Compass Group (LSE:CPG), the global food services group, delivered organic revenue growth of 7.1% for the third quarter ended 30 June, with net new business growth accelerating into its 4-5% target range.
Client retention held at 96%, and the company said it remains on track to deliver net new growth at that level for a fifth consecutive year.
North America saw a modest volume boost from the Football World Cup, while like-for-like growth in the International region moderated on lower inflation and Sports & Leisure calendar timing.
Business & Industry remained the strongest performing sector with double-digit organic growth, generating more than $2bn in new business over the past 12 months, including work supporting AI hyperscalers across data centre construction and operations. Education won its largest contract to date with the University of Kentucky, and six of Compass's top 20 North American new business wins this year came from Healthcare & Senior Living.
Capital expenditure is tracking around 3.5% of sales year to date, though the company expects this to run slightly higher for the full year due to client mobilisation timing. Net M&A spend stood at $2.4bn for the year to date, broadly unchanged since the half-year.
Compass reiterated 2026 guidance for underlying operating profit growth above 11% in constant currency, built on around 7% organic revenue growth, around 2% from M&A, and ongoing margin progression.
"With an addressable market exceeding $360bn and significant opportunities to further increase penetration, we remain confident in delivering another year of strong earnings growth and continued margin progression," said chief executive Dominic Blakemore.
Compass reports full-year results on 24 November.
News Intelligence what this means for the company
Compass Group delivered Q3 organic revenue growth of 7.1% and reiterated full-year 2026 profit guidance for above 11% growth, anchored on ~7% organic revenue expansion plus ~2% from M&A. Net new business accelerated into its 4-5% target range, client retention held at 96%, and the company is on track for a fifth consecutive year at that net new growth level—a consistency metric that underpins the earnings outlook.
The quarter confirms Compass is executing to plan: organic growth in line with H1 (7.2%), net new business back in target range after moderation, and no change to the 11%+ profit growth guidance despite modest headwinds in International from lower inflation and calendar timing. The $2bn in new Business & Industry wins over 12 months (including AI hyperscaler data-centre work) and Healthcare's six top-20 wins suggest the company is capturing structural demand shifts, though full-year results on 24 November will test whether margin progression and M&A integration remain on track.
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