Sodexo Reports 3.5% Organic Growth Amid Challenges

Sodexo SA reported steady growth in its Q2 earnings for fiscal year 2025, with a 3.5% increase in internal revenue and a 6.4% rise in operating profit, despite challenges in certain sectors, particularly in North America and education. The company's total revenue reached €12.48 billion, reflecting a year-over-year increase of 3.1%. Analysts remain optimistic, projecting an average price target of $93.62 for Sodexo's shares, indicating a potential upside of 641.83% from the current price. Free cash flow, however, was a concern, coming in at negative €234 million, which was worse than previous estimates and last year's figures. Despite these challenges, Sodexo has maintained its organic growth target of 3-4% for the full fiscal year, while net debt has increased to €3.4 billion. The company continues to focus on strategic plans to enhance its performance and predictability while navigating current market conditions.