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

Shares of Kforce Inc. (NASDAQ:KFRC) gapped down prior to trading 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 changing hands.

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 net margin of 3.59% and a return on equity of 30.34%. The company had revenue of $332.02 million for the quarter, compared to analyst estimates of $328.79 million. During the same period in the previous year, the firm posted $0.60 earnings per share. The firm’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. Shareholders of record on Friday, March 6th will be issued a dividend of $0.40 per share. The ex-dividend date of this dividend is Friday, March 6th. This is a boost from Kforce’s previous quarterly dividend of $0.39. This represents a $1.60 dividend on an annualized basis and a dividend yield of 4.4%. Kforce’s dividend payout ratio (DPR) is 81.22%.

Key Stories Impacting Kforce

Here are the key news stories impacting Kforce this week:

• Positive Sentiment: Zacks upgraded Kforce to a Rank #2 (Buy), signaling growing optimism on near-term earnings revisions and likely supporting buying interest. Kforce (KFRC) Upgraded to Buy: Here’s What You Should Know
• Positive Sentiment: Kforce raised its quarterly dividend to $0.40 (annualized yield ~4.5%), a ~2.6% increase from the prior payout — a shareholder-friendly move that can support the share price. Dividend announcement / earnings transcript
• Positive Sentiment: Analysts’ consensus price targets imply ~28% upside from current levels, which can attract momentum buyers if confidence in earnings revisions persists. Can Kforce (KFRC) Climb 27.92% to Reach the Level Wall Street Analysts Expect?
• Positive Sentiment: Management and analysts flagged planned organizational refinements and cost efficiencies aimed at improving operating margins in 2026 — a constructive signal for profitability recovery. Kforce signals operating margin improvement in 2026
• Neutral Sentiment: Post-earnings analysis notes consulting solutions helped offset margin pressure, suggesting some business-line resilience but also ongoing macro sensitivity. KFRC Q4 Deep Dive: Consulting Solutions Offset Margin Pressures
• Neutral Sentiment: Coverage pieces highlight mixed analyst views on Kforce within the industrial/services sector — useful context but not a single directional catalyst. Analysts Offer Insights on Industrial Goods Companies
• Neutral Sentiment: Additional Globe & Mail coverage highlights conflicting analyst sentiment across peers, underscoring sector-level dispersion rather than company-specific news. Analysts Have Conflicting Sentiments
• Negative Sentiment: Q4 EPS missed estimates ($0.43 vs. $0.47) despite revenue slightly beating consensus ($332.0M vs. $328.8M); revenue was down ~3.4% YoY. The EPS miss and year-over-year decline triggered investor concern about near-term margins and demand. Kforce Inc (KFRC) Q4 2025 Earnings Call Highlights
• Negative Sentiment: Market commentary and the earnings call transcript captured disappointment from some investors, and outlets reported an immediate share sell-off after the quarter — explaining the short-term downward pressure before the later analyst upgrades. Why Kforce (KFRC) shares are plunging today

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on KFRC shares. UBS Group increased 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. Truist Financial upped their price objective on shares of Kforce from $35.00 to $38.00 and gave the stock a “hold” rating in a research note on Tuesday, January 27th. Finally, Zacks Research lowered shares of Kforce from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 28th. Three investment analysts have rated the stock with a Hold rating, According to MarketBeat, Kforce has an average rating of “Hold” and an average target price of $38.50.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Tributary Capital Management LLC boosted its position in Kforce by 93.0% in the 3rd quarter. Tributary Capital Management LLC now owns 827,046 shares of the business services provider’s stock valued at $24,795,000 after buying an additional 398,471 shares during the last quarter. New South Capital Management Inc. boosted its holdings in Kforce by 18.1% in the third quarter. New South Capital Management Inc. now owns 709,550 shares of the business services provider’s stock valued at $21,272,000 after acquiring an additional 108,507 shares during the last quarter. Geode Capital Management LLC boosted its holdings in Kforce by 0.6% in the second quarter. Geode Capital Management LLC now owns 511,072 shares of the business services provider’s stock valued at $21,021,000 after acquiring an additional 3,173 shares during the last quarter. Deprince Race & Zollo Inc. increased its position 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 during the period. Finally, Jacobs Levy Equity Management Inc. raised its holdings in Kforce by 144.5% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 411,706 shares of the business services provider’s stock worth $12,343,000 after purchasing an additional 243,303 shares during the last quarter. Institutional investors own 92.77% of the company’s stock.

Kforce Price Performance

The stock has a market capitalization of $662.87 million, a P/E ratio of 13.63 and a beta of 0.56. The company has a current ratio of 2.06, a quick ratio of 2.06 and a debt-to-equity ratio of 0.16. The company has a fifty day simple moving average of $32.23 and a two-hundred day simple moving average of $31.67.

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.