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Robert Half's (RHI) Q4 Earnings Surpass Estimates, Decline Y/Y
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Key Takeaways
RHI beat Q4 EPS estimates and topped revenue expectations, sending shares up 12.5%.
Robert Half guided Q1 2026 revenues above consensus at the midpoint, signaling stabilization.
RHI saw broad revenue declines across talent solutions and Protiviti, with margins down 100 basis points.
Shares of Robert Half International Inc. (RHI - Free Report) surged 12.5% in after-hours trading as the company delivered what the market wanted most: a clear earnings beat and strong revenue guidance, even against a softer year-over-year backdrop.
RHI reported quarterly EPS of 32 cents, beating the consensus by 6.7%, while revenues came in at $1.3 billion, modestly topping expectations. Both metrics declined year over year, with EPS falling 39.6% and revenues down 5.8%. However, investors focused on forward momentum rather than declines.
Robert Half Inc. Price, Consensus and EPS Surprise
Optimism also came from guidance. For the first quarter of 2026, RHI guided revenues of $1.26-$1.36 billion, with the midpoint ($1.31 billion) above the Zacks Consensus Estimate of $1.29 billion, signaling stabilization and potential demand improvement. While EPS guidance of 8 cents–18 cents landed slightly below consensus at the midpoint, the market appeared willing to tolerate near-term margin pressure in exchange for top-line resilience.
Management also outlined capital discipline, with first-quarter capex and capitalized cloud costs of $10 million to $20 million, and full-year 2026 spending of $70 million to $90 million, alongside normalized tax rates later in the year.
Quarter Details
Contract Talent Solutions’ revenues of $720.8 million decreased 8.2% year over year on an as-adjusted basis but came in above our estimate of $698.2 million. Permanent placement talent solutions’ revenues of $102.6 million were down 5.1% year over year and lagged our estimate of $103 million. Total U.S. Talent Solutions’ revenues were $623 million, down 9% year over year. Non-U.S. Talent Solutions revenues also declined 8% year over year on an adjusted basis to $200 million.
Protiviti revenues came in at $479 million, down 3% year over year on an as-adjusted basis and below our expectation of $482.5 million.
Currency exchange rate movements had a significant impact on revenues in the quarter, increasing reported year-over-year total revenues by $15 million. The quarter had 61.4 billing days compared with 61.6 billing days in the year-ago quarter.
The adjusted gross profit in the quarter was $494.1 million, down 8% year over year. The adjusted gross profit margin of 37.9% declined 100 basis points on a year-over-year basis.
Robert Half ended the quarter with a cash and cash equivalents balance of $99.1 million. Cash flow provided by operations was $183 million, and capital expenditures were $11.7 million. RHI paid out $59 million in dividends.
Robert Half currently carries a Zacks Rank #5 (Strong Sell).
TT’s quarterly earnings of $2.86 per share beat the Zacks Consensus Estimate by 1.4% and increased 9.6% from the year-ago quarter. Total revenues of $5.1 billion surpassed the consensus estimate by 1.3% and rallied 5.5% from the year-ago quarter.
Booz Allen Hamilton (BAH - Free Report) registered mixed results for the third-quarter fiscal 2026.
BAH’s earnings per share of $1.77 beat the consensus mark by 40.5% and increased 14.2% from the year-ago quarter. Revenues of $2.6 billion missed the Zacks Consensus Estimate by 3.9% and declined 10.2% from the year-ago quarter.
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Robert Half's (RHI) Q4 Earnings Surpass Estimates, Decline Y/Y
Key Takeaways
Shares of Robert Half International Inc. (RHI - Free Report) surged 12.5% in after-hours trading as the company delivered what the market wanted most: a clear earnings beat and strong revenue guidance, even against a softer year-over-year backdrop.
RHI reported quarterly EPS of 32 cents, beating the consensus by 6.7%, while revenues came in at $1.3 billion, modestly topping expectations. Both metrics declined year over year, with EPS falling 39.6% and revenues down 5.8%. However, investors focused on forward momentum rather than declines.
Robert Half Inc. Price, Consensus and EPS Surprise
Robert Half Inc. price-consensus-eps-surprise-chart | Robert Half Inc. Quote
Optimism also came from guidance. For the first quarter of 2026, RHI guided revenues of $1.26-$1.36 billion, with the midpoint ($1.31 billion) above the Zacks Consensus Estimate of $1.29 billion, signaling stabilization and potential demand improvement. While EPS guidance of 8 cents–18 cents landed slightly below consensus at the midpoint, the market appeared willing to tolerate near-term margin pressure in exchange for top-line resilience.
Management also outlined capital discipline, with first-quarter capex and capitalized cloud costs of $10 million to $20 million, and full-year 2026 spending of $70 million to $90 million, alongside normalized tax rates later in the year.
Quarter Details
Contract Talent Solutions’ revenues of $720.8 million decreased 8.2% year over year on an as-adjusted basis but came in above our estimate of $698.2 million. Permanent placement talent solutions’ revenues of $102.6 million were down 5.1% year over year and lagged our estimate of $103 million. Total U.S. Talent Solutions’ revenues were $623 million, down 9% year over year. Non-U.S. Talent Solutions revenues also declined 8% year over year on an adjusted basis to $200 million.
Protiviti revenues came in at $479 million, down 3% year over year on an as-adjusted basis and below our expectation of $482.5 million.
Currency exchange rate movements had a significant impact on revenues in the quarter, increasing reported year-over-year total revenues by $15 million. The quarter had 61.4 billing days compared with 61.6 billing days in the year-ago quarter.
The adjusted gross profit in the quarter was $494.1 million, down 8% year over year. The adjusted gross profit margin of 37.9% declined 100 basis points on a year-over-year basis.
Robert Half ended the quarter with a cash and cash equivalents balance of $99.1 million. Cash flow provided by operations was $183 million, and capital expenditures were $11.7 million. RHI paid out $59 million in dividends.
Robert Half currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Trane Technologies (TT - Free Report) reported impressive fourth-quarter 2025 results.
TT’s quarterly earnings of $2.86 per share beat the Zacks Consensus Estimate by 1.4% and increased 9.6% from the year-ago quarter. Total revenues of $5.1 billion surpassed the consensus estimate by 1.3% and rallied 5.5% from the year-ago quarter.
Booz Allen Hamilton (BAH - Free Report) registered mixed results for the third-quarter fiscal 2026.
BAH’s earnings per share of $1.77 beat the consensus mark by 40.5% and increased 14.2% from the year-ago quarter. Revenues of $2.6 billion missed the Zacks Consensus Estimate by 3.9% and declined 10.2% from the year-ago quarter.