Robert Walters Q1 2026: In-Line Trading with Growth in Recruitment Outsourcing and Key Markets

Robert Walters Q1 2026: steady start, better breadth, and outsourcing back in growth

Robert Walters has opened 2026 with trading in-line with the Board’s expectations. Group net fees (net fee income, or NFI) were down 2% year-on-year at constant currency, but momentum improved through the quarter with March up 5%. The standouts: recruitment outsourcing turned positive for the first time since late 2022, Japan returned to growth, and the UK edged higher.

It is not a boom, but it is a cleaner, more balanced picture than much of 2025. Cost discipline is biting, productivity is rising, and more of the portfolio is growing again.

Key numbers investors should know

Q1 2026 net fees	2026 (£m)	2025 (£m)	% change (reported)	% change (constant currency)
Group	65.2	67.3	(3%)	(2%)
Asia Pacific	27.2	27.4	(1%)	4%
Europe	19.1	21.9	(13%)	(16%)
UK	12.6	12.6	1%	1%
Rest of World	6.3	5.4	18%	23%

• By service: Specialist recruitment NFI down 5% (constant currency); Recruitment outsourcing NFI up 13%.
• Within specialist recruitment: Perm (permanent) NFI down 2%; Temp (temporary) NFI down 11%.
• Productivity: Group NFI per fee earner up 9% (constant currency).
• Perm productivity: placements per perm fee earner rose 6% to 0.80 per month.
• Cost base: underlying monthly run-rate below £23.5m (Q4 2025 exit rate: below £24m).
• Headcount: 2,880 at quarter-end (flat quarter-on-quarter; down 10% year-on-year). Fee earners 1,722 (+3% QoQ); non-fee earners 1,158 (-4% QoQ).
• Net cash: £20.1m at 31 March 2026 (31 December 2025: £26.2m), reflecting typical Q1 bonus season. Guidance for end-2026 net cash: stable versus 2025 year-end.

What’s working: outsourcing growth and a broader base of recovery

Recruitment outsourcing is finally back in growth, up 13% year-on-year. That is the first positive quarter since Q4 2022, helped by resilient spend from retained clients and the expansion of a permanent volume hiring contract announced in late 2025. Consultancy also had continued momentum, particularly with public sector clients. This matters because outsourcing and consultancy tend to be steadier through cycles than traditional contingent hiring, giving the Group a more balanced earnings mix.

In specialist recruitment, the breadth of growth improved. Half of the specialist recruitment portfolio grew year-on-year in Q1, up from 20% in H2 2025 and just 9% in H1 2025. Japan – the largest market – grew 13% and the UK ticked up 1%. Spain (+13%) and New Zealand (+12%) kept their late-2025 momentum. That suggests the trough is behind in several key markets.

Where it’s tough: northern Europe drag and softer temp activity

Europe remained challenging at -16% (constant currency). France was down 21% but broadly stable versus the second half of last year; the Netherlands improved to -10% after two halves at -30%, with perm notably better. Belgium was weaker than expected at -36%, while Spain stood out positively at +13%. The story is mixed, but the overall region is still a drag on Group progress.

Within specialist recruitment, temp NFI fell 11% and perm fell 2%. That mix tells you demand for flexible labour remained soft, while permanent hiring stabilised better. Australia’s performance also reflected that pattern – softer in perm (which is a bigger part of its mix) despite stronger temp volumes exiting the quarter.

Regional highlights: UK steady, Japan back, Middle East still constrained

• Asia Pacific: NFI up 4% (constant currency). Japan returned to growth at +13%, with a better performance in perm. Australia was down 7%, while New Zealand grew 12%. Greater China edged up 2%; South-East Asia fell 7%.
• UK: NFI up 1% against a stabilising market backdrop. Small number, but directionally encouraging.
• Rest of World: total NFI up 23% (constant currency), helped by the US. On a like-for-like basis excluding Brazil, Canada and the US west coast (closed in 2025), specialist recruitment was down 3%. The Middle East was down 15% amid geopolitical tension, though that was an improvement on Q4 2025 (-23%). The Americas grew 11% with a good performance in the USA.

Costs, cash and capacity: a tighter engine running a little faster

Management is keeping a firm grip on the cost base. The underlying monthly run-rate fell again to below £23.5m, and non-fee earner headcount dropped 4% quarter-on-quarter. At the same time, fee earner numbers rose 3%, which helps explain the 9% uplift in NFI per fee earner and the 6% improvement in perm placements per head.

Net cash of £20.1m at quarter-end is lower than December’s £26.2m, but that reflects the usual first-quarter bonus outflow. The Board expects end-2026 net cash to be stable versus 2025 year-end, so there is no change to the cash outlook.

Management tone and guidance: cautious optimism, unchanged outlook

The CEO flagged continued momentum from late 2025 in the UK, Spain and New Zealand, with Japan joining the growth list. Northern Europe remains difficult, and the Middle East conflict is still affecting that region, albeit the wider impact is – so far – limited. Importantly, guidance for 2026 Group net fees is unchanged.

In short: progress on what they can control (costs, productivity, client solutions), a broader base of growth, and no change to the full-year stance.

My take: green shoots, but Europe and temp keep a lid on it

• Positives: outsourcing back in growth; Japan and the UK improving; breadth of growth at 50% of the specialist portfolio; productivity up; costs stepping down again; March up 5% year-on-year suggests a better exit rate.
• Negatives: Europe still firmly negative; temp activity weak; Middle East remains a headwind; overall Group NFI still down 2% on the quarter at constant currency.

On balance, I would call this a constructive update. If the breadth of growth keeps widening and Europe moves from “less bad” to flat or positive, operating leverage should improve – especially with fee earner capacity nudging higher and the cost base trimmed. The outsourcing and consultancy momentum adds some resilience to the model.

What to watch into Q2 2026

• Momentum: does the March +5% year-on-year trend carry into April and May?
• Europe: signs that France stabilises and the Netherlands continues to improve; any recovery in Belgium.
• Mix: whether temp demand firms up to complement steadier perm.
• Outsourcing: sustainability of the 13% growth, plus any new client wins or scope expansions.
• Cost discipline: confirmation that the monthly run-rate stays below £23.5m as fee earner headcount rises.
• Geopolitics: the Middle East impact and any downstream effects elsewhere if tensions persist.

Bottom line

Q1 was in-line, a touch better under the surface, and tactically sound. Outsourcing and consultancy are helping, Japan is back, and the UK is inching forward. Europe and temp remain the brakes, but the engine is running leaner and productivity is improving. With guidance unchanged and net cash seasonally lower but on-plan, the setup into Q2 looks reasonable.