Kforce Q1 revenue slightly beats estimates, co lifts Q2 outlook

Kforce

27/04/2026 21:16

Overview

US staffing firm's Q1 revenue grew 0.1% yr/yr, slightly beating analyst expectations

Diluted EPS for Q1 rose 2.2% to $0.46

Gross profit margin improved by 60 bps yr/yr, driven by higher Flex gross profit margins

Outlook

Kforce sees Q2 2026 revenue between $344 mln and $352 mln

Company expects Q2 2026 EPS of $0.67 to $0.75

Kforce anticipates Q2 2026 year-over-year revenue growth in the mid-single digits

Result Drivers

FLEX MARGIN IMPROVEMENT - Co said higher Flex gross profit margins, driven by a 70 bps spread improvement and 20 bps from lower healthcare costs, supported overall margin gains

FINANCE AND ACCOUNTING FLEX GROWTH - Finance and Accounting Flex revenue grew 5.7% yr/yr, outpacing Technology Flex

INTEGRATED STRATEGY - Co attributed results to its integrated go-to-market strategy and increased collaboration across service offerings

Company press release: ID:nBw4Z0y1Xa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$330.36 mln
$329.008 mln (4 Analysts)
Q1 EPS
$0.46
Q1 Net Income
$7.93 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", 4 "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 $39.50, about 21.9% above its April 24 closing price of $32.41

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

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.)