Sodexo Shares Tumble on Soft Guidance for Fiscal 2026

Dow Jones10-23
 

By Adam Whittaker

 

Sodexo shares fell after investors digested weaker-than-expected guidance for fiscal 2026.

In midday European trade, shares in the French food-catering company were down 7.3% at 52.05 euros. They remain up 35% over the year-to-date.

Sodexo said Thursday that for 2026 it expects organic revenue growth between 1.5% and 2.5%, while its underlying operating margin is forecast to be slightly lower than fiscal 2025.

For 2025, the company reported organic revenue growth of 3.3% and underlying operating profit of 1.14 billion euros with an underlying margin of 4.7%.

The guidance for 2026 points to an underlying operating profit between 1.12 billion euros and 1.135 billion euros, compared with a company-compiled consensus of 1.17 billion euros, Bernstein analyst Sabrina Blanc wrote in a note to clients.

The arrival of a new chief executive officer and chairman will improve Sodexo's governance but they face many challenges, Blanc said. These include improving the group's retention rate and expanding its business in the U.S., where it is lagging behind Compass Group, Blanc added.

 

Write to Adam Whittaker at adam.whittaker@wsj.com

 

(END) Dow Jones Newswires

October 23, 2025 07:10 ET (11:10 GMT)

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