TriNet Group, Inc. (TNET) Earnings
TriNet Group, Inc. is expected to report next earnings on July 24, 2026 (in NaN days), with a consensus EPS estimate of $0.93. TNET has beaten EPS estimates in 10 of its last 12 reported quarters (average surprise +32.1% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 30, 2026 | $1.84 | $2.48 | +34.8% | $1.2B | +13.3% |
| Feb 12, 2026 | $0.37 | $0.46 | +24.3% | $1.2B | +287.6% |
| Oct 29, 2025 | $0.72 | $1.11 | +54.2% | $1.2B | +389.7% |
| Jul 25, 2025 | $1.00 | $1.15 | +15.0% | $1.2B | +373.3% |
| Apr 25, 2025 | $1.67 | $1.99 | +19.2% | $1.3B | +360.0% |
| Feb 13, 2025 | $0.25 | $0.44 | +76.0% | $1.3B | +488.6% |
| Oct 25, 2024 | $1.32 | $1.17 | -11.4% | $1.2B | -1.1% |
| Jul 26, 2024 | $1.28 | $1.53 | +19.5% | $1.2B | +1.1% |
| Apr 26, 2024 | $2.46 | $2.16 | -12.2% | $1.3B | +233.6% |
| Feb 15, 2024 | $1.19 | $1.60 | +34.5% | $1.2B | -0.5% |
| Oct 25, 2023 | $1.39 | $1.91 | +37.4% | $1.2B | -1.2% |
| Jul 26, 2023 | $1.35 | $1.74 | +28.9% | $1.2B | +0.6% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · April 30, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
Mike Simons noted the strong first quarter adjusted earnings per share up 25% over prior year, driven by disciplined health fee repricing, improved insurance performance, and expense management. The team completed the acquisition of Cocoon, an employee leave management application, and announced partnerships for Trinet Global and Trinet IT. They are investing in new benefit bundles, expanding go-to-market capacity, and leveraging AI in operations and product development, with Trinet Assistant handling much of the inbound demand during tax season, and AI generating code and test cases in product development.
Guidance
Reiterating 2026 full-year guidance, total revenues expected to be in the range of $4.75 to $4.9 billion. Professional services revenue guidance remains in the range of approximately 625 to $645 million. Insurance cost ratio remains in the range of 90.75% to 89.25%. Adjusted EBITDA margin stays in the range of 7.5 to 8.7%, and gap earnings per diluted share are in the range of $2.15 to $3.05, and adjusted earnings for diluted share in the range of $3.70 to $4.70. Earnings are tracking to the top half of the annual guidance.
Segment performance
Total revenues were $1.2 billion, declining 5% year over year in the first quarter. Professional services revenue in the first quarter was $189 million, declining 10% in line with forecast. Insurance services revenue declined 4% in the first quarter, primarily driven by lower overall WSEs offset by pricing. Insurance costs in the first quarter declined by 9% year-over-year, and insurance cost ratio came in at 84%, an over 4-point year-over-year improvement. Operating expenses, which exclude insurance costs and interest expense, grew by 6% year over year due to a $14 million restructuring charge. Adjusted EBITDA was $186 million, with an adjusted EBITDA margin of 15.2%.
Risks & headwinds
Forward-looking statements are subject to various risks and uncertainties, including changes in business and geopolitical environment, impact of AI on SMBs, volatility in healthcare cost trends, and uncertainties in insurance price cycles affecting client retention and sales.
Analyst Q&A
Q: Double-click on the demand environment in terms of sales cycles being impacted in March, any industry vertical or global client impact?
A: Fairly broad-based, more sensitive in upmarket.
Q: Discuss revenue opportunity for Cocoon in FY26?
A: Revenue contribution to 2026 is very modest, focus on integration to improve NPS and retention.
Q: Is Cocoon acquisition opportunistic and will there be more M&A?
A: Strategic opportunity, primary focus on organic investment but will consider small to midsize bolt-ons.
Q: Drivers of free cash flow conversion improvement?
A: Adjusted EBITDA improvement and lower cash tax payments.
Q: Trough in WSC declines and when?
A: See growth opportunity, retention improving, sales volumes increasing, optimistic about stabilizing WSC count.
Q: Professional services outlook for the year?
A: Largely in line with expectations, ASO growth momentum.
Q: Learnings from insurance price cycle change and AI startups?
A: Learned about forecasting and risk assessment, AI startups show new business starts, Trinet showing up in relevant markets.
Q: Where clients go when leaving after repricing and impact of healthcare cost dynamic?
A: Distribution of where clients go depends, healthcare cost dynamic improvement could be a net tailwind.
Q: Expense rate going forward?
A: Expect operating expense for full year to be lower than prior year in mid-single-digit range