Finance
Sodexo warns on revenue growth, Trump impact
Published by Global Banking & Finance Review®
Posted on July 1, 2025
2 min readLast updated: January 23, 2026
Quick Summary
Sodexo warns of lower revenue growth due to potential impacts from Trump's policies on its U.S. university and healthcare sectors.
Sodexo Adjusts Revenue Growth Forecast Amid Trump Policy Concerns
By Dimitri Rhodes and Etienne Breban
(Reuters) -French food caterer Sodexo on Tuesday said it expects revenue and margin growth to be at the lower end of its 2025 forecasts and warned U.S. President Donald Trump's policies could impact its universities and healthcare business.
On a call with reporters, Chief Financial Officer Sébastien de Tramasure cited a slowdown in the company's education business, in part due to a lower-than-expected increase in university enrollments.
Lower enrolment in the group's portfolio of universities, mainly concentrated in the U.S. Northeast and Midwest, had been flagged as a headwind by the company in March.
Asked about the possible impact of polices pursued by U.S. President Donald Trump, de Tramasure said: "These mainly affect two segments: universities and healthcare, and there could indeed be effects related to reductions in federal aid and subsidies."
"For now, we have not observed any impact on our activities but the climate of uncertainty is never positive and we will be watching developments in the United States very closely," he added.
Sodexo, which generates 47% of its revenue in North America, in March issued a profit warning due to a weak performance in its education and healthcare businesses in the region.
Organic growth in North America slowed down to 1.2% in the third quarter from 9% growth a year earlier, impacted by prior contract losses, Sodexo said on Tuesday.
Sodexo's revenue was 6.12 billion euros ($7.21 billion) in the third quarter through May 31, up from 6.07 billion euros last year, and slightly above the 6.11 billion euros seen in a company-compiled consensus.
The company had previously guided for 2025 organic revenue growth of between 3% and 4% and an underlying operating profit margin increase of 10 to 20 basis points (bps).
($1 = 0.8485 euros)
(Reporting by Dimitri Rhodes and Etienne Breban; Editing by Matt Scuffham)
Key Takeaways
- •Sodexo expects lower revenue and margin growth by 2025.
- •Trump's policies may impact Sodexo's U.S. university and healthcare sectors.
- •Sodexo reported a slowdown in North American organic growth.
- •Revenue for the third quarter was slightly above expectations.
- •Sodexo generates 47% of its revenue in North America.
Frequently Asked Questions about Sodexo warns on revenue growth, Trump impact
1What did Sodexo warn about regarding its revenue growth?
Sodexo warned that it expects revenue and margin growth to be at the lower end of its 2025 forecasts.
2How has the education business affected Sodexo's performance?
The company cited a slowdown in its education business due to lower-than-expected increases in university enrollments, particularly in the U.S. Northeast and Midwest.
3What percentage of Sodexo's revenue comes from North America?
Sodexo generates 47% of its revenue in North America.
4What was the organic growth rate for Sodexo in North America?
Organic growth in North America slowed down to 1.2% in the third quarter, down from 9% growth a year earlier.
5What impact could U.S. policies have on Sodexo's business?
Sodexo's CFO mentioned that U.S. policies, particularly those from President Trump, could affect the universities and healthcare segments, creating a climate of uncertainty.
