Kforce revenue beats guidance as technology flex accelerates

Kforce’s third-quarter revenue cleared the top of its guidance as technology staffing gained momentum, even as clients remained hesitant to add full-time staff. Revenue reached $357.8 million in the quarter ended September 30, 2026, up 7.5% from a year earlier and 2.4% from the preceding quarter, according to the company’s October 26 earnings release.

The technology flex business has now accelerated for three straight quarters. Year-over-year growth in technology flex revenue rose from 0.2% in the first quarter to 4.0% in the second and 7.8% in the third. Technology flex hours reached 3.595 million, compared with 3.383 million a year earlier, with both periods containing 64 billing days.

CEO Joseph Liberatore said in the release that many companies remained hesitant to add full-time staff, a condition he believes supports demand for flexible workforce services. On the earnings call, Chief Operating Officer David Kelly said buying patterns had improved over the past four quarters, although clients remained measured in their technology spending, according to Staffing Industry Analysts. He pointed to growth in AI-related data, digital and cloud projects, alongside stronger demand for platform engineering roles and projects.

Profitability improved from a year earlier, but an insurance gain amplified the earnings increase. Kforce reported diluted earnings of $0.90 a share, up 42.9%, including a $0.12 benefit from company-owned life insurance policies. Excluding that gain, the company said earnings per share would have risen 23.8%. Gross margin reached 28.2%, compared with 27.7% a year earlier and 28.5% in the preceding quarter.

For the fourth quarter, Kforce forecast revenue of $352 million to $360 million and earnings of $0.62 to $0.70 a share. That outlook covers 62 billing days, compared with 64 in the third quarter and 62 in the year-earlier period.