Sodexo Raises 2026 Revenue Outlook After Strong Q3 Sales Beat

French food services and facilities management company Sodexo SA reported stronger-than-expected third-quarter 2026 results on Thursday, driven by resilient customer demand and solid execution across its global operations. The company also raised its full-year organic revenue growth forecast after outperforming market expectations.

Sodexo posted third-quarter revenue of €6.17 billion, surpassing analysts’ consensus estimate of €6.04 billion and improving from €6.12 billion recorded during the same period last year. Organic revenue increased 2%, significantly exceeding market expectations for a slight 0.1% decline.

The company attributed its better-than-expected performance to steady demand across its business segments and disciplined operational execution despite a challenging economic environment.

Following the stronger quarterly performance, Sodexo increased its full-year organic revenue growth guidance to a range of 1.2% to 1.5%, up from its previous forecast of 0.5% to 1%. The company maintained its outlook for an underlying operating profit margin of between 3.2% and 3.4%.

Chief Executive Officer Thierry Delaporte said the company entered the quarter cautiously due to market uncertainty but successfully offset potential risks by capitalizing on growth opportunities across its portfolio. He highlighted the strong contribution from Sodexo Live! North America, which helped support overall performance.

Regional results were mixed during the quarter. The Rest of the World segment delivered the strongest performance, with organic revenue growth of 10.6%, supported by new contract ramp-ups in the Energy & Resources business and broad-based expansion across multiple markets.

In Europe, organic revenue grew 0.6%, reflecting the impact of losing a major global facilities management contract in the Business & Administration segment as well as softer demand in the Education business.

Meanwhile, North America recorded a slight 0.1% organic revenue decline, primarily due to previous contract losses in Education. However, growth in the Healthcare & Seniors division and Sodexo Live! business remained resilient and helped limit the regional decline.

On a reported basis, total group revenue increased 0.9%. A 2.5% negative foreign exchange impact, mainly caused by the weaker U.S. dollar, partially offset a 1.4% contribution from acquisitions and disposals, including the acquisition of Grupo Mediterránea, which was completed at the end of February 2026.

In addition to its operating update, Sodexo announced that it repaid its $328 million bond that matured in April 2026 using available cash. The repayment simplifies the company’s debt structure while preserving a balanced debt maturity profile, reinforcing its financial flexibility as it continues executing its long-term growth strategy.