Robert Half Q2 2026 Earnings Call: Complete Transcript

Robert Half (NYSE: RHI ) released second-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below. This content is powered APIs. 336 billion, down 2% from the previous year, with Talent Solutions experiencing a 2% year-over-year revenue decline.

41 a year ago, influenced by cost actions at Protiviti, with operating income reported at negative $62 million. S. financial services regulations, with a $7 million severance impacting adjusted gross margin. 53, with Protiviti's revenue expected to decrease by 6%.

Management is optimistic about Talent Solutions returning to growth, driven by strong demand in technology consulting and strategic client initiatives. The company is focusing on operational efficiencies and mix adjustments to enhance margins, with a $45 million annualized cost saving expected from recent Protiviti actions. Full Transcript OPERATOR Hello and welcome to the Robert Half second quarter 2026 conference call. Today's conference call is being recorded.

If you'd like to ask a question during the Q&A portion of the call, please press star and the number one on your telephone keypad. Our hosts for today's call are Mr. Keith Waddell, President and Chief Executive Officer of Robert Half, and Mr. Michael Buckley, Chief Financial Officer.

Mr. Waddell, you may begin. Keith Waddell, President and Chief Executive Officer Hello everyone. We appreciate your time today.

Before we get started, I'd like to remind you 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're subject to the 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. Adjusted revenue growth excludes the impact of billing day variations 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. com. 336 billion, down 2% from last year's second quarter on a reported basis and down 3% on an adjusted basis.

5%. Global enterprise revenues and earnings exceeded the midpoint of our second quarter guidance. Hiring demand continues to improve and market conditions are increasingly more supportive of our business. Our unique combination of award-winning high-tech capabilities and high-touch expertise positions us well to help clients navigate a dynamic business environment and connect them with the specialized talent and consulting services they need.

41 in the second quarter a year ago. As we discussed in last quarter's call, second quarter EPS was impacted by cost actions taken by Protiviti, which Mike will discuss further in a moment. Cash flow provided by operations during the quarter was $109 million. 59 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 9% in the second quarter. Now I'll turn the call over to our CFO, Mike Buckley. Mike Buckley, Executive Vice President and Chief Financial Officer Thank you, Keith. 336 billion in the second quarter.

On an adjusted basis, second quarter Talent Solutions revenues were down 2% year over year. S. Talent Solutions revenues were $660 million, down 1% from the prior year's second quarter. S.

Talent Solutions revenues were $205 million, down 4% year over year. We conduct Talent Solutions operations through offices in the United States and 18 other countries. 2 billing days in the second quarter one year ago. 2 billing days in the third quarter of 2025.

Currency exchange rate movements during the second quarter had the effect of increasing reported year-over-year total revenues by $7 million—$6 million for Talent Solutions and $1 million for Protiviti. 3% compared to one year ago. 6%. Now let's take a closer look at results for Protiviti.

Global revenues in the second quarter were $471 million; $373 million of that is from the United States and $98 million is from outsid