RCM Technologies Reports 20% Revenue Growth to $93.8 Million in Q2 Fiscal 2026

RCM Technologies, Inc. reported a significant increase in financial performance for the second quarter of fiscal 2026, with total revenue reaching $93.8 million, up 20% from $78.2 million in the same period last year. For the first half of the fiscal year, revenue also rose to $176.9 million, compared to $162.6 million in the prior year. The company’s net income for the quarter was $4.9 million, translating to earnings per share of $0.68, compared to $3.8 million and $0.50 per share in the previous year. This growth in profitability was attributed to increased demand across its segments, particularly in Engineering and Specialty Health Care.

The company experienced notable changes in its cost structure, with the cost of services increasing to $69.7 million for the quarter, up from $55.9 million a year earlier. This resulted in a gross profit of $24.1 million, slightly higher than the $22.3 million reported in the prior year. The gross profit margin, however, decreased to 25.7% from 28.5%, primarily due to rising costs associated with increased service demand. Selling, general, and administrative expenses also rose to $15.6 million, but as a percentage of revenue, they decreased to 16.6% from 19.6%, indicating improved operational efficiency.

Operationally, RCM Technologies reported growth in its customer base and service engagement metrics. The Engineering segment saw a revenue increase of 49% year-over-year, driven by heightened activity in Energy Services projects. The Specialty Health Care segment also reported a 4.5% increase in revenue, largely from school clients. The Life Sciences, Data and Solutions segment contributed an 8.4% increase in revenue, reflecting a focus on high-margin project work. The company’s total assets as of July 4, 2026, were $134 million, slightly down from $134.4 million at the beginning of the year, while total liabilities decreased to $85.2 million from $88.4 million.

Looking ahead, RCM Technologies remains optimistic about its growth trajectory, emphasizing its commitment to enhancing its service offerings in advanced technologies and business processes. The company is focused on leveraging artificial intelligence and process automation to meet the evolving needs of its clients. However, it also acknowledged potential risks, including economic fluctuations and competitive pressures that could impact future performance. The company plans to continue investing in its infrastructure and exploring strategic acquisitions to bolster its market position.