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Compass ( (GB:CPG) ) has shared an update.
Compass Group reported a strong first half to 2026, with revenue rising 9% on a constant-currency basis to $25bn and underlying operating profit up 12%, lifting its underlying margin to 7.4%. Organic revenue grew 7.2% on the back of 96% client retention and $4.1bn of new business wins, roughly half from first-time outsourcing, while underlying earnings per share climbed 12% and free cash flow reached $825m, supporting a 13% increase in the interim dividend.
The group is ramping up investment to reinforce its competitive advantages, completing $2.3bn of M&A and $0.8bn of capex as it integrates Dutch premium food operator Vermaat and acquires German procurement specialist Pro Care Management to deepen its European platform. Management raised 2026 guidance, now targeting underlying operating profit growth above 11% driven by around 7% organic revenue growth, roughly 2% contribution from acquisitions and continued margin gains, underscoring confidence that profit growth will outpace revenue over the medium term despite leverage temporarily rising to 1.7 times EBITDA.
The most recent analyst rating on (GB:CPG) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Compass stock, see the GB:CPG Stock Forecast page.
Spark’s Take on CPG Stock
According to Spark, TipRanks’ AI Analyst, CPG is a Neutral.
Compass’s overall stock score is driven by its strong financial performance and positive earnings call insights, which highlight robust profit growth and operational efficiencies. However, technical analysis indicates bearish momentum, and the valuation suggests the stock is relatively expensive. The conservative future growth guidance and potential leverage increase are additional concerns.
To see Spark’s full report on CPG stock, click here.
More about Compass
Compass Group PLC is a global contract food services provider, focused on delivering outsourced catering and targeted support services across sectors such as business and industry, education, healthcare and leisure. Leveraging a decentralised, sectorised model, significant purchasing scale and growing use of data, technology and AI, the company targets structural growth in a food services market expected to expand from about $360bn today to around $600bn by 2035.
Average Trading Volume: 4,523,657
Technical Sentiment Signal: Buy
Current Market Cap: $50.16B
Find detailed analytics on CPG stock on TipRanks’ Stock Analysis page.