Robert Half's second-quarter earnings call highlighted ongoing pressure in its Protiviti consulting segment due to shifts in the U.S. financial services regulatory environment, while Talent Solutions showed continued sequential revenue growth. Revenue of $1.34 billion beat analyst estimates by 1%, and adjusted EPS of $0.26 met consensus. CEO Keith Waddell noted that risk and compliance now represents just under 20% of Protiviti revenue, and additional severance costs from international realignment and regulatory changes weighed on margins. Analysts questioned the sustainability of Protiviti's weakness, with Waddell attributing international declines to the wind-down of large public sector contracts in Germany and cautioning that fourth-quarter margins will face added regulatory headwinds and a shorter billing period. For Talent Solutions, Waddell estimated mid-single-digit normalized growth driven equally by wage inflation and volume, while expecting relief from Protiviti's regulatory headwinds to begin in early 2027.
Robert Half International IncProtiviti faces regulatory headwinds from U.S. financial services changes, pressuring margins and revenue.