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Robert Half Inc. — RH Q3 2026 Prepared Remarks (company IR deck)
Robert Half Inc. (RHI) · 11 slides · Filed Oct 22, 2026
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Slide 1 — Q3 2026
1 Prepared Remarks From: M. Keith Waddell, President and Chief Executive Officer, Robert Half Inc. Michael C. Buckley, Chief Financial Officer, Robert Half Inc. October 22, 2026 Financial Results Conference Call Q3 2026
Slide 2 — Third-Quarter 2026 Financial Results Conference Call
2 Robert Half Q3 2026 Financial Results Conference Call, Prepared Remarks, October 22, 2026 © 2026 Robert Half Inc. An Equal Opportunity Employer M/F/Disability/Veterans Third-Quarter 2026 Financial Results Conference Call Prepared Remarks October 22, 2026 Disclaimer The statements made in the conference call speak only as of the date made, and listeners are cautioned that changes in general economic, business or other conditions or in the business condition, financial results or operations of Robert Half may have occurred since such date. Robert Half undertakes no duty to update the statements made in the conference call. Also, subsequent conference calls may have been held, press releases issued, or documents containing later or additional information may have been filed with the Securities and Exchange Commission (“SEC”) or New York Stock Exchange (“NYSE”) or otherwise become available or come into existence. Robert Half undertakes no duty to make any such conference call, press release, or any such document or additional information available here, and it should not be assumed that the failure of any such conference call, press release, document or additional information to appear here is an indication that no such conference call has occurred, that no such press release or document exists, or that no subsequent additional information which may be material has arisen. Some of the documents Robert Half files with the SEC and NYSE appear elsewhere on the Robert Half website. Listeners to this conference call may contact Robert Half for copies of such documents or any other document filed with the SEC and NYSE. Alternatively, copies of such documents are available directly from the SEC and the NYSE. Operator: Introduction M. Keith Waddell, President and Chief Executive Officer, Robert Half: Hello, everyone. We appreciate your time today. Before we get started, I would like to remind you that the comments made on today’s call contain forward-looking statements, including predictions and estimates about our future performance. These statements represent our current judgment of what the future holds. However, they are subject to risks and uncertainties that could cause actual results to differ materially from the forward- looking statements. These risks and uncertainties are described in today’s press release and in our most recent 10-K and 10-Q filed with the SEC. We assume no obligation to update the statements made on today’s call. During this presentation, we may refer to certain non-GAAP financial measures as ‘adjusted.’ Adjusted revenue growth excludes the impact of billing day variations
Slide 3 — and foreign currency exchange rates. Adjusted gross margin, SG&A and operating
3 Robert Half Q3 2026 Financial Results Conference Call, Prepared Remarks, October 22, 2026 © 2026 Robert Half Inc. An Equal Opportunity Employer M/F/Disability/Veterans and foreign currency exchange rates. Adjusted gross margin, SG&A and operating income reflect the combining of investment gains and losses related to employee deferred compensation plans with corresponding changes in those obligations; these items have no impact on reported net income. Reconciliations and additional information are included in the supplemental schedules to our earnings release. For your convenience, our prepared remarks for today’s call are available in the Investor Center of our website, roberthalf.com. For the third quarter of 2026, global enterprise revenues were $1.359 billion, roughly flat with last year on an adjusted basis. Talent solutions returned to adjusted year-over-year revenue growth for the first time since 2022, with revenues increasing 2 percent. Global enterprise earnings exceeded the midpoint of our third-quarter guidance. Hiring activity continues to improve, supported by gradually improving market conditions. Demand for risk and compliance consulting services also showed encouraging signs of improvement during the quarter. Our combination of innovative technology, specialized expertise and high-touch client service positions us well to deliver the talent and consulting solutions clients need to advance their business priorities. Net income per share in the third quarter was $0.49, up 14 percent from $0.43 a year ago. This marked our first year-over-year increase in quarterly earnings per share since 2022. Cash flow provided by operations during the quarter was $66 million. In September, we distributed a 59-cent-per-share cash dividend to our shareholders of record, for a total cash outlay of $59 million. Return on invested capital for the Company was 17 percent in the third quarter. Now I’ll turn the call over to our CFO, Mike Buckley. Michael C. Buckley, CFO, Robert Half: Thank you, Keith. Hello, everyone. As Keith noted, global revenues were $1.359 billion in the third quarter.
Slide 4 — On an adjusted basis, third-quarter talent solutions revenues were up 2 percent
4 Robert Half Q3 2026 Financial Results Conference Call, Prepared Remarks, October 22, 2026 © 2026 Robert Half Inc. An Equal Opportunity Employer M/F/Disability/Veterans On an adjusted basis, third-quarter talent solutions revenues were up 2 percent year over year. U.S. talent solutions revenues were $670 million, up 3 percent from the prior year’s third quarter. Non-U.S. talent solutions revenues were $206 million, down 1 percent year over year. Our contract talent operations achieved adjusted year-over-year revenue growth of 1 percent, and permanent placement operations delivered 6 percent growth. We conduct talent solutions operations through offices in the United States and 18 other countries. In the third quarter of 2026, there were 64.6 billing days, compared to 64.2 billing days in the third quarter one year ago. The fourth quarter of 2026 has 61.1 billing days, compared to 61.4 billing days in the fourth quarter of 2025. Billing days for the four quarters of 2027 will be 61.5, 63.7, 64.5 and 61.5 for a total of 251.2 billing days in the year. Currency exchange rate fluctuations during the third quarter had a de minimis impact to reported revenues. Contract talent solutions bill rates for the third quarter increased 3.6 percent compared to one year ago, adjusted for changes in the mix of revenues by functional specialization, currency and country. This rate for the second quarter was 2.3 percent. Now let’s take a closer look at results for Protiviti. Global revenues in the third quarter were $483 million: $383 million of that is from the United States, and $100 million is from outside the United States. On an adjusted basis, global third- quarter Protiviti revenues were down 3 percent versus the year-ago period. U.S. Protiviti revenues were down 5 percent, while non-U.S. Protiviti revenues were up 2 percent compared to one year ago. Protiviti and its independently owned Member Firms serve clients through locations in the United States and 27 other countries. Gross Margin Turning now to gross margin: In contract talent solutions, third-quarter gross margin was 39.3 percent of applicable revenues, versus 38.9 percent in the third quarter one year ago. Conversion (or contract-to-hire) revenues were 3.4 percent of contract revenues in the current quarter, compared to 3.2 percent in the third quarter of 2025.
Slide 5 — Our permanent placement revenues were 13.4 percent of consolidated talent
5 Robert Half Q3 2026 Financial Results Conference Call, Prepared Remarks, October 22, 2026 © 2026 Robert Half Inc. An Equal Opportunity Employer M/F/Disability/Veterans Our permanent placement revenues were 13.4 percent of consolidated talent solutions revenues in the current quarter, compared to 12.9 percent in the third quarter of 2025. When combined with contract talent solutions gross margin, overall gross margin for talent solutions was 47.4 percent of applicable revenues in the current quarter, compared to 46.7 percent in the third quarter of 2025. For Protiviti, gross margin was 24.2 percent of Protiviti revenues in the third quarter and 20.9 percent in the third quarter one year ago. Adjusted gross margin for Protiviti was 24.1 percent for the quarter just ended, compared to 23.0 percent last year. Selling, General and Administrative Costs Enterprise SG&A costs were 33.6 percent of global revenues in the third quarter, compared to 36.2 percent in the same quarter one year ago. Adjusted enterprise SG&A costs were 33.8 percent for the quarter just ended, compared to 33.5 percent one year ago. Talent solutions SG&A costs were 43.2 percent of talent solutions revenues in the third quarter, versus 48.3 percent in the third quarter of 2025. Adjusted talent solutions SG&A costs were 43.4 percent, compared to 43.9 percent for the third quarter one year ago. Third-quarter SG&A costs for Protiviti were 16.4 percent of Protiviti revenues, compared to 15.5 percent for the same quarter one year ago. Operating Income Reported operating income for the third quarter was $75 million. Adjusted operating income was $73 million in the quarter, or 5.3 percent of revenues. This compares to $61 million, or 4.5 percent of revenues one year ago. Third-quarter adjusted operating income for talent solutions was $36 million, or 4.0 percent of revenues. This compares to $24 million, or 2.8 percent of revenues last year. Adjusted operating income for Protiviti in the third quarter was $37 million, or 7.7 percent of revenues. Adjusted operating income for Protiviti for the third quarter one year ago was $37 million, or 7.5 percent of revenues.
Slide 6 — Loss from investments held in employee deferred compensation trusts
6 Robert Half Q3 2026 Financial Results Conference Call, Prepared Remarks, October 22, 2026 © 2026 Robert Half Inc. An Equal Opportunity Employer M/F/Disability/Veterans Loss from investments held in employee deferred compensation trusts Our third-quarter 2026 income statement includes a $2 million loss from investments held in employee deferred compensation trusts. This is completely offset by an equal amount of lower employee deferred compensation costs, which are reflected in SG&A expenses and direct costs. As such, it has no effect on our reported net income. Tax Rate Our third-quarter tax rate was 33 percent in both the current quarter and the third quarter one year ago. Accounts Receivable At the end of the third quarter, accounts receivable were $826 million, and implied days sales outstanding (DSO) was 54.8 days. Guidance Before we move to fourth-quarter guidance, let’s review some of the monthly revenue trends we saw in the third quarter and so far in October, all adjusted for currency and billing days. Contract talent solutions exited the third quarter with September revenues up 1 percent versus the prior year, the same as the 1 percent increase for the full quarter. Revenues for the first two weeks of October were up 2 percent compared to the same period last year. Permanent placement revenues in September were up 5 percent versus September 2025. This compares to a 6 percent increase for the full quarter. For the first three weeks in October, permanent placement revenues were up 5 percent compared to the same period in 2025. We provide this information so you have insight into some of the trends we saw during the third quarter and into October. But as you know, these are very brief time periods. We caution against reading too much into them. With that in mind, we offer the following fourth-quarter guidance: • Revenues: $1.285 billion to $1.385 billion • Income per share: $0.36 to $0.46
Slide 7 — Guidance Assumptions
7 Robert Half Q3 2026 Financial Results Conference Call, Prepared Remarks, October 22, 2026 © 2026 Robert Half Inc. An Equal Opportunity Employer M/F/Disability/Veterans Guidance Assumptions Midpoint revenues of $1.335 billion are 3 percent higher than the same period in 2025 on an adjusted basis. Midpoint earnings per share is $0.41 and 30 percent higher than last year. Our midpoint revenue guidance for the fourth quarter reflects year- over-year revenue growth of 3 percent for talent solutions and 2 percent for Protiviti. The major financial assumptions underlying the midpoint of these estimates are as follows: Adjusted Revenue Growth, year-over-year: Talent solutions: Up 1% to 5% Protiviti: Flat to Up 4% Overall: Up 1% to 5% Adjusted Gross Margin percentage: Contract talent: 38% to 40% Protiviti: 22% to 25% Overall: 37% to 40% Adjusted SG&A, as a percent of revenues: Talent solutions: 43% to 45% Protiviti: 16% to 18% Overall: 33% to 35% Adjusted Operating Income, as a percent of revenues: Talent solutions: 2% to 4% Protiviti: 6% to 8% Overall: 3% to 5% Tax Rate: 31% to 33% Shares: 100.5 million to 101.5 million 2026 capital expenditures and capitalized cloud computing costs: $60 million to $70 million, with $15 to $20 million in the fourth quarter.
Slide 8 — For the first quarter of 2027, we offer the following directional observations:
8 Robert Half Q3 2026 Financial Results Conference Call, Prepared Remarks, October 22, 2026 © 2026 Robert Half Inc. An Equal Opportunity Employer M/F/Disability/Veterans For the first quarter of 2027, we offer the following directional observations: 1. Historically, Protiviti’s Q1 segment margins seasonally decline by mid- single-digit percentage points on a sequential basis. There are two primary drivers. Internal audit revenues are negatively impacted as clients focus instead on annual financial statements and related external audits. In addition, Protiviti employees receive annual compensation adjustments effective January 1st, which are recovered through pricing adjustments realized as client contracts are negotiated. Segment margins then improve accordingly. Based on this, first quarter consolidated operating margins have historically been 1 to 2 percentage points lower sequentially than the fourth quarter. 2. There is typically more variability in the Q1 tax rate compared to other quarters, related to the vesting of our employee stock compensation awards. We currently expect the Q1 tax rate to be between 36 and 40 percent. All estimates we provide on this call are subject to the risks mentioned in today’s press release and in our SEC filings. Now I’ll turn the call back over to Keith. M. Keith Waddell, President and Chief Executive Officer, Robert Half: Thank you Mike, Our third-quarter results reflect continued improvement in our talent solutions operations and Protiviti. Both contract talent solutions and permanent placement achieved year-over-year revenue growth. Technology remained the strongest- performing practice group within contract talent solutions, while finance and accounting also returned to year-over-year revenue growth. Across markets, clients remain focused on securing specialized expertise for high-priority initiatives, particularly in areas such as technology modernization, data, cybersecurity and IT infrastructure.
Slide 9 — Small and midsize businesses continue to face significant challenges finding the
9 Robert Half Q3 2026 Financial Results Conference Call, Prepared Remarks, October 22, 2026 © 2026 Robert Half Inc. An Equal Opportunity Employer M/F/Disability/Veterans Small and midsize businesses continue to face significant challenges finding the skilled talent they need. According to the latest NFIB data, labor quality or availability is a top business problem, reflecting a persistent skills gap that highlights the value of Robert Half’s ability to connect clients with highly experienced professionals who can make an immediate impact. Macroeconomic and geopolitical uncertainty continues, including impacts to inflation and interest rates. Against this backdrop, organizations large and small remain resilient and are steadily increasing their investment in opportunities to modernize operations and strengthen their competitive position. Whether implementing new technologies, improving productivity or advancing strategic initiatives, organizations need specialized talent and expertise to execute effectively. These investments create opportunities for our talent solutions and consulting services. Highly skilled professionals remain difficult to find, particularly in specialized disciplines. In-demand candidates have choices and remain focused on flexibility, career development and competitive compensation. These conditions play to Robert Half’s strengths, including our ability to quickly connect employers with specialized talent possessing the skills and experience organizations need. AI is increasingly becoming part of how work gets done across the professions we serve. Rather than broadly displacing specialized roles, these technologies are instead adding to the skills employers value and increasing the importance of professionals who can pair strong functional expertise with AI fluency, critical thinking and sound judgment. The ability to assess and validate AI-generated outcomes is becoming an increasingly important part of that skill set. At the same time, the growing use of generative AI by job seekers is making it more challenging for employers to distinguish between candidates’ stated qualifications and demonstrated capabilities. This underscores the value of our candidate evaluation and vetting processes, combining proprietary performance insights, rigorous skills assessment and the judgment of our recruiters to help clients hire with greater confidence. As these challenges become more widespread, our ability to identify and validate highly capable talent represents an increasingly important competitive advantage.
Slide 10 — Beyond its impact on the hiring process, AI adoption is also creating new
10 Robert Half Q3 2026 Financial Results Conference Call, Prepared Remarks, October 22, 2026 © 2026 Robert Half Inc. An Equal Opportunity Employer M/F/Disability/Veterans Beyond its impact on the hiring process, AI adoption is also creating new opportunities for specialized talent. Whether related to AI exploration or for implementation across their operations, we are seeing growing demand for highly qualified talent to support this transition. This includes professionals with expertise in technology, data, finance and business transformation, as well as those who can apply emerging technologies within their respective disciplines. These evolving requirements reinforce the value of our specialized recruiting expertise and deep understanding of the skills employers need. Protiviti’s results exceeded our expectations for the quarter, with every major solution or capability area above forecast. Technology consulting again posted all- time-high quarterly revenues, with high demand for platform transformation, cybersecurity, data-related and AI engagements. The risk and compliance practice made significant progress during the quarter, which is expected to continue. Leading the way were engagements to help clients address existing enforcement actions where regulators required further improvements to the quality and effectiveness of their anti-money laundering programs. Demand across Protiviti’s broader solutions offerings remains solid, with a growing and diversified pipeline of opportunities. We expect Protiviti to return to year-over-year revenue growth in the fourth quarter. Our ability to strategically leverage contract professionals through our talent solutions business remains a distinct competitive advantage, enabling us to deliver flexible solutions for clients while strengthening collaboration across the enterprise. We are encouraged by the progress in our business and remain confident in the opportunities ahead. As businesses navigate changing technology, workforce and operational requirements, we see continued opportunities to help clients access the expertise they need to adapt, execute and grow. Our purpose has never been more relevant: helping companies succeed through specialized talent and consulting expertise, while helping people build meaningful careers. Backed by our trusted brand, exceptional people, innovative capabilities and diversified business model, we remain confident in our ability to create long- term value for our clients, our employees and our shareholders. Finally, we want to recognize and thank our employees around the world for their continued dedication to our clients. Their commitment is reflected in Robert Half’s
Slide 11 — Q&A Session
11 Robert Half Q3 2026 Financial Results Conference Call, Prepared Remarks, October 22, 2026 © 2026 Robert Half Inc. An Equal Opportunity Employer M/F/Disability/Veterans recent accolades, including being named among Fortune’s Best Workplaces in Consulting & Professional Services, Forbes’ World’s Best Employers and Forbes’ World’s Top Companies for Women. Now, Mike and I would be happy to answer your questions. Please ask just one question and a single follow-up, as needed. If there’s time, we’ll come back to you for additional questions. M. Keith Waddell, President and Chief Executive Officer, Robert Half: That was our last question. Thank you for joining us today. Operator: This concludes today’s teleconference. If you missed any part of the call, it will be archived in audio format in the Investor Center of Robert Half’s website at roberthalf.com. You also can dial the conference call replay. Dial-in details and the confirmation code are contained in the Company’s press release issued earlier today. Q&A Session