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Kforce Q3 revenue rises on technology staffing, slightly beats estimates

By Reuters News


Overview

  • US professional staffing firm's Q3 revenue rose 7.5% yr/yr, slightly beating analyst expectations

  • Q3 diluted EPS rose 42.9% yr/yr, including $0.12 gain from life insurance policies

  • Company saw improved gross profit margins and strong growth in technology staffing


Outlook

  • Kforce sees Q4 2026 revenue between $352 mln and $360 mln

  • Company expects Q4 2026 EPS of $0.62 to $0.70

  • Company says clients remain cautious on full-time hiring amid ongoing economic uncertainty


Result Drivers

  • TECHNOLOGY STAFFING - Co said nearly 8% yr/yr growth in technology staffing drove overall revenue increase

  • HIGHER MARGINS - Co said improved gross profit margins contributed to earnings growth

  • LIFE INSURANCE GAIN - Q3 EPS benefited from $0.12 gain on company-owned life insurance policies


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$357.76 mln

$354.42 mln (4 Analysts)

Q3 EPS

$0.90

Q3 Net Income

$15.45 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the employment services peer group is "buy"

  • Wall Street's median 12-month price target for Kforce Inc. is $60.00, about 2.6% above its October 23 closing price of $58.50

  • The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 18 three months ago


Reuters Recommended Reads

  • Oct 26 - Microsoft offers buyouts to around 60,000 employees to contain costs

  • Oct 26 - ConocoPhillips to reduce workforce in Canada


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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