Robert Half Navigates Challenging Market Conditions with Strong Talent Solutions Performance
Robert Half, a leading provider of professional staffing and business consulting services, has reported a solid first quarter in 2026 despite market conditions being increasingly challenging. During the company's recent conference call, President and Chief Executive Officer Keith Waddell highlighted the resilience of its Talent Solutions segment, which delivered positive sequential growth on a same-day constant currency basis for the second consecutive quarter.
The company reported global enterprise revenues of $1.3 billion for the first quarter, down 4% from last year's first quarter on a reported basis and down 6% on an adjusted basis. However, Talent Solutions revenue trends strengthened as the quarter progressed, with contract bill rates increasing by 2.6% compared to one year ago.
Net income per share in the first quarter was $0.14, compared to $0.17 in the first quarter a year ago. CFO Michael Buckley attributed this decline to a seasonally elevated tax rate tied to stock-based compensation, which is expected to normalize as the year progresses. Despite this, Robert Half remains well-positioned to capitalize on emerging opportunities and support clients' talent and consulting needs through its industry-leading brand, people, technology, and unique business model.
Global Protiviti revenues in the first quarter were $466 million, with adjusted revenues down 4% versus the year-ago period. However, CFO Michael Buckley highlighted that revenue trends for Protiviti are showing signs of improvement, particularly in non-U.S. markets where revenues increased by 3% compared to last year's first quarter.
The company's cash flow used in operations during the first quarter was $112 million, with a significant portion attributed to the annual payment cycle for bonuses and SaaS subscription renewals. Robert Half also distributed a $0.59 per share cash dividend to its shareholders in March, resulting in total cash outlay of $62 million.
Robert Half's return on invested capital for the first quarter was 4%, reflecting the company's ongoing commitment to investing in its business and generating returns for its stakeholders. Despite the challenges posed by market conditions, Robert Half's unique combination of high-tech capabilities and high-touch expertise positions it well to deliver meaningful value for clients navigating a dynamic business environment.
