BMO Capital Adjusts Robert Half (RHI) Forecast as Profit Recovery Slows

Robert Half Inc. (NYSE:RHI) is included among the 13 Most Promising Long-Term Stocks to Buy According to Hedge Funds.

On February 17, BMO Capital lowered its price recommendation on Robert Half Inc. (NYSE:RHI) to $32 from $35. The firm reiterated a Market Perform rating on the shares following the company’s 10K disclosures. In a research note, the analyst said a $17 million cost-action charge is expected to slow the pace of profitability improvement into Q2 2026. This development made the firm’s earlier forecast look “overly aggressive.”

During the company’s Q4 2025 earnings call, CEO M. Waddell said global enterprise revenue totaled $1.302 billion. This represented a 6% decline from the same period last year on a reported basis and a 7% decrease on an adjusted basis. Even with the year-over-year drop, Waddell pointed to signs of stabilization. The company delivered positive sequential revenue growth on a same-day constant currency basis. He noted this was the first time that had happened in more than three years. He also said both revenue and earnings came in above the midpoint of the company’s prior guidance.

Waddell said the company remains well-positioned to capture new opportunities. He highlighted the strength of Robert Half’s brand, workforce, technology, and business model. These factors continue to support clients as they navigate hiring and consulting needs. The company also generated strong cash flow during the quarter. Operating cash flow reached $183 million, up 18% compared with Q4 2024. Robert Half returned capital to shareholders by paying a dividend of $0.59 per share.

Robert Half Inc. (NYSE:RHI) provides talent solutions and business consulting services through its Robert Half and Protiviti brands. Its operations are organized into three segments: contract talent solutions, permanent placement talent solutions, and Protiviti.

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