Key Highlights

  • Earnings rose 14% to USD 0.49 per share on Revenue of USD 1.359 billion.
  • Talent Solutions adjusted revenue grew 2%, its first gain since 2022.
  • Adjusted Operating Margin rose to 5.3% from 4.5%.
  • Fourth-quarter Earnings are guided at USD 0.36 to USD 0.46 per share.

Quarter Results

Robert Half (NYSE:RHI) reported third-quarter 2026 results on Thursday. Net Income was USD 50 million, or USD 0.49 per share, against USD 43 million, or USD 0.43, a year earlier. Revenue was USD 1.359 billion against USD 1.354 billion. For nine months, net income was USD 90 million, or USD 0.90 per share, on revenue of USD 3.996 billion, compared with USD 101 million, or USD 1.01, on USD 4.076 billion.

CEO Keith Waddell said earnings exceeded the midpoint of the company's third-quarter guidance and described hiring activity as improving gradually. The per-share result was the first year-over-year quarterly increase since 2022.

Talent Solutions Turns

Talent Solutions adjusted revenue grew 2%. Permanent Placement revenue rose 6% on Demand for full-time accounting and finance staff, and contract talent revenue rose 1%, supported by technology and finance specializations. Contract bill rates were up 3.6%, an acceleration from 2.3% in the second quarter. U.S. Talent Solutions revenue was USD 670 million, up 3% on an adjusted basis, and non-U.S. revenue was USD 206 million, down 1%.

Talent Solutions gross margin was 47.4% against 46.7%, helped by permanent placement and wider spreads. Protiviti adjusted revenue fell 3%, with a 5% adjusted decline in the United States and a 2% adjusted rise outside it to USD 100 million. Protiviti adjusted gross margin was 24.1% against 23.0%, aided by cost actions and the use of margin-accretive contractors.

Margins and Cash

Adjusted Operating Income was USD 72.6 million, or 5.3% of revenue, against USD 61.2 million, or 4.5%. Cost actions taken in the prior quarter produce about USD 11 million of Payroll savings per quarter. Operating Cash Flow was USD 66 million, and USD 59 million went to a Dividend of USD 0.59 per share. Accounts Receivable were USD 826 million, equal to 54.8 days of sales outstanding.

Management reported a rise in demand for anti-money laundering remediation and compliance work at Protiviti following regulatory enforcement actions against large financial institutions, and said it is investing in artificial intelligence to improve candidate matching. Capital expenditures are projected at USD 60 million to USD 70 million for 2026.

Fourth-Quarter Guide

For the fourth quarter, the company guides to revenue of USD 1.285 billion to USD 1.39 billion, a midpoint that implies 3% adjusted growth, and earnings of USD 0.36 to USD 0.46 per share, a midpoint 30% above the prior year. The chief financial officer noted that first-quarter operating margins have historically run 1 to 2 percentage points below the fourth quarter, and that the first-quarter tax rate is volatile, in a range of 36% to 40% for 2027.

Where to Look Next

Revenue was flat while earnings rose 14%, so the gain came from mix and costs: a higher-margin permanent placement business, wider contract spreads and about USD 11 million a quarter of payroll savings. Nine-month earnings of USD 0.90 per share remain below the USD 1.01 of a year earlier. Reference points are permanent placement and contract growth, bill rates, U.S. Protiviti revenue, compliance consulting demand and results against the guided fourth-quarter range.