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BMO Capital has recently revised its forecast for Robert Half (RHI), downgrading its price target due to a slower-than-anticipated recovery in profitability. This adjustment comes after the company's latest financial disclosures, which revealed a significant cost-action charge impacting future earnings. Despite a challenging quarter, Robert Half's leadership highlighted areas of stabilization and strategic strengths, reassuring investors of the company's long-term potential.

BMO Capital Adjusts Robert Half's Financial Outlook Following Q4 Disclosures

On Wednesday, February 25, 2026, BMO Capital announced a downward revision of its price target for Robert Half Inc. (NYSE:RHI), moving it from $35 to $32. The financial institution chose to reaffirm its 'Market Perform' rating on the shares. This decision was prompted by the company's comprehensive 10K disclosures, which detailed a projected $17 million cost-action charge. Analysts at BMO Capital noted that this charge is expected to impede the pace of profitability improvement through the second quarter of 2026, leading them to view their earlier projections as excessively bullish.

During Robert Half's fourth-quarter 2025 earnings call, CEO M. Waddell reported that the global enterprise revenue reached $1.302 billion. This figure represented a 6% decline on a reported basis and a 7% decrease on an adjusted basis compared to the same period in the previous year. However, Waddell pointed to encouraging signs of stability, including the first instance of positive sequential revenue growth on a same-day constant currency basis in over three years. He also highlighted that both revenue and earnings surpassed the midpoint of the company's initial guidance. Waddell expressed confidence in Robert Half's ability to capitalize on new opportunities, emphasizing the enduring strength of its brand, dedicated workforce, advanced technology, and resilient business model. These foundational elements continue to provide critical support to clients navigating complex hiring and consulting demands. Furthermore, the company demonstrated robust financial health by generating an operating cash flow of $183 million, marking an 18% increase from the fourth quarter of 2024. Robert Half also reaffirmed its commitment to shareholder returns by distributing a dividend of $0.59 per share. Robert Half Inc., a prominent provider of talent solutions and business consulting services, operates under its distinguished Robert Half and Protiviti brands, segmented into contract talent solutions, permanent placement talent solutions, and Protiviti services.

This revised outlook from BMO Capital underscores the dynamic nature of market expectations and the importance of adapting strategies to evolving financial landscapes. While Robert Half faces near-term challenges, its fundamental strengths and strategic positioning suggest a capacity for long-term resilience and growth. Investors will be closely watching how the company navigates these adjustments and leverages its core assets to secure sustained performance.