Kforce Q2 revenue slightly beats estimates as Flex sales grow

Kforce

27/07/2026 21:13

Overview
U.S. staffing firm's Q2 revenue rose 4.5% yr/yr, slightly beating analyst expectations
Diluted EPS for Q2 rose nearly 24% yr/yr to $0.73
Gross profit margin improved 140 bps yr/yr to 28.5%

Outlook
Kforce expects Q3 2026 revenue between $349 mln and $357 mln
Company sees Q3 2026 EPS of $0.71 to $0.79
Kforce expects Q3 2026 gross profit margins of 28.1% to 28.3%

Result Drivers
SEGMENT GROWTH - Technology Flex and Finance & Accounting Flex segments both posted year-over-year revenue increases
MARGIN EXPANSION - Gross profit margins rose 140 basis points year over year, with Flex gross profit margins up 110 basis points
DEMAND FOR TALENT - Co said demand for high-quality talent, including for AI-related projects, remained strong

Company press release: ID:nBw65h0XPa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$349.33 mln
$348.12 mln (4 Analysts)
Q2 EPS
 
$0.73
 
Q2 Net Income
 
$12.32 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 3 "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 $50.50, about 8.4% below its July 24 closing price of $55.12
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 12 three months ago

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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.)