TriNet lifts profit outlook to top of range as third-quarter revenue falls 5%

Earnings per share of $0.65 beat forecasts by $0.04, while revenue of $1.18B came in below the $1.20B expected.

TriNet now expects full-year earnings at the top of its 2026 range, even as third-quarter revenue fell 5% and missed forecasts. Revenue was $1,175 million, against $1,232 million a year earlier.

Earnings per share were $0.65, $0.04 above expectations, but below the $0.70 of a year ago. Net income was $31 million, down from $34 million. Adjusted EBITDA, a measure of operating profit, fell to $89 million from $100 million, and its margin slipped to 7.6% from 8.2%.

CEO Mike Simonds said earnings beat the company's own forecast as customer retention improved and new sales returned to year-over-year growth. Worksite employees, the people TriNet serves through client companies, fell 11% to about 295,000. Operating cash flow rose 11% to $80 million.

The company kept its full-year guidance at $4,750 million to $4,900 million in revenue and $2.85 to $3.35 in diluted earnings per share. Nine-month revenue is $3,579 million, down 5% from $3,762 million.

The change in the profit outlook matters more than the beat. It points to the insurance economics and lower customer attrition that earlier coverage credited for the July raise. Revenue is the weak spot, below year-earlier levels through the first half and again in the third quarter. If retention keeps improving while revenue stays under pressure, the outlook will rest more on cost control than on sales growth.