Sodexo Q1 Fiscal 2026 revenues in line with expectations

  • Q1 organic revenue growth of +1.8%
  • Fiscal 2026 guidance framework unchanged:
    • Organic revenue growth between +1.5% and +2.5%
    • Underlying operating profit margin to be slightly lower than Fiscal 2025

Q1 Fiscal 2026 Revenues

Since joining Sodexo last November, I have spent most of my time in the field, listening to our teams and clients and deepening my understanding of the realities of our business. My initial observations are clear: Sodexo has strong assets, talented people and real room to grow.

In order to fully capture the opportunity ahead, we will sharpen our client centricity to accelerate growth, invest in our people, and improve operational efficiency. These are my early priorities, and the first actions are already in motion. We have important work ahead to improve execution and further strengthen our operating model.

I will share my initial views on the business at the half-year and present a full assessment and plan before the summer break. In the meantime, we are addressing critical priorities, and I am confident that we will unlock Sodexo's full potential.

500x500-thierry-delaporte
Thierry DelaporteSodexo CEO

Highlights of the period

  • Revenues - First quarter Fiscal 2026 consolidated revenues totaled 6.3 billion euros, reflecting organic revenue growth of +1.8%, a negative currency impact of -4.0% primarily driven by the depreciation of the U.S. dollar against the euro, and a negligible effect from acquisitions and disposals.
  • By geography:
    • North America – Organic growth of -1.5%, primarily impacted by past contract losses in Education and Business & Administration and a strong prior-year comparison in Sodexo Live! due to exceptional event activity last year, partially offset by positive contributions from new Healthcare contracts opened in the recent months.
    • Europe - Organic growth of +2.4%, supported by new contracts in Business & Administration and Healthcare, offset by the high prior-year comparable in Sodexo Live from the Paralympics and contract exits in Education.
    • Rest of the World - Organic growth of +10.2%, driven by strong performance in Australia, India, Brazil and Chile, supported by new contracts and solid growth across existing contracts in dynamic markets.
  • Operational priorities - As previously communicated, we continue to focus on clear near-term priorities. Planned investments in technology, sales effectiveness, supply management, Global Business Services and targeted U.S. Education initiatives are underway and are expected to support performance over the medium term.
  • Leadership changes - Thierry Delaporte, Group CEO, has taken direct leadership of North America to drive execution and performance in the region.
  • M&A - The previously announced acquisition of Grupo Mediterránea is expected to close in the coming months, subject to customary regulatory approvals.
  • Sustainability - Sodexo has been recognized on CDP’s prestigious A-List, achieving the highest rating for climate performance. This recognition underscores Sodexo's leadership in environmental sustainability, its strong commitment to transparent disclosure for stakeholders and ability to support clients in their own climate journeys. 
     

Outlook

  • Organic revenue growth to be between +1.5% and +2.5%, reflecting a minimum +2% contribution from pricing, neutral to moderate contribution from both like-for-like volume and net new business, and a one-off reclassification triggered by the renewal of a large contract;
  • Underlying operating profit margin to be slightly lower than Fiscal 2025, reflecting the mix and phasing of our growth drivers and targeted investments to enhance our Group’s foundations for profitable growth.

Conference call

Sodexo will hold a conference call (in English) today at 9:00 a.m. (Paris time) / 8:00 a.m. (London time) to comment on its Q1 Fiscal 2026 revenues. 

Those who wish to connect: 

  • From the UK: +44 121 281 8004, or
  • From France: +33 1 70 91 87 04, or
  • From the US: +1 718 705 8796, 
     

Followed by the access code 07 26 13

The live audio webcast will be available on www.sodexo.com

The press release, presentation and webcast will be available on the Group website www.sodexo.com in both the “Newsroom” section and the “Investors – Financial Results” section.

Associated Contents

FY-results-photo

Sodexo Fiscal 2025 results in line with revised guidance; Fiscal 2026 as a transition year laying foundation for the future

Fiscal 2025 results: - Organic revenue growth of +3.3%, or +3.7% underlying - Underlying operating profit margin at 4.7%, up +10bps at constant currencies - Underlying group net profit at 785 millions euros, up +3.7% at constant currencies - Solid free cashflow; net debt/EBITDA ratio of 1.8x - Proposed dividend of 2.70 euros, in line with the Group dividend policy
Learn more

Sodexo Q3 Fiscal 2025 revenues in line with expectations

Organic revenue growth of +3.0% — Fiscal 2025 expected to land at the lower end of the guidance range: • Organic revenue growth between +3% and +4% • Underlying operating profit margin improvement between +10 and +20 bps, at constant currencies
Learn more

Sodexo Inc. successfully completes its new US dollar notes issuance and its tender offer

On May 27, 2025, Sodexo Inc., the US subsidiary of Sodexo S.A., successfully completed a U.S. dollar notes issuance for a total principal amount of $1.1 billion in two tranches.
Learn more