approximately $0.45, net of tax, in the third quarter of 2025.

Weighted average shares - diluted increased to 48.1 million in the third quarter of 2026 from 46.9 million in the third quarter of 2025. The increase was due to a higher share price and additional share-based award grants.

Operating Results - Nine Months Ended September 30, 2026 and 2025

The following table presents selected consolidated financial data for the nine months ended September 30, 2026 as compared to 2025.

The year-over-year increase in revenues from services of 7.3% (4.7% in constant currency and 5.0% in organic constant currency) was attributed to:

The year-over-year 80 basis point decrease in gross profit margin was primarily attributed to:

The -5.3% decrease in selling and administrative expenses in the first nine months of 2026 compared to the first nine months of 2025 (-7.4% in constant currency and -7.0% in organic constant currency) was primarily attributed to:

Selling and administrative expenses as a percent of revenues decreased 190 basis points in the first nine months of 2026 compared to the first nine months of 2025 due primarily to:

Interest and other expenses, net is comprised of interest, foreign exchange gains and losses and other miscellaneous non-operating income and expenses, including those associated with noncontrolling interests. Interest expense, net was $58.8 in the first nine months of 2026 compared to $50.5 in the first nine months of 2025 primarily due to increased interest expense on the €500.0 notes due December 2030 during the period. Foreign exchange loss, net was $3.6 in the first nine months of 2026 compared to $4.6 in the first nine months of 2025. Miscellaneous income, net was $15.6 in the first nine months of 2026 compared to $13.4 in the first nine months of 2025.

We recorded income tax expense at an effective rate of 48.7% for the nine months ended September 30, 2026, as compared to an effective tax rate of 256.2% for the nine months ended September 30, 2025. The 2026 rate was favorably impacted by the overall mix of earnings and the gain on the sale of our Jefferson Wells U.S. business recorded in the second quarter. The 2025 rate was unfavorably impacted by the goodwill and indefinite-lived intangible asset impairment charges recorded in Switzerland and the United Kingdom and losses on the disposals of South Africa and New Caledonia, all of which are non-deductible. The 48.7% effective tax rate for the nine months ended September 30, 2026 was higher than the United States Federal statutory rate of 21% primarily due to the overall mix of earnings, tax losses in certain countries for which we did not recognize a corresponding tax benefit due to valuation allowances, the French exceptional corporate income tax surcharge, and the French business tax.

Net earnings per share - diluted was $1.89 in the first nine months of 2026 compared to net loss per share - diluted of -$0.93 in the first nine months of 2025. The current year-to-date period included restructuring costs, strategic transformation program costs, the sale of our Jefferson Wells U.S. business, a discontinued business liquidation charge, and Argentina hyperinflationary related non-cash currency translation losses which, in aggregate, reduced earnings per share by $0.62. In the first nine months of 2025, goodwill and intangible asset impairment charges recorded in the first nine months of 2025 unfavorably impacted net loss per share - diluted by $1.79, restructuring costs and other items unfavorably impacted net loss per share - diluted by approximately $1.10, net of tax, and the loss from the disposition of subsidiaries recorded unfavorably impacted net earnings per share - diluted by approximately $0.13, net of tax.

Weighted average shares - diluted increased to 47.6 in the first nine months of 2026 from 46.6 in the first nine months of 2025. The increase was attributable to the inclusion of certain dilutive securities in the nine months of 2026 weighted average share count, a higher share price and additional share-based award grants. In the nine months of 2025, all dilutive securities were excluded due to the net loss incurred during the period.

Segment Operating Results

Americas

In the Americas, revenues from services increased 13.5% (11.5% increase in constant currency and 13.6% in organic constant currency) in the third quarter of 2026 compared to the third quarter of 2025 primarily due to a $119.8 increase in demand for our Manpower staffing services and a $21.6 favorable impact of currency exchange rates. In the United States (which represented 58% of the Americas' revenues), revenues from services increased 5.5% (8.6% in organic constant currency) in the third quarter of 2026 compared to the third quarter of 2025, primarily driven by a $41.5 increase in demand for our Manpower staffing services and an $11.1 increase in demand for our Experis interim services, partially offset by a $19.2 decrease in our Experis interim services due to the sale of our Jefferson Wells U.S. business. In Other Americas, revenues from services increased 27.0% (21.7% in constant currency) in the third quarter of 2026 compared to the third quarter of 2025, primarily driven by a $78.3 increase in demand for our Manpower staffing services and a $4.9 increase in demand for our Experis interim services. Within our Other Americas segment, we experienced an increase in Colombia of $17.8, Chile of $14.8, Brazil of $14.8, Mexico of $6.0, and Argentina of $6.0, which represented increases of 36.0%, 31.2%, 48.4%, 9.9%, and 19.2%, respectively (8.3%, 27.6%, 40.1%, 1.8%, and 34.4%, respectively, in constant currency).

In the Americas, revenues from services increased 11.2% (9.2% increase in constant currency and 10.3% in organic constant currency) in the first nine months of 2026 compared to the first nine months of 2025 primarily due to a $323.8 increase in demand for our Manpower staffing services and a $63.3 favorable impact due to currency exchange rates, partially offset by a decrease in demand for Experis interim services of $63.1. In the United States, revenues from services increased 2.2% (3.8% in organic constant currency) in the first nine months of 2026 compared to the first nine months of 2025, primarily driven by a $96.4 increase in demand for our Manpower staffing services and an $18.1 increase in demand for MSP services, partially offset by a $39.3 decrease in demand for our Experis interim services and a $31.6 decrease in revenue for our Experis interim services due to the sale of our Jefferson Wells U.S. business. In Other Americas, revenues from services increased 27.1% (21.7% in constant currency) in the first nine months of 2026 compared to the first nine months of 2025, primarily driven by the $227.4 increase in demand for our Manpower staffing services. Within our Other Americas segment, we experienced an increase in Colombia of $61.6, Chile of $48.3, Brazil of $30.4, Mexico of $25.0, Peru of $17.8, and Canada of $11.6, which represented increases of 44.8%, 36.5%, 34.2%, 14.3%, 15.9%, and 5.3%, respectively (22.5%, 29.5%, 22.7%, 2.1%, 8.7%, and 4.5%, respectively, in constant currency).

Gross profit margin decreased 210 basis points in the third quarter of 2026 compared to the third quarter of 2025. This decrease was primarily due to decreased activity in our Experis interim services, which contributed 60 basis points to the decrease, lower margins due to the sale of our Jefferson Wells U.S. business, which contributed 50 basis points to the decrease, decreased activity in our permanent recruitment services, which contributed 40 basis points to the decrease, decreased activity in our outplacement services, which contributed 30 basis points to the decrease, decreased margin in our MSP business, which contributed 20 basis points to the decrease, and decreased activity in our consulting business which contributed 10 basis points to the decrease, respectively.

Gross profit margin decreased 200 basis points in the first nine months of 2026 compared to the first nine months of 2025. This decrease was primarily due to decreased activity in our Experis interim services, which contributed 100 basis points to the decrease, lower margins due to the sale of our Jefferson Wells U.S. business, which contributed 30 basis points to the decrease, decreased activity in our permanent recruitment services, which contributed 30 basis points to the decrease, decreased activity in our outplacement services, which contributed 20 basis points to the decrease, and decreased margin in our MSP business which contributed 20 basis points to the decrease, respectively.

Selling and administrative expenses decreased -1.1% (-2.2% in constant currency and 0.2% increase in organic constant currency) in the third quarter of 2026 compared to the third quarter of 2025, primarily driven by a $4.9 decrease due to the sale of our Jefferson Wells U.S. business, partially offset by a $2.3 unfavorable impact due to currency exchange rates.

Selling and administrative expenses decreased -4.8% (-6.1% in constant currency and -4.7% in organic constant currency) in the first nine months of 2026 compared to the first nine months of 2025, primarily driven by a $28.3 favorable impact from the gain on sale of the Jefferson Wells U.S. business during the first nine months of 2026, lower personnel costs of $16.4 as we saw the effects of restructuring actions previously taken, and a $7.6 decrease in personnel costs due to the sale of our Jefferson Wells U.S. business, partially offset by an $8.2 increase in restructuring costs and a $7.5 unfavorable impact due to currency exchange rates.

OUP increased 25.0% (22.6% in constant currency and 30.5% in organic constant currency) in the third quarter of 2026, which represented a 3.8% OUP margin, an increase from the 3.4% in the third quarter of 2025. This OUP increase was primarily due to the United States' margin improvement. In the United States, OUP margin increased to 3.3% in the third quarter of 2026 from 3.0% in the third quarter of 2025 primarily due to a decrease in selling and administrative expenses as a percent of revenue. Other Americas OUP margin increased to 4.5% in the third quarter of 2026 from 4.3% in the third quarter of 2025 primarily due to a decrease in selling and administrative expenses as a percent of revenue.

OUP increased 39.1% (36.6% in constant currency and 41.2% in organic constant currency) in the first nine months of 2026, which represented a 3.9% OUP margin, an increase from 3.1% in the first nine months of 2025. This OUP increase was primarily due to the impact of the gain on the sale of our Jefferson Wells U.S. business. In the United States, OUP margin increased to 3.8% in the first nine months of 2026 from 2.5% in the first nine months of 2025 primarily due to the gain on the sale of our Jefferson Wells U.S. business. Other Americas OUP margin decreased to 4.0% in the first nine months of 2026 from 4.1% in the first nine months of 2025 primarily due to a decrease in our gross profit margin.

Southern Europe

In Southern Europe, revenues from services increased 1.0% (2.1% in constant currency) in the third quarter of 2026 compared to the third quarter of 2025 primarily due to a $39.1 increase in demand for our Manpower staffing services and a $6.4 increase in demand for our Experis interim services, partially offset by a $24.0 unfavorable impact of currency exchange rates. In France (which represented 51% of Southern Europe's revenues), revenues from services decreased -3.5% (-1.9% in constant currency) in the third quarter of 2026 compared to the third quarter of 2025, primarily driven by an $18.6 unfavorable impact of currency exchange rates, a $14.1 decrease in demand for our Manpower staffing services, and a $3.2 decrease in demand for our Outcome Based Solutions. In Italy (which represented 22% of Southern Europe's revenues), revenues from services increased 4.5% (6.2% in constant currency) in the third quarter of 2026 compared to the third quarter of 2025, primarily driven by a $23.3 increase in demand for our Manpower staffing service, partially offset by the $7.9 unfavorable impact of currency exchange rates. In Other Southern Europe, revenues from services increased 7.5% (7.0% in constant currency) in the third quarter of 2026 compared to the third quarter of 2025, primarily due to a $29.9 increase in demand for our Manpower staffing services, a $6.0 increase in demand for our Outcome Based Solutions, a $4.3 increase in demand for our Experis interim services, and the $2.5 favorable impact of currency exchange rates. Within our Other Southern Europe segment, we experienced revenue increases in Israel of $19.2, or 17.3% (5.4% in constant currency) and Spain of $11.3, or 6.8% (8.6% in constant currency).

In Southern Europe, revenues from services increased 7.3% (3.0% in constant currency) in the first nine months of 2026 compared to the first nine months of 2025 primarily due to the $261.3 favorable impact of currency exchange rates, a $176.3 increase in our Manpower staffing services, and a $14.3 increase in demand for our Experis interim services. In France, revenues from services increased 2.8% (-0.8% decrease in constant currency) in the first nine months of 2026 compared to the first nine months of 2025, primarily driven by the $115.2 favorable impact of currency exchange rates, partially offset by an $11.9 decrease in our Outcome Based Solutions and a $2.6 decrease in demand for our Manpower staffing services. In Italy, revenues from services increased 10.7% (6.9% in constant currency) in the first nine months of 2026 compared to the first nine months of 2025, primarily driven by a $79.8 increase in demand for our Manpower staffing services, the $51.6 favorable impact of currency exchange rates, and a $5.7 increase in demand for our Experis interim services. In Other Southern Europe, revenues from services increased 13.8% (7.7% in constant currency) in the first nine months of 2026 compared to the first nine months of 2025, primarily due to a $99.1 increase in demand for our Manpower staffing services and a $94.4 favorable impact of currency exchange rates. Within our Other Southern Europe segment, we experienced a revenue increase in Israel of $73.1, or 23.8% (6.9% in constant currency) and Spain of $72.3, or 16.7% (12.9% in constant currency).

Gross profit margin decreased 20 basis points in the third quarter of 2026 compared to the third quarter of 2025. This decrease was primarily due to decreased margins in our Manpower staffing services, which contributed 20 basis points to the decrease, and decreased demand in our permanent recruitment services, which contributed 10 basis points to the decrease, partially offset by an increase of 10 basis points due to the favorable impact of currency exchange rates.

Gross profit margin decreased 30 basis points in the first nine months of 2026 compared to the first nine months of 2025. This decrease was primarily due to decreased margins in our Manpower staffing services, which contributed 30 basis points to the decrease and decreased demand in our permanent recruitment services, which contributed 10 basis points to the decrease, partially offset by an increase of 10 basis points due to the favorable impact of currency exchange rates.

Selling and administrative expenses decreased -0.4% (0.5% increase in constant currency) during the third quarter of 2026 compared to the third quarter of 2025, primarily due to the $2.3 favorable impact of currency exchange rates, partially offset by an increase of $1.7 in bonuses and sales commission and an increase of $0.3 in non-personnel costs.

Selling and administrative expenses increased 5.0% (0.5% in constant currency) during the first nine months of 2026 compared to the first nine months of 2025, primarily due to the $30.9 unfavorable impact of currency exchange rates and an increase of $4.0 in personnel costs, partially offset by a decrease of $5.2 in non-personnel costs incurred.

OUP decreased -1.7% (-1.0% in constant currency) in the third quarter of 2026, which represented a 2.9% OUP margin, a decrease from 3.0% in the third quarter of 2025. This OUP decrease was primarily due to decreased margins in our Manpower staffing services, the unfavorable impact of currency exchange rates, and increased restructuring costs. In France, the OUP margin decreased to 2.0% for the third quarter of 2026 compared to 2.6% for the third quarter of 2025, primarily due to a decrease in revenue and gross profit margin. In Italy, the OUP margin decreased to 5.7% for the third quarter of 2026 compared to 5.8% for the third quarter of 2025 primarily due to a decrease in gross profit margin in our staffing business due to business mix shifts. In Other Southern Europe, the OUP margin increased to 2.3% for the third quarter of 2026 from 1.4% for the third quarter of 2025.

OUP increased 2.5% (-1.3% in constant currency) in the first nine months of 2026, which represented a 2.9% OUP margin, a decrease from 3.1% in the first nine months of 2025. This OUP increase was primarily due to the favorable impact of currency exchange rates, partially offset by an increase in selling and administrative expenses due to increased restructuring costs. In France, the OUP margin decreased to 2.0% for the first nine months of 2026 compared to 2.6% for the first nine months of 2025, primarily due to a decrease in gross profit margin due to business mix shifts. In Italy, the OUP margin decreased to 6.1% for the first nine months of 2026 compared to 6.2% for the first nine months of 2025 primarily due to a decrease in gross profit margin in our staffing business due to business mix shifts. In Other Southern Europe, the OUP margin increased to 2.0% for the first nine months of 2026 from 1.4% for the first nine months of 2025 primarily due to increased activity in our Manpower staffing solutions.

Northern Europe

In Northern Europe, the largest country operations include the United Kingdom, the Nordics, Germany, the Netherlands and Belgium (comprising 33%, 18%, 14%, 11% and 11%, respectively, of Northern Europe's revenues). In Northern Europe, revenues from services increased 5.4% (5.9% in constant currency) in the third quarter of 2026 compared to the third quarter of 2025, primarily driven by a $65.4 increase in demand for our Manpower staffing services partially offset by an $11.1 decrease in demand for our Experis interim services and the $4.3 unfavorable impact of currency exchange rates. Within our Northern Europe segment, we experienced revenue increases in Germany of $19.8, the United Kingdom of $18.0, Poland of $7.8, and the Nordics of $3.7, which represented revenue increases of 19.8%, 6.8%, 11.6%, and 2.4%, respectively (21.7%, 7.2%, 15.1%, and -0.5% decrease, respectively, in constant currency). These increases were partially offset by decreases in the Netherlands of $4.0, and Belgium of $4.0, which represented revenue decreases of -4.2%, and -4.2% respectively (-2.7% and -2.7%, respectively, in constant currency).

In Northern Europe, revenues from services increased 5.7% (2.0% in constant currency) in the first nine months of 2026 compared to the first nine months of 2025, primarily driven by a $118.6 increase in demand for our Manpower staffing services and the $88.2 favorable impact of currency exchange rates, partially offset by a $51.5 decrease in demand for our Experis interim services. Within our Northern Europe segment, we experienced revenue increases in the United Kingdom of $35.8, the Nordics of $35.1, Poland of $33.4, Germany of $14.8, and Belgium of $4.4, which represented revenue increases of 4.6%, 7.8%, 17.7%, 5.1%, and 1.8%, respectively (2.4%, 0.2%, 14.5%, 2.0% and -1.5% decrease, respectively, in constant currency).

Gross profit margin decreased by 70 basis points in the third quarter of 2026 compared to the third quarter of 2025. The decrease was primarily due to a decrease in demand for our Experis interim services, which had a 60 basis point impact and decreased activity in our higher-margin permanent recruitment business, which had a 10 basis point impact.

Gross profit margin decreased by 90 basis points in the first nine months of 2026 compared to the first nine months of 2025. The decrease was primarily due to a decrease in demand for our Experis interim services, which had a 70 basis point impact and decreased activity in our higher-margin permanent recruitment business, which had a 20 basis point impact.

Selling and administrative expenses decreased -14.3% (-13.9% in constant currency) in the third quarter of 2026 compared to the third quarter of 2025. The decrease was primarily driven by a $13.5 decrease in restructuring costs taken in the third quarter of 2026 compared to the third quarter of 2025 and a $3.8 decrease in personnel costs as we experienced the impacts of restructuring actions previously taken.

Selling and administrative expenses decreased -10.1% (-13.7% in constant currency) in the first nine months of 2026 compared to the first nine months of 2025. The decrease was primarily driven by a decrease of $32.2 in restructuring costs incurred in the first nine months of 2026 compared to the first nine months of 2025 and a $21.6 decrease in personnel costs as we experienced the impacts of restructuring actions previously taken, partially offset by a $15.8 unfavorable impact due to currency exchange rates.

OUP in Northern Europe increased $22.4 in the third quarter of 2026, which represented a 0.9% OUP margin, an increase from -1.8% in the third quarter of 2025. This OUP margin increase was primarily driven by OUP increases in Germany of $13.9 and the United Kingdom of $4.3 resulting from a decrease in selling and administrative expenses as a percentage of revenue, partially offset by a decrease in gross profit margin.

OUP in Northern Europe increased $43.4 in the first nine months of 2026, which represented a 0.1% OUP margin, an increase from -1.8% in the first nine months of 2025. This OUP margin increase was primarily driven by an OUP increase in Germany of $21.6, the Nordics of $11.8, and the United Kingdom of $7.1 resulting from a decrease in selling and administrative expenses as a percentage of revenue, partially offset by a decrease in gross profit margin.

APME

Revenues from services decreased -1.1% (4.3% increase in constant currency) in the third quarter of 2026 compared to the third quarter of 2025 primarily driven by the $28.0 unfavorable impact of currency exchange rates, partially offset by a $22.2 increase in demand for our Manpower staffing services and a $1.6 increase in demand for our Experis interim services. In Japan (which represented 57% of APME's revenues), revenues from services decreased by $19.1, or -6.1% (1.4% increase in constant currency), primarily driven by the $23.3 unfavorable impact of currency exchange rates, partially offset by a $4.8 increase in demand for our Manpower staffing services. In India (which represented 13% of APME's revenues), revenues from services decreased by $3.9, or -5.7% (3.2% increase in constant currency), primarily driven by the $6.1 unfavorable impact of currency exchange rates, partially offset by a $1.9 increase in demand for our Manpower staffing services.

Revenues from services increased 1.4% (5.7% in constant currency) in the first nine months of 2026 compared to the first nine months of 2025 primarily driven by a $78.7 increase in demand for our Manpower staffing services and a $9.1 increase in demand for our Experis interim services, partially offset by a $65.4 unfavorable impact of currency exchange rates. In Japan, revenues from services decreased by $32.5, or -3.6% (3.3% increase in constant currency), primarily driven by a $63.0 unfavorable impact of currency exchange rates, partially offset by a $27.7 increase in demand for our Manpower staffing services. In India, revenues from services decreased by $5.6, or -2.8% (5.5% increase in constant currency), primarily driven by a $16.7 unfavorable impact of currency exchange rates, partially offset by a $7.0 increase in demand for our Manpower staffing services and a $2.4 increase in demand for our Experis interim services.

Gross profit margin decreased by 90 basis points in the third quarter of 2026 compared to the third quarter of 2025, primarily due to decreased margins for our Manpower staffing services, which contributed 30 basis points to the decrease, decreased margins in our MSP business, which contributed 20 basis points to the decrease, and decreased activity in our permanent recruitment services and our Experis interim services, which each contributed 20 basis points to the decrease.

Gross profit margin decreased by 70 basis points in the first nine months of 2026 compared to the first nine months of 2025, primarily due to decreased margins for our Manpower staffing services, decreased activity in our permanent recruitment services, and decreased margins in our MSP business, which each contributed 20 basis points to the decrease, and decreased margins for our Outcome Based Solutions, which contributed 10 basis points to the decrease.

Selling and administrative expenses decreased -4.4% (increased 0.4% in constant currency) in the third quarter of 2026 compared to the third quarter of 2025. The decrease is primarily due to the $2.9 favorable impact of currency exchange rates and $1.1 decrease in personnel costs.

Selling and administrative expenses decreased -2.4% (increased 1.3% in constant currency) in the first nine months of 2026 compared to the first nine months of 2025. The decrease is primarily due to the $6.8 favorable impact of currency exchange rates, partially offset by a $1.4 increase in personnel costs.

OUP in APME decreased -10.1% (-3.7% decrease in constant currency) in the third quarter of 2026, which represented a 4.6% OUP margin, a decrease from 5.1% in the third quarter of 2025. This OUP margin decrease was primarily driven by the unfavorable impact due to currency exchange rates and a decrease in gross profit.

OUP in APME decreased -4.7% (1.8% increase in constant currency) in the first nine months of 2026, which represented a 4.5% OUP margin, a decrease from 4.8% in the first nine months of 2025. This OUP margin decrease was primarily driven by the unfavorable impact of currency exchange rates.

Financial Measures

Constant Currency and Organic Constant Currency Reconciliation

Changes in our financial results include the impact of changes in foreign currency exchange rates, acquisitions, and dispositions. We provide "constant currency" and "organic constant currency" calculations in this report to remove the impact of these items. We express year-over-year variances that are calculated in constant currency and organic constant currency as a percentage.

When we use the term "constant currency," it means that we have translated financial data for a period into United States dollars using the same foreign currency exchange rates that we used to translate financial data for the previous period. We believe that this calculation is a useful measure, indicating the actual growth or decline of our operations. We use constant currency results in our analysis of subsidiary or segment performance, including Argentina which operates in a hyperinflationary economy. We also use constant currency when analyzing our performance against that of our competitors. Substantially all of our subsidiaries derive revenues and incur expenses within a single country and, consequently, do not generally incur currency risks in connection with the conduct of their normal business operations. Changes in foreign currency exchange rates primarily impact reported earnings and not our actual cash flow unless earnings are repatriated.

When we use the term "organic constant currency," it means that we have further removed the impact of acquisitions in the current period and dispositions from the prior period from our constant currency calculation. We believe that this calculation is useful because it allows us to show the actual growth or decline of our ongoing business.

The constant currency and organic constant currency financial measures are used to supplement those measures that are in accordance with United States Generally Accepted Accounting Principles ("GAAP"). These Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies may calculate such financial results differently. These Non-GAAP financial measures are not measurements of financial performance under GAAP, and should not be considered as alternatives to measures presented in accordance with GAAP.

Constant currency and organic constant currency percent variances, along with a reconciliation of these amounts to certain of our reported results, are provided below:

Liquidity and Capital Resources

Cash used to fund our operations is primarily generated through operating activities and provided by our existing credit facilities. We believe our available cash and existing credit facilities are sufficient to cover our cash needs for the foreseeable future. We assess and monitor our liquidity and capital resources globally. We use a global cash pooling arrangement, intercompany borrowing, and some local credit lines to meet funding needs and allocate our capital resources among our various entities. As of September 30, 2026, we had $184.3 of cash held by foreign subsidiaries. We have historically made and anticipate future cash repatriations to the United States from certain foreign subsidiaries to fund domestic operations.

The nature of our operations is such that our most significant current asset is accounts receivable and our most significant current liabilities are payroll-related costs, which are generally paid either weekly or monthly. As the demand for our services increases, we generally experience an increase in our working capital needs, as we continue to pay our associates on a weekly or monthly basis while the related accounts receivable are outstanding for much longer, which may result in a decline in operating cash flows.

Conversely, as the demand for our services declines, we generally experience a decrease in our working capital needs. This occurs as the existing accounts receivable are collected and not replaced at the same level, and thus our accounts receivable balance declines. There is less of an effect on current liabilities due to the shorter cycle time of the payroll-related items. While this may result in an increase in our operating cash flows, longer payment terms and timing of payroll, tax and supplier-related payments significantly impact our cash position and cash flows each period. Any increase in operating cash flows from an economic slowdown would not be sustained in the event that a downturn continues for an extended period.

Cash used in operating activities was $137.0 and $283.0 for the nine months ended September 30, 2026 and September 30, 2025, respectively. Changes in operating assets and liabilities utilized $303.5 and $408.3 of cash during the nine months ended September 30, 2026 and 2025, respectively. These changes were primarily attributable to the timing of collections and payments. Accounts receivable decreased to $4,619.4 as of September 30, 2026 from $4,770.3 as of December 31, 2025 due to the impact of changes in currency exchange rates, partially offset by higher revenue during the third quarter of 2026. Days Sales Outstanding ("DSO") increased by four days from December 31, 2025 to 59 days as of September 30, 2026.

Cash provided by investing activities was $65.3 for the nine months ended September 30, 2026 compared to $48.7 used for the nine months ended September 30, 2025. The increase in 2026 was due to the $87.5 proceeds from the sale of our Jefferson Wells U.S. business. Capital expenditures were $23.6 and $46.4 for the nine months ended September 30, 2026 and 2025, respectively. These expenditures were primarily comprised of purchases of computer equipment, office furniture and other costs related to office openings and refurbishments, as well as capitalized software costs. The decrease in 2026 was mainly due to lower investments in capitalized software. Our investing activities also include acquisitions and investments in companies throughout the world, including franchises. Total cash consideration paid for acquisitions, net of cash acquired, was $0.8 and $2.3 for the nine months ended September 30, 2026 and 2025, respectively.

Cash used in financing activities was $568.6 for the nine months ended September 30, 2026 compared to $59.5 provided in the nine months ended September 30, 2025. Net debt repayments were $531.2 for the nine months ended September 30, 2026 compared to net borrowings of $138.3 in the nine months ended September 30, 2025. The larger repayments in 2026 were due to the redemption in January 2026 of our €500.0 notes originally issued in 2018. The borrowings in 2025 included $73.0 proceeds from our revolving debt facility, compared to $50.0 for the nine months ended September 30, 2026.

Our €400.0 notes and €500.0 notes are due June 2027 and December 2030, respectively. We plan to refinance the notes at maturity, or prior to maturity, with new borrowings. The credit terms, including interest rate and facility fees, of any replacement borrowings will be dependent upon the condition of the credit markets at that time. We currently do not anticipate any problems accessing the credit markets for replacement of those notes.

Our $600.0 revolving credit agreement maturing December 15, 2030 requires that we comply with a leverage ratio (Net Debt-to-Net Earnings before interest and other expenses, provision for income taxes, intangible asset amortization expense, depreciation and amortization expense ("EBITDA")) of not greater than 3.5 to 1 and a fixed charge coverage ratio of not less than 1.5 to 1. The exclusion of certain restructuring expenses is also allowed in the determination of EBITDA in the agreement. As defined in the agreement, we had a Net Debt-to-EBITDA ratio of 2.59 to 1 and a fixed charge coverage ratio of 3.00 to 1 as of September 30, 2026. Based on our current forecast, we expect to be in compliance with our financial covenants for the next 12 months.

As of September 30, 2026, we had $0.4 letters of credit outstanding, $50.0 drawn under our $600.0 credit facility, and $10.0 drawn under our $150.0 working capital facility. As a result, $549.6 and $140.0 were available for borrowing under the respective facilities.

In addition to the previously mentioned facilities, we maintain separate bank credit lines with financial institutions to meet the working capital needs of our subsidiary operations. As of September 30, 2026, such uncommitted credit lines totaled $364.0, of which $335.8 was unused. Under the revolving credit agreement, total subsidiary borrowings cannot exceed $300.0 in the first, second and fourth quarters, and $600.0 in the third quarter of each year. Additional borrowings of $335.8 could have been made under these lines as of September 30, 2026.

We have assessed our liquidity position as of September 30, 2026 and for the near future. As of September 30, 2026, our cash and cash equivalents balance was $233.1. We also have access to the previously mentioned revolving and uncommitted credit facilities that could have immediately provided us with up to $600.0 and $150.0 of additional cash, respectively, less any outstanding borrowings and letters of credit. We have an option to request an increase to the total availability under the revolving credit facility by an additional $300.0 and each lender may participate in the requested increase at their discretion. In addition, we have access to the previously mentioned credit lines to meet the working capital needs of our subsidiaries, of which $335.8 was available to use as of September 30, 2026. Our €400.0 ($452.5) notes mature in June 2027, and our €500.0 ($562.7) notes mature in December 2030. Based on the above, we believe we have sufficient liquidity and capital resources to satisfy future requirements and meet our obligations currently and in the near future.

The following table provides an informational summary of our liquidity and capital structure as of:

The Board of Directors declared a semi-annual dividend of $0.72 per share on May 8, 2026 and May 2, 2025, respectively. The 2026 dividends were paid on June 15, 2026 to shareholders of record as of June 1, 2026. The 2025 dividends were paid on June 16, 2025 to shareholders of record as of June 2, 2025.

In August 2023, the Board of Directors authorized the repurchase of 5.0 million shares of our common stock. We conduct share repurchases from time to time through a variety of methods, including open market purchases, block transactions, privately negotiated transactions or similar facilities. During the nine months ended September 30, 2026, we did not repurchase any shares under the 2023 authorization. During the nine months ended September 30, 2025, we repurchased 0.7 million shares under the 2023 authorization at a cost of $37.0. As of September 30, 2026, there were 1.9 million shares remaining authorized for repurchase under the 2023 authorization.

We had aggregate commitments of $2,463.9 as of September 30, 2026 related to debt, operating leases, severance and office closure costs, and certain other commitments compared to $3,146.5 as of December 31, 2025.

We have entered into guarantee contracts and stand-by letters of credit totaling $656.7 and $626.1 as of September 30, 2026 and December 31, 2025, respectively ($614.4 and $582.3 for guarantees as of September 30, 2026 and December 31, 2025, respectively, and $42.3 and $43.8 for stand-by letters of credit, respectively). The guarantees primarily relate to staffing license requirements, operating leases and indebtedness. The stand-by letters of credit mainly relate to workers' compensation in the United States. If certain conditions were met under these arrangements, we would be required to satisfy our obligations in cash. Due to the nature of these arrangements and our historical experience, we do not expect any significant payments under these arrangements. Therefore, they have been excluded from our aggregate commitments. The cost of these guarantees and letters of credit were $1.3 for both the nine months ended September 30, 2026 and 2025.

During the nine months ended September 30, 2026, we recorded $30.6 in restructuring costs, of which $8.0 was recorded during the three months ended September 30, 2026. During the three and nine months ended September 30, 2025, we recorded restructuring costs of $21.4 and $51.6, respectively. Payments made from the restructuring reserve were $14.2 and $46.2 during the three and nine months ended September 30, 2026, respectively. We use our restructuring reserve for severance, office closures, office consolidations, and professional and other fees related to restructuring in multiple countries and territories. We expect a majority of the remaining $19.0 reserve will be paid by the end of 2026.

Application of Critical Accounting Policies

The Company is supplementing the critical accounting policies as described in the 2025 Annual Report with the following critical accounting estimates.

In accordance with the accounting guidance on goodwill, we perform an annual impairment test of goodwill at our reporting unit level during the third quarter, or more frequently if events or circumstances change that would more likely than not reduce the fair value of our reporting units below their carrying value.

We evaluate the recoverability of goodwill utilizing an income approach that estimates the fair value of the future discounted cash flows to which the goodwill relates. This approach reflects management's internal outlook of the reporting units, which is believed to be the best determination of value due to management's insight and experience with the reporting units. We evaluate the following assumptions which are used in our goodwill impairment tests: expected future revenue growth rates, operating unit profit (OUP) margins, working capital levels, discount rates, and terminal value revenue growth rate. We consider expected future revenue growth rates, OUP margins and discount rates to be the more significant assumptions. The expected future revenue growth rates and OUP margins are determined after taking into consideration historical performance, our assessment of future market potential, and expected future business performance conditions. We believe that the discounted cash flow model provides the most reasonable and meaningful estimate of fair value, consistent with how market participants would value our reporting units in an orderly transaction.

Management closely monitors the financial and operating results relative to the assumptions used in our fair value estimates, as well as macroeconomic conditions and strategic initiatives that may impact the reporting units and indefinite-lived intangible assets. During the third quarter of 2026, we completed the annual impairment test of our goodwill and indefinite-lived intangible assets. The fair value exceeded the carrying amount by more than 10% for all reporting units with the exception of Switzerland. The carrying value of the Switzerland reporting unit had previously been adjusted to fair value as a result of an impairment charge recognized during the second quarter of 2025. As of September 30, 2026, the goodwill balance related to our Switzerland reporting unit was $32.4.

Key assumptions for our United States reporting unit in our Americas segment, which represents the reporting unit with the most significant goodwill balance, included a discount rate of 9.2%, revenue growth rates for the next 10 years ranging from 3.0% to 8.0% and average OUP margins of 4.8%. Management closely monitors the performance and assumptions used in our fair value estimates, along with macroeconomic and operational developments that may impact future impairment assessments.

We have recently had stable activity levels in certain markets, and in prior periods, we have experienced decreases in our operating results. There could be further decreases in our operating results, which may result in the recognition of goodwill impairments.

Recently Issued Accounting Standards

See Note 2 to the Consolidated Financial Statements.