Kforce (NASDAQ:KFRC) Shares Gap Down Following Weak Earnings

Kforce Inc. (NASDAQ:KFRC)’s share price gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $36.68, but opened at $33.70. Kforce shares last traded at $36.3070, with a volume of 39,129 shares.

The business services provider reported $0.43 earnings per share for the quarter, missing analysts’ consensus estimates of $0.47 by ($0.04). Kforce had a return on equity of 30.34% and a net margin of 3.59%.During the same quarter in the previous year, the business earned $0.60 earnings per share. The business’s revenue for the quarter was down 3.4% compared to the same quarter last year. Kforce has set its Q1 2026 guidance at 0.370-0.450 EPS.

Kforce Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Stockholders of record on Friday, March 6th will be given a dividend of $0.40 per share. This is an increase from Kforce’s previous quarterly dividend of $0.39. This represents a $1.60 dividend on an annualized basis and a dividend yield of 4.5%. The ex-dividend date of this dividend is Friday, March 6th. Kforce’s dividend payout ratio is currently 68.72%.

Kforce News Summary

Here are the key news stories impacting Kforce this week:

• Positive Sentiment: Kforce raised its quarterly dividend to $0.40 (a 2.6% increase) implying a c.4.4% yield — a shareholder-friendly move that supports income investors and signals confidence in cash generation.
• Positive Sentiment: Management told investors it expects operating margin improvement in 2026 driven by organizational refinements and cost efficiencies, which could restore profitability over the year. Kforce signals operating margin improvement in 2026
• Positive Sentiment: Management highlighted that Consulting Solutions helped offset some margin pressures, indicating favorable business mix in higher-margin service lines. KFRC Q4 Deep Dive
• Neutral Sentiment: Revenue for Q4 was $332.0M, down ~3.4% year-over-year but essentially in line with expectations — a mixed top-line showing that was not the primary driver of the sell-off. Business Wire: Q4 Revenue
• Neutral Sentiment: Kforce updated Q1 2026 EPS guidance to $0.37–$0.45, which provides a roadmap but also leaves room for execution risk as the company transitions toward higher margins.
• Negative Sentiment: Reported EPS missed consensus — the company reported $0.43 (versus ~ $0.47 expected), prompting short-term selling pressure as investors focused on the earnings miss rather than the longer-term margin plan. Kforce Lags Q4 Earnings Estimates
• Negative Sentiment: Profitability deteriorated sharply year-over-year (operating profit and net income fell materially), and some outlets reported a significant intraday share drop after the release — underscoring investor concern about near-term margin recovery and the pace of revenue stabilization. Kforce posts mixed Q4 results

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. Truist Financial increased their price objective on Kforce from $35.00 to $38.00 and gave the company a “hold” rating in a report on Tuesday, January 27th. Zacks Research cut shares of Kforce from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 28th. Finally, UBS Group raised their target price on shares of Kforce from $34.50 to $39.00 and gave the stock a “neutral” rating in a research report on Tuesday. Three analysts have rated the stock with a Hold rating, Based on data from MarketBeat, Kforce currently has an average rating of “Hold” and an average price target of $38.50.

Hedge Funds Weigh In On Kforce

Several hedge funds and other institutional investors have recently modified their holdings of the company. Inscription Capital LLC purchased a new stake in Kforce during the 4th quarter worth $229,000. Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in shares of Kforce during the 4th quarter valued at approximately $251,000. CWM LLC grew its holdings in Kforce by 105.2% during the 4th quarter. CWM LLC now owns 20,996 shares of the business services provider’s stock worth $649,000 after acquiring an additional 10,764 shares in the last quarter. Deprince Race & Zollo Inc. grew its stake in Kforce by 30.7% in the fourth quarter. Deprince Race & Zollo Inc. now owns 499,733 shares of the business services provider’s stock worth $15,452,000 after purchasing an additional 117,290 shares in the last quarter. Finally, Azzad Asset Management Inc. ADV grew its position in shares of Kforce by 4.6% in the 4th quarter. Azzad Asset Management Inc. ADV now owns 25,158 shares of the business services provider’s stock worth $778,000 after acquiring an additional 1,111 shares in the last quarter. 92.77% of the stock is owned by institutional investors and hedge funds.

Kforce Stock Down 2.4%

The company has a debt-to-equity ratio of 0.16, a current ratio of 2.06 and a quick ratio of 2.06. The stock’s fifty day simple moving average is $31.98 and its two-hundred day simple moving average is $31.69. The company has a market capitalization of $649.72 million, a price-to-earnings ratio of 13.64 and a beta of 0.55.

About Kforce

Kforce Inc is a professional staffing services firm headquartered in Tampa, Florida, trading on NASDAQ under the symbol KFRC. The company specializes in connecting organizations with skilled talent in technology, finance and accounting, and related business functions. Through a nationwide network of offices, Kforce partners with clients across industries to deliver both flexible contract staffing and direct hire placement solutions.

Kforce’s core offerings include temporary staffing, permanent placement, and project-based consulting engagements.