It has been about a month since the last earnings report for Robert Half (RHI Quick QuoteRHI - Free Report) . Shares have lost about 9.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Robert Half due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Robert Half Inc. before we dive into how investors and analysts have reacted as of late.

Robert Half Q2 Earnings Beat Estimates

Robert Half International reported impressive second-quarter fiscal 2026 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

Quarterly earnings of 41 cents per share beat the consensus mark by 2.5% but declined 37.9% year over year. Revenues of $1.37 billion outpaced the consensus mark by 1.4% but decreased 7% year over year.  

RHI's Talent Solutions Revenues Down, Protiviti Up

Talent Solutions’ revenues of $874.521 million decreased 11.3% year over year on an as-adjusted basis and came in below our estimate of $914.2 million. U.S. Talent Solutions’ revenues were $668 million, down 11% year over year. Non-U.S. Talent Solutions revenues also declined 13% year over year on an adjusted basis to $207 million.

Protiviti revenues came in at $495.2 million, up 2% year over year on an as-adjusted basis but below our expectation of $503.1 million. The U.S. Protiviti revenues of $396 million decreased 1% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $99 million were up 11% year over year on an as-adjusted basis.

Currency exchange rate movements during the second quarter increased year-over-year total revenues by $8 million, and $4 million for both talent solutions and Protiviti. The quarter had 63.2 billing days compared with 63.5 billing days in the year-ago quarter.

RHI's Margins Contract

The adjusted gross profit in the quarter was $522.3 million, down 9.9% year over year. The adjusted gross profit margin of 39.1% declined 210 basis points year over year.

RHI's Key Balance Sheet and Cash Flow Figures

Robert Half ended the quarter with a cash and cash equivalent balance of $380.6 million compared with $547.4 million in the second quarter of 2024. Operating cash in the quarter was $119 million, and capital expenditures were $15.2 million. RHI paid out $59 million in dividends.

Robert Half's Q3 & 2025 Guidance

For the third quarter of 2025, Robert Half expects revenues in the band of $1.31-$1.41 billion. EPS is expected between 37 cents and 47 cents.

Moreover, the company anticipates 64.2 billing days compared to 64.1 billing days during the third quarter of 2024. Capital expenditures, including capitalized cloud computing costs, are projected to range between $15 million and $25 million during the same period.

For 2025, capital expenditures and capitalized cloud computing costs are expected to be $75 million to $90 million, with $15 million to $25 million in the third quarter. The estimated full-year tax rate is projected between 31% and 35%.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -20.19% due to these changes.

VGM Scores

Currently, Robert Half has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Robert Half has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.