Kelly Services (KELYA) Stock Forecast & Price Target

Kelly Services Inc. demonstrates a robust outlook driven by improved fill rates in K-12 substitute teacher staffing, indicating a compelling rationale for school districts to outsource this function. The company's revenue growth has been bolstered by the MRP acquisition and consistent expansion in Payroll Process Outsourcing (PPO) within Talent Solutions, contributing to an anticipated adjusted EBITDA margin expansion in the coming quarters. Furthermore, the hiring of a Chief Growth Officer to spearhead cross-selling and new customer acquisition efforts, along with projected efficiency-driven cost savings, underscores a positive trajectory for the company's financial performance into 2026.

Kelly Services Inc. reported a Q3/25 adjusted EPS decline of 14% year-over-year, landing significantly below both company estimates and consensus expectations. The company's Q4/25 revenue of $1.049 billion represented an 11.9% year-over-year decrease, and excluding discrete impacts, the underlying revenue also contracted by approximately 2%, contrary to previous growth expectations. Additionally, the Enterprise Talent Management segment, which constitutes the majority of revenue, experienced a substantial decline of 13.1% year-over-year, further exacerbating concerns about the company's overall financial health and outlook.