Robert Half (RHI) AI Stock Analysis

Compare

376 Followers

Top Page

Robert Half

(NYSE:RHI)

Select Model

Neutral 59 (OpenAI - 5.2)

Rating:59Neutral

Price Target:

$27.00

▲(8.39% Upside)

Action:ReiteratedDate:02/14/26

The score is primarily constrained by weakening financial performance (multi-year revenue declines and major margin compression) and bearish technicals (below key moving averages with weak momentum). These are partly offset by a strong financial foundation and cash generation, plus an attractive dividend yield, while the latest call suggests sequential improvement but continued near-term profitability and EPS pressure.

Positive Factors

Conservative balance sheet

Low leverage and a conservative balance sheet provide durable financial flexibility through staffing cycles. With modest debt levels the company can sustain dividends, buybacks, or selective investment without relying on distressed financing, reducing solvency risk over the next several quarters.

Solid cash generation & returns

Consistently positive operating and free cash flow that covered dividends and funded buybacks indicates high cash conversion quality. This persistent cash generation supports capital returns and selective reinvestment, cushioning near-term earnings pressure and sustaining shareholder returns.

Pricing & gross-margin resilience

Stable-to-improving bill rates and resilient contract staffing gross margins indicate structural pricing power in specialized talent markets. That margin durability in core staffing helps preserve profitability even with top-line volatility, supporting medium-term cash flow stability.

Negative Factors

Multi-year revenue downcycle

Sustained revenue declines reduce operating leverage and shrink the base over which fixed costs are absorbed. If demand weakness persists, revenue recovery will be harder and margin normalization delayed, pressuring reinvestment capacity and medium-term earnings resilience.

Margin compression vs prior peaks

Large, persistent margin erosion versus prior-cycle peaks materially reduces profitability and return on capital. Even with revenue stabilization, rebuilding margins will require sustained pricing, mix improvement, or cost cuts; otherwise cash generation and ROE may remain impaired.

Rising SG&A and thin talent margins

Higher SG&A as a percent of sales and very thin talent-solutions operating income leave limited buffer for revenue dips. Elevated fixed costs amplify cyclical downturns and make margin recovery more dependent on structural revenue growth or meaningful cost restructuring.

Robert Half (RHI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.45B

Dividend Yield8.65%

Average Volume (3M)3.81M

Price to Earnings (P/E)20.4

Beta (1Y)1.09

Revenue Growth-7.27%

EPS Growth-43.88%

CountryUS

Employees14,700

SectorIndustrials

Sector Strength72

IndustryStaffing & Employment Services

Share Statistics

EPS (TTM)0.32

Shares Outstanding101,143,590

10 Day Avg. Volume3,773,575

30 Day Avg. Volume3,811,145

Financial Highlights & Ratios

PEG Ratio-0.45

Price to Book (P/B)2.13

Price to Sales (P/S)0.51

P/FCF Ratio10.19

Enterprise Value/Market Cap1.01

Enterprise Value/Revenue0.46

Enterprise Value/Gross Profit1.25

Enterprise Value/Ebitda18.55

Forecast

1Y Price Target

$31.17

Price Target Upside25.12% Upside

Rating ConsensusHold

Number of Analyst Covering8

EPS Forecast (FY)1.49

Revenue Forecast (FY)$5.39B

Robert Half Business Overview & Revenue Model

Company DescriptionRobert Half International Inc. provides staffing and risk consulting services in North America, South America, Europe, Asia, and Australia. The company operates through three segments: Temporary and Consultant Staffing, Permanent Placement Staffing, and Risk Consulting and Internal Audit Services. It places temporary services for accounting, finance, and bookkeeping; temporary and full-time office and administrative personnel consisting of executive and administrative assistants, receptionists, and customer service representatives; full-time accounting, financial, tax, and accounting operations personnel; and information technology contract professionals and full-time employees in the areas of platform systems integration to end-user technical and desktop support, including specialists in application development, networking and cloud, systems integration and deployment, database design and administration, and security and business continuity. The company also offers temporary and full-time employees in attorney, paralegal, legal administrative, and legal secretarial positions; and senior-level project professionals in the accounting and finance fields for financial systems conversions, expansion into new markets, business process re-engineering, business systems performance improvement, and post-merger financial consolidation. It is involved in serving professionals in the areas of creative, design, marketing, advertising, and public relations; and placing various positions, such as creative directors, graphics designers, web designers, media buyers, front end developers, copywriters, digital marketing managers, marketing analytics specialists, brand managers, and public relations specialists. The company provides internal audit, technology consulting, risk and compliance consulting, and business performance services. It serves clients and employment candidates. Robert Half International Inc. was founded in 1948 and is headquartered in Menlo Park, California.

How the Company Makes MoneyRobert Half generates revenue primarily through staffing services, where it charges clients a markup on the hourly wages of temporary employees or a percentage of the annual salary for permanent placements. The company's revenue model includes several key streams: temporary staffing, permanent placement, consulting services, and managed services. Additionally, RHI may engage in partnerships with other businesses to enhance its service offerings, such as technology providers for better recruitment tools. The company benefits from a strong reputation and established relationships in the industry, allowing it to maintain a competitive edge and achieve consistent earnings.

Robert Half Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Shows how much each business segment contributes to overall sales, indicating diversification and identifying key growth drivers within the company.

Chart InsightsRobert Half's Contract Talent and Permanent Placement Talent segments are experiencing a notable decline in revenue, reflecting subdued hiring activity amid client and job seeker caution. However, the earnings call highlights a positive shift, with Contract Talent revenues showing sequential growth in September and October. Protiviti's pipeline is also expanding, suggesting potential recovery. Despite these positive signs, global revenues and net income have decreased, and SG&A costs have risen, indicating ongoing challenges. The company remains optimistic about leveraging its strong brand and technology to meet evolving client needs.

Data provided by:

The Fly

Robert Half Earnings Call Summary

Earnings Call Date:Jan 29, 2026

(Q4-2025)

% Change Since: |

Next Earnings Date:Apr 29, 2026

Earnings Call Sentiment Neutral

The call conveyed a mixed but cautiously constructive tone: management highlighted meaningful operational positives — returning to sequential revenue growth, improving weekly trends into January, higher contract bill rates, strong Q4 cash flow that covered dividends and enabled buybacks, and Protiviti international growth — while also reporting continued year-over-year revenue declines, margin pressure at Protiviti, rising SG&A as a percent of revenue, a substantial QoQ earnings decline and near-term tax headwinds. Management expects sequential improvement to continue and a potential return to YoY growth by Q3 if current trends hold, but near-term profitability and Q1 EPS are expected to be constrained.

Q4-2025 Updates

Positive Updates

Enterprise Revenue and Sequential Momentum

Q4 2025 global enterprise revenues of $1.302B; reported revenue down 6% YoY and adjusted down 7% YoY, but talent solutions and enterprise returned to positive sequential growth on a same-day constant currency basis for the first time since early 2022 with positive weekly revenue momentum into January.

Strong Operating Cash Flow and Capital Returns

Cash flow provided by operations in Q4 was $183M, an 18% increase versus Q4 2024; the company paid a $0.59/share dividend in December ($59M total) and free cash flow for 2025 covered the dividend while enabling ~$100M of share repurchases during the year.

Protiviti Revenue Stability and International Strength

Protiviti Q4 revenues were $479M; on an adjusted basis Protiviti revenues were down 3% YoY, with non-U.S. Protiviti up 9% YoY, indicating geographic resilience outside the U.S.

Improving Pricing Trends on Contract Roles

Contract talent solutions bill rates increased 3.2% YoY (adjusted for mix/currency/country), supporting gross margin stability in contract staffing (contract margin 39.2% vs 39.1% prior year).

Talent Solutions Gross Margin Resilience

Overall talent solutions gross margin was 46.7% of applicable revenues in Q4 versus 46.4% a year ago; contract-to-hire revenues remained stable at 3.2% of contract revenues.

Adjusted Operating Profit and Segment Profitability

Q4 adjusted operating income was $43M (3.3% of revenues); Protiviti adjusted operating income was $34M (7.1% of Protiviti revenues), demonstrating ongoing segment-level profitability.

Corporate Recognition and Strategic Positioning

Company and Protiviti received several external recognitions (Fortune 'Most Admired Companies' 29th consecutive year; Protiviti on Glassdoor 'Best Places to Work' for third consecutive year) and management highlighted structural tailwinds (aging workforce, SMB lean staffing) and AI-driven service demand opportunities.

Negative Updates

Year-over-Year Revenue Declines

Adjusted Q4 enterprise revenues down 7% YoY; talent solutions adjusted revenues down 9% YoY (U.S. talent solutions $623M, down 9%; non-U.S. $200M, down 8%). Q1 midpoint guidance implies adjusted enterprise revenue down ~5% YoY.

Earnings and EPS Pressure

Reported net income per share for Q4 was $0.32 versus $0.53 a year ago (material decline); Q1 guidance midpoint EPS $0.13 (range $0.08–$0.18) and an elevated Q1 tax rate (56%–58%) will pressure near-term EPS.

Protiviti Margin Compression

Protiviti gross margin declined to 21.9% (reported) and adjusted to 22.8% in Q4 from 24.9% and 25.1% a year ago (≈230 bps adjusted gross margin contraction), reflecting mix and anniversary of prior large projects.

Rising SG&A Ratios

Enterprise SG&A increased to 35.9% of revenues from 34.1% a year ago (adjusted 34.6% vs 33.8%); talent solutions SG&A rose to 47.6% from 44.4% (adjusted 45.6% vs 43.9%), reducing operating leverage and margin recovery potential.

Weak Permanent Placement and Month-to-Month Trends

Permanent placement revenues were down 11% in December vs Dec 2024 (quarter down 5.9%); first 3 weeks of January permanent placement down 9.4% YoY. Contract talent December down ~8.9% with early-January first 2 weeks down 6.6%.

Low Adjusted Talent Solutions Operating Income

Adjusted operating income for talent solutions in Q4 was only $9M or 1.1% of revenues, indicating very thin segment margins and sensitivity to revenue volatility.

Elevated Q1 Tax Charge and Share-Based Tax Impact

Q1 expected tax rate of 56%–58% driven by stock compensation vesting and a $4.5M tax charge (~$0.05/share) due to current stock price below grant values, creating a near-term earnings headwind.

Company Guidance

Robert Half guided first-quarter 2026 revenues of $1.26–$1.36 billion and EPS of $0.08–$0.18 (midpoints $1.31B and $0.13), noting the Q1 revenue midpoint is ~5% lower year‑over‑year on an adjusted basis and reflects continued positive adjusted sequential growth for talent solutions; Q1 billing days are 61.9 (FY billing days 250.7; Q2 63.1, Q3 64.6, Q4 61.1). They expect Q1 adjusted operating margin to decline about 1 percentage point sequentially (including a ~4pp seasonal decline at Protiviti) and estimate a Q1 tax rate of 56%–58% (including an expected ~$4.5M stock‑comp tax charge ≈ $0.05/sh), normalizing to ~33%–35% for the rest of 2026. Key 2026 midpoint assumptions: adjusted revenue growth — talent solutions down 4%–8%, Protiviti flat to down 4%, overall down 3%–6%; adjusted gross margins — contract talent 38%–40%, Protiviti 18%–21%, overall 35%–38%; adjusted SG&A as % of revenue — talent 44%–46%, Protiviti 15%–17%, overall 33%–36%; adjusted operating income margins — talent 0%–3%, Protiviti 2%–5%, overall 1%–3%; diluted shares 99–100M; 2026 capital expenditures + capitalized cloud costs $70M–$90M (Q1 $10M–$20M).

Robert Half Financial Statement Overview

Summary

A conservative balance sheet (low leverage) and consistently positive operating/free cash flow support financial stability, but results are in a clear downcycle with multi-year revenue declines and sharply compressed operating and net margins versus 2021–2022 peaks.

Income Statement

Neutral

Revenue has been in a multi-year downcycle (declines in 2023, 2024, and 2025), with 2025 revenue down ~7% vs. 2024. Profitability has compressed sharply from the 2021–2022 peak: net margin fell from ~9% (2021–2022) to ~2.5% in 2025, and operating profitability similarly stepped down (2022 operating margin ~13.5% vs. ~3.6% in 2025). Strengths include still-positive earnings and a consistently healthy gross margin profile (mid-to-high 30%s in 2024–2025), but the trajectory points to meaningful cyclical pressure and weaker operating leverage.

Balance Sheet

Positive

The balance sheet looks conservative with low leverage: debt-to-equity remains modest (~0.15–0.19 from 2021–2025) and total debt is relatively small versus equity. Total assets and equity have drifted down since 2023, and returns on equity have normalized materially (from ~42% in 2021–2022 to ~10% in 2025), reflecting the earnings downturn. Overall, financial risk appears contained, but the declining profitability is the main factor tempering the score.

Cash Flow

Positive

Cash generation remains solid despite weaker earnings: operating cash flow stayed positive in each year and free cash flow rebounded strongly in 2025 (up ~13% year over year). Free cash flow has consistently represented a large portion of net income (roughly ~83%–94% across 2020–2025), supporting quality of earnings. The key weakness is that cash flow has trended down from 2022–2023 highs (even with the 2025 improvement), and overall cash generation is still below prior-cycle levels.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.38B	5.80B	6.39B	7.24B	6.46B
Gross Profit	2.00B	2.25B	2.58B	3.09B	2.70B
EBITDA	244.38M	330.79M	563.56M	1.02B	796.96M
Net Income	132.99M	251.60M	411.15M	657.92M	598.63M
Balance Sheet
Total Assets	2.86B	2.85B	3.01B	2.96B	2.95B
Cash, Cash Equivalents and Short-Term Investments	464.44M	537.58M	731.74M	658.63M	619.00M
Total Debt	421.28M	402.42M	403.34M	389.62M	446.37M
Total Liabilities	1.58B	1.48B	1.42B	1.40B	1.57B
Stockholders Equity	1.28B	1.38B	1.59B	1.57B	1.38B
Cash Flow
Free Cash Flow	266.81M	354.15M	591.01M	622.63M	566.52M
Operating Cash Flow	319.96M	410.47M	636.88M	683.75M	603.14M
Investing Cash Flow	-85.70M	-87.12M	-112.25M	-116.62M	-87.61M
Financing Cash Flow	-330.31M	-496.44M	-460.54M	-509.18M	-458.59M

Robert Half Technical Analysis

Technical Analysis Sentiment

Negative

Last Price24.91

Price Trends

50DMA

26.99

Negative

100DMA

26.97

Negative

200DMA

31.99

Negative

Market Momentum

MACD

-1.07

Positive

RSI

43.31

Neutral

STOCH

34.23

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RHI, the sentiment is Negative. The current price of 24.91 is below the 20-day moving average (MA) of 25.88, below the 50-day MA of 26.99, and below the 200-day MA of 31.99, indicating a bearish trend. The MACD of -1.07 indicates Positive momentum. The RSI at 43.31 is Neutral, neither overbought nor oversold. The STOCH value of 34.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RHI.

Robert Half Risk Analysis

Robert Half disclosed 29 risk factors in its most recent earnings report. Robert Half reported the most risks in the "Legal & Regulatory" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Robert Half Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KFY	71 Outperform	$3.26B	11.53	13.89%	2.89%	3.65%	5.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RHI	59 Neutral	$2.45B	20.45	10.02%	8.65%	-7.27%	-43.88%
KELYA	56 Neutral	$335.68M	-1.20	-23.06%	3.53%	0.46%	-477.90%
MAN	51 Neutral	$1.30B	-104.17	-0.64%	4.96%	-2.44%	-156.01%
NSP	43 Neutral	$806.26M	―	-9.79%	6.37%	3.19%	-86.21%

* Industrials Sector Average

Performance Comparison

RHI

Robert Half

24.91

-26.26

-51.32%

NSP

Insperity

21.89

-60.91

-73.56%

KELYA

Kelly Services

9.36

-3.67

-28.14%

KFY

Korn Ferry

65.08

1.61

2.54%

MAN

ManpowerGroup

28.70

-30.73

-51.71%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 14, 2026