We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Robert Half Stock Gains 11.3% on Q3 Earnings Beat, Revenues Miss
Read MoreHide Full Article
Key Takeaways
Robert Half's Q3 earnings rose 14% y/y to 49 cents per share, beating estimates, while revenues grew 0.4%.
Talent Solutions revenues rose 2.3%, while improved margins and hiring demand supported RHI's profitability.
RHI projects Q4 revenues of $1.285B-$1.385B and EPS of 36-46 cents, signaling a continued hiring recovery.
Robert Half Inc. (RHI - Free Report) reported mixed third-quarter 2026 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
RHI’s earnings of 49 cents per share topped the Zacks Consensus Estimate by 4.3% and increased 14% year over year. Revenues of $1.36 billion missed the consensus estimate by 0.2% but rose 0.4% year over year.
Robert Half Inc. Price, Consensus and EPS Surprise
The earnings performance in the reported quarter reflected improving hiring demand, stronger Talent Solutions revenues and higher operating profitability. Talent Solutions returned to adjusted year-over-year revenue growth for the first time since 2022, increasing 1.6%. Protiviti continued to face revenue pressure, although demand for technology consulting and risk and compliance services improved.
However, investors remain optimistic following the earnings beat and a decent fourth-quarter 2026 revenue outlook, as the stock has gained 11.3% since the company released results on Oct. 22.
For the fourth quarter of 2026, Robert Half expects revenues to be between $1.285 billion and $1.385 billion, with the midpoint of $1.335 billion higher than the Zacks Consensus Estimate of $1.33 billion.
Over the past year, RHI's shares have gained 52.8%, outperforming the industry's 45.3% and the Zacks S&P 500 composite’s 11.5% growth.
Image Source: Zacks Investment Research
RHI's Talent Solutions Revenues Return to Growth
Talent Solutions revenues totaled $875.8 million, increasing 2.3% year over year. Contract Talent Solutions revenues rose 1.7% to $758.8 million, while Permanent Placement Talent Solutions revenues increased 6.2% to $116.9 million.
On an adjusted basis, Contract Talent Solutions revenues increased 1%, while Permanent Placement revenues grew 5.6%. Technology remained the strongest-performing contract practice, with adjusted revenues increasing 3.9%. Finance and accounting revenues grew 1.5%, while administrative and customer support revenues declined 3.1%.
Protiviti revenues totaled $483.5 million, declining 2.9% year over year. Adjusted revenues decreased 3.3%, reflecting continued softness in the U.S. business. However, technology consulting achieved record quarterly revenues, supported by demand for platform transformation, cybersecurity, data and artificial intelligence engagements.
Robert Half's Margins Improve
Contract Talent Solutions' gross margin improved to 39.3% from 38.9% in the prior-year quarter. Conversion revenues, representing contract-to-hire placements, accounted for 3.4% of contract revenues compared with 3.2% a year earlier.
Overall, Talent Solutions' gross margin increased to 47.4% from 46.7% year over year. Protiviti's reported gross margin improved to 24.2% from 20.9%. On an adjusted basis, Protiviti's gross margin increased to 24.1% from 23%, reflecting improved profitability despite lower revenues.
RHI's Operating Profitability Strengthens
Robert Half reported operating income of $74.8 million compared with $13.6 million in the year-ago quarter. Adjusted operating income increased to $72.6 million from $61.2 million, with the adjusted operating margin improving to 5.3% from 4.5% year over year.
Talent Solutions' adjusted operating income increased to $35.3 million from $24 million. Its adjusted operating margin improved to 4% from 2.8%. Protiviti generated adjusted operating income of $37.3 million, relatively unchanged year over year, while its adjusted operating margin improved to 7.7% from 7.5%.
Enterprise selling, general and administrative expenses declined to $457.2 million from $490.6 million. However, adjusted expenses increased to $458.8 million from $453.4 million. The adjusted expense ratio increased to 33.8% from 33.5% year over year. The effective tax rate remained approximately 33%.
Robert Half's Cash Flow & Financial Position
Robert Half ended the third quarter with cash and cash equivalents of $321.3 million compared with $365.3 million a year earlier. Accounts receivable stood at $826.2 million, down from $838 million in the prior-year period.
Cash flow from operating activities totaled $66 million during the quarter. The company distributed a quarterly cash dividend of 59 cents per share, returning approximately $59 million to shareholders. Return on invested capital was 17%.
RHI's Hiring Trends Show Continued Improvement
Management highlighted improving hiring activity amid gradually strengthening market conditions. Contract Talent Solutions revenues increased 1% year over year in September on an adjusted basis, while revenues for the first two weeks of October increased 2%.
Permanent Placement revenues increased 5% in September. The business maintained this growth rate during the first three weeks of October. Contract Talent Solutions bill rates increased 3.6% year over year compared with 2.3% growth in the preceding quarter.
Management also highlighted growing demand for specialized professionals supporting technology modernization, cybersecurity, data and artificial intelligence initiatives. Protiviti's risk and compliance business benefited from engagements involving improvements to anti-money laundering programs.
Robert Half's Other Q4 & 2026 Outlook
Management projects earnings per share between 36 cents and 46 cents, with the midpoint of 41 cents in line with the Zacks Consensus Estimate.
At the midpoint, management expects adjusted Talent Solutions revenues to increase 3% year over year, while Protiviti revenues are projected to grow 2%. The company anticipates adjusted operating margins between 3% and 5%.
For 2026, management expects capital expenditures and capitalized cloud computing costs between $60 million and $70 million, including $15 million to $20 million in the fourth quarter.
Equifax (EFX - Free Report) reported better-than-expected third-quarter 2026 results. EFX’s adjusted earnings per share of $2.26 outpaced the Zacks Consensus Estimate by 3.2% and increased 10.8% from the year-ago quarter. EFX’s revenues of $1.69 billion marginally surpassed the consensus estimate and improved 9.6% year over year.
ManpowerGroup (MAN - Free Report) posted mixed third-quarter 2026 results. MAN’s adjusted earnings of $1.01 per share matched the consensus mark and rose 21.7% from the year-ago quarter. MAN’s total revenues of $4.84 billion missed the consensus mark by 1.4% but increased 4.4% year over year.
View the Zacks #1 Rank List
Image: Bigstock
Robert Half Stock Gains 11.3% on Q3 Earnings Beat, Revenues Miss
Key Takeaways
Robert Half Inc. (RHI - Free Report) reported mixed third-quarter 2026 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
RHI’s earnings of 49 cents per share topped the Zacks Consensus Estimate by 4.3% and increased 14% year over year. Revenues of $1.36 billion missed the consensus estimate by 0.2% but rose 0.4% year over year.
Robert Half Inc. Price, Consensus and EPS Surprise
Robert Half Inc. price-consensus-eps-surprise-chart | Robert Half Inc. Quote
The earnings performance in the reported quarter reflected improving hiring demand, stronger Talent Solutions revenues and higher operating profitability. Talent Solutions returned to adjusted year-over-year revenue growth for the first time since 2022, increasing 1.6%. Protiviti continued to face revenue pressure, although demand for technology consulting and risk and compliance services improved.
However, investors remain optimistic following the earnings beat and a decent fourth-quarter 2026 revenue outlook, as the stock has gained 11.3% since the company released results on Oct. 22.
For the fourth quarter of 2026, Robert Half expects revenues to be between $1.285 billion and $1.385 billion, with the midpoint of $1.335 billion higher than the Zacks Consensus Estimate of $1.33 billion.
Over the past year, RHI's shares have gained 52.8%, outperforming the industry's 45.3% and the Zacks S&P 500 composite’s 11.5% growth.
Image Source: Zacks Investment Research
RHI's Talent Solutions Revenues Return to Growth
Talent Solutions revenues totaled $875.8 million, increasing 2.3% year over year. Contract Talent Solutions revenues rose 1.7% to $758.8 million, while Permanent Placement Talent Solutions revenues increased 6.2% to $116.9 million.
On an adjusted basis, Contract Talent Solutions revenues increased 1%, while Permanent Placement revenues grew 5.6%. Technology remained the strongest-performing contract practice, with adjusted revenues increasing 3.9%. Finance and accounting revenues grew 1.5%, while administrative and customer support revenues declined 3.1%.
Protiviti revenues totaled $483.5 million, declining 2.9% year over year. Adjusted revenues decreased 3.3%, reflecting continued softness in the U.S. business. However, technology consulting achieved record quarterly revenues, supported by demand for platform transformation, cybersecurity, data and artificial intelligence engagements.
Robert Half's Margins Improve
Contract Talent Solutions' gross margin improved to 39.3% from 38.9% in the prior-year quarter. Conversion revenues, representing contract-to-hire placements, accounted for 3.4% of contract revenues compared with 3.2% a year earlier.
Overall, Talent Solutions' gross margin increased to 47.4% from 46.7% year over year. Protiviti's reported gross margin improved to 24.2% from 20.9%. On an adjusted basis, Protiviti's gross margin increased to 24.1% from 23%, reflecting improved profitability despite lower revenues.
RHI's Operating Profitability Strengthens
Robert Half reported operating income of $74.8 million compared with $13.6 million in the year-ago quarter. Adjusted operating income increased to $72.6 million from $61.2 million, with the adjusted operating margin improving to 5.3% from 4.5% year over year.
Talent Solutions' adjusted operating income increased to $35.3 million from $24 million. Its adjusted operating margin improved to 4% from 2.8%. Protiviti generated adjusted operating income of $37.3 million, relatively unchanged year over year, while its adjusted operating margin improved to 7.7% from 7.5%.
Enterprise selling, general and administrative expenses declined to $457.2 million from $490.6 million. However, adjusted expenses increased to $458.8 million from $453.4 million. The adjusted expense ratio increased to 33.8% from 33.5% year over year. The effective tax rate remained approximately 33%.
Robert Half's Cash Flow & Financial Position
Robert Half ended the third quarter with cash and cash equivalents of $321.3 million compared with $365.3 million a year earlier. Accounts receivable stood at $826.2 million, down from $838 million in the prior-year period.
Cash flow from operating activities totaled $66 million during the quarter. The company distributed a quarterly cash dividend of 59 cents per share, returning approximately $59 million to shareholders. Return on invested capital was 17%.
RHI's Hiring Trends Show Continued Improvement
Management highlighted improving hiring activity amid gradually strengthening market conditions. Contract Talent Solutions revenues increased 1% year over year in September on an adjusted basis, while revenues for the first two weeks of October increased 2%.
Permanent Placement revenues increased 5% in September. The business maintained this growth rate during the first three weeks of October. Contract Talent Solutions bill rates increased 3.6% year over year compared with 2.3% growth in the preceding quarter.
Management also highlighted growing demand for specialized professionals supporting technology modernization, cybersecurity, data and artificial intelligence initiatives. Protiviti's risk and compliance business benefited from engagements involving improvements to anti-money laundering programs.
Robert Half's Other Q4 & 2026 Outlook
Management projects earnings per share between 36 cents and 46 cents, with the midpoint of 41 cents in line with the Zacks Consensus Estimate.
At the midpoint, management expects adjusted Talent Solutions revenues to increase 3% year over year, while Protiviti revenues are projected to grow 2%. The company anticipates adjusted operating margins between 3% and 5%.
For 2026, management expects capital expenditures and capitalized cloud computing costs between $60 million and $70 million, including $15 million to $20 million in the fourth quarter.
Robert Half currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Equifax (EFX - Free Report) reported better-than-expected third-quarter 2026 results. EFX’s adjusted earnings per share of $2.26 outpaced the Zacks Consensus Estimate by 3.2% and increased 10.8% from the year-ago quarter. EFX’s revenues of $1.69 billion marginally surpassed the consensus estimate and improved 9.6% year over year.
ManpowerGroup (MAN - Free Report) posted mixed third-quarter 2026 results. MAN’s adjusted earnings of $1.01 per share matched the consensus mark and rose 21.7% from the year-ago quarter. MAN’s total revenues of $4.84 billion missed the consensus mark by 1.4% but increased 4.4% year over year.