ロバート・ハーフ（RHI）2026年第3四半期決算説明会：タレント・ソリューションズが成長回帰

主要なポイント

• ロバート・ハーフが発表した2026年第3四半期の売上高は13億5,900万ドルとなり、調整後ベースで前年同期比ほぼ横ばいでした。タレント・ソリューション事業は調整後ベースで2022年以来初めて増収に転じ、前年同期比2%増となりました。
• 希薄化後1株当たり利益（EPS）は前年同期の0.43ドルから14%増の0.49ドルとなり、四半期ベースのEPSとして2022年以来前年同期比で初の増益を記録しました。
• 調整後営業利益は、前年同期の6,100万ドル（売上高営業利益率4.5%）から7,300万ドル（同5.3%）に増加しました。
• プロティヴィティ部門の売上高は調整後ベースで3%減少したものの、調整後売上総利益率は前年同期の23.0%から24.1%に改善しました。経営陣は、第4四半期には同部門の売上高が前年同期比で増収に転じると見込んでいます。
• 第4四半期の業績予想（ガイダンス）では、売上高を12億8,500万ドル〜13億8,500万ドル、EPSを0.36ドル〜0.46ドルとしています。中央値では、前年同期比で調整後売上高成長率が3%、EPS成長率が30%となります。
• 経営陣は、採用活動の改善、プロティヴィティにおけるITコンサルティング売上高の過去最高更新、マネーロンダリング防止（AML）是正対応における需要拡大を、主な業績牽引要因として挙げました。

主要財務データ

ロバート・ハーフは9月に1株当たり0.59ドルの四半期現金配当を実施し、配当総額は5,900万ドルとなりました。

事業および業績の動向

タレント・ソリューション事業は、2022年以来初めて調整後ベースで増収を記録しました。契約社員（派遣）サービス売上高は9月および第3四半期全体でともに1%増加し、正社員紹介サービス売上高は第3四半期で6%増、9月には5%増となりました。

第4四半期の序盤動向として、10月最初の2週間における契約社員売上高は前年同期比2%増加しました。正社員紹介売上高は最初の3週間で5%増加しました。経営陣は、これらの集計期間は決定的なトレンドを見出すには短すぎると補足しています。

専門性、為替、国別構成を調整後の契約社員請求単価（ビルレート）は前年同期比で3.6%上昇し、第2四半期の2.3%増から加速しました。契約社員の売上総利益率は前年同期の38.9%から39.3%に向上しました。経営陣はこの40ベーシスポイントの改善のうち、半分は直接雇用移行（コンバージョン）手数料によるもの、残りの半分はより高度な職種へのシフトや厳格な価格設定を含むスプレッドの拡大によるものとしています。

タレント・ソリューション事業全体の売上総利益率は前年同期の46.7%から47.4%に上昇しました。調整後営業利益は前年同期の2,400万ドル（売上高営業利益率2.8%）から3,600万ドル（同4.0%）へと増加しました。

契約派遣においてはテクノロジー部門が引き続き最も好調で、財務・会計部門も前年同期比でプラス成長に復帰しました。経営陣によると、需要はITモダナイゼーション、データ、サイバーセキュリティ、ITインフラを含む優先度の高い分野に引き続き集中しています。大企業クライアントの回復ペースがより早く、中小企業も追随し始めています。

プロティヴィティの売上高は4億8,300万ドルで、そのうち米国が3億8,300万ドル、米国以外が1億ドルでした。調整後売上高は、米国で5%減少した一方、米国以外では2%増加しました。

プロティヴィティの調整後営業利益は3,700万ドルで前年同期から横ばいとなったものの、調整後営業利益率は7.5%から7.7%へと上昇しました。プラットフォーム刷新、サイバーセキュリティ、データ、AI関連案件に支えられ、ITコンサルティングの四半期売上高は過去最高を記録しました。

リスク・コンプライアンス分野の需要が著しく改善しました。経営陣は、金融機関に対してマネーロンダリング防止体制の強化を求める規制当局の執行措置が要因であるとしています。これらのプロジェクトには多くの人員を要するため、プロティヴィティはタレント・ソリューション事業の専門人材を活用し、組織全体で提供体制を柔軟に拡大することができています。

業績予想（ガイダンス）

ロバート・ハーフが提示した2026年第4四半期の業績予想は以下の通りです。

売上高の中央値である13億3,500万ドルは、前年同期比で3%の調整後成長を意味します。経営陣が提示したEPSの中央値0.41ドルは、前年同期比30%増に相当します。この中央値の想定では、タレント・ソリューションの売上高成長率を3%、プロティヴィティの成長率を2%としています。

第4四半期の調整後営業利益率の見通しは、タレント・ソリューションが2%〜4%、プロティヴィティが6%〜8%となっています。調整後販管費（SG&A）は連結売上高の33%〜35%相当となる見込みです。

同社は、2026年の設備投資額および資産計上されるクラウド・コンピューティング関連費用を6,000万ドル〜7,000万ドルと見込んでおり、これには第4四半期の1,500万ドル〜2,000万ドルが含まれます。

2027年第1四半期について、経営陣は内部監査の季節要因および年次の報酬改定に伴い、プロティヴィティのセグメント利益率が前四半期比で1桁台半ばのパーセンテージポイント低下すると予測しています。過去の傾向として、連結営業利益率は第1四半期に第4四半期比で1〜2パーセンテージポイント低下する傾向があります。現在、第1四半期の税率は36%〜40%と見込んでおり、株式報酬費用によって追加の変動が生じる可能性があります。

リスク要因と注視すべきポイント

• 経営陣は、マクロ経済および地政学的な不透明感が、インフレ、金利、顧客企業の意思決定に引き続き影響を及ぼしていると述べました。
• 需要は選別的であり、顧客企業にとって先送りできない取り組みが中心となっています。経営陣は、過去の回復局面で見られたような広範な「一斉回復」はまだ起きていないと述べています。
• 契約社員の人員数は前年同期比で減少が続いていますが、減少ペースは緩和しつつあります。
• クリスマスから年末年始にかけて顧客企業の活動が鈍化するため、第4四半期の休日シーズンは、特に正社員紹介やプロティヴィティにおいて業績の変動要因となる可能性があります。
• プロティヴィティは第1四半期、価格改定の効果が本格化する前に、内部監査の季節性や給与引き上げに伴う例年通りの利益圧迫に直面します。
• 経営陣は、社内AIツールによる個人レベルでの生産性向上は、組織全体での同等のコスト削減に直ちに結びつくわけではないと指摘しました。

アナリスト質疑応答のハイライト

マネーロンダリング防止（AML）需要：経営陣によると、近年の規制当局による法的措置に伴い、AML是正やコンプライアンス関連業務が著しく増加しています。プロジェクトの期間は顧客のリソースや外部コンサルタントの活用状況に左右されるものの、複数の四半期にわたり、時には数年続く見込みです。

利益率の改善ポテンシャル：経営陣は中長期的にプロティヴィティで2桁の営業利益率を達成することに引き続き注力しています。最近のコスト抑制策、従業員稼働率の向上、多くの外部人材を必要とするAMLプロジェクトが利益率の改善を後押ししています。過去の構造改革により、第4四半期を含め四半期当たり約1,100万ドルの人件費削減効果が見込まれています。

採用活動の回復傾向：経営陣は、タレント・ソリューション事業の回復は急速というよりも着実なものだと説明しました。正社員紹介と契約社員派遣の動向は同期しているとみなされており、通常、下降局面では正社員紹介がより大幅に落ち込み、低いベースからの回復期にはより早いスピードで反発します。

長期成長フレームワーク：経営陣は、タレント・ソリューション事業の長期的な期待成長率を1桁台半ばとしています。プロティヴィティについては1桁台半ばから2桁台前半の潜在的成長範囲を挙げつつも、これらは短期のガイダンスではなく長期的な試算であることを強調しました。

AI戦略：ロバート・ハーフのAI投資は現在、主に顧客や求職者の利便性向上、マッチングアルゴリズム、リードの優先順位付けに集中しています。また、経営陣は、業務上の専門知識に加え、AIの活用能力、クリティカルシンキング、AIが生成した成果物を検証する能力を併せ持つプロフェッショナルへの需要が高まっていると指摘しています。

決算説明会文字起こし全文

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Please stand by. Hello, and welcome to the Robert Half Third Quarter 2026 Conference Call. Today's conference call is being recorded. [Operator Instructions]

Our host for today's call are Mr. Keith Waddell, President and Chief Executive Officer of Robert Half; and Mr. Michael Buckley, Chief Financial Officer.

Mr. Waddell, you may begin.

M. Waddell

Hello, everyone. We appreciate your time today. Before we get started, I'd like to remind you that the comments made on today's call contain forward-looking statements, including predictions and estimates about our future performance. These statements represent our current judgment of what the future holds. However, are subject to the risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. ..

These risks and uncertainties are described in today's press release and our most recent 10-K and 10-Q filed with the SEC. We assume no obligation to update the statements made on today's call. During this presentation, we may refer to certain non-GAAP financial measures as adjusted. Adjusted revenue growth excludes the impact of billing day variations and foreign currency exchange rates. Adjusted gross margin, SG&A and operating income reflect the combining of investment gains and losses related to employee deferred compensation plans with corresponding changes in those obligations. These items have no impact on reported net income.

Reconciliations and additional information are included in the supplemental schedules to our earnings release. For your convenience, our prepared remarks for today's call are available in the Investor Center of our website, roberthalf.com. For the third quarter of 2026, Global Enterprise revenues were $1.359 billion, roughly flat with last year on an adjusted basis. Talent Solutions returned to adjusted year-over-year revenue growth for the first time since 2022, with revenues increasing 2%. Global Enterprise earnings exceeded the midpoint of our third quarter guidance.

Hiring activity continues to improve, supported by gradually improving market conditions. Demand for risk and compliance consulting services also showed encouraging signs of improvement during the quarter. Our combination of innovative technology, specialized expertise and high-touch client service positions us well to deliver the talent and consulting solutions clients need to advance their business priorities. Net income per share in the third quarter was $0.49, up 14% from $0.43 a year ago. This marked the first year-over-year increase in quarterly earnings per share since 2022.

Cash flow provided by operations during the quarter was $66 million. In September, we distributed a $0.59 per share cash dividend to our shareholders of record for a total cash outlay of $59 million. Return on invested capital for the company was 17% in the third quarter.

Now I'll turn the call over to our CFO, Mike Buckley.

Michael Buckley

Thank you, Keith. Hello, everyone. As Keith noted, global revenues were $1.359 billion in the third quarter. On an adjusted basis, third quarter talent solutions revenues were up 2% year-over-year. U.S. talent solutions revenues were $670 million, up 3% from the prior year's third quarter. Non-U.S. talent solutions revenues were $206 million, 1% down. Delivered 6% growth. We conduct talent solutions operations through offices in the United States in 18 other countries.

In the third quarter of 2026, there were 64.6 billing days compared to 64.2 billing days in the third quarter 1 year ago. The fourth quarter of 2026 has 61.1 billing days compared to 61.4 billing days in the fourth quarter of 2025. Billing days for the 4 quarters of 2027 will be 61.5, 63.7, 64.5 and 61.5% for a total of 251.2 billing days in the year. Currency exchange rate fluctuations during the third quarter had a de minimis impact to reported revenues. Contract talent solutions bill rates for the third quarter increased 3.6% and compared to 1 year ago, adjusted for changes in the mix of revenues by functional specialization, currency and country.

This rate for the second quarter was 2.3%. Now let's take a closer look at results for Protiviti. Global revenues in the third quarter were $483 million, $383 million of that is from the United States, and $100 million is from outside of the United States. On an tasted basis, global third quarter productivity revenues were down 3% versus the year ago period. U.S. Productivity revenues were down 5%, while non-U.S. Protiviti revenues were up 2% compared to 1 year ago. Protiviti and its independently owned member firms serve clients through locations in the United States and 27 other countries.

Turning now to gross margin. In contract talent solutions, Third quarter gross margin was 39.3% of applicable revenues versus 38.9% in the third quarter 1 year ago. Conversion or contract to hire, revenues were 3.4% of contract revenues in the current quarter compared to 3.2% in the third quarter of 2025. Our permanent placement revenues were 13.4% of consolidated talent solutions revenues in the current quarter compared to 12.9% in the third quarter of 2025. When combined with contract talent solutions gross margin, overall gross margin for talent solutions was 47.4% of applicable revenues in the current quarter compared to 46.7% and in the third quarter of 2025.

For Protiviti, gross margin was 24.2% of Protiviti revenues in the third quarter and 20.9% in the third quarter 1 year ago. Adjusted gross margin for Protiviti was 24.1% for the quarter just ended compared to 23% last year. Enterprise SG&A costs were 33.6% of global revenues in the third quarter compared to 36.2% in the same quarter 1 year ago. Adjusted enterprise SG&A costs were 33.8% for the quarter just ended compared to 33.5% 1 year ago. Talent solutions SG&A costs were 43.2% of Talent Solutions revenues in the third quarter versus 48.2% in the third quarter of 2025.

Adjusted talent solutions SG&A costs were 43.4% compared to 43.9% for the third quarter 1 year ago. Third quarter SG&A costs for Protiviti or 16.4% of Protiviti revenues compared to 15.5% for the same quarter 1 year ago. Reported operating income for the third quarter was $75 million, adjusted operating income was $73 million in the quarter or 5.3% of revenues. This compares to $61 million or 4.5% of revenues 1 year ago. Third quarter adjusted operating income for Talent Solutions was $36 million or 4% of revenues. This compares to $24 million or 2.8% of revenues last year.

Adjusted operating income for Protiviti in the third quarter was $37 million or 7.7% of revenues, adjusted operating income for Protiviti in the third quarter 1 year ago was $37 million or 7.5% of revenues. Our third quarter 2026 income statement includes a $2 million loss from investments held in employee deferred compensation trusts. This is completely offset by an equal amount of lower employee deferred compensation costs, which are reflected in SG&A expense and direct costs. As such, it has no effect on our reported net income.

Our third quarter tax rate was 33% in both the current quarter and the third quarter 1 year ago. At the end of the third quarter, accounts receivable were $826 million and implied days sales outstanding, or DSO, was 54.8 days. Before we move to fourth quarter guidance, let's review some of the monthly revenue trends we saw in the third quarter and so far in October, all adjusted for currency and billing days. Contract talent solutions exited the third quarter with September revenues up 1% versus the prior year, the same as the 1% increase for the full quarter. Revenues for the first 2 weeks of October are up 2% compared to the same period last year.

Permanent placement revenues in September were up 5% versus September 2025. This compares to a 6% increase for the full quarter. For the first 3 weeks in October, permanent placement revenues were up 5% compared to the same period in 2025. We provide this information so that you have insight into some of the trends we saw during the third quarter and into October. But as you know, these are very brief time periods. We caution against reading too much into them.

With that in mind, we offer the following fourth quarter guidance: revenue, $1.285 billion to $1.385 billion, income per share $0.36 to $0.46. Midpoint revenue of $1.335 billion are 3% higher than the same period in 2025 on an adjusted basis. midpoint earnings per share of $0.41 and are 30% higher than last year. Our midpoint revenue guidance for the fourth quarter reflects year-over-year revenue growth of 3% for talent solutions and 2% for Protiviti. The major financial assumptions underlying the midpoint of these estimates are as follows: adjusted revenue growth year-over-year for talent solutions, up 1% to 5%.

For Protiviti, flat to up 4% overall up 1% to 5%. Adjusted gross margin percentages, contract talent, 38% to 40%; Protiviti, 22% to 25% overall, 37% to 40%. Adjusted SG&A as a percentage of revenue for talent solutions, 43% to 45% for Protiviti 16% to 18% and overall 33% to 35%. Adjusted operating income as a percentage of revenues for talent solutions, 2% to 4% for Protiviti 6% to 8%. And overall, 3% to 5%. The assumed tax rate, 31% to 33% and shares outstanding 100.5 million to 101.5 million shares.

2026 capital expenditures and capital cloud computing costs, $60 million to $70 million with $15 million to $20 million in the fourth quarter. For the first quarter of 2027, we offer the following directional observations. Number one, historically, Protiviti Q1 segment margins seasonally decline by mid-single-digit percentage points on a sequential basis. There are 2 primary drivers. Internal audit revenues are negatively impacted as clients focus instead on annual financial statements and related external audits.

In addition, Protiviti employees receive annual compensation adjustments effective January 1, which are recovered through pricing adjustments realized as client contracts are negotiated. Segment margins then improved accordingly. Based on this, first quarter consolidated operating margins have historically been 1 to 2 percentage points lower sequentially than the fourth quarter. Number two, there is typically more variability in the Q1 tax rate compared to other quarters related to the vesting of our employee stock compensation awards. We currently expect the Q1 tax rate to be between 36% and 40%. All estimates we provide on this call are subject to the risks mentioned in today's press release and in our SEC filings.

Now I'll turn the call back over to Keith.

M. Waddell

Thank you, Mike. Our third quarter results reflect continued improvement in our talent solutions operations and Protiviti, both contract talent solutions and permanent placement achieved year-over-year revenue growth. Technology remains the strongest performing practice group within contract talent solutions while finance and accounting also returned to year-over-year revenue growth.

Across markets, clients remain focused on securing specialized expertise for high priority initiatives particularly in the areas such as technology modernization, data, cybersecurity and IT infrastructure. Small and midsized businesses continue to face significant challenges finding the skilled talent they need. According to latest NFIB data, labor quality and availability is a top business problem, reflecting a persistent skills gap that highlights the value of Robert Half's ability to connect clients with highly experienced professionals who can make an immediate impact.

Macroeconomic and geopolitical uncertainty continues, including impacts to inflation and interest rates. Against this backdrop, organizations large and small, remain resilient and are steadily increasing their investment and opportunities to modernize operations and strengthen their competitive position. Whether implementing new technologies, improving productivity or advancing strategic initiatives, organizations that need specialized talent and expertise to execute effectively. These investments create opportunities for our talent solutions and consulting services.

Highly skilled professionals remain difficult to find, particularly in specialized disciplines, and demand candidates have choices and remain focused on flexibility, career development and competitive compensation. These conditions play to Robert Half's strengths, including our ability to quickly connect employers with specialized talent, possessing the skills and experience organizations need.

AI has increasingly becoming part of how it gets done across the professions we serve. Rather than broadly displacing specialized roles. These technologies are instead adding to the skills employers value and increasing the importance of professionals who compare strong functional expertise with AI fluency, critical thinking and sound judgment. The ability to assess and validate AI-generated outcomes is becoming an increasingly important part of that skill set.

At the same time, the growing use of generative AI by job seekers is making it more challenging for employers to distinguish between candidates stated qualifications and demonstrated capabilities. This underscores the value of our candidate evaluation and vetting processes, combining proprietary performance insights, rigorous skills assessment and the judgment of our recruiters to help clients hire with greater confidence. As these challenges become more widespread, our ability to identify and validate highly capable talent represents an increasingly important competitive advantage.

Beyond its impact on the hiring process, AI adoption is also creating new opportunities for specialized talent, weather related to AI exploration or for implementation across their operations, we are seeing growing demand for highly qualified talent to support this transition. This includes professionals with expertise in technology, data, finance and business transformation as well as those who can apply emerging technologies with their respective disciplines. These evolving requirements reinforce the value of our specialized recruiting expertise and deep understanding of the skills employers need.

Protiviti's results exceeded our expectations for the quarter with every major solution or capability area above forecast. Technology consulting again posted all-time high quarterly revenues with high demand for platform transformation, cybersecurity and data-related and AI engagements. The risk and compliance practice made significant progress during the quarter, which is expected to continue. Leading the way were engaged to help clients address existing enforcement actions where regulators required further improvements to the quality and effectiveness of their anti-money laundering programs.

Demand across Protiviti's broader solution offerings remain solid with a growing and diversified pipeline of opportunities. We expect Protiviti to return to year-over-year revenue growth in the fourth quarter. Our ability to strategically leverage contract professionals through our talent solutions business remains a distinct competitive advantage, enabling us to deliver flexible solutions for clients while strengthening collaboration across the enterprise.

We're encouraged by the progress in our business and remain confident in the opportunities ahead as businesses navigate changing technology workforce and operational requirements, we see continued opportunities to help clients access the expertise they need to adapt, execute and grow.

Our purpose has never been more relevant: helping companies succeed through specialized talent and consulting expertise while helping people build meaningful careers backed by our trusted brand, exceptional people innovative capabilities and diversified business model, we remain confident in our ability to create long-term value for our clients, our employees and our shareholders.

Finally, we want to recognize and thank our employees around the world for their continued dedication to our clients. Their commitment is reflected in Robert Half's recent accolades, including being named among Fortune's Best Workplaces in Consulting & Professional Services, Forbes' World's Best Employers and Forbes world's Top Companies for Women.

Now Mike and I'd be happy to answer your questions. Please ask you just 1 question and a single follow-up as needed. If there's time, we'll come back for additional questions.

Operator

[Operator Instructions] And your first question comes from the line of Andrew Steinerman with JPMorgan.

質疑応答

Andrew Steinerman

Keith, could you just help us dissect the pickup within Protiviti, particularly, I'm curious about the demand for AML compliance services. Earlier in the year, we said that sort of like the regulatory backdrop. Was it as fierce for AML compliance.

Has something changed obviously, you're saying the demand for the risk and compliance is one of the drivers to bring productivity back to growth in the fourth quarter. Is it the biggest driver that's changed kind of third into the fourth quarter for Protiviti?

M. Waddell

The answer is yes. So during the last 90 days, treasury department regulators imposed significant fines and major enforcement actions against multiple large financial institutions, they -- most of them were in the news, and they related primarily to prior consent orders where the remediation efforts were found to be deficient. And this put banks generally all notice that AML compliance was still a top priority in part because it has direct links to national security.

And so these actions require many activities, including historical lookbacks, significant increases in transactions and file review volumes. Often, these involve third-party consultant to clear. Protiviti is fortunate to have a very strong presence in AML, have broad relationships across financial institutions. It does business with over 80% and of the largest financial institutions globally. We're seeing a meaningful increase in demand for AML remediation and compliance. And the really good news is it benefits the entire organization because a significant amount of the work comes from contractors sourced through talent solutions. So it's a win for everybody.

Operator

And your next question comes from Mark Marcon with Baird.

John Ronan Kennedy

Going from how difficult it is to find verified talented individuals and your ability to do that as well as a whole slew of new skills that are coming to the fore. And so the question is, to what extent do you think that those trends make you a little bit more resistant to any sort of macro downturn that we could potentially have given where fuel prices are, where interest rates are, just kind of the geopolitical environment.

And then as a follow-up to that, if we can keep going, what does that say with regards to the margin profile for next year because the incremental margins look like they're pretty good. And it seems like you have a lot of excess capacity. I know it's a long question, but I just wanted to drill down on those new elements.

M. Waddell

Well, and I think the first 1 was related to resilience if the macro weakens, and I would say, in addition to it's difficult for clients to find talent, particularly verified talent for the reasons we've talked about. Unemployment is low, generally speaking, which also makes it harder for our clients. The new skills are more difficult for our clients to source on their own. And we can also correlate existing skills to needed new skills in a way that is hard for our clients to do on their own.

And so I clearly think we're positioned well relative to prior cycles because of the lower unemployment, still at 4.2% in the U.S., in part because of the newer requirements, in part because verification of skills is more important than ever with AI. And so we feel relatively good about resiliency and as to margin profile, as you're already seeing, even with low single-digit growth that we've seen this past quarter that we're projecting for the coming quarter.

The combination of a little higher gross margin, a little leverage, we've got nice double-digit increases in operating income at midpoint for Q4, that's up 30%. With some luck, that will be even more as we move forward. And so coupled with Protiviti strength, particularly in regulatory compliance, we're pretty bullish about margin possibilities.

Mark Marcon

That's great. And can you just -- you've had really nice improvements in terms of Protiviti margins. Do you think that, that can also continue. I know the leverage that you've got on the on the talent solutions side. But I don't know if you have that same excess capacity with regards to AML?

M. Waddell

Well, I would say remember the cost actions that they took just last quarter, and so those cost actions are a big contributor to the better margins because the remaining people are higher chargeable or more utilized, if you will, use of contractors by Protiviti is margin accretive, and these AML projects are very contractor heavy. So that's a good thing for Protiviti's margins.

But as we've said many, many times for many, many quarters, the plan for Protiviti is to have double-digit operating margins, and that continues to be the plan. And so I think they made tremendous progress in a very short period of time with their margins. And this new demand and additional revenue that comes from more AML is even better news. And let's not forget that technology consulting is still Protiviti's largest practice group. And it just again the all-time high quarterly revenues.

Operator

And your next question comes from the line of Trevor Romeo with William Blair.

Unknown Analyst

Mike. I wanted to actually continue kind of on the margin theme, but shift to gross margins for the contract count solutions business. Because I think the bill rates accelerated nicely, I think, over a percentage point and your gross margins expanded even adjusted for the conversion.

So maybe you could just talk about that a little bit more, I guess, in terms of mix? Like are you starting to see more movement in terms of highly skilled talent or FTEP placements accelerating? Or just any other factors that might be helping the bill rates and the gross margins for the contract business right now?

Michael Buckley

So year-on-year, we're up 40 basis points in contract gross margin. Half of that's conversions, which is a derivative of the strength in perm placement. The other half is pure spreads, and we have increased our spreads over the last year. Part of that's mix. As we've said, we've moved to higher skill Part of that is mix as to FTEP, which is recovering because it was impacted the most on the downside the last few years. And part of it is just kind of disciplined execution because gross margin maintenance and defending those have always been a priority at Robert Half and will continue to be.

Unknown Analyst

Okay. That's great. And then I guess on the first quarter directional observations that you gave, of course, appreciate the comments on margins and the tax rate. I guess as you stand today with your current visibility, is there anything in terms of the top line that would tell you kind of differently than normal seasonality for revenue at this point? Or just how would you kind of I don't know, message the trends that you might see there?

Michael Buckley

I think the seasonal trend is a seasonal trend that will be around for a long, long time. And so because of the internal audit crowd out as clients focus on external audit. And because of all the compensation adjustments that all fall on the same first day of the year, you're going to have those impacts. But you recover from them the rest of the year, clearly, this improvement in regulatory risk and compliance will help the revenue side, but that doesn't directly impact internal audit, and internal audit is the 1 where they have the crowd out phenomenon, as I just spoke to.

Unknown Analyst

And I guess in terms of the talent solutions business, is there anything maybe different than you'd normally expect?

Michael Buckley

Not really. It's always a little quirky about what day of the week or months that the holidays fall, but that's just business as usual. But other than that, in talent solutions, we've seen steady, consistent sequential improvement day by day, week by week. It's not a hockey stick. But it's a steady rise that we've seen for a few quarters now that we see no reason wouldn't continue.

Operator

And the next question comes from Kartik Mehta with Northcoast Research.

Kartik Mehta

Just to maybe drill down a little bit on Protiviti. Obviously, in the first quarter, you talked about some seasonality. As you look at the fourth quarter, is there any seasonality or lumpiness? I know the holidays probably have an impact. But I'm curious, based on the growth guidance you gave, if there would be any onetime issues? Or this is just a consistent improvement in the business?

M. Waddell

Well, I would say the holiday impacts Protiviti more so than talent solutions because many of their clients do a soft close between Christmas and New Year's. And so there's that impact, which remains, but we have dialed in the benefit of the additional anti-money laundering demand in this fourth quarter, but it's not a one-off.

Kartik Mehta

And then just on the talent solutions. When you look at SMB customers and enterprise customers, any difference or is the recovery but pretty broad-based were both those participating?

M. Waddell

I would say that enterprise traditionally recovers sooner and more quickly. That's been the case this time around. SMB is starting to catch up a bit. And so that's good news. But enterprise always gets a head start.

Operator

And your next question will come from George Tong with Goldman Sachs.

Keen Fai Tong

Prime placement revenue grew 6% in the quarter, and that was well ahead of contract talent growth to -- what extent would you say the strength in prime placement serves as a leading indicator of a broader hiring recovery? And historically, what lag have you seen between firm placement and contract staffing?

M. Waddell

And so George, I would say they're coincident. And in fact, if you go to our website, we've got a slide that shows probably for 20 years, we superimpose growth -- year-over-year growth rates for perm over year-over-year growth rates for contract. And my conclusion, look at those graphs is that they're coincident because perm placement always get hit harder on the downside, it's starting at a lower point at a lower base and comes out stronger on the upside.

And I think that's exacerbated by low unemployment that we're currently in, added to by this need for validation because of AI, I think, makes perm relatively speaking, even more positive. And so effectively, easier comps because it gets -- takes a bigger hit on the downside. And because of low unemployment, more demand. because it's harder for clients to hire themselves.

Keen Fai Tong

Got it. That's helpful. And then talent solutions has seen sequential improvement now for a couple of quarters. With contract revenue up 1% and then bill rates up about 3.5%, would you say hours worked or active contract placements have begun to grow year-over-year at this point? And what would you expect to see volumes to become a positive contributor to revenue growth?

M. Waddell

Well, I think for the math to work, the volumes are still somewhat down, but they're increasingly less down and the trend is good for the reasons we've talked about.

Operator

And the next question is from Manav Patnaik with Barclays.

Unknown Analyst

This is Roman Kennedy on for Manav. Question on technology has led the recovery in finance and accounting has returned to growth. Are you beginning to see demand broad beyond mission-critical initiatives in some more discretionary hire projects. And -- or is the recovery still concentrated in areas clients simply can't defer?

M. Waddell

Well, it's primarily areas they can't defer. But to the extent they think or decide that there are projects that are critical to their competitiveness. They decide they need to modernize, to get ready for AI, whatever that's going to mean they're willing to spend selectively. But kind of contrasted to prior cycles that corresponded to overall recessions typically ending of an overall recession is a clearing event. There's an all clear bell, everybody, including our SMB clients feel more positive and demand overall increases.

I'd say, so far, it's still more selective. And the inflation concerns, the geopolitical concerns, all add to that. Our clients are grinding their way through those uncertainties but we haven't yet had the clearing event you've had traditionally at the beginning of up cycles.

John Ronan Kennedy

Got it. And then a question for my second, please, on talent solutions operating margin range. I think you've guided to 2% to 4% in 4Q? Can you help us think about what separates the low end from the high end, whether it's the revenue volume and SG&A leverage? Or does GM gross margin mix remain an equally important swing factor?

M. Waddell

Well, we always give a range, right? We focus heavily on the midpoint of that range, but there's no magic. I mean, how impactful will the holidays be that's particularly variable as it relates to perm placement. If you look back over time, the variability in perm placement Q4 because of the holidays is more than the variability in contract because of the holidays. But I wouldn't point to anything specific as to what's going to drive whether it's the midpoint low or high other than this client demand.

Operator

And the next question comes from Jeff Silber with BMO Capital Markets.

Jeffrey Silber

Now that you returned to growth for year-over-year growth for talent solutions and you're guiding for that to happen in Protiviti in the current quarter. Can you remind us what you think the long-term growth rates are for those businesses? I know they're cyclical, but maybe if we're looking peak to peak, any color would be great.

M. Waddell

Well, again, it's a long-term question. We typically think mid-single digits for talent solutions. And for Protiviti, because it has such a small market share relative to the big 4 and there's so much opportunity there, we would we would expect even higher kind of maybe from mid-single to low doubles. But again, those are long-term educated guesses would maybe a way to call it.

Jeffrey Silber

That's what I asked for. So that's great. That's really helpful. And then as a follow-up, you had mentioned in your remarks, you talked about some of these big remediation projects. Can you tell us roughly how long those last? Is that something that might be rolling off in the first quarter?

M. Waddell

Well, the expectation is they last a lot longer than 1 quarter. I think if you look back, Protiviti has had some of those that have lasted years. Now remember, these aren't brand-new consent orders or enforcement actions. These are -- the regulators come in seeing what's been done so far and says, that's not enough. And so it's not a brand-new start, but the point is these clearly have legs, and they're expected to at a minimum to have multiple quarter legs.

But it depends on the client, it depends on how aggressive they are. It depends on their internal resources, their willingness to use external resources. There are a lot of variables, but it's not a quick in and out process to say the least.

Operator

And the next question will come from Tobey Sommer with Truist.

Tobey Sommer

I wanted to ask a question about your thoughts about the seasonality of profit impacts with tax and operating income, et cetera, margin in 1Q. What's the implied EPS impact at the bottom line from those factors?

M. Waddell

I'm not sure for this purpose, we've separated them and converted on to EPS. We basically said collectively at the pretax operating margin line, they typically cause a 1% to 2% pretax operating income impact. I guess, we could do the math and convert that to EPS. But again, it's orders of magnitude, that's what we're talking. The tax rate in the first quarter is all over the place because of stock compensation.

And the issue is typically at what price we're compensation grants made to employees versus when they vest, what tax deduction do you get for those and the differential positive or negative impacts your tax rate? And so that's why that tax rate in the first quarter is particularly volatile. I think last year, it was over 50%. The year before that, it was 20% and that's heavily impacted by stock prices.

Tobey Sommer

Makes sense. I wanted to ask about the opportunity for you to leverage talent solutions with the areas that are growing in Protiviti? Is the current mix of demand sufficient, so that your -- you do have opportunities for the 2 businesses to work together and sort of maximize your revenue and profit from those in -- and maybe could you refresh us on what areas of Protiviti should there be an increase in demand would be the sort of optimal ones

[Audio Gap]

M. Waddell

Are the risk and regulatory, in this case, anti-money-laundering projects that are very large and they're very contract. And having access to those contractors and to be able to scale as quickly as we can scale for our clients is unquestionably a competitive advantage. And so risk and compliance, that practice has always been very contractor-friendly. And it's loved by the enterprise as a whole, as I said earlier, because of the involvement of contractors.

Technology consulting which is taking advantage of the modernization, AI adjacent AI getting ready. That's also an area for contractors and even internal audit. Internal audit is an opportunity where Protiviti uses contractors as well. And so while it took us a while to get the collaboration we now have with the success we've enjoyed with contractor uses, it's unquestionably now at a competitive advantage. And these newer projects that we talk about today we're scaling significantly and quickly in a way it's hard for competitors to do. And that. wonderful thing.

Operator

And our next question comes from Bruna Warnick with UBS.

Unknown Analyst

This is Bruno for Kevin Mackay. Congrats on the results. Can you please confirm whether there was any benefit on the Q4 PA guide from the last quarter restructuring?

M. Waddell

Well, to the extent we took cost out of the business, those certainly accrue to the fourth quarter as well. And my recollection is, and correct me in the room, if I remember wrong, it was about $11 million a quarter in benefit from payroll savings alone, which clearly benefits the fourth quarter.

Operator

And the next question comes from Stephanie Moore with Jefferies.

Stephanie Benjamin Moore

I wanted to touch on your AI investments. I know that you implemented a lot of investments over the last 12 months or so. Could you talk a bit about what you have seen thus far in terms of fill rate, increased productivity at the individual level. And as we think about an up cycle, what does this mean in terms of your own head count with some of these tools?

M. Waddell

I'd say that initially, our tools are more focused on client and candidate experience than they are internal recruiter productivity and not that we're not getting any, but we're focused on improving matching and we've spent a lot of money improving our matching algorithms, including upgrading them to the larger to the latest large language models. On the client side, we've spent a lot of money in AI, trying to have more of an intelligent pipeline approach to which clients we reach out to and why.

And it's kind of like the Amazon, if you like this, then you'll like that. And so for our people, if we're doing with business with this client, this client has this kind of profile. Here are other companies with a similar profile. Here's new stories and other information that we have access to about those companies. And further, do we have any activity whatsoever across our organization, all of which give us a reason to call and have something to talk about.

And so again, I would say, rather than focus first on cost savings and productivity, it's more around expanding market, expanding access to clients' access to candidates. Now having said that, particularly in the case of prioritizing leads, that definitely has had a productivity improving quality for our people. But as quickly as I say that, I think many have learned and we would concur that translating individual productivity to organizational productivity.

There's a lot of slip between cup and lip when you're trying to look at your organizational savings versus taking individual savings you might get in a given location and extrapolate that to everybody that works for you. And so we feel good about our investments we're focused on client and Canada experience first. We're not ignoring that their productivity gains for our people, and we're getting some, but we're more focused on client and Canada experience.

Stephanie Benjamin Moore

Understood. And then maybe just for a follow-up, and maybe I just may be misunderstood what your comment. But -- maybe just talk a little bit about, as you think about focusing on roles in different end markets or different segments? And maybe talk about how that has changed as we think about this cycle versus prior cycles. And if there are some targeted verticals that you're now focused on versus historically?

M. Waddell

I would say from a vertical point of view, probably the biggest change is in technology. And historically, our SMB clients, the demand was for help desk PC technicians very operational-driven roles. And as technologies migrated over the years such that even smaller businesses have tech development requirements that historically they didn't have. Plus, as we focused more and more on midsize, mid-cap companies as it relates to technology, our mix of technology to the total, and I haven't looked at it in a while, but if you take a 10-year view, my guess is you would see technology is a much larger portion of the total today than it was 10 years ago. But that's in part because of the demand for our core SMB base has gravitated toward tech development because of how technology has changed.

That was our last question. Thank you very much.

Operator

Thank you. This concludes today's teleconference. If you missed any part of the call, it will be archived in audio format in the Investor Center of Robert Half's website at roberthalf.com. You can also walk into the conference call replay. Details are contained in the company's press release issued earlier today.