Robert Half Inc.

Second-quarter global enterprise revenues were $1.336 billion, down 2% year over year on a reported basis and down 3% on an adjusted basis. Net income per share was $0.26 versus $0.41 in the second quarter a year ago. Cash flow from operations was $109 million, and the company paid a $0.59 per share cash dividend in June for a total cash outlay of $59 million. Talent Solutions revenue was $865 million, down 2% adjusted; U.S. Talent Solutions revenue was $660 million, down 1%; and non-U.S. Talent Solutions revenue was $205 million, down 4%. Protiviti revenue was $471 million, with adjusted revenue down 5% year over year. Gross margin was 39.1% for Contract Talent Solutions, 47.4% for total Talent Solutions, and 18.5% adjusted for Protiviti, versus 22.3% a year ago. Reported operating income was negative $62 million, while adjusted operating income was positive $39 million, or 2.9% of revenue. For Q3 2026, management guided revenue to $1.31 billion to $1.41 billion and EPS to $0.43 to $0.53. At the midpoint, revenue is expected to be flat year over year on an adjusted basis, with Talent Solutions up 3% and Protiviti down 6%.

Keith Waddell said hiring demand is improving and market conditions are becoming more supportive, with Talent Solutions posting continued sequential growth and permanent placement returning to year-over-year growth. He highlighted strength in technology, data, cybersecurity and IT infrastructure, and said clients are still cautious but increasingly engaging on strategic projects. His tone was constructive overall, emphasizing that the business is early in a recovery and that Robert Half is well positioned for long-term growth.

Mike Buckley detailed the quarter’s revenue mix and margin pressure, especially in Protiviti, where gross margin fell to 18.5% adjusted from 22.3% a year ago after $7 million of severance costs. He noted Talent Solutions gross margin was steady at 47.4%, Contract Talent gross margin held at 39.1%, and reported operating income was negative $62 million versus adjusted operating income of $39 million. He also cited $821 million of accounts receivable and DSO of 55.4 days, then guided Q3 revenue to $1.31 billion to $1.41 billion, EPS to $0.43 to $0.53, and 2026 capex plus capitalized cloud costs of $50 million to $70 million.

Analysts focused on the Protiviti restructuring, asking whether the $7 million severance charge and $45 million in annual savings reflected more deterioration than expected. Management said the main difference versus prior estimates was a larger-than-expected international realignment, while risk and compliance is a little under 20% of Protiviti revenues. Questions also probed whether technology projects were being delayed and whether staffing is bottoming; Waddell said Protiviti technology consulting had its best revenue quarter ever and was not seeing project delays, while Talent Solutions has now had three straight quarters of sequential growth and appears to be in the early stages of recovery.