Business 5 min read By Alice Ashford
Michael Page returns to growth in Q3 2026 but shares slip on cautious outlook
Recruitment group Michael Page reported a return to net fee growth in the third quarter of 2026, driven by its technology and healthcare practices, but its share price fell as management flagged continued uncertainty in the UK and European markets.
Michael Page International has reported a return to net fee growth in the third quarter of 2026, ending a period of decline that had weighed on the recruitment group's performance. The company said net fees rose on a constant currency basis, driven by strong demand in its technology and healthcare practices, according to an earnings call transcript.
The result marks a modest turnaround for the FTSE 250 recruiter, which had faced challenging conditions across several of its key markets. However, the positive headline figure was not enough to lift investor sentiment, with the company's shares slipping following the release of the trading update.
Management pointed to a mixed regional picture. Growth in continental Europe and parts of Asia was offset by continued weakness in the UK, where businesses remain cautious about hiring permanent staff amid ongoing economic uncertainty. The UK market has been a persistent drag on Michael Page's performance, with clients opting for temporary and contract roles rather than committing to long-term hires.
The technology and healthcare sectors emerged as the standout performers, reflecting broader trends in the labour market where demand for specialist skills remains resilient despite wider economic headwinds. The company's focus on these higher-margin areas has been a strategic priority in recent years.
On the earnings call, executives highlighted that while conditions are stabilising, visibility remains limited. They noted that clients are still taking longer to make hiring decisions, and that the recovery is uneven across different geographies and industry verticals. This cautious tone likely contributed to the share price decline, as investors had hoped for a more robust rebound.
Michael Page has undergone significant restructuring in recent years, streamlining its operations and investing in digital capabilities to better compete in an evolving recruitment landscape. The company has also been expanding its presence in markets such as the Middle East and Latin America, where growth prospects are perceived to be stronger.
The recruitment sector as a whole has been navigating a complex environment. While unemployment remains relatively low in many developed economies, businesses are hesitant to expand headcount aggressively given elevated interest rates and subdued economic growth forecasts. This has created a challenging backdrop for staffing firms, which typically benefit from high levels of labour market mobility.
Analysts had expected a gradual improvement in Michael Page's performance, but the pace of recovery appears to be slower than some had anticipated. The company's shares have underperformed the wider market this year, reflecting concerns about its exposure to cyclical markets and its ability to deliver sustainable growth.
Looking ahead, Michael Page said it remains focused on cost discipline and operational efficiency while continuing to invest in areas with long-term growth potential. The company did not provide specific guidance for the full year, but indicated that it expects trading conditions to remain broadly similar in the near term.
The earnings call also touched on broader macroeconomic themes, including the impact of geopolitical tensions on business confidence and the potential for further volatility in currency markets. Michael Page generates a significant portion of its revenue outside the UK, making it sensitive to exchange rate fluctuations.
Despite the challenges, the return to growth in net fees represents a positive development for the company. It suggests that the recruitment market may be stabilising after a prolonged period of uncertainty. However, the muted share price reaction indicates that investors are not yet convinced that a sustained recovery is underway.
Michael Page will need to demonstrate consistent growth across its key markets to regain investor confidence. The coming quarters will be closely watched for signs that the recovery is gaining traction, particularly in the UK and Europe where conditions remain most difficult.
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