Robert Half Q2 Earnings Call Highlights

Robert Half beat second-quarter revenue and earnings guidance, with management saying hiring demand is improving and Talent Solutions showed its third straight quarter of sequential growth. Protiviti remained under pressure, as revenue fell amid changes in the U.S. financial services regulatory environment; the company also took severance charges that will support about $45 million in annualized cost savings. For the third quarter, Robert Half guided for revenue of $1.31 billion to $1.41 billion and EPS of $0.43 to $0.53 , with the midpoint implying roughly flat adjusted revenue year over year. Robert Half NYSE: RHI reported second-quarter 2026 revenue and earnings above the midpoint of its guidance, as management pointed to improving hiring demand in its Talent Solutions business but continued pressure at consulting subsidiary Protiviti from changes in the U.S. financial services regulatory environment. President and Chief Executive Officer Keith Waddell said Global Enterprise revenues were $1.336 billion, down 2% from the prior-year quarter on a reported basis and down 3% on an adjusted basis. Net income per share was $0.26, compared with $0.41 in the second quarter of 2025. Waddell said earnings were affected by cost actions at Protiviti, including severance costs discussed by Chief Financial Officer Michael Buckley. “Hiring demand continues to improve, market conditions are increasingly more supportive of our business,” Waddell said. He added that the company’s combination of technology capabilities and specialized recruiting expertise positions it to help clients find talent and consulting services in a changing business environment. Buckley said second-quarter Talent Solutions revenue declined 2% year over year on an adjusted basis. U.S. Talent Solutions revenue was $660 million, down 1%, while non-U.S. Talent Solutions revenue was $205 million, down 4%. Waddell said Talent Solutions delivered its third consecutive quarter of sequential revenue growth on a same-day constant currency basis. Permanent Placement also returned to adjusted year-over-year growth, with revenue up 2.5% for the quarter. Buckley said Permanent Placement revenue in June was up 4% from June 2025, compared with a 3% increase for the full quarter. For the first three weeks of July, Permanent Placement revenue was also up 4% from the year-earlier period. Contract Talent Solutions revenue exited the quarter with June revenue down 2% from the prior year, matching the full-quarter decline. Revenue for the first two weeks of July was down 1% from the comparable period in 2025, Buckley said, while cautioning investors not to read too much into short-term trends. Waddell said technology was the strongest-performing practice group within Contract Talent Solutions, posting adjusted year-over-year revenue growth of 2.3% for the quarter. He cited increased job orders and project activity across areas including technology modernization, data, cybersecurity and IT infrastructure. Protiviti generated global second-quarter revenue of $471 million, including $373 million in the United States and $98 million outside the United States. On an adjusted basis, global Protiviti revenue fell 5% from the year-earlier period, with U.S. revenue down 6% and non-U.S. revenue down 3%. Buckley said Protiviti’s results reflected “ongoing shifts in the U.S. financial services regulatory environment.” The company recorded $7 million in severance costs during the quarter, reducing adjusted gross ma...