Robert Half (RHI) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues were $1.3 billion, down 4% year-over-year on a reported basis and 6% on an adjusted basis, with net income of $14 million ($0.14 per share), reflecting ongoing macroeconomic uncertainty but improving trends into early April.

• Talent Solutions achieved a second consecutive quarter of positive sequential growth on a same-day constant currency basis, especially in technology, data, and IT infrastructure.

• U.S. revenues declined 7.1% while international revenues grew 8.1%, now comprising 24% of total revenue.

• Protiviti is shifting toward efficiency-oriented solutions and AI integration, with fewer large-scale remediation projects and U.S. regulatory headwinds.

• Cash flow used in operations was $112 million, reflecting seasonal outflows for bonuses and SaaS renewals.

Financial highlights

• Gross margin for Q1 2026 was $479.9 million (36.9% of revenue), flat year-over-year; contract talent solutions gross margin was 38.9%, Protiviti adjusted gross margin was 18.8%.

• Operating income was $37 million, down from $38.9 million year-over-year; adjusted operating income was $29 million (2.2% of revenues).

• Cash and cash equivalents at quarter-end were $278 million.

• Dividend of $0.59 per share declared, totaling $62 million in cash outlay.

• First quarter tax rate was 56%, up from 22% last year, due to stock-based compensation vesting and low Q1 pretax income.

Outlook and guidance

• Q2 2026 revenue guidance: $1.275–$1.375 billion; EPS $0.20–$0.30, or $0.23–$0.33 excluding a $0.03 severance charge.

• Midpoint Q2 revenue guidance is 4% lower year-over-year on an adjusted basis; adjusted revenue growth for Q2: Talent Solutions flat to down 4%, Protiviti down 4%–8%.

• Q3 2026 expected to see Talent Solutions return to 1%–3% year-over-year adjusted revenue growth; Protiviti Q3 margins expected at 7%–9%.

• Q3 consolidated net income and EPS growth projected at 8%–12% year-over-year.

• Capital expenditures for 2026 are projected at $70–$90 million, focused on software and technology infrastructure.