Kelly Services, Inc. (KELYA) Earnings
Kelly Services, Inc. is expected to report next earnings on August 6, 2026 (in NaN days), with a consensus EPS estimate of $0.24. KELYA has beaten EPS estimates in 5 of its last 12 reported quarters (average surprise -44.7% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $0.07 | $0.03 | -57.1% | $1.0B | +2.0% |
| Feb 12, 2026 | $0.45 | $0.16 | -64.4% | $1.0B | -1.3% |
| Nov 6, 2025 | $0.42 | $0.18 | -57.1% | $935M | -9.6% |
| Aug 7, 2025 | $0.54 | $0.54 | +0.0% | $1.1B | +3.3% |
| May 8, 2025 | $0.53 | $0.39 | -26.4% | $1.2B | +1.2% |
| Feb 13, 2025 | $0.65 | $0.82 | +26.2% | $1.2B | +2.9% |
| Nov 7, 2024 | $0.44 | $0.21 | -52.3% | $1.0B | -3.2% |
| May 9, 2024 | $0.47 | $0.56 | +19.1% | $1.0B | +0.0% |
| Feb 15, 2024 | $0.55 | $0.93 | +69.1% | $1.2B | +0.7% |
| Nov 9, 2023 | $0.25 | $0.50 | +100.0% | $1.1B | -4.7% |
| Aug 10, 2023 | $0.39 | $0.36 | -7.7% | $1.2B | -2.0% |
| May 11, 2023 | $0.28 | $0.40 | +42.9% | $1.3B | +2.8% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 7, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Initial implementation of new MSP program complete with expansion opportunities, One Kelly go-to-market approach effective. - Newly formed growth office since Feb collaborating to build integrated commercial operating framework, migration of commercial teams to new CRM system expected mid-year as part of tech modernization. - Technology modernization multi-phase approach on track, first quarter successful in acquisitions cutover from legacy to modernized platform. - In March, Joel Legge joined as president of SET, proven industry leader with complex transformation experience; reevaluating ETM business leadership structure, short-term personally involved in management. - Impact 2026 Leadership Summit in March focused on building customer-centric etc. enterprise, preparing for H2 growth. - First quarter executed strategic priorities, revenue $10B, adjusted EBITDA $15.8M with margin 1.5%, SG&A expenses decreased.
Guidance
- Expectations unchanged from Feb, Q2 expected y-o-y improvement, overall revenue decline 7%-9% with at least 100 basis points improvement in underlying decline. - Adjusted EBITDA margin expected at least 2.5% in Q2, significant reduction in y-o-y decline, expect relative improvement each successive quarter for revenue and adjusted EBITDA margin, modest revenue growth in H2 2026, measurable year-over-year margin expansion in H2 and modest increase full year.
Segment performance
For the first quarter of 2026, revenue totaled $1 billion, down 10.7% overall vs Q1 last year. Excluding specific impacts, revenue was down 3.3%. Underlying ETM declined 0.4% y-o-y, with each talent solution specialty growing; staffing had net underlying decline of just 1.2% in the quarter with growth in Feb and Mar. Education decreased 4.8% y-o-y due to delayed new contracts, weather-related school closures, etc., expected to improve sequentially and return to growth in H2 2026. SET's underlying revenue declined 6% in the quarter, led by near-term demand pressure in technology specialty, confident of sequential q-o-q improvement in 2026.
Analyst Q&A
Q: About cost improvements and core SG&A reductions timing,
A: Chris and Troy responded on expense reductions, disciplined execution, and progress in EBITDA margin.
Q: Timing of technology activity and ERP,
A: Expected Q4 phase migration to enterprise platform, CRM HubSpot deployment in Q2 migrating commercial sellers by mid-year.
Q: Demand drivers,
A: Technology demand had near-term pressures but some encouraging signals like positive consultant count improvement in Mar and Apr, sequential improvement in some businesses. -
Q: Kelly different from prior downturns,
A: Chris responded on scale, capability, RPO offering, and Growth Office establishment for differentiation.
Q: Cost reduction and earnings power,
A: Troy responded on cost reduction, margin recovery as pivot to growth. -
Q: Core SG&A, incentive comp, gross margin improvement,
A: Kevin asked about core SG&A flattening, incentive comp swing, and gross margin improvement drivers, responded on core SG&A, incentive variability, and gross margin improvement from timing, mix, etc. -
Q: Hunt companies and growth officer,
A: Chris responded on new board members supporting strategy, and Growth Officer Pat McCall's role in setting foundation for commercial operating framework.