Robert Half International Stock Barely Moves Since Q3 Earnings

Robert Half International Inc. RHI reported third-quarter fiscal 2026 results, wherein earnings and revenues met the Zacks Consensus Estimate.

The stock failed to impress the market as it has barely moved since the earnings release on Oct. 22.

Quarterly earnings of 43 cents per share met the consensus mark but declined 32.8% year over year. Revenues of $1.35 billion came in line with the consensus mark but decreased 7.5% year over year.  

Robert Half Inc. Price, Consensus and EPS Surprise

Robert Half Inc. price-consensus-eps-surprise-chart | Robert Half Inc. Quote

The company’s shares have depreciated 58.5% in the year-to-date period compared with the  Staffing Firms industry’s 34% decline and the 14.9% rise of the Zacks S&P 500 composite.

RHI’s Talent Solutions Revenues Down, Protiviti Up

Talent Solutions’ revenues of $856.35 million decreased 11% year over year on an as-adjusted basis and came in below our estimate of $914.2 million. U.S. Talent Solutions’ revenues were $649 million, down 11% year over year. Non-U.S. Talent Solutions revenues also declined 12% year over year on an adjusted basis to $207 million.

Protiviti revenues came in at $498 million, down 3% year over year on an as-adjusted basis but below our expectation of $503.1 million. The U.S. Protiviti revenues of $398 million decreased 6% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $100 million were up 8% year over year on an as-adjusted basis.

Currency exchange rate movements during the third quarter increased year-over-year total revenues by $9 million and $6 million for both Talent Solutions and Protiviti. The quarter had 64.2 billing days compared with 64.1 billing days in the year-ago quarter.

RHI’s Margins Contract

The adjusted gross profit in the quarter was $514.65 million, down 10.9% year over year. The adjusted gross profit margin of 38.9% remained flat on a year-over-year basis.

RHI’s Key Balance Sheet and Cash Flow Figures

Robert Half ended the quarter with a cash and cash equivalent balance of $365.3 million compared with $570.47 million in the third quarter of 2024. Cash flow provided by operations during the quarter was $77 million and capital expenditures were $41.4 million. RHI paid out $59 million in dividends.

Robert Half’s Q4 and 2025 Guidance

For the fourth quarter of 2025, Robert Half expects revenues in the band of $1.245-$1.345 billion. The midpoint ($1.295 billion) of the guided range is just above the current Zacks Consensus Estimate of $1.29 billion.

EPS is expected between 25 cents and 35 cents. The Zacks Consensus Estimate is currently pegged higher at 38 cents.

Moreover, the company anticipates 61.4 billing days compared with 61.6 billing days during the fourth 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. The estimated full-year tax rate is projected between 30% and 34%.

The company currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Omnicom Group Inc. OMC reported impressive third-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

Earnings of $2.15 per share beat the consensus estimate by 4.2% and increased 10.3% year over year. Total revenues of $4.04 billion surpassed the consensus estimate by 0.4% and rose 4% year over year. The increase in the top line was led by a jump of 2.6% in revenues from organic growth.

ManpowerGroup, Inc. MAN reported impressive third-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

Quarterly adjusted earnings per share (EPS) came in at 83 cents, which beat the Zacks Consensus Estimate by 1.2% but decreased 35.7% year over year. Total revenues of $4.63 billion surpassed the consensus estimate by 0.6% and rose 2.3% year over year. 

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This article originally published on Zacks Investment Research (zacks.com).

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