Sodexo forecasts slower revenue growth in 2026 on US challenges
Sodexo forecasts slower revenue growth in 2026 on US challenges
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Sodexo forecasts slower revenue growth in 2026 on US challenges

🕒︎ 2025-10-23

Copyright Reuters

Sodexo forecasts slower revenue growth in 2026 on US challenges

Sodexo now sees 2026 organic revenue growth of between 1.5% and 2.5%, from 3% and 4% previously, and expects underlying operating profit margin to be slightly lower than 2025. Sign up here. "For fiscal 2026, we remain laser-focused on addressing these challenges, with clear action plans already underway," CEO and Chairwoman Sophie Bellon said in a statement. It said growth will be driven mainly from higher prices and expects flat-to-modest gains from existing customers and new clients. The company, which generates roughly half of its revenue in North America, issued a profit warning in March citing weak performance in education and healthcare in the region. Lower enrollment in the group's portfolio of universities, mainly concentrated in the U.S. Northeast and Midwest, is putting pressure on revenue growth. North America organic growth slowed to 2.8% for the full year from 8.7% a year earlier, hurt by contract losses in its education unit, the company said. Revenue for the full-year 2025 came in at 24.07 billion euros ($28.07 billion), while organic growth stood at 3.3%, slightly higher than the 3.1% expected by analysts. Sodexo proposed a dividend of 2.70 euros per share for the full-year 2025. ($1 = 0.8575 euros) Reporting by Hugo Lhomedet and Dimitri Rhodes in Gdansk; Editing by Mrigank Dhaniwala and Nivedita Bhattacharjee

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