5 February 2026
If you are covering Compass' latest results please see the following commentary from Mamta Valechha, consumer discretionary analyst at Quilter Cheviot:
"Compass has reported a solid Q1 trading update, coming in slightly ahead of consensus expectations of 7.1% organic revenue growth. Group organic revenue rose 7.3%, with strong contributions from both North America and International operations.
"Performance was broad-based across sectors, with Business & Industry delivering double-digit organic growth in North America, supported by robust first-time outsourcing wins and continued expansion within the technology sector. This should help to ease some of the market’s concerns around potential future volume pressures linked to AI-driven job losses or the impact of weight loss drugs.
"Retention remains strong at over 96%, and net new business wins were within the group’s targeted 4–5% range, with particular strength in North America. Pricing moderated as expected in a lower inflation environment, although volumes continued to contribute positively to overall growth.
"The 2026 guidance set out in November has been reaffirmed. The company continues to target operating profit growth of 10%, driven by 7% organic growth, around 2% from M&A activity and some further margin progression.
"Compass also announced its intention to change the trading currency of its ordinary shares on the London Stock Exchange from sterling to US dollars. Aligning the share price trading currency with its reporting currency should help reduce FX-related volatility in the share price. The change will not impact its LSE listing and dividends will continue to be paid in sterling unless shareholders elect to receive them in US dollars.
"Overall, we continue to like Compass. It has a resilient, sector-agnostic and highly diversified business model, is asset light and benefits from significant scale. The group remains well placed to benefit from any further increase in outsourcing driven by ongoing macroeconomic pressures. At around 20.5x forward earnings, the valuation remains attractive relative to its three-year average of 25x."
