Kelly Services Forecasts Margin Gains

The staffing firm projects modest fiscal fourth-quarter revenue growth and a higher adjusted EBITDA margin than a year earlier.

Updated on Nov. 7, 2026 in Employment

Bold vector editorial illustration of worn leather work gloves on a stack of wooden pallets beside a brass cog, in coral, teal, and mustard, evoking staffing-industry margins. — Kelly Services reported third-quarter revenue of $927.2 million, down 0.8%, and forecast a higher adjusted EBITDA margin of 3.8% to 4.0% for its fiscal fourth quarter. AI Illustration. Upload story photo >

Kelly Services Inc. reported third-quarter revenue of $927.2 million, down 0.8% from a year earlier, with an adjusted EBITDA margin of 2.3%. For fiscal fourth quarter 2026, the company forecasts revenue flat to up 1% and an adjusted EBITDA margin of 3.8% to 4.0%.

Why it matters

The outlook signals a slower return to growth in the Education segment and near-term demand pressure from one Enterprise Talent Management customer. Margin improvement is expected even as top-line growth remains limited.

Third-quarter revenue fell 0.8% to $927.2 million with adjusted EBITDA of $21.3 million, and the fiscal fourth-quarter outlook projects margin expansion of 180 to 200 basis points. The forecast includes an extra fiscal week adding about 3 percentage points to revenue growth, while the company has not detailed how long Education enrollment declines will last.

The players

Kelly Services Inc.

A staffing and workforce solutions company whose quarterly results and outlook are the subject of this report.

The details

Kelly Services attributed the Education decline to lower student enrollment in key markets. The fiscal fourth-quarter outlook includes an extra fiscal week, which adds about 3 percentage points to revenue growth while weighing on adjusted EBITDA.

Third quarter 2026: revenue fell 0.8% and adjusted EBITDA margin reached 2.3%.
Fiscal fourth quarter 2026: forecast adjusted EBITDA margin of 3.8% to 4.0% and revenue flat to up 1%.

Market Landscape

The company's third-quarter result, with revenue down 0.8% and margin up 50 basis points, sets the pattern its fiscal Q4 forecast extends into the next quarter. The projected 180 to 200 basis points of margin expansion comes while top-line growth is guided only flat to up 1%.

Staffing demand trends at firms like Kelly Services can shape hiring availability for job seekers and temporary placements. Companies reliant on temporary workers may see changes in staffing costs as margins shift.

The takeaway

Margin gains at Kelly Services are being pursued while revenue growth remains limited, a pattern worth tracking in the next quarterly report. Readers following employment trends should watch whether Education demand stabilizes.