ManpowerGroup Inc. (NYSE:MAN) had a busy Thursday. The staffing giant reported mixed third-quarter results, with revenue narrowly missing Wall Street's expectations, and then announced who will lead the company into its next chapter. Investors, apparently, were not thrilled. Shares were down 16.59% at $43.34 at the time of publication, according to market data.

The company reported adjusted earnings per share of $1.01, matching analyst estimates. Revenue totaled $4.840 billion, slightly below the consensus estimate of $4.856 billion, a shortfall of less than 1%. However, revenue grew 6% organically on a constant-currency, days-adjusted basis.

Revenue and Profitability

Systemwide revenue, including franchise operations, reached $5.3 billion.

Adjusted EBITDA rose 14% year over year to $107 million, while the adjusted EBITDA margin expanded 10 basis points to 2.2%. Gross profit margin remained steady at 15.9%. Meanwhile, consolidated gross profit increased 1% organically on a constant-currency basis.

Regional Performance

U.S. revenue increased 9% organically on a days-adjusted basis to $729 million. The Manpower brand recorded 15% growth, marking its ninth consecutive quarter of expansion. Experis revenue rose 4%, while Talent Solutions revenue increased 5%.

The Americas segment generated $1.2 billion in revenue, up 14% organically on a constant-currency basis. Southern Europe revenue increased 2% on a constant-currency basis to $2.2 billion.

France, though, was a sore spot. Revenue there declined 2% to $1.1 billion amid market volatility and political uncertainty. The good news: business trends improved in September and early October.

Italy revenue rose 5% to $483 million, while Northern Europe revenue increased 6% to $861 million. Asia Pacific Middle East revenue grew 4% to $515 million. The segment generated $24 million in operating unit profit, representing a 4.6% margin. Japan, which accounted for 57% of regional revenue, posted 3% growth on a days-adjusted, constant-currency basis.

Cost Savings and AI Expansion

ManpowerGroup remains on track to generate $200 million in recurring annual cost savings by 2028.

The company expanded AI-powered candidate screening in Italy and the U.S. These tools are now available in markets representing 70% of company revenue. Management said the technology is improving job placement rates, accelerating hiring and enhancing the candidate experience.

ManpowerGroup is also expanding partnerships with Amazon Web Services, SAP and Microsoft on cloud, data and AI initiatives. Additionally, the company continues working with SoundHound AI and IBM watsonx Orchestrate.

Cash Flow and Balance Sheet

ManpowerGroup reported a third-quarter free cash outflow of $17 million, compared with positive free cash flow of $45 million a year earlier.

The company ended the quarter with $233 million in cash, $1.1 billion in total debt and $870 million in net debt.

Fourth-Quarter Outlook

ManpowerGroup expects fourth-quarter revenue to grow 3% to 7% on a constant-currency basis, with a midpoint of 5%. Organic revenue growth, adjusted for currency fluctuations and working days, is projected at 4% at the midpoint.

The company forecasts fourth-quarter GAAP EPS of $1.03 to $1.13, above the analyst consensus estimate of $0.97. Management also expects mid-single-digit U.S. revenue growth and strong fourth-quarter free cash flow as earlier timing-related pressures reverse.

CEO Transition

ManpowerGroup announced Thursday that Becky Frankiewicz will become CEO and join its board on Jan. 1, 2027. Current Chairman and CEO Jonas Prising will transition to executive chair as part of the succession plan.

Frankiewicz has served as president and chief strategy officer since June 2025, following her tenure as chief commercial officer and president of North America. She has led ManpowerGroup's commercial strategy and integration of artificial intelligence, including agentic AI, across its Manpower, Experis and Talent Solutions brands.

As incoming CEO, Frankiewicz plans to accelerate ManpowerGroup's strategy, expand its AI capabilities and strengthen its workforce solutions through the company's human-centered, technology-driven approach.