TriNet Group (NYSE:TNET) Releases Quarterly Earnings Results, Beats Expectations By $0.09 EPS

TriNet Group (NYSE:TNET) posted its earnings results on Thursday. The business services provider reported $0.46 EPS for the quarter, topping analysts’ consensus estimates of $0.37 by $0.09, FiscalAI reports. The company had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $251.57 million. TriNet Group had a return on equity of 212.38% and a net margin of 2.64%.The firm’s revenue for the quarter was down 2.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.44 earnings per share. TriNet Group updated its FY 2026 guidance to 3.700-4.700 EPS.

Here are the key takeaways from TriNet Group’s conference call:

• Completed a comprehensive health fee repricing and strengthened actuarial controls; ICR improved to ~90.8% in 2025 and management expects a 2026 combined ICR range of 90.75%–89.25% with moderating health fee increases starting April 1.
• Total WSEs fell roughly 10% (co‑employed WSEs down ~11%) and retention declined to ~80%, with elevated Q1 attrition from January renewals creating a near-term volume and revenue headwind.
• TriNet generated $234M of free cash flow (up 16%), improved FCF conversion to 55%, returned $235M to shareholders in 2025, and increased its share repurchase authorization to $400M.
• Growth initiatives are showing early traction: ASO users exceeded 39,000 with average PEPPM ≈ $50, broker partnerships contributed materially to January sales, and the Ascend sales trainee program is expanding to six regional hubs to boost selling capacity.
• Operating expenses fell 7% in 2025 (Q4 down 16%); management expects mid‑single‑digit OpEx reductions in 2026 while reinvesting some savings, and guided to an adjusted EBITDA margin of 7.5%–8.7% and adjusted EPS of $3.70–$4.70.

TriNet Group Stock Performance

TNET traded down $4.83 during trading on Thursday, reaching $40.43. The company’s stock had a trading volume of 445,034 shares, compared to its average volume of 433,138. The company’s fifty day moving average price is $59.13 and its 200-day moving average price is $62.18. The company has a debt-to-equity ratio of 8.14, a quick ratio of 1.11 and a current ratio of 1.11. The company has a market capitalization of $1.94 billion, a price-to-earnings ratio of 14.91 and a beta of 0.81. TriNet Group has a 52-week low of $41.01 and a 52-week high of $88.56.

TriNet Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, January 26th. Investors of record on Friday, January 2nd were given a $0.275 dividend. This represents a $1.10 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date was Friday, January 2nd. TriNet Group’s dividend payout ratio (DPR) is 40.59%.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Weiss Ratings reissued a “sell (d+)” rating on shares of TriNet Group in a report on Wednesday, January 21st. Zacks Research cut shares of TriNet Group from a “strong-buy” rating to a “hold” rating in a report on Monday, December 29th. TD Cowen reduced their target price on TriNet Group from $65.00 to $64.00 and set a “hold” rating for the company in a research note on Thursday, January 8th. JPMorgan Chase & Co. cut their price objective on TriNet Group from $75.00 to $65.00 and set an “underweight” rating for the company in a research note on Thursday, October 30th. Finally, UBS Group reduced their price objective on TriNet Group from $69.00 to $63.00 and set a “neutral” rating for the company in a research note on Thursday, October 30th. Five investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus target price of $63.50.

Insider Buying and Selling

In other TriNet Group news, CTO Jeffery Jon Hayward sold 1,437 shares of the stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $57.51, for a total transaction of $82,641.87. Following the transaction, the chief technology officer directly owned 27,922 shares in the company, valued at $1,605,794.22. This represents a 4.89% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP Sidney A. Majalya sold 775 shares of the stock in a transaction dated Friday, January 9th. The stock was sold at an average price of $61.86, for a total transaction of $47,941.50. Following the completion of the sale, the senior vice president directly owned 19,853 shares in the company, valued at approximately $1,228,106.58. This trade represents a 3.76% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 2,798 shares of company stock worth $162,593 in the last ninety days. Insiders own 38.10% of the company’s stock.

Institutional Trading of TriNet Group

A number of hedge funds have recently modified their holdings of TNET. Quantinno Capital Management LP increased its stake in TriNet Group by 5.9% in the second quarter. Quantinno Capital Management LP now owns 5,652 shares of the business services provider’s stock valued at $413,000 after acquiring an additional 317 shares during the period. Quarry LP raised its stake in TriNet Group by 524.7% during the 3rd quarter. Quarry LP now owns 456 shares of the business services provider’s stock worth $31,000 after buying an additional 383 shares during the period. Victory Capital Management Inc. raised its position in TriNet Group by 1.3% in the 3rd quarter. Victory Capital Management Inc. now owns 30,600 shares of the business services provider’s stock valued at $2,047,000 after buying an additional 386 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of TriNet Group by 0.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 76,575 shares of the business services provider’s stock worth $6,068,000 after purchasing an additional 470 shares during the last quarter. Finally, Zacks Investment Management increased its stake in shares of TriNet Group by 3.6% during the 3rd quarter. Zacks Investment Management now owns 14,052 shares of the business services provider’s stock worth $940,000 after purchasing an additional 485 shares during the last quarter. Institutional investors own 96.81% of the company’s stock.

TriNet Group Company Profile

TriNet Group, Inc is a leading professional employer organization (PEO) that offers integrated human capital management solutions to small and medium-size businesses. Through a bundled suite of services, TriNet manages payroll administration, employee benefits, workers’ compensation, risk mitigation and federal and state compliance. Its cloud-based platform provides clients with centralized access to HR tools, analytics and streamlined workforce management capabilities.

Founded in 1988 and headquartered in Dublin, California, TriNet has grown to support thousands of organizations across the United States.