Compass Group, the world’s largest food services company, has upgraded its profit outlook for 2026 after strong contract wins and steady demand for workplace dining helped offset growing uncertainty linked to artificial intelligence’s impact on office-based industries.
The company, which provides catering services to major firms including Google, Amazon and Microsoft, now expects full-year underlying operating profit growth of more than 11%, up from a previous forecast of around 10%. Its shares rose by over 4% in early trading following the announcement.
The stronger outlook highlights continued resilience in the outsourced catering sector, where businesses are increasingly turning to external providers to manage costs and streamline operations. Compass said roughly half of its $4.1 billion in new business came from first-time clients, reflecting broad-based demand across multiple industries.
Chief executive Dominic Blakemore said earlier this year that the company is closely monitoring potential risks from artificial intelligence, particularly as around 20% of its revenue is linked to clients in technology, finance and professional services. These sectors are seen as more exposed to changes in office attendance patterns and workforce structures driven by AI adoption.
Despite these concerns, Compass said its diversified operations leave it well positioned to adapt. The group has expanded into defence catering, airline lounges outside North America, and global data centre services as part of a strategy to reduce reliance on traditional office environments.
The company is also assessing longer-term trends, including the rising use of GLP-1 weight-loss medications, which have raised questions about potential shifts in food consumption. Compass noted that while it serves a wide range of dining formats, from corporate cafeterias to premium hospitality, it has not seen any material impact on demand so far.
For the six months ending March 31, Compass reported a 12% rise in underlying operating profit to $1.84 billion. Growth was supported by synergies from recent acquisitions, including its largest deal to date, the purchase of European premium food services company Vermaat. Organic revenue rose by 7.2% over the period.
The results stand in contrast to French competitor Sodexo, which recently lowered its annual sales and profitability forecasts, citing operational challenges and contract adjustments.
Compass said its performance reflects continued investment in expansion and efficiency, while reinforcing its confidence in long-term demand for outsourced catering services despite shifting technological and workplace trends.
