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Adecco Group AG
(ADEN)
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Rating:69Neutral
Price Target:
CHF26.00
▲(18.07% Upside)
Action:Reiterated
Date:08/09/26
CH:ADEN scores highest on a constructive earnings outlook (continued margin improvement, SG&A discipline, and AI-driven productivity) and solid technical trend strength. These positives are moderated by only average underlying financial quality (flat multi-year revenue, thin margins, and softer recent free-cash-flow momentum), while valuation and dividend yield provide additional support.
Positive Factors
AI-driven productivity
Broad agentic AI rollout is a structural operational improvement. Persistent productivity gains (higher fill rates, faster submissions, recruiter efficiency) lower unit costs and scale across geographies. As AI coverage rises to management's 70% revenue target, these efficiency gains should sustainably improve margins and pricing competitiveness.
Negative Factors
Thin profitability
Persistent low margins limit financial buffer and strategic flexibility. In staffing, limited pricing power and high pass-through payroll costs make earnings sensitive to volume swings; thinner margins reduce resilience in downturns and constrain reinvestment or absorption of unexpected costs over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
AI-driven productivity
Broad agentic AI rollout is a structural operational improvement. Persistent productivity gains (higher fill rates, faster submissions, recruiter efficiency) lower unit costs and scale across geographies. As AI coverage rises to management's 70% revenue target, these efficiency gains should sustainably improve margins and pricing competitiveness.
Read all positive factors
Adecco Group AG (ADEN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF4.03B
Dividend Yield4.23%
Average Volume (3M)842.19K
Price to Earnings (P/E)14.4
Beta (1Y)0.88
Revenue Growth0.14%
EPS Growth-0.63%
CountryCH
Employees33,000
SectorGeneral
Sector StrengthN/A
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)1.75
Shares Outstanding173,694,890
10 Day Avg. Volume653,147
30 Day Avg. Volume842,188
Financial Highlights & Ratios
PEG Ratio-5.11
Price to Book (P/B)1.23
Price to Sales (P/S)0.18
P/FCF Ratio8.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF23.21Price Target Upside5.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)2.43
Revenue Forecast (FY)CHF23.70B
Adecco Group AG Business Overview & Revenue Model
Company Description
Adecco Group AG, alongside its various subsidiaries, delivers a full spectrum of human resources services to companies and organizations throughout Europe, North America, Asia Pacific, South America, and North Africa. The firm's extensive service ...
How the Company Makes Money
Adecco Group primarily makes money by charging fees for workforce and HR-related services delivered to client organizations. The largest revenue stream is typically staffing (temporary/contract work): Adecco recruits and employs/engages workers an...
Adecco Group AG Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive operational and financial momentum: mid-single-digit organic revenue growth, strong EBITA and EPS expansion, margin improvement, continued market share gains, meaningful AI-driven productivity gains, Akkodis returning to growth and clear progress on deleveraging. Notable near-term challenges include elevated one-off restructuring charges (Akkodis Germany, Adecco France), Q2 working capital absorption that reduced operating cash, and localized weakness in automotive and some APAC markets. Management expects further margin improvement and cash generation into H2 with restructuring benefits phasing in from Q4 and continued AI-driven efficiency and market-share gains.Positive Updates
Group Revenue Growth
Group revenue rose 5.6% year-on-year on an organic trading days adjusted basis, reflecting broad-based momentum across regions and service lines.
Negative Updates
Gross Margin Still Slightly Below Prior Year
Group gross margin was 18.6%, 20 basis points lower year-on-year on an organic basis (improved sequentially from -40bps in Q1 to -20bps in Q2). Permanent placement impact remains negative though stabilizing (permanent placement gross profit improved from -7% in Q1 to -1% in Q2).
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Q2-2026 Updates
Positive
Negative
Group Revenue Growth
Group revenue rose 5.6% year-on-year on an organic trading days adjusted basis, reflecting broad-based momentum across regions and service lines.
Read all positive updates
Company Guidance
Management guided to a modest sequential improvement in gross margin and lower SG&A (ex‑one‑offs) in Q3, with continued year‑on‑year EBITDA margin improvement into H2 and cash generation weighted to H2 (last‑12‑month cash conversion 83%; Q2 operating cash flow €23m, capex €37m, free cash outflow €14m); deleveraging remains a priority with net debt/EBITDA ex‑one‑offs at 2.7x (0.5x improvement YoY) and a target to reach ≤1.5x by end‑2027. They also raised the agentic AI penetration target to 70% of revenue by end‑2026 (50% reached at end‑Q2, agents live in 10 countries, 2.2m conversations to date) citing benefits of ~10% fill‑rate improvement, ~40% reduction in time‑to‑submit and 25–35% recruiter productivity gains that should drive operating leverage (organic drop‑down 64%) and support profitable growth (Q2 organic revenue +5.6%, gross profit €1.1bn/18.6% margin, EBITA ex‑one‑offs €165m, EBITDA margin 2.8% up 30bps, adjusted EPS +31%).Adecco Group AG Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.35B | 23.23B | 23.14B | 23.96B | 23.64B | 20.95B |
| Gross Profit | 4.37B | 4.39B | 4.50B | 4.97B | 4.97B | 4.28B |
| EBITDA | 765.74M | 816.30M | 760.00M | 841.00M | 770.00M | 971.00M |
| Net Income | 292.48M | 294.91M | 303.00M | 325.00M | 342.00M | 586.00M |
Balance Sheet | ||||||
| Total Assets | 12.46B | 11.75B | 12.10B | 12.43B | 13.26B | 11.87B |
| Cash, Cash Equivalents and Short-Term Investments | 551.71M | 387.70M | 482.00M | 556.00M | 782.00M | 3.05B |
| Total Debt | 3.62B | 3.18B | 3.48B | 3.67B | 3.70B | 3.48B |
| Total Liabilities | 8.94B | 8.35B | 8.51B | 8.83B | 9.36B | 8.06B |
| Stockholders Equity | 3.51B | 3.38B | 3.58B | 3.60B | 3.88B | 3.79B |
Cash Flow | ||||||
| Free Cash Flow | 385.63M | 486.16M | 563.00M | 347.00M | 328.00M | 590.00M |
| Operating Cash Flow | 524.59M | 617.00M | 707.00M | 563.00M | 543.00M | 722.00M |
| Investing Cash Flow | -168.88M | -157.02M | -157.00M | -209.00M | -1.45B | -206.00M |
| Financing Cash Flow | -118.23M | -465.02M | -634.00M | -620.00M | -1.38B | 980.00M |
Adecco Group AG Technical Analysis
Positive
22.02
Price Trends
18.75
Positive
18.05
Positive
19.64
Positive
Market Momentum
1.38
Positive
63.02
Neutral
68.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:ADEN, the sentiment is Positive. The current price of 22.02 is below the 20-day moving average (MA) of 22.67, above the 50-day MA of 18.75, and above the 200-day MA of 19.64, indicating a bullish trend. The MACD of 1.38 indicates Positive momentum. The RSI at 63.02 is Neutral, neither overbought nor oversold. The STOCH value of 68.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:ADEN.
Adecco Group AG Peers Comparison
UnderperformOutperform
Sector (55)
CH:ADEN
Adecco Group AG
23.64
-1.04
-4.19%
CH:KNIN
Kuehne + Nagel International AG
211.30
48.27
29.61%
CH:SGSN
SGS SA
94.42
15.31
19.35%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.