Kforce Q3 revenue rises on technology staffing, slightly beats estimates

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

*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.)