Robert Half International Inc. (RHI) Mixed 2Q Results with widening Protiviti pressures tempering the Talent Solutions recovery

Equity Research 23 July 2026 | 7:10PM PDT

Robert Half International Inc. (RHI) Mixed 2Q Results with widening Protiviti pressures tempering the Talent Solutions recovery

RHI 12m Price Target: $29.00 Price: $37.85 Downside: 23.4% SELL George K. Tong, CFA Robert Half reported mixed 2Q results, with revenue upside, in-line | Goldman Sachs & Co. LLC EPS and guidance for 3Q that was largely consistent with consensus, Sami Nasir, CFA offset by widening pressures in Protiviti. RHI’s Talent Solutions | Goldman Sachs & Co. LLC business is continuing to recover, with revenue on track to inflect to positive 3% y/y growth at the midpoint in 3Q after over three years Alex Lakritz | Goldman Sachs & Co. LLC of declines. The company has now delivered three consecutive quarters of sequential Talent Solutions revenue growth on a same day CC basis, supported by improving hiring demand, increasing job Key Data _____________________________________ Market cap: $3.8bn orders and stronger activity across technology-related end markets. Enterprise value: $3.4bn 3m ADTV: $72.2mn That said, RHI is experiencing ongoing weakness at Protiviti, where United States revenue declined 5% y/y in 2Q and is guided to decline 6% y/y at the Americas Information and Business Services M&A Rank: 3 midpoint of 3Q due primarily to a less stringent US financial services GS Forecast __________________________________ regulatory environment, particularly around anti-money laundering 12/25 12/26E 12/27E 12/28E

and related enforcement activity. International Protiviti, previously a Revenue ($ mn) New Revenue ($ mn) Old 5,378.5 5,378.5 5,322.6 5,305.8 5,533.6 5,611.9 5,845.9 6,005.3 source of strength, is also now declining due to the wind-down of EBITDA ($ mn) EBIT ($ mn) several large public sector engagements, weaker macroeconomic EPS ($) New conditions, elevated energy costs and softer client sentiment in EPS ($) Old P/E (X) parts of Europe. We believe ongoing US Protiviti weakness, Dividend yield (%) 5.5 6.3 6.9 7.2 emerging international Protiviti softness, macro uncertainty and Net debt/EBITDA (X) (1.8) (1.4) (0.9) (0.8)

longer-term AI-related risks to white-collar staffing leave earnings 6/26 9/26E 12/26E 3/27E estimates vulnerable to downward revisions and create continued EPS ($)

downside risk to the shares. Reiterate Sell. GS Factor Profile ______________________________ Growth

Financial Returns 2Q 2026 Financial Highlights Revenue above consensus. Revenue of $1,336mn decreased 2.4% Multiple

y/y, better than our estimate of down 3.3% and FactSet consensus Integrated

of down 3.5%. On a same day CC basis, revenue declined 2.8% y/y in 2Q, improved from the 5.6% decline in 1Q. Finance & accounting Percentile 20th 40th 60th 80th 100th

revenue decreased 0.7% y/y, administrative & customer support RHI relative to Americas Coverage RHI relative to Americas Information and Business Services revenue fell 6.5% and technology revenue rose 2.4%. RHI’s permanent placement revenue expanded 2.9% y/y, while Protiviti Source: Company data, Goldman Sachs Research estimates. See disclosures for details. revenue decreased 4.9%. All segments outperformed our forecasts.

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Goldman Sachs Robert Half International Inc. (RHI)

Robert Half International Inc. (RHI) Balance Sheet ($ mn) _______________________________________ SELL Rating since Sep 4, 2018 12/25 12/26E 12/27E 12/28E Cash & cash equivalents Accounts receivable Inventory -- -- -- -- Ratios & Valuation __________________________________________ Other current assets /25 12/26E 12/27E 12/28E Total current assets 2,119.0 2,094.6 2,095.0 2,164.6 P/E (X) Net PP&E EV/EBITDA (X) Net intangibles EV/sales (X) 0.7 0.6 0.6 0.6…