Robert Half offers an asymmetric cyclical recovery opportunity as Protiviti savings and hiring normalization could lift the stock toward $64.62 base-case value, despite meaningful litigation and AI-disintermediation risks.
Overview
Robert Half is a global specialized talent-solutions and consulting company founded in 1948, combining Talent Solutions with Protiviti. Its model monetizes contract staffing through 70%–75% wage markups, permanent placement through 30%–35% contingency fees, and Protiviti through project and managed-service billing. The company generated $5.38 billion of FY2025 global service revenue, with 78% from the United States. Q2 2026 revenue was **$1.336 billion**, down 2.4% reported and 2.8% adjusted year over year, but above the $1.320 billion analyst expectation; diluted EPS was $0.26 versus $0.41. The apparent $62.3 million GAAP operating loss was distorted by a $100.878 million deferred-compensation-trust accounting item, with adjusted operating income of $39 million. Protiviti’s $7 million restructuring charge reduced segment margin to 13.5%, but management expects **$45 million of annualized savings** starting in Q3. Shares rebounded from $37.85 after earnings to $43.94 by August 18, near the 12-month high. Consensus is still Reduce with a $34.75 target, while the report’s probability-weighted five-year target is $71.09, supported by recovery, cost savings, dividends, and a debt-free balance sheet.