Robert Half Delivers $0.32 EPS on $1.302B Revenue; Sequential Growth Returns
Robert Half International reported Q4 EPS of $0.32 on $1.302 billion revenue, topping consensus and despite a 6% year-over-year revenue decline. Talent Solutions and enterprise revenues returned to positive sequential growth for the first time in over three years, with weekly trends extending into January.
1. Earnings Beat Drives Double-Digit Rally
Robert Half International reported fourth-quarter adjusted earnings per share of $0.32, topping consensus forecasts by 6.7%. This earnings surprise triggered a 12.5% jump in the company’s share value on the day of the release, marking its strongest single-session performance since early 2024. Net income for the period came in at $32 million, compared with $54 million in the year-ago quarter, while revenues of $1.302 billion slightly exceeded analyst projections and reflected only a 6% year-over-year decline on a reported basis.
2. Bullish Analyst Outlook Sets $40 Price Target
Tobey Sommer of Truist Financial initiated coverage with a price target of $40, implying upside potential of roughly 17%. Sommer cited the company’s resilient cost structure, its leading position in specialized staffing and consulting services, and improving sequential revenue trends as key drivers for his bullish stance. This estimate stands in contrast to more conservative projections on the broader staffing sector and underscores confidence in Robert Half’s ability to navigate an ongoing market slowdown.
3. Mixed Segment Performance Highlights Protiviti Strength
The talent solutions division saw revenue contract by 8% year-over-year, weighed down by continued softness in corporate hiring. In contrast, Protiviti’s business consulting segment delivered relative resilience, with revenues down just 3% and adjusted operating margins contracting by only 50 basis points. Overall gross margin for the firm declined by 100 basis points on a consolidated basis, reflecting both lower utilization in staffing services and higher investments in digital recruiting platforms.
4. Q1 Guidance Signals Potential Stabilization
For the first quarter of fiscal 2026, management projects revenues to exceed consensus at the midpoint of its guidance range, forecasting a year-over-year decline of approximately 4% but sequential growth versus the fourth quarter. CEO M. Keith Waddell highlighted that weekly revenue trends during the final weeks of the quarter and into January have shown consistent improvement, suggesting the company could achieve positive same-day constant-currency growth in its core staffing business by mid-year.