Sodexo’s fiscal 2026 organic revenue growth exceeded its latest target range, while reported revenue fell 0.5% under currency pressure and underlying operating profit declined 28.9%; higher restructuring costs contributed to net other operating expenses.
Revenue for the year ended Aug. 31, 2026, was €23.963 billion, down 0.5% from a year earlier. Organic growth was 2.0%, compared with 3.3% in fiscal 2025. The board approved the consolidated accounts on Oct. 22.
The result beat the 1.2% to 1.5% range Sodexo set in July, after cutting its initial 1.5% to 2.5% forecast to 0.5% to 1% in April. The 2.0% result remained within the original range. Currency effects reduced reported revenue growth by 3.0%, mainly because of the U.S. dollar, while acquisitions and disposals added 0.5%. Pricing contributed about 2.4 percentage points and like-for-like volume about 0.6 point. Slightly negative net new business and a North American contract reclassification also held back growth; Sodexo said the change lowered the group’s organic growth by about 0.7 percentage point.
Total operating profit fell 47.2% to €520 million. Underlying operating profit declined 28.9% to €810 million, with its margin narrowing to 3.4% from 4.7%. Group net profit dropped 56.3% to €304 million. Sodexo linked the underlying profit decline to provisions following contract and asset reviews, increased investment in capabilities and other operating factors. Higher transformation-related restructuring costs contributed to €290 million in net other operating expenses, up from €154 million a year earlier.
Regional results varied. Organic revenue fell 1.0% in North America and rose 2.1% in Europe and 9.7% in the Rest of the World. Sodexo pointed to earlier lost contracts and the reclassification of a renewed deal as North American pressures. New contract starts and stronger activity in India, Australia and Brazil supported the Rest of the World.
At a July investor update, Sodexo said a weaker focus on growth, organizational complexity and insufficient investment in capabilities had contributed to underperformance. Chief Executive Officer Thierry Delaporte said fiscal 2026 was a “year of reset and action,” while adding that the group’s “overall performance remains below the full potential of the Group.”
Reuters reported that a company-compiled analyst poll had expected €23.78 billion in revenue and 1.5% organic growth. Free cash flow was €379 million, down from €459 million in fiscal 2025. Sodexo cited lower operating profit, higher interest payments and client-related investment as factors weighing on cash flow. Net debt was €2.9 billion at Aug. 31, and net debt to EBITDA rose to 2.4 times from 1.8 times a year earlier.
Sodexo confirmed its fiscal 2027 outlook for organic revenue growth of 2% to 3% and an underlying operating margin broadly in line with fiscal 2026’s 3.4%. The board proposed a €1.74-per-share dividend, subject to shareholder approval at the Dec. 16 annual meeting.
