As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the professional staffing & hr solutions industry, including ManpowerGroup (NYSE: MAN) and its peers.

The Professional Staffing & HR Solutions subsector within Business Services is set to benefit from evolving workforce trends, including the rise of remote work and the gig economy. With companies casting a wider net to find talent due to remote work, the expertise of staffing and recruiting companies is even more valuable. For those who invest wisely, the use of predictive AI in recruitment and screening as well as automation in HR workflows can enhance efficiency and scalability. On the other hand, digitization means that talent discovery is less of a manual process, opening the door for tech-first platforms. Additionally, regulatory scrutiny around data privacy in HR is evolving and may require companies in this sector to change their go-to-market strategies over time.

The 7 professional staffing & hr solutions stocks we track reported a slower Q1. As a group, revenues beat analysts’ consensus estimates by 0.5% while next quarter’s revenue guidance was in line.

While some professional staffing & hr solutions stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.1% since the latest earnings results.

ManpowerGroup (NYSE: MAN)

Founded during the post-World War II economic boom when businesses needed temporary workers, ManpowerGroup (NYSE: MAN) connects millions of people to employment opportunities through its global network of staffing, recruitment, and workforce management services.

ManpowerGroup reported revenues of $4.09 billion, down 7.1% year on year. This print exceeded analysts’ expectations by 2.9%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates.

Jonas Prising, ManpowerGroup Chair & CEO, said, "During the quarter, we saw good growth in Latin America and Asia Pacific while operating conditions remained challenging in Europe and North America. More recently, the demand outlook is less clear based on increased caution following trade policy developments. In this uncertain environment, we continue to compete well in the market and remain focused on what we can control, staying close to our clients and candidates and adjusting our cost base to market conditions as needed.

Unsurprisingly, the stock is down 18.8% since reporting and currently trades at $40.15.

Read our full report on ManpowerGroup here, it’s free.

Best Q1: First Advantage (NASDAQ: FA)

Processing approximately 100 million background checks annually across more than 200 countries and territories, First Advantage (NASDAQ: FA) provides employment background screening, identity verification, and compliance solutions to help companies manage hiring risks.

First Advantage reported revenues of $354.6 million, up 109% year on year, outperforming analysts’ expectations by 2.9%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.

First Advantage delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 21.1% since reporting. It currently trades at $18.13.

Is now the time to buy First Advantage? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Robert Half (NYSE: RHI)

With roots dating back to 1948 as the first specialized recruiting firm for accounting and finance professionals, Robert Half (NYSE: RHI) provides specialized talent solutions and business consulting services, connecting skilled professionals with companies across various fields.

Robert Half reported revenues of $1.35 billion, down 8.4% year on year, falling short of analysts’ expectations by 4.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.

Robert Half delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 6.2% since the results and currently trades at $43.57.

Read our full analysis of Robert Half’s results here.

Kforce (NYSE: KFRC)

With nearly 60 years of matching skilled professionals with the right opportunities, Kforce (NYSE: KFRC) is a professional staffing company that specializes in placing technology and finance experts with businesses on both temporary and permanent bases.

Kforce reported revenues of $330 million, down 6.2% year on year. This result came in 1% below analysts' expectations. Overall, it was a softer quarter as it also recorded a miss of analysts’ EPS guidance for next quarter estimates and a miss of analysts’ EPS estimates.

The stock is down 3.7% since reporting and currently trades at $41.05.

Read our full, actionable report on Kforce here, it’s free.

Alight (NYSE: ALIT)

Born from a corporate spinoff in 2017 to focus on employee experience technology, Alight (NYSE: ALIT) provides human capital management solutions that help companies administer employee benefits, payroll, and workforce management systems.

Alight reported revenues of $548 million, down 2% year on year. This number beat analysts’ expectations by 1.2%. It was a strong quarter as it also logged a solid beat of analysts’ EPS guidance for next quarter estimates and full-year revenue guidance meeting analysts’ expectations.

Alight had the weakest full-year guidance update among its peers. The stock is up 2.2% since reporting and currently trades at $5.35.

Read our full, actionable report on Alight here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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