TriNet beats profit forecast as third-quarter revenue falls short
Net income was $31 million, down from $34 million a year earlier.
Published
TriNet reported third-quarter earnings of $0.65 per diluted share on Thursday, $0.04 above expectations. Revenue was $1.18 billion, short of the $1.20 billion expected.
Chief Executive Mike Simonds said earnings beat the company's forecast as customer retention improved and new sales returned to growth from a year earlier.
Professional service revenues fell 7% to $157 million. Total worksite employees fell 11% from a year earlier, to about 295,000. Operating cash flow rose 11% to $80 million.
For the first nine months of 2026, net income was $173 million, against $156 million a year earlier. Diluted earnings per share were $3.70, against $3.19. Nine-month revenue was $3.58 billion, down 5% from $3.76 billion.
TriNet reaffirmed its full-year 2026 guidance of $4.75 billion to $4.90 billion in total revenues and $2.85 to $3.35 in diluted earnings per share. It now expects earnings per share at the top end of that range. Nine-month diluted earnings of $3.70 per share already exceed the top of the range.
The change in guidance matters more than the beat. Earnings at the top of the range is now the company's stated expectation. Revenue is the weak spot, at $1.18 billion against $1.20 billion expected. If retention keeps improving while revenue stays under pressure, the outlook will rest more on cost control than on growth in the top line.
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