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.
Talent Solutions Shows Sequential Improvement
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 Pressured by Regulatory Shifts
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 margin by 1.4 percentage points and earnings by $0.04 per share. Waddell said those actions are expected to produce $45 million in annualized cost savings, fully reflected in third-quarter guidance.
During the question-and-answer portion of the call, Waddell said Risk and Compliance Solutions represents “a little under 20%” of Protiviti’s total revenue. He said the unit has been affected by fewer new enforcement actions and easing prior enforcement requirements. However, he added that Protiviti’s technology consulting practice “reported the best revenue quarter in its history” and was not affected by project delays.
Internationally, Waddell said weakness in Protiviti was not related to financial services regulation. He attributed pressure in Germany, and to a lesser extent Belgium, to the wind-down of large public-sector engagements and a more difficult macroeconomic backdrop, including higher inflation and energy prices.
Margins and Costs
Contract Talent Solutions gross margin was 39.1% of applicable revenue, unchanged from the prior-year quarter. Overall Talent Solutions gross margin was 47.4%, compared with 47.1% a year earlier. Protiviti gross margin was 13.5% of revenue, down from 19.7% a year earlier, while adjusted Protiviti gross margin was 18.5%, compared with 22.3% last year.
Enterprise SG&A costs were 40.1% of global revenue, compared with 37.1% in the prior-year quarter. Adjusted enterprise SG&A was 34.3%, compared with 33.8% a year earlier.
Reported operating income for the quarter was negative $62 million. Adjusted operating income was $39 million, or 2.9% of revenue. Talent Solutions generated adjusted operating income of $29 million, or 3.3% of revenue, while Protiviti generated adjusted operating income of $10 million, or 2.1% of revenue.
Buckley said the company’s second-quarter income statement included a $101 million gain from investments held in employee-deferred compensation trusts, which had no impact on reported net income. The tax rate was 35%, compared with 33% a year earlier.
Third-Quarter Outlook
Robert Half guided for third-quarter revenue of $1.31 billion to $1.41 billion and income per share of $0.43 to $0.53. At the midpoint, revenue of $1.36 billion would be flat with the third quarter of 2025 on an adjusted basis.
Buckley said the midpoint assumes Talent Solutions revenue growth of 3% year over year and a 6% decline in Protiviti revenue. The company’s underlying assumptions include adjusted Talent Solutions revenue growth of 1% to 5%, Protiviti revenue down 4% to 8%, and overall revenue ranging from a 2% decline to a 2% increase.
Waddell said the company remains optimistic about its business trajectory, citing client priorities around technology, business transformation and growth. He also said the labor market for specialized talent remains tight and that artificial intelligence is changing recruiting by increasing application volumes, making candidate evaluation more complex.
In response to analyst questions, Waddell said he believes Talent Solutions is in the early stages of recovery, barring a significant macroeconomic disruption. He noted that the company has now posted three quarters of sequential growth and said that in past downturns Robert Half has not only returned to prior revenue peaks but surpassed them.
Waddell also expressed confidence that margins can return to or exceed prior peaks over time, citing a greater mix of higher-level roles, potential technology-driven efficiencies and the margin benefit from full-time engagement professionals as that mix grows.
About Robert Half (NYSE:RHI)
Robert Half International Inc, founded in 1948 by Robert Half, is a global professional staffing and consulting firm headquartered in Menlo Park, California. As a pioneer in specialized staffing, the company has built a reputation for matching skilled professionals with leading organizations across a range of industries. Robert Half's shares trade on the New York Stock Exchange under the ticker RHI, reflecting its position as one of the longest‐standing and best‐known firms in the staffing sector.
The company offers a comprehensive suite of services, including temporary staffing, permanent placement, and consulting solutions.
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