Sodexo Shares Slide on Forecasted 2026 Growth Slowdown Amid US Challenges

Sodexo, the French food services and facilities management company, has forecasted a slowdown in organic revenue growth for fiscal year 2026, predicting only 1.5% to 2.5% growth compared to 3.3% in fiscal 2025. This cautious outlook is primarily due to ongoing challenges in the U.S. market, particularly declining college enrollments in the Northeast and Midwest, and underperformance in healthcare contracts, which together are expected to dampen revenue growth and margins. Despite recording €24.07 billion ($28.07 billion) in revenue for 2025 with a slight beat on analyst expectations, the company anticipates a slightly lower operating margin in 2026. The upcoming appointment of Thierry Delaporte as CEO in November is seen as a potential catalyst for strategic reorganization and commercial acceleration, though investors are advised to temper expectations until his diagnosis of the company’s challenges is revealed. Analysts have described the current performance as disappointing, noting the structural shift in Sodexo’s business post-spin-off and the difficulty in achieving mid-single-digit growth amid these headwinds. Overall, Sodexo’s outlook highlights broader issues faced by global service providers dealing with shrinking populations in education and challenging healthcare contract environments, emphasizing the importance of the U.S. market to the company’s future performance.