| Metric | Value ($ M) | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| Revenue | 1.0K | 0.2% | 5.8% |
| Total Income | 1.0K | 0.2% | 5.8% |
| Expenditure | 1.0K | 2.3% | 5.3% |
| PBT | 14.40 | 314.9% | 27.6% |
| Net Profit | 11.40 | 293.2% | 40.0% |
| OPM | 1.55% | 2.04pp | 0.46pp |
| NPM | 1.10% | 1.67pp | 0.63pp |
| EPS | 0.31 | 282.4% | 40.4% |
Kelly Services Reports Q2 2026 Earnings
06 Aug 2026 · 6 Aug, 5:11 pm
Summary
Kelly Services announced second-quarter 2026 results with revenue at $1.0 billion, showing an improvement in the year-over-year decline by 500 basis points compared to the previous quarter. The company reported operating earnings of $16.1 million and adjusted EBITDA of $31.1 million, with an adjusted EBITDA margin of 3.0%, which improved by 110 basis points year-over-year. Management highlighted exceeding guidance for revenue and adjusted EBITDA margin, driven by growth and efficiency initiatives and constructive demand trends in parts of the portfolio. The company has increased its fiscal 2026 revenue outlook to a low-to-mid-single digit decline and affirmed its adjusted EBITDA margin expectation.
Key Highlights
- 1
Kelly reported Q2 revenue of $1.0 billion, with a year-over-year decline improving approximately 500 basis points versus the prior quarter.
- 2
Underlying revenue decline, excluding discrete items, improved by 270 basis points versus the prior quarter, reflecting strength in ETM and SET segments.
- 3
Q2 operating earnings were $16.1 million, with adjusted operating earnings at $19.3 million.
- 4
Adjusted EBITDA for Q2 was $31.1 million, representing an adjusted EBITDA margin of 3.0%, an improvement of 110 basis points year-over-year versus the prior quarter.
- 5
The company increased its fiscal 2026 revenue outlook, now expecting a low-to-mid-single digit decline.
- 6
Kelly affirmed its adjusted EBITDA margin expectation of modest year-over-year growth driven by accelerating underlying revenue growth and operating efficiencies.
Management Comments
Chris Layden
In the second quarter, we measurably exceeded our guidance for both revenue and adjusted EBITDA margin driven by growing momentum from our growth and efficiency initiatives as well as constructive demand trends in parts of our portfolio. We delivered sequential improvements in each of our businesses as we continued to capitalize on organic growth drivers. Notably, Kelly’s adjusted EBITDA margin returned to 3.0% in the quarter, demonstrating our ability to generate operating leverage in pursuit of growth. Our progress strengthens our conviction in our strategy and reinforces our confidence in our expectation of further measurable improvement in our year-over-year performance as we progress through the second half of the year.
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