Robert Half Shares Plunge 13.89% on Disappointing Q1 Results

Robert Half (RHI) shares plummeted 13.89% intraday, marking the lowest level since April 2020, with a 3.10% decline in the overall trading session.

Robert Half's stock price experienced a significant decline due to disappointing first-quarter 2025 results. The company reported an 8% year-over-year decrease in global enterprise revenues and a sharp drop in net income per share from $0.61 to $0.17. This underperformance was attributed to a weak labor market and declining margins, leading to missed revenue expectations of $1.35 billion against a forecast of $1.4 billion.

Macroeconomic uncertainty played a crucial role in the company's underperformance. Employers adopted a cautious 'wait and see' approach, impacting hiring and business activity. This cautious stance was a direct response to the growing economic uncertainty, which affected Robert Half's ability to maintain its revenue and profitability.

In response to the poor financial performance, several financial institutions revised their stock price targets for Robert Half. Barclays cut its price target from $50 to $45, while JPMorgan reduced its target from $65 to $47. These revisions reflected the market's pessimistic outlook on the company's future prospects.