High ROE & Robust Liquidity Position Aid RHI Amid High Competition

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High ROE & Robust Liquidity Position Aid RHI Amid High Competition

Robert Half Inc. RHI reported first-quarter 2026 earnings of 14 cents per share, in line with the Zacks Consensus Estimate and down 17.6% from the year-ago quarter. Quarterly revenues were $1.3 billion, falling 3.8% year over year and lagging the consensus mark of $1.31 billion by 0.9%.

How Is RHI Faring?

Robert Half holds a strong profitability position. RHI’s return on equity (ROE) in the first quarter of 2026 was 10.14%, above the industry average of 8.21%. RHI’s higher ROE provides a sustainable competitive edge wherein it utilizes capital efficiently, leading to higher earnings growth and dividends. A higher ROE bodes well for investors.

In 2022, 2023, 2024 and 2025, the company returned $189.29 million, $205.91 million, $220 million and $240 million in dividends, respectively. RHI repurchased shares worth $319.9 million, $254.63 million, $276 million and $92 million in 2022, 2023, 2024 and 2025, respectively. These moves instill confidence among shareholders and establish the company’s commitment to returning value to its shareholders.

Robert Half Inc. Dividend Yield (TTM)

Robert Half Inc. Dividend Yield (TTM)

Robert Half Inc. dividend-yield-ttm | Robert Half Inc. Quote

At the end of the first quarter of 2026, RHI’s current ratio was 1.55, which is higher than the industry average of 1.39. Despite a decline from the year-ago quarter's 1.65 due to a dip in cash reserves, a current ratio of more than 1 implies that the company will be able to pay off short-term debt efficiently.

However, the staffing business is fiercely competitive, with multiple firms offering services like those provided by Robert Half on a national, regional, or local basis. This intense competition puts pressure on RHI to innovate and differentiate its offerings continuously while maintaining cost efficiency.

Long-term contracts do not hold a substantial proportion of Robert Half’s staffing services business. Therefore, future results cannot be anticipated reliably by considering historical results. The company’s clients will enter non-exclusive arrangements with multiple firms that the clients can terminate on short notice and without paying a penalty.

Zacks Rank & Stocks to Consider

Robert Half currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector are Coherent Corp. COHR and Conduent CNDT, currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Coherent Corp has a long-term earnings growth expectation of 46.8%. Coherent Corp delivered a trailing four-quarter earnings surprise of 6.2%, on average.

Conduent has a long-term earnings growth expectation of 8%. Conduent delivered a trailing four-quarter earnings surprise of 4%, on average.

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Robert Half Inc. (RHI): Free Stock Analysis Report
 
Coherent Corp. (COHR): Free Stock Analysis Report
 
Conduent Inc. (CNDT): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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