Kelly Services (NASDAQ:KELYA) Issues Quarterly Earnings Results

Key Points

• Kelly Services beat quarterly expectations: EPS came in at $0.37 versus the $0.18 consensus, while revenue reached $1.04 billion, ahead of the $1.01 billion estimate.
• Profitability declined year over year: EPS fell from $0.52 in the prior-year period, and the company reported a negative net margin of 6.73%. Third-quarter revenue guidance of $916.3 million to $935.0 million was broadly in line with analyst expectations.
• The company maintained its dividend: Kelly declared a quarterly payment of $0.075 per share, equivalent to $0.30 annually and an approximately 2% yield. Analysts’ overall rating remains “Hold,” with a $15 consensus price target.

Kelly Services (NASDAQ:KELYA - Get Free Report) posted its quarterly earnings data on Thursday. The business services provider reported $0.37 EPS for the quarter, topping analysts' consensus estimates of $0.18 by $0.19, FiscalAI reports. The company had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $1.01 billion. Kelly Services had a negative net margin of 6.73% and a positive return on equity of 2.69%. During the same period in the prior year, the business posted $0.52 EPS.

Kelly Services Stock Performance

NASDAQ KELYA traded down $0.43 during trading on Friday, reaching $15.19. 341,588 shares of the company's stock were exchanged, compared to its average volume of 357,639. The business has a 50 day moving average price of $13.37 and a 200-day moving average price of $10.94. The stock has a market capitalization of $526.64 million, a P/E ratio of -1.94, a PEG ratio of 1.15 and a beta of 0.83. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.50 and a quick ratio of 1.59. Kelly Services has a fifty-two week low of $7.98 and a fifty-two week high of $17.75.

Kelly Services Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 2nd. Investors of record on Wednesday, August 19th will be issued a dividend of $0.075 per share. The ex-dividend date is Wednesday, August 19th. This represents a $0.30 dividend on an annualized basis and a yield of 2.0%. Kelly Services's dividend payout ratio (DPR) is presently -3.95%.

Analyst Upgrades and Downgrades

KELYA has been the topic of a number of recent research reports. Weiss Ratings downgraded Kelly Services from a "sell (d)" rating to a "sell (d-)" rating in a research report on Monday, May 11th. Barrington Research reissued an "outperform" rating on shares of Kelly Services in a research report on Monday, June 29th. Finally, Zacks Research upgraded Kelly Services from a "strong sell" rating to a "hold" rating in a research note on Monday, April 20th. Two investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $15.00.

Key Stories Impacting Kelly Services

Here are the key news stories impacting Kelly Services this week:

• Positive Sentiment: Second-quarter results exceeded expectations. Kelly reported adjusted earnings of $0.37 per share, above analyst estimates ranging from $0.18 to $0.24, while revenue of $1.04 billion surpassed the $1.01 billion consensus. The earnings beat provides a positive catalyst for the stock. Kelly Services Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Kelly maintained its quarterly dividend. Shareholders of record on August 19 will receive $0.075 per share on September 2, equivalent to $0.30 annually and a yield of approximately 1.9%. The dividend supports the stock’s income appeal.
• Neutral Sentiment: Management issued third-quarter revenue guidance of $916.3 million to $935.0 million. The midpoint of approximately $925.7 million is close to, but slightly below, the $929.3 million analyst consensus, suggesting broadly stable expectations but limited near-term upside from revenue growth.
• Negative Sentiment: Profitability weakened compared with last year. Second-quarter EPS declined from $0.52 in the prior-year period to $0.37, despite the estimate beat. Kelly also continued to report a negative net margin, which may be weighing on investor sentiment and offsetting the headline earnings surprise. Kelly Reports Second-Quarter 2026 Earnings

Insider Transactions at Kelly Services

In other news, EVP Vanessa Peterson Williams sold 29,999 shares of the firm's stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $9.78, for a total value of $293,390.22. Following the completion of the sale, the executive vice president directly owned 82,355 shares of the company's stock, valued at $805,431.90. This trade represents a 26.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. 5.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Kelly Services

Several hedge funds have recently added to or reduced their stakes in the business. Private Management Group Inc. raised its position in shares of Kelly Services by 101.8% in the fourth quarter. Private Management Group Inc. now owns 1,268,649 shares of the business services provider's stock valued at $11,164,000 after purchasing an additional 640,076 shares during the period. Charles Schwab Investment Management Inc. grew its stake in Kelly Services by 39.9% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,908,900 shares of the business services provider's stock valued at $16,798,000 after buying an additional 544,309 shares during the last quarter. Millennium Management LLC raised its holdings in Kelly Services by 594.2% in the 4th quarter. Millennium Management LLC now owns 623,723 shares of the business services provider's stock valued at $5,489,000 after acquiring an additional 533,873 shares during the period. JPMorgan Chase & Co. raised its holdings in Kelly Services by 1,328.6% in the 3rd quarter. JPMorgan Chase & Co. now owns 412,211 shares of the business services provider's stock valued at $5,408,000 after acquiring an additional 383,357 shares during the period. Finally, Bank of America Corp DE lifted its position in Kelly Services by 186.9% during the third quarter. Bank of America Corp DE now owns 482,702 shares of the business services provider's stock worth $6,333,000 after acquiring an additional 314,447 shares during the last quarter. Institutional investors and hedge funds own 76.34% of the company's stock.

About Kelly Services

Kelly Services, Inc is a global workforce solutions provider specializing in talent acquisition and staffing services across a wide range of industries. The company offers temporary staffing, permanent placement, outsourcing solutions, and consulting services to help organizations address their workforce needs. Its service offerings are designed to support clients in areas such as administrative support, information technology, engineering, science, education, healthcare, and industrial sectors.

Founded in 1946 by William Russell Kelly, Kelly Services has grown from a small local staffing firm into an international organization.

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