London, June 23, 2026, 12:03 BST
Compass Group slipped 0.4% to $32.38 in midday trading in London on Tuesday. Shares rebounded from a session low of $31.86 and touched $32.43 at their highest.
FTSE 100 falls 0.7% as services downturn seen — The FTSE 100 slipped 0.7%, touching its lowest level since June 12. Investors moved out of UK stocks as they bet on higher rates in Britain and the US. Data out today showed UK services shrinking at the fastest pace since January 2023.
That relative resilience is important, with expectations for Compass still high. Analyst forecasts compiled by the company, last updated June 19, see organic revenue growth at 7.2% for fiscal 2026, revenue at $50.7 billion, and underlying operating profit at $3.74 billion, which is an 11.2% rise at constant exchange rates. Organic growth here excludes acquisitions and currency. Constant currency leaves out exchange-rate swings.
Compass bumped up its annual profit outlook in May after seeing first-half organic revenue up 7.2% and a 12% gain in underlying operating profit. Operating margin hit 7.4%. Annualised new contract wins increased 14% to $4.1 billion. “We’ve delivered a strong first-half performance,” said Chief Executive Dominic Blakemore. Compass Group Corporate Website
Compass Group now sees underlying operating profit rising over 11% this year, buoyed by about 7% organic sales growth, deals, and more margin gains. That’s a shift from French competitor Sodexo, which in April lowered its full-year sales and profit targets after running into execution issues and contract reviews.
Compass switched its London-listed shares to trade in US dollars from April 1, moving away from sterling pence. The group said the shift matches its reporting currency and aims to cut FX issues; it kept its FTSE 100 slot and London listing unchanged.
But there are still risks. Technology, professional-services and financial-sector clients make up about 20% of revenue, so Compass is at risk if artificial intelligence cuts office jobs. Some investors have also raised concerns that weight-loss drugs could shift eating patterns, though Compass said it hasn’t seen an effect yet. Blakemore thinks AI could bring “more opportunity than risk” as Compass pushes into data centres, defence and airline lounges. Reuters
Higher rates mean investors discount future earnings more, adding another risk for markets. The STOXX 600 fell 1.3% on Tuesday as bets grow for 50 basis points of US rate increases this year. UBS executive Kiran Ganesh said that debt-funded investment might raise doubts about how long earnings can last.
Compass is set to deliver its third-quarter trading update on July 21. The market is looking for signs of faster new business in the second half and watching if the company can hold margins while growth loses speed and economic worries increase.
