Kelly Services Revenue Slips 0.8% in Q3
The staffing firm's third-quarter revenue fell to $927.2 million, and its shares dropped sharply on the results.
Updated on Nov. 5, 2026 in Economic Indicators
Kelly Services reported third-quarter revenue down 0.8% year over year to $927.2 million. Kelly shares fell 15% to $14.37 on November 5, 2026.
Why it matters
The results show uneven performance across Kelly's segments, with outcome-based and talent solutions growing while staffing and education declined. Cautious guidance for the fourth quarter and a full year of mid-single-digit revenue decline weighed on investor sentiment.
Kelly Services' third-quarter revenue fell 0.8% year over year to $927.2 million, while gross margin rose to 21% from 20.7%. Fourth-quarter revenue is projected flat to up 1%, and full-year revenue is expected to decline by a mid-single-digit percentage.
The players
Kelly Services
Kelly Services is a US staffing firm, ranked sixth-largest in the country, that provides workforce and talent management solutions.
The details
Outcome-based services revenue rose 7.9% to $229.6 million and talent solutions revenue, including MSP and RPO, rose 11.6% to $142 million. Staffing revenue across all divisions fell 6.5% to $546.6 million, with science, engineering and technology revenue down 2% and education revenue down 6.4% to $134.2 million.
Timeline
2025: Kelly recorded a $102 million goodwill impairment charge in Q3 and announced reduced business from three large commercial customers.
Oct. 6, 2026: Kelly announced a marketing overhaul consolidating its brands under 10 specialty divisions.
Nov. 5, 2026: Kelly shares plunged 15% to $14.37 intraday following the results.
Market Dynamics
The Q3 2026 results extend the pressures first signaled by Kelly's 2025 goodwill impairment and the loss of business from three large commercial customers. The enterprise talent management segment's return to growth suggests partial stabilization, though the staffing decline points to continued weakness in the broader US staffing market.
Staffing revenue declines of 6.5% across Kelly's divisions point to fewer temporary placements, which can affect job seekers relying on contract work. Kelly's guidance for only flat to 1% fourth-quarter growth suggests hiring demand from employers is not rebounding quickly.
The takeaway
Kelly's results show that growth in outcome-based and talent solutions work can offset weakness in traditional staffing, but the company's guidance signals that a broad recovery in demand has not yet arrived. Readers tracking employment trends should watch whether segment gains in managed services persist into 2027.
What happens next
Kelly's fourth-quarter 2026 revenue and full-year results are the next scheduled checkpoints for whether the projected mid-single-digit annual decline holds.
Further reading
For more on the broader labor market signals behind this report, see Economic Indicators.
Source note: This article includes information reported by Staffing Industry Analysts (SIA).
