Bear of the Day: Robert Half (RHI)

Robert Half Inc. RHI has had a tough year. This Zacks Rank #5 (Strong Sell) is expected to see another earnings decline of 45.5% in 2025. But is the worst over?

Robert Half is a specialized talent solutions and business consulting firm, connecting highly skilled job seekers with opportunities in finance and accounting, technology, marketing and creative, legal, and administrative and customer support. The company also provides executive search services.

Robert Half is the parent of Protiviti, a global consulting firm that delivers internal audit, risk, business and technology consulting solutions.

Robert Half Sees First Sequential Revenue Gain in Over 3 Years in Q3

On Oct 22, 2025, Robert Half reported third quarter 2025 results and met on the Zacks Consensus of $0.43. It was the second meet, or beat, in a row.

However, revenue fell year-over-year to $1.35 billion from $1.47 billion a year ago. Over the 9-month period, it’s fallen to $4.08 billion from $4.41 billion in 2024.

"Client and job seeker caution continued during the quarter, subduing hiring activity and new project starts," said M. Keith Waddell, CEO at Robert Half.

That said, the company was encouraged by weekly trends in contract talent revenue which began to grow sequentially in Sep and Oct.

Robert Half has guided for a return to sequential revenue growth in the fourth quarter of 2025 on a same-day constant currency basis for the first time since the second quarter of 2022.

It’s been a long period of revenue decline. Could this finally be a sign that the bottom is here?

Analysts Cut Estimates Again on Robert Half in 2025 and 2026

3 estimates were cut for both 2025 and 2026 in the last 30 days, with none being raised.

The analysts are looking for $1.33 in 2025, down from $1.39 in the last month. That is an earnings decline of 45.5% as the company made $2.44 last year.

However, in 2026, the analysts see a turnaround, even though they are still lowering estimates. The Zacks Consensus is looking for $1.85, up 38.9% year-over-year. That is down from $2.23 in the last month but at least it is looking for an earnings increase for the year.

Here’s what it looks like on the price, consensus and surprise chart for the prior 5 years.

Shares of Robert Half Near 5-Year Lows

It’s been tough being an investor in Robert Half the last few years. Shares are down another 62.4% year-to-date.

The stock isn’t that cheap. It trades with a forward price-to-earnings (P/E) of 19.8. A P/E under 15 is often considered to be a sign of value.

Robert Half is also shareholder friendly. It pays a dividend, currently yielding about 9%. This dividend is payable to shareholders of record on Nov 25, 2025, and will be paid on Dec 15, 2025.

A dividend of that size could be a warning sign on a stock. It is paying out $2.36 per share but is only expected to bring in $1.85 per share in earnings in 2026.

For investors looking for turnaround plays, they should keep Robert Half on their watch list but might want to wait for a bigger turnaround in earnings and sales.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research