ManpowerGroup (MAN) shares plummeted 5.05% in Friday's intraday trading following the release of its third-quarter earnings report for 2025. While the workforce solutions provider beat Wall Street's revenue expectations with sales up 2.3% year-on-year to $4.63 billion, its GAAP profit of $0.38 per share fell significantly short, missing analysts' consensus estimates by 53.3%.

The sharp decline in stock price can be attributed to several factors highlighted in the earnings report. ManpowerGroup faced considerable gross margin pressure due to a shift in client mix towards larger enterprise accounts, which typically command lower margins. Additionally, the company experienced weakness in permanent recruitment and outplacement services, reflecting a "frozen" labor market with limited hiring and workforce reductions in North America and Europe. These factors contributed to the substantial earnings miss despite revenue growth.

In response to the disappointing results, several analysts have lowered their price targets for ManpowerGroup. Barclays cut its target price to $42 from $50, while maintaining a Hold rating. UBS adjusted its price target to $39 from $40, keeping a Neutral stance. Goldman Sachs also reduced its target to $33 from $37, reiterating a Sell rating. The series of downgrades and maintained cautious ratings have further pressured the stock, as investors reassess the company's near-term growth prospects in light of the challenging labor market conditions.