Robert Half NYSE: RHI reported third-quarter 2026 global enterprise revenue of $1.359 billion, roughly flat from a year earlier on an adjusted basis, as its Talent Solutions segment returned to adjusted year-over-year growth for the first time since 2022.
Third-quarter earnings per share rose 14% to $0.49 from $0.43 a year earlier, marking the company’s first year-over-year increase in quarterly EPS since 2022. Reported operating income was $75 million, while adjusted operating income was $73 million, or 5.3% of revenue, compared with $61 million, or 4.5% of revenue, in the prior-year period.
President and Chief Executive Officer Keith Waddell said the company benefited from gradually improving hiring activity and encouraging demand trends in risk and compliance consulting. “Hiring activity continues to improve, supported by gradually improving market conditions,” Waddell said.
Talent Solutions Returns to Growth
Talent Solutions revenue rose 2% on an adjusted basis during the quarter. U.S. Talent Solutions revenue totaled $670 million, up 3% from the prior-year period, while non-U.S. revenue was $206 million, down 1%.
Contract Talent Solutions revenue increased 1% on an adjusted basis, and Permanent Placement revenue rose 6%. Contract bill rates increased 3.6% year over year, adjusted for changes in the mix of revenue by specialization, currency and country, accelerating from a 2.3% increase in the second quarter.
Waddell said technology remained the strongest-performing practice group within Contract Talent Solutions, while finance and accounting returned to year-over-year growth. Clients continued to seek specialized talent for technology modernization, data, cybersecurity and IT infrastructure initiatives, he said.
The company’s Talent Solutions gross margin rose to 47.4% from 46.7% a year earlier. Contract Talent Solutions gross margin was 39.3%, compared with 38.9% in the prior-year quarter. Waddell attributed the improvement in contract margins partly to higher conversion activity, higher-skilled work, improved mix and disciplined pricing execution.
During the question-and-answer session, Waddell said volume in Contract Talent Solutions remained down but was “increasingly less down,” while the broader trend continued to improve. He added that enterprise customers have recovered sooner than small and midsized businesses, though SMB activity has begun to improve.
Protiviti Sees Compliance Demand Improve
Protiviti generated third-quarter revenue of $483 million, including $383 million in the U.S. and $100 million outside the U.S. On an adjusted basis, global Protiviti revenue declined 3% from a year ago. U.S. revenue fell 5%, while non-U.S. revenue increased 2%.
Despite the revenue decline, Protiviti’s adjusted operating income was $37 million, or 7.7% of revenue, compared with $37 million, or 7.5% of revenue, a year earlier. Adjusted gross margin improved to 24.1% from 23.0%.
Waddell said Protiviti exceeded the company’s expectations during the quarter, with every major solution and capability area performing above forecast. Technology Consulting recorded all-time-high quarterly revenue, supported by demand for platform transformation, cybersecurity, data-related work and artificial intelligence engagements.
Risk and compliance consulting also improved materially. Waddell said Treasury Department regulators imposed significant fines and enforcement actions against multiple large financial institutions during the prior 90 days, including actions related to deficient remediation efforts under prior consent orders.
Those developments have increased demand for anti-money-laundering remediation and compliance work, including historical reviews, transaction monitoring and file reviews, according to Waddell. He said Protiviti serves more than 80% of the largest financial institutions globally and is seeing a meaningful rise in AML-related demand.
“The really good news is it benefits the entire organization because a significant amount of the work comes from contractors sourced through Talent Solutions,” Waddell said.
He added that AML remediation assignments are expected to extend beyond a single quarter, though their duration can vary by client and the level of internal and external resources used.
Fourth-Quarter Outlook Calls for Growth
For the fourth quarter, Robert Half forecast revenue between $1.285 billion and $1.385 billion and EPS between $0.36 and $0.46. At the midpoint, the company expects revenue of $1.335 billion, representing adjusted year-over-year growth of 3%, and EPS of $0.41, up 30% from the prior-year period.
- Talent Solutions adjusted revenue growth is projected at 1% to 5%.
- Protiviti adjusted revenue growth is projected to range from flat to 4%.
- Overall adjusted operating margin is forecast at 3% to 5%.
- Talent Solutions operating margin is expected to range from 2% to 4%.
- Protiviti operating margin is expected to range from 6% to 8%.
The midpoint outlook assumes 3% adjusted revenue growth for Talent Solutions and 2% growth for Protiviti. Waddell said the company expects Protiviti to return to year-over-year revenue growth in the fourth quarter, helped by the improvement in regulatory risk and compliance demand.
Robert Half also said cost actions taken in the prior quarter are expected to benefit fourth-quarter results. Waddell said payroll savings from those actions were approximately $11 million per quarter.
AI Focuses on Client and Candidate Experience
Waddell said artificial intelligence is changing the skills employers seek and increasing the importance of professionals who combine functional expertise with AI fluency, judgment and the ability to evaluate AI-generated output.
He said the growing use of generative AI by job seekers has made it more difficult for employers to differentiate between stated qualifications and demonstrated skills. Robert Half has focused on its candidate evaluation, skills assessment and matching capabilities in response.
The company’s internal AI investments have been aimed primarily at improving client and candidate experience rather than generating immediate cost savings, Waddell said. These efforts include upgraded matching algorithms and tools designed to help employees identify prospective clients with similar profiles and relevant business needs.
For the first quarter of 2027, the company noted that Protiviti margins historically decline sequentially by a mid-single-digit percentage-point amount due to reduced internal-audit activity and annual compensation adjustments that take effect Jan. 1. Robert Half expects consolidated operating margin to be 1 to 2 percentage points lower sequentially in the first quarter, while its tax rate is currently expected to range from 36% to 40%.
About Robert Half (NYSE:RHI)
Robert Half Inc NYSE: RHI is a global talent solutions and business consulting company. Through its Robert Half brand, the company provides temporary, project-based and permanent staffing services, connecting employers with professionals in accounting and finance, administrative and customer support, technology, legal, and marketing and creative fields.
Robert Half also operates Protiviti, a global consulting firm that helps organizations address internal audit, risk and compliance, technology, business performance, and digital transformation challenges.
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