Key Takeaways
- Robert Half shares jumped 22% after third-quarter EPS of $0.49 beat the $0.47 consensus.
- Talent Solutions, its staffing business, grew revenue for the first time since 2022, which suggests the white-collar hiring slump is ending.
- Adjusted operating income rose 19% on flat revenue, and the midpoint of fourth-quarter guidance would put EPS up nearly 30% from a year ago.
- After the jump, the stock already prices in a good part of the recovery, so the fourth-quarter report is the next test.
Robert Half (RHI) shares are up 22% today after its third-quarter results gave investors their first real sign in years that the white-collar hiring slump is ending.
What exactly happened
After Thursday’s close, Robert Half reported:
- EPS of $0.49, up from $0.43 a year earlier and ahead of the $0.47 consensus
- Revenue of $1.36 billion, roughly flat with last year on an adjusted basis
- Adjusted operating income of $72.6 million, up 19% from $61.2 million
The big one came from CEO M. Keith Waddell: “Talent solutions returned to adjusted year-over-year revenue growth for the first time since 2022, with revenues increasing 2 percent.”
Permanent placement did even better, up 6% on an adjusted basis and 8% in the US. Companies only commit to full-time hires when they feel good about the year ahead. (The drag was Protiviti, Robert Half’s consulting arm, where revenue fell 3%.)
TIKR tracks 11 analysts on Robert Half. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Robert Half, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Robert Half’s Analyst Ratings
This looks like the bottom
Robert Half’s revenue has shrunk every year since 2023, from $6.39 billion to $5.38 billion in 2025, and analysts expect this year to be the low point before sales grow again…
Q4 is the next test
Management guided to fourth-quarter EPS of $0.36 to $0.46. The $0.41 midpoint is below the $0.47 consensus, but it would still be nearly 30% above last year’s $0.32.
Analysts are warming up anyway. This morning, Baird raised its price target to $53 and JPMorgan to $45, and even Goldman Sachs, which rates the stock Sell, lifted its target to $33.
That optimism shows up in the valuation. Robert Half closed Thursday at 21x forward earnings, already above its 20x five-year average…
At this morning’s price, it’s closer to 25x, not far from its 28x peak in November 2024.
My take: The turn looks real, and a 19% jump in adjusted operating income on flat revenue shows how fast earnings can bounce back once growth returns. But at nearly 25x forward earnings, the stock already prices in a good chunk of that recovery. I’d want to see the fourth quarter land near the top of guidance before buying.
Of course, Waddell also saw “encouraging signs of improvement” in demand for Protiviti’s risk and compliance work. If that turns into growth by the fourth-quarter report in late January, the midpoint could prove too cautious.
So what is Robert Half stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
