Compass Group reports double-digit profit growth in HY 2026

Compass Group PLC (LON:CPG) has announced its half year results announcement for the six months ended 31 March 2026

12%² underlying operating profit growth with strong margin progression

Raising full-year profit guidance

Revenue growth 9%², balanced across both regions:

•  Organic revenue up 7.2% with strong client retention at 96%

•  New business wins of $4.1bn³, 14% increase year on year, with half from first-time outsourcing

•  Mobilised net new business growth 4.2% over last 12 months and 3.8% in H1; with expected acceleration in H2

Underlying operating profit increased by 12%²:

•  Underlying operating margin up 20bps to 7.4% benefiting from overhead leverage and M&A synergies

•  Underlying earnings per share up 12%² to 72.8c

•  Underlying operating cash flow up 14% to $1,324m

Investing in competitive advantages, supporting long-term growth:

•  Highly attractive structural growth opportunities with addressable market having grown at c.5% per annum

•  Integration of Vermaat progressing well, further strengthening our European growth platform

•  Acquired Pro Care Management in Germany for $270m; now operating Group Purchasing Organisations in five of our top ten markets

•  Total M&A expenditure of $2.3bn alongside $0.8bn of capital expenditure (3.4% of revenue)

Raising 2026 underlying operating profit growth guidance from around 10% to above 11%²:

• Driven by organic revenue growth of around 7%, around 2% profit growth from M&A and ongoing margin progression

• Longer term, we remain confident in sustaining mid-to-high single-digit organic revenue growth, ongoing margin progression and profit growth ahead of revenue growth

Statutory results:

• Operating profit, including non-underlying charges related to business acquisitions (mainly amortisation of acquired intangible assets), increased by 9% to $1,605m. The 10bps reduction in operating margin reflects these higher charges

1. Reconciliation of statutory to underlying results can be found in notes 2 (segmental analysis) and 13 (non-GAAP measures) to the consolidated financial statements.

2. Measured on a constant-currency basis.

3. Annual revenue of new business wins in the last 12 months.

Business review

Dominic Blakemore, Compass Group Chief Executive, said:

“We’ve delivered a strong first-half performance, with underlying operating profit up 12%¹, enabling us to increase our full-year profit guidance. We have great momentum across the business, driven by excellent new business wins, high levels of client retention and margin progression in both regions.

We continue to invest in our competitive advantages – our sectorised model, purchasing scale and technology capabilities. Recent acquisitions, including Vermaat in the Netherlands and Pro Care Management in Germany, further enhance our European platform, supporting long-term, sustainable growth. By deploying data, technology and AI, we are operating more effectively and consistently at scale, improving decision-making and execution across the business.

Compass operates in a highly attractive market, with sectors that are expected to benefit from continued structural growth. Our total addressable market has historically grown at around 5% per annum and could reach c.$600bn by 2035. Clients face increasing complexity, such as regulation, allergens and data-led insights, and these factors are driving demand for outsourcing across all sectors.

Our pipeline is broad-based, with recent wins up 14% to $4.1bn², led by Business & Industry, which is our best-performing sector delivering double-digit growth across a diverse client base. Our sub-sectorised approach underpins this, driving growth across emerging areas, including the AI ecosystem. Today’s results demonstrate consistent execution and the strength of our business model as our services become increasingly integral to our clients’ operations, supporting strong recurring revenues.

For 2026, we now expect underlying operating profit growth above 11%¹, underpinned by organic revenue growth of around 7%, around 2% growth from M&A and ongoing margin progression. Looking further ahead, we remain confident in our ability to sustain mid-to-high single-digit organic revenue growth, ongoing margin progression and profit growth ahead of revenue growth.”

Results presentation today

Today, 11 May 2026, management will present Compass Group’s Half Year 2026 results.

At 9:00am (UK time), investors and analysts will be able to view a video presentation which will stream live on the Compass Group website at www.compass-group.com. An audio-only telephone option is available if you are unable to watch the video.

Following the video presentation, management will host a live Q&A session for investors and analysts. Participants must be connected by phone to ask a question during the conference call.

Participant dial in details:

Financial calendar

1. Measured on a constant-currency basis.

2. Annual revenue of new business wins in the last 12 months