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AI, cloud adoption and digital transformation are creating outsourcing opportunities, aiding the Zacks Outsourcing industry, while demand is moving toward specialized skills and innovation-driven services. While AI is improving efficiency, it is reducing the reliance on labor-intensive delivery models, raising pressure on providers to utilize fewer resources to deliver greater value.

Investors can consider TriNet (TNET - Free Report) , Adecco Group AG (AHEXY - Free Report) and Capgemini SE (CGEMY - Free Report) from the Outsourcing market.

About the Industry Outsourcing involves delegating a company's internal operations to external resources or third-party contractors to enhance operational efficiency. Within the Zacks Outsourcing sector, one can find companies that provide human capital, business management and IT solutions, primarily catering to small and medium-sized enterprises. These services encompass a broad spectrum, including HR support, payroll management, administration of benefits, retirement planning and insurance services. Certain firms excel in delivering business process services, with a strong focus on transaction processing, analytics and global automation solutions. This outsourcing approach empowers businesses to concentrate on their core competencies, while external experts manage these critical functions.

What's Shaping the Future of the Outsourcing Industry? Next-Gen Technology Transformation: Companies continue to modernize applications, migrate workloads to the cloud and invest in AI, creating opportunities for technology service providers in cloud, blockchain, cybersecurity and AI. These technologies have enhanced customer experience by addressing inquiries using tools without human intervention. Per a Gartner report, global IT spending is expected to increase 14.2% year over year in 2026, with AI infrastructure, cloud platforms and intelligent applications being vital for growth. Moving on, an ISG report states that during the first half of 2026, annual contract value in the technology services industry gained 35% year over year, led by solid growth in infrastructure-as-a-service, which surged 66% during the first half of the year. It signals that enterprises are heavily relying on external providers to support cloud infrastructure and digital transformation, creating opportunities for outsourcing companies.

Rising Importance of Specialized Skills: The need to look for outsourcing partners for capabilities that are hard or expensive to develop internally is increasing. Per a KPMG survey, managed services are a strategic focus for 99% of organizations, with nearly half ranking them as their investment priority. About 45% of respondents cited technology innovation as the domain wherein managed services have a crucial impact, followed by business-model transformation at 29%. These findings hint that outsourcing relationships are being weighed on innovation, resilience and transformation rather than cost savings.

Efficiency at the Cost of Falling Labor Demand: AI is creating several opportunities at the cost of reducing demand for labor-intensive services and undermining conventional per-employee pricing models. Per an ISG report, 70% of respondents expect greater innovation from providers, although only 40% anticipate outsourced staffing to rise. However, AI adoption remains relatively early, with 43% of respondents utilizing it to boost efficiency, while 14% are achieving outcomes driven by AI. Therefore, it is evident that providers with a strong grasp of AI will find opportunities. However, it will raise pressure on labor-intensive delivery models as customers demand greater output with fewer resources.

Zacks Industry Rank Indicates Sluggish Near-Term Prospects The Zacks Outsourcing industry, which is housed within the broader Zacks Business Services sector, currently carries a Zacks Industry Rank #212. This rank places it in the bottom 15% of 248 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates continued underperformance in the near term. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry’s recent stock market performance and current valuation.

Industry & Sector Plummets, S&P 500 Rallies Up Over the past year, the Zacks Outsourcing industry and the broader Zacks Business Services sector declined while the Zacks S&P 500 composite witnessed lofty growth.

The industry and the broader sector have declined 15.9% and 17.3%, respectively, while the Zacks S&P 500 composite has gained 20.1%.

1-Year Price Performance

Industry Trades Pricier Than Sector & S&P 500 On the basis of forward 12-month price-to-earnings (P/E), commonly used for valuing outsourcing stocks, the industry is currently trading at 20.30X compared with the S&P 500’s 19.82X and the sector’s 17.81X.

In the past five years, the industry has traded as high as 33.22X and as low as 4.94X, with the median being 17.00X, as the charts below show.

Price-to-Forward 12 Months’ P/E Ratio

3 Outsourcing Stocks Poised for Growth TriNet: This company offers full-service human resources solutions for small and medium-sized businesses. TriNet’s favorable prospects are driven by improving customer retention, solid insurance profitability and investments to achieve sustainable growth.

In the second quarter of 2026, attrition improved 36% year over year, led by a 58% decline in attrition related to health fee pricing and a 47% fall in attrition related to service. During the second-quarter 2026 earnings call, Michael Simonds, the CEO, sounded optimistic, as these enhancements set the company on the path to long-term retention rates higher than the historic 80%.

TNET witnessed significant improvement in customer experience following the launch of TriNet Assistant, as evidenced by 50% of customer-initiated chat sessions being addressed by this AI-backed technology. The company’s broker channel continues to demonstrate growth.

During the second quarter of 2026, the broker channel represented 32% of new sales, with Requests for Proposals rising 54% year over year. Strengthening broker partnerships is expected to generate leads aligned with the target customers.

Management is optimistic about the Cocoon buyout and its ability to address leave of absence, identified as a major issue for customers. Prudent expense management and solid insurance performance have bolstered earnings, enabling the company to hike full-year earnings outlook.

The Zacks Consensus Estimate for the company’s 2026 EPS of $4.82 has moved up 2.3% over the past 30 days. TNET shares have gained 46.4% over the past three months.

TNET currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

Adecco: This company offers workforce and staffing solutions by connecting job seekers with employment opportunities. AHEXY’s growth prospects are supported by growing organic growth, market-share gains and improving profitability.

The company’s organic revenue growth on a trading-days-adjusted basis was 5.6% year over year during the second quarter of 2026. Also, it gained 160 basis points in market share compared with key competitors. With a healthy gross margin of 18.6% and EBITA rising 21% year over year on an organic constant-currency basis on the back of solid pricing, cost discipline and higher volumes, the company reported profitable growth.

AI is a vital growth catalyst supporting the company to serve clients, candidates and enhance productivity. Adecco made solid progress on the agentic AI front as it achieved its initial year-end target of 50% of Adecco Global Business Unit (GBU) revenues, enabled by AI agents during the second quarter of 2026. Visible improvements were noted as the company witnessed a 10% improvement in overall fill rate, a 40% decline in time to submit and 25-35% productivity benefits via recruiter time saved.

Akkodis, AHEXY’s GBU, returned to growth, driven by strong aerospace and defense demand. Adecco aims to strengthen the business, propelling change and positioning Akkodis for profitable growth in attractive end markets. A combination of expense management, gross margin enhancements and market share capture leveraging Akkodis can support AHEXY’s earnings growth, fueling investor confidence.

The Zacks Consensus Estimate for the company’s 2026 EPS of $1.41 increased from $1.35 over the past 30 days. AHEXY shares have gained 38% over the past three months.

AHEXY currently has a Zacks Rank of #3.

Capgemini: This company assists businesses in transforming operations by leveraging technology and AI. Capgemini’s long-term growth is anticipated to benefit from increasing enterprise spending on AI-driven transformation, technology modernization and intelligent operations.

During the first half of 2026, the company increased its revenues by 11.3% year over year at constant currency, exceeding the market and gaining market share. During the second quarter of 2026, the company’s bookings climbed 9.2% year over year and the book-to-bill ratio was 1.07, reflecting solid commercial momentum. This performance demonstrates the strength of the company’s positioning and rising relevance as organizations rapidly move from AI ambition to AI execution at scale.

Management is optimistic about the company’s growth trajectory, resulting in raising the revenue growth target for 2026 to an 8.5-9% constant-currency growth rate from the preceding quarter’s 6.5-8.5%.

WNS and Cloud4C buyouts were vital in improving the Financial Services sector in the first half of 2026 and sectors, including consumer goods that performed softly during the first quarter, showed visible improvements. Positive contributions in North America, the U.K. and Ireland and the Asia Pacific regions were reported that were largely facilitated by these acquisitions.

Margin expansion acts as another potential upside driver, as Fit-for-Growth benefits should begin to be realized in the second half of the year, and increase further in 2027. Strength across defense and security, accompanied by improving demand in the Continental European region, could support profitability, boosting investor confidence.

The Zacks Consensus Estimate for the company’s 2026 EPS of $2.94 has been unchanged over the past 30 days. CGEMY shares have risen marginally over the past three months.

CGEMY currently has a Zacks Rank of #3.

Investors in TriNet Group, Inc. (TNET - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Sept. 18, 2026 $30.00 Put had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for TriNet shares, but what is the fundamental picture for the company? Currently, TriNet is a Zacks Rank #3 (Hold) in the Outsourcing industry that ranks in the Bottom 10% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while three analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 83 cents per share to 66 cents in that period.

Given the way analysts feel about TriNet right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

Posted by Defense World Staff on Aug 14th, 2026

California State Teachers Retirement System increased its holdings in TriNet Group, Inc. (NYSE:TNET – Free Report) by 43.0% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 42,442 shares of the business services provider’s stock after acquiring an additional 12,771 shares during the quarter. California State Teachers Retirement System owned approximately 0.09% of TriNet Group worth $1,546,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Universal Beteiligungs und Servicegesellschaft mbH lifted its position in shares of TriNet Group by 3.2% in the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 5,894 shares of the business services provider’s stock worth $350,000 after purchasing an additional 185 shares during the period. Mirae Asset Global Investments Co. Ltd. raised its stake in TriNet Group by 45.2% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 646 shares of the business services provider’s stock worth $38,000 after buying an additional 201 shares in the last quarter. Caitong International Asset Management Co. Ltd raised its stake in TriNet Group by 160.3% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 479 shares of the business services provider’s stock worth $28,000 after buying an additional 295 shares in the last quarter. Quantinno Capital Management LP lifted its holdings in TriNet Group by 5.9% during the second quarter. Quantinno Capital Management LP now owns 5,652 shares of the business services provider’s stock worth $413,000 after buying an additional 317 shares during the period. Finally, ProShare Advisors LLC lifted its holdings in TriNet Group by 6.8% during the fourth quarter. ProShare Advisors LLC now owns 5,466 shares of the business services provider’s stock worth $323,000 after buying an additional 346 shares during the period. 96.81% of the stock is currently owned by institutional investors.

TriNet Group Stock Up 4.8% TriNet Group stock opened at $70.01 on Friday. TriNet Group, Inc. has a 1-year low of $33.60 and a 1-year high of $73.07. The business has a fifty day moving average price of $56.72 and a 200-day moving average price of $47.26. The company has a debt-to-equity ratio of 7.17, a current ratio of 1.13 and a quick ratio of 1.13. The stock has a market capitalization of $3.21 billion, a price-to-earnings ratio of 18.72 and a beta of 0.95.

TriNet Group (NYSE:TNET – Get Free Report) last announced its earnings results on Thursday, July 30th. The business services provider reported $1.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.93 by $0.62. The company had revenue of $1.18 billion for the quarter, compared to analyst estimates of $1.18 billion. TriNet Group had a return on equity of 227.28% and a net margin of 3.58%.During the same period in the prior year, the company posted $1.15 EPS. TriNet Group has set its FY 2026 guidance at 4.500-5.100 EPS. Equities research analysts forecast that TriNet Group, Inc. will post 3.87 EPS for the current fiscal year.

TriNet Group Announces Dividend The business also recently announced a quarterly dividend, which was paid on Monday, July 27th. Investors of record on Wednesday, July 1st were paid a $0.29 dividend. The ex-dividend date was Wednesday, July 1st. This represents a $1.16 dividend on an annualized basis and a yield of 1.7%. TriNet Group’s dividend payout ratio (DPR) is 31.02%.

Analysts Set New Price Targets A number of brokerages have recently issued reports on TNET. UBS Group cut their price target on TriNet Group from $62.00 to $48.00 and set a “neutral” rating on the stock in a report on Tuesday, May 5th. Weiss Ratings cut TriNet Group from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday. Zacks Research lowered TriNet Group from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 3rd. TD Cowen increased their price target on shares of TriNet Group from $46.00 to $49.00 and gave the company a “hold” rating in a research report on Friday, June 26th. Finally, Truist Financial raised their price target on shares of TriNet Group from $50.00 to $62.00 and gave the company a “hold” rating in a report on Wednesday, July 22nd. One research analyst has rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, TriNet Group has an average rating of “Reduce” and a consensus target price of $56.80.

Read Our Latest Stock Report on TNET

Insider Buying and Selling In other TriNet Group news, Director Wayne B. Lowell sold 5,773 shares of the firm’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $68.71, for a total value of $396,662.83. Following the completion of the transaction, the director owned 86,449 shares of the company’s stock, valued at approximately $5,939,910.79. This trade represents a 6.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, SVP Anthony Shea Treadway sold 933 shares of TriNet Group stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $43.46, for a total transaction of $40,548.18. Following the sale, the senior vice president owned 67,678 shares of the company’s stock, valued at $2,941,285.88. The trade was a 1.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.00% of the stock is owned by company insiders.

TriNet Group Profile (Free Report)

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.

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TriNet Group NYSE: TNET reported second-quarter results that reflected improved insurance performance, stronger customer retention and continued investment in sales and service initiatives, prompting the company to raise its full-year earnings outlook.

Total revenue was $1.2 billion, down 5% from a year earlier, primarily reflecting lower worksite employee, or WSE, volumes. The company ended the quarter with about 300,000 total WSEs, down 12% year-over-year but flat sequentially. Co-employed WSEs totaled approximately 274,000, down 11% from the prior-year period.

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“At the midpoint of 2026, I’m pleased with the progress we’ve made on our priorities,” President and CEO Mike Simonds said. He cited higher retention, increasing sales momentum, expense management and improved earnings performance.

Retention and Pricing Improvements Simonds said TriNet’s health-fee pricing actions over the past 18 months enabled the company to renew customers at rates more closely aligned with market health-cost trends. The company said it saw a combination of improved insurance performance and significantly better customer retention in the second quarter.

Overall attrition improved 36% year-over-year. Attrition tied to health-fee pricing declined 58%, while attrition related to service declined 47%, according to Simonds. TriNet is seeking to achieve long-term retention rates several points higher than its historical level of roughly 80%.

The company’s second-quarter insurance cost ratio, or ICR, was 86%, improving four percentage points from a year earlier. Chief Financial Officer Mala Murthy said two points of that improvement came from favorable prior-year development, while the other two points resulted from a one-time recovery of insurance administrative costs previously expensed in an earlier decade.

Murthy said health-cost trends stabilized in the high single digits during the quarter and were slightly favorable to TriNet’s forecast. The company experienced fewer inpatient procedures than expected and lower-than-forecast pharmaceutical inflation, aided by adoption of biosimilars and stabilization in GLP-1 drug usage. However, she said the company does not view lower pharmaceutical cost inflation as a permanent trend because of the potential introduction of high-cost drugs.

TriNet expects its ICR to be higher in the second half than in the first half because of normal seasonal factors, including utilization patterns, deductibles being met and pooling-limit resets.

Sales Force and Broker Channel Initiatives Sales ended the second quarter flat year-over-year, though Simonds said momentum improved sequentially as customer decision cycles that had lengthened in late March and April began to normalize. He said TriNet expects sales growth in the second half.

The company is retaining more experienced sales consultants, with the number of representatives with more than four years of experience rising 7% year-over-year. Productivity among those senior representatives increased 13% during the quarter, and they were, on average, five times more productive than first-year representatives.

TriNet’s Ascend sales-development program is also expanding. Its first class of more than 20 representatives is expected to enter production in the third quarter, while more than 100 new hires have joined the program nationally. The company expects to finish the year with approximately 20% more sales consultants than it had at the end of 2025.

The broker channel represented 32% of new sales at the end of the second quarter, while broker-generated requests for proposals increased 54% year-over-year. Simonds said TriNet sees the channel as an opportunity to expand distribution through national broker partnerships, although it remains more competitive than direct sales.

For the fall selling season, TriNet expanded its health-plan library across a wider range of price points and introduced artificial intelligence tools intended to match clients with bundled plan choices. In July, it also launched an enhanced health-plan pricing engine that management said is designed to improve proposal quality, speed and consistency.

AI, Client Service and Cocoon Integration TriNet said its AI-powered TriNet Assistant, launched during the spring, has handled 50% of customer-initiated chat sessions so far. The tool addresses inquiries related to benefits, payroll and workforce management, and has reduced service-case volumes for employees, according to Simonds.

Management also highlighted the acquisition and integration of Cocoon, a leave-of-absence solution. The first customer cohort has migrated to the platform, while the second and third cohorts are expected to be completed by year-end. TriNet said the timing should position it to onboard new professional employer organization customers during the January enrollment period.

Professional services revenue totaled $159 million, down 8% year-over-year but ahead of the company’s forecast. Murthy attributed the outperformance to firm pricing, favorable reporting methodology for state tax-related revenue and revenue from Cocoon. Interest revenue fell 33% to $12 million, in line with expectations, due to lower cash balances associated with certain tax credits.

Raised 2026 Earnings Outlook Second-quarter GAAP diluted earnings per share were $1.15, while adjusted diluted earnings per share were $1.55. Adjusted EBITDA was $128 million, representing a 10.9% margin. Net cash provided by operating activities was $88 million, and free cash flow increased 18% to $67 million.

TriNet returned $31 million to shareholders during the quarter through dividends and share repurchases. The company repurchased about 500,000 shares for $18 million and paid a quarterly dividend of $0.29 per share.

For 2026, TriNet maintained its total revenue guidance of $4.75 billion to $4.9 billion. It raised its professional services revenue outlook to $647 million to $663 million and improved its ICR outlook to a range of 88.5% to 89.5%.

Adjusted EBITDA margin guidance was raised to 8.5% to 9%. GAAP diluted EPS guidance was set at $2.85 to $3.35. Adjusted diluted EPS guidance was raised to $4.50 to $5.10. Murthy said the company plans to use improved first-half earnings to accelerate investments in distribution, benefits offerings and its service model, with AI incorporated across those initiatives.

About TriNet Group (NYSE:TNET)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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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TriNet Group (TNET - Free Report) came out with quarterly earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.01 per share. This compares to earnings of $1.15 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +53.47%. A quarter ago, it was expected that this human resources services outsourcing company would post earnings of $1.91 per share when it actually produced earnings of $2.48, delivering a surprise of +29.84%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

TriNet, which belongs to the Zacks Outsourcing industry, posted revenues of $311 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 16.44%. This compares to year-ago revenues of $291 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

TriNet shares have added about 18.8% since the beginning of the year versus the S&P 500's gain of 6.9%.

What's Next for TriNet?While TriNet has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for TriNet was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.83 on $249.58 million in revenues for the coming quarter and $4.60 on $1.12 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Outsourcing is currently in the bottom 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Conduent (CNDT - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10.

This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of -7.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Conduent's revenues are expected to be $702 million, down 6.9% from the year-ago quarter.

50% Growth in GAAP Earnings per Diluted Share to $1.15 for the Second Quarter 2026

35% Growth in Adjusted Net Income per Diluted Share to $1.55 for the Second Quarter 2026

, /PRNewswire/ -- TriNet Group,Inc.(NYSE: TNET),a leading provider of comprehensive and flexible human capital management (HCM) solutions for small and medium-size businesses (SMBs), today announced financial results for the second quarter ended June 30, 2026. The second quarter highlights below include non-GAAP financial measures which are reconciled later in this release.

"Our second quarter results reflect the progress we are making in delivering on our plan," said Mike Simonds, TriNet's President and CEO. "We increased our retention, managed costs, improved our bottom-line performance, and raised our full year earnings guidance."

Simonds continued, "We are gaining traction across several initiatives. We expect further sales-force growth, channel activity is increasing, and our AI investments are driving an improved service experience. As we look to the second half, we are well positioned for the fall selling season."

Second quarter highlights include:

Total revenues decreased 5% to $1.2 billion compared to the same period last year. Professional service revenues decreased 8% to $159 million compared to the same period last year. Net income was $53 million, or $1.15 per diluted share, compared to net income of $37 million, or $0.77 per diluted share, in the same period last year. Adjusted Net Income was $72 million, or $1.55 per diluted share, compared to Adjusted Net Income of $55 million, or $1.15 per diluted share, in the same period last year. Adjusted EBITDA was $128 million, representing an Adjusted EBITDA Margin of 10.9%, compared to Adjusted EBITDA of $105 million, representing an Adjusted EBITDA Margin of 8.5% in the same period last year. Average Worksite Employees (WSEs) decreased 11% as compared to the same period last year, to approximately 298,000. Generated $88 million in Net cash provided by operating activities, and $67 million in Free Cash Flow. Full-Year 2026 Guidance

In addition to announcing our second quarter 2026 results, we are revising our full-year 2026 guidance. Non-GAAP financial measures are reconciled later in this release.

Full Year 2026

(dollars in millions, except for per share amounts)

Low

High

Total Revenues

$     4,750

$     4,900

Professional Service Revenues

$        647

$        663

Insurance Cost Ratio

89.50 %

88.50 %

Adjusted EBITDA Margin

8.5 %

9.0 %

Diluted net income per share of common stock

$       2.85

$       3.35

Adjusted Net Income per share - diluted

$       4.50

$       5.10

Quarterly Report on Form 10-Q

We anticipate filing our Quarterly Report on Form 10-Q ("Form 10-Q") for the first half of 2026 with the U.S. Securities and Exchange Commission (SEC) and making it available at https://www.trinet.com on or about July 30, 2026. This press release should be read in conjunction with the Form 10-Q and the related Notes to Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in the Form 10-Q.

Earnings Conference Call and Audio Webcast

TriNet will host a conference call at 5:30 a.m. PT today to discuss its second quarter results for 2026. TriNet encourages participants to pre-register for the webcast. The live webcast of the conference call can be accessed on the Investor Relations section of TriNet's website at https://investor.trinet.com. Participants can pre-register for the webcast by going to: https://events.q4inc.com/attendee/927481617. Callers can pre-register for the conference call by going to: https://dpregister.com/sreg/10210705/1048397dc5d. For those who would like to join the call but have not pre-registered, they can do so by dialing +1 (412) 317-5426 and requesting the "TriNet Conference Call." A replay of the webcast will be available on this website for approximately one year. A telephonic replay will be available for two weeks following the conference call at +1 (412) 317-0088 conference ID: 5964638.

About TriNet

TriNet is a leading provider of Human Resources solutions for small and medium size businesses, offering advanced technology-enabled services that include human capital expertise, employee benefits such as health insurance and retirement plans, payroll and payroll tax administration, risk mitigation, and compliance consulting. Our long-term objective is to be the premier provider of HR services for a broad range of SMBs through industry leading benefits, sales distribution excellence, and a world class services delivery model. For more information, please visit TriNet.com or follow us on Facebook, LinkedIn and Instagram.

Use of Non-GAAP Financial Measures

Reconciliations of non-GAAP financial measures to TriNet's financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section titled "Non-GAAP Financial Measures."

Forward-Looking Statements

This press release contains, and statements made during the above referenced conference call will contain, statements that are not historical in nature, are predictive in nature, or that depend upon or refer to future events or conditions or otherwise contain forward-looking statements within the meaning of Section 21 of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including, among other things, TriNet's expectations and assumptions regarding: TriNet's financial guidance for the full-year 2026 and the underlying assumptions; TriNet's mid-term outlook, market positioning, and the underlying assumptions; TriNet's on-going AI investments, including the development of TriNet Assistant, and its ability to deliver improved service experiences; TriNet's ability to build momentum in its business, including through sales force growth; and TriNet's ability to execute on our strategy. Forward-looking statements are often identified by the use of words such as, but not limited to, "ability," "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "goal," "guidance," "impact," "intend," "may," "objective," "plan," "project," "should," "strategy," "support," "will," "would" and similar expressions or variations intended to identify forward-looking statements. These statements are not guarantees of future performance but are based on management's expectations as of the date hereof and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from our current expectations and any past or future results, performance or achievements expressed or implied by the forward-looking statements. Investors are cautioned not to place undue reliance upon any forward-looking statements.

Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include: our ability to manage unexpected changes in workers' compensation and health insurance claims and costs, including by WSEs; our ability to mitigate the distinct business risks we face as a co-employer; the effects of volatility in the financial and economic environment on the businesses that make up our client base; our inability to realize or sustain the expected benefits from our business realignment initiatives, and any associated increases in costs as a result of these initiatives; loss of clients for reasons beyond our control and the short-term contracts we typically use with our clients; the impact of regional or industry-specific economic and health factors on our operations; the impact of failures or limitations in the business systems and centers we rely upon; changes in our insurance coverage or our relationships with key insurance carriers; our ability to improve our services and technology to satisfy client and regulatory expectations, including with respect to artificial intelligence; our ability to effectively integrate businesses we have acquired or may acquire in the future; our ability to effectively manage and improve our operational effectiveness and resiliency; our ability to price our services at rates that our clients continue to find attractive; our ability to attract and retain qualified personnel; the effects of increased competition and our ability to compete effectively; the impact on our business of cyber-attacks, breaches, disclosures and other data-related incidents; our ability to comply with evolving data privacy, artificial intelligence and security laws; our ability to manage changes in, uncertainty regarding, or adverse application of the complex laws and regulations that govern our business; changing laws and regulations governing health insurance and employee benefits; the incurrence of losses related to employee retention tax credit claims filed on behalf of our clients; our ability to keep pace with changes in technology or provide timely enhancements to our solutions and support, including with respect to artificial intelligence; risks associated with our international operations, including potential political or economic risks; our ability to operate a business subject to numerous complex laws; changing laws and regulations governing health insurance and other traditional employee benefits at the federal, state, and local levels; our ability to be recognized as an employer of worksite employees and for our benefits plans to satisfy all requirements under federal and state regulations; changes in the laws and regulations that govern what it means to be an employer, employee or independent contractor; the impact of new and changing laws regarding remote work; our ability to comply with the licensing requirements that govern our solutions; the failure of third-party service providers performing their functions; the failure to comply with anti-corruption laws and regulations, economic and trade sanctions, and similar laws; the outcome of existing and future legal and tax proceedings; fluctuation in our results of operations, stock price and maintenance of performance measures year over year due to factors outside of our control; our ability to comply with the restrictions of our indebtedness and meet our debt obligations; the need for additional capital or to restructure our existing debt; the continuation of our stock repurchase program; and the impact of concentrated ownership in our stock by Atairos and other large stockholders and the anti-takeover provisions in our charter documents and under Delaware law. Any of these factors could cause our actual results to differ materially from our anticipated results.

Further information on risks that could affect TriNet's results is included in our filings with the SEC, including under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on our investor relations website at http://investor.trinet.com and on the SEC website at www.sec.gov. Copies of these filings are also available by contacting TriNet Corporation's Investor Relations Department at [email protected]. Except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements in this press release, and any forward-looking statements in this press release speak only as of the date of this press release. In addition, we do not assume any obligation, and do not intend, to update any of our forward-looking statements, except as required by law.

Contacts:

Investors:

Media:

Alex Bauer

Renee Brotherton / Josh Gross

TriNet

TriNet

[email protected] 

[email protected] 

[email protected] 

Key Financial and Operating Metrics

We regularly review certain key financial and operating metrics to evaluate growth trends, measure our performance and make strategic decisions. These key financial and operating metrics may change over time. Our key financial and operating metrics for the periods presented were as follows:

Three Months Ended June 30,

Six Months Ended June 30,

(in millions, except per share and Operating
Metrics data)

2026

2025

% Change

2026

2025

% Change

Income Statement Data:

Total revenues

$     1,178

$      1,238

(5)

%

$     2,404

$      2,530

(5)

%

Income before tax

74

51

45

197

166

19

Net income

53

37

43

142

122

16

Diluted net income per share of common stock

1.15

0.77

50

3.05

2.48

23

Non-GAAP measures (1):

Adjusted EBITDA

128

105

22

314

268

17

Adjusted Net income

72

55

31

188

154

22

Free Cash Flow

190

136

40

Operating Metrics:

Insurance Cost Ratio

86 %

90 %

(4)

%

85 %

89 %

(4)

Average WSEs

297,615

336,010

(11)

298,916

338,377

(12)

%

Total WSEs

299,655

338,900

(12)

299,655

338,900

(12)

(1)  Refer to Non-GAAP measures definitions and reconciliations from GAAP measures under the heading "Non-GAAP Financial Measures"

(in millions)

June 30, 2026

December 31,
2025

%
Change

Balance Sheet Data:

Cash and cash equivalents

$         358

$         287

25

%

Working capital

275

231

19

Total assets

3,346

3,797

(12)

Debt

896

895

—

Total stockholders' equity

125

54

131

Six Months Ended June 30,

(in millions)

2026

2025

% Change

Cash Flow Data:

Net cash provided by operating activities

$          237

$          170

39

%

Net cash used in investing activities

(84)

(7)

1,100

Net cash used in financing activities

(757)

(428)

77

TRINET GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

(in millions except per share data)

2026

2025

2026

2025

Professional service revenues

$            159

$            172

$            348

$            381

Insurance service revenues

1,007

1,048

2,030

2,113

Interest income

12

18

26

36

Total revenues

1,178

1,238

2,404

2,530

Insurance costs

867

947

1,723

1,889

Cost of providing services

65

71

135

142

Sales and marketing

66

68

135

135

General and administrative

56

52

115

98

Systems development and programming

17

17

36

37

Depreciation and amortization of intangible assets

19

17

36

34

Interest expense, bank fees and other

14

15

27

29

Total costs and operating expenses

1,104

1,187

2,207

2,364

Income before tax

74

51

197

166

Income taxes

21

14

55

44

Net income

$             53

$              37

$            142

$            122

Other comprehensive income, net of income taxes

(1)

1

(3)

3

Comprehensive income

$             52

$              38

$            139

$            125

Net income per share:

Basic

$           1.16

$           0.77

$           3.07

$           2.49

Diluted

$           1.15

$           0.77

$           3.05

$           2.48

Weighted average shares:

Basic

46

48

46

49

Diluted

46

49

47

49

TRINET GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

June 30,

December 31,

(in millions, except share and per share data)

2026

2025

Assets

Current assets:

Cash and cash equivalents

$             358

$             287

Restricted cash, cash equivalents and investments

1,039

1,694

Accounts receivable, net

3

20

Payroll funds receivable

428

264

Prepaid expenses, net

53

82

Other payroll assets

427

474

Other current assets

76

47

Total current assets

2,384

2,868

Restricted cash, cash equivalents and investments, noncurrent

122

128

Property and equipment, net

27

11

Operating lease right-of-use asset

40

36

Goodwill

465

461

Software and other intangible assets, net

173

153

Other assets

135

140

Total assets

$           3,346

$           3,797

Liabilities and stockholders' equity

Current liabilities:

Accounts payable and other current liabilities

$             103

$              86

Client deposits and other client liabilities

76

57

Accrued wages

547

555

Accrued health insurance costs, net

189

207

Accrued workers' compensation costs, net

42

42

Payroll tax liabilities and other payroll withholdings

1,134

1,671

Operating lease liabilities

10

10

Insurance premiums and other payables

8

9

Total current liabilities

2,109

2,637

Long-term debt, noncurrent

896

895

Accrued workers' compensation costs, noncurrent, net

104

106

Deferred taxes

54

55

Operating lease liabilities, noncurrent

44

37

Other non-current liabilities

14

13

Total liabilities

3,221

3,743

Total stockholders' equity

125

54

Total liabilities & stockholders' equity

$           3,346

$           3,797

TRINET GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Six Months Ended June 30,

(in millions)

2026

2025

Operating activities

Net income

$                142

$                122

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization of intangible assets

36

33

Amortization of deferred costs

26

23

Amortization of ROU asset, lease modification, impairment, and abandonment

4

3

Deferred income taxes

—

(1)

Stock based compensation

33

31

Loss from disposition of assets

—

1

Other

2

3

Changes in operating assets and liabilities:

Accounts receivable, net

1

1

Prepaid expenses, net

25

9

Other assets

(29)

(18)

Accounts payable and other liabilities

11

(5)

Client deposits and other client liabilities

(2)

(1)

Accrued wages

(6)

(10)

Accrued health insurance costs, net

—

1

Accrued workers' compensation costs, net

(2)

(1)

Payroll taxes liabilities and other payroll withholdings

(2)

(14)

Operating lease liabilities

(2)

(7)

Net cash provided by operating activities

237

170

Investing activities

Purchases of marketable securities

(76)

(41)

Proceeds from sale and maturity of marketable securities

61

67

Acquisitions of property and equipment and software

(47)

(34)

Proceeds from sale of business

—

1

Acquisition of subsidiary, net of cash acquired

(22)

—

Net cash used in investing activities

(84)

(7)

Financing activities

Change in WSE and TriNet Trust related assets and liabilities, net

(655)

(310)

Repurchase of common stock

(76)

(91)

Proceeds from issuance of common stock

5

7

Awards effectively repurchased for required employee withholding taxes

(5)

(8)

Dividends paid

(26)

(26)

Net cash used in financing activities

(757)

(428)

Effect of exchange rate changes on cash and cash equivalents

(1)

—

Net change in cash and cash equivalents, unrestricted and restricted

(605)

(265)

Cash and cash equivalents, unrestricted and restricted:

Beginning of period

1,902

1,691

End of period

$              1,297

$              1,426

Supplemental disclosures of cash flow information

Interest paid

$                 25

$                 27

Income taxes paid, net

$                   8

$                 26

Supplemental schedule of noncash investing and financing activities

Cash dividend declared, but not yet paid

$                 13

$                 13

Payable for purchase of property and equipment

$                   9

$                   3

Receivable from sale of business

$                  —

$                   6

Non-GAAP Financial Measures

In addition to the selected financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP), we monitor other non-GAAP financial measures that we use to manage our business, to make planning decisions, to allocate resources and to use as performance measures in our executive compensation plan. These key financial measures provide an additional view of our operational performance over the long term and provide information that we use to maintain and grow our business.

The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation from, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.

Non-GAAP Measure

Definition

How We Use The Measure

Adjusted EBITDA

• Net income, excluding the effects of:

- income tax provision,

- stock based compensation expense

- interest expense, bank fees and other,

- depreciation,

- amortization of intangible assets,

- amortization of cloud computing arrangements,

- restructuring costs, and

- transaction and integration costs.

• Provides period-to-period comparisons on a consistent basis and an understanding as to how our management evaluates the effectiveness of our business strategies by excluding certain non-recurring costs, which include restructuring costs and transaction and integration costs, as well as certain non-cash charges such as depreciation and amortization, and stock-based compensation and certain impairment charges recognized based on the estimated fair values. We believe these charges are either not directly resulting from our core operations or not indicative of our ongoing operations.

• Enhances comparisons to the prior period and, accordingly, facilitates the development of future projections and earnings growth prospects.

• Provides a measure, among others, used in the determination of incentive compensation for management.

• We also sometimes refer to Adjusted EBITDA margin, which is the ratio of Adjusted EBITDA to total revenues.

Adjusted Net Income

• Net income, excluding the effects of:

- effective income tax rate (1),

- stock based compensation expense,

- amortization of intangible assets, net,

- non-cash interest expense,

- restructuring costs

- transaction and integration costs, and

- the income tax effect (at our effective tax rate (1) of these pre-tax adjustments.)

• Provides information to our stockholders and board of directors to understand how our management evaluates our business, to monitor and evaluate our operating results, and analyze profitability of our ongoing operations and trends on a consistent basis by excluding certain non-cash charges.

Free Cash Flow

• Net cash provided by operating activities reduced by capital expenditures

• Provides information on the strength of our liquidity and available cash.

• Provides management with a measure to assist in making planning decisions, evaluate our performance and allocate resources.

• We also sometimes refer to Free Cash Flow Conversion ratio, which is the ratio of free cash flow to Adjusted EBITDA.

(1)  Non-GAAP effective tax rate is 25.5%  and 25% for second quarters and full years of 2026 and 2025, respectively, which excludes the income tax impact from stock-based compensation, changes in uncertain tax positions, and nonrecurring benefits or expenses from federal legislative changes.

Reconciliation of GAAP to Non-GAAP Measures

The table below presents a reconciliation of Net income to Adjusted EBITDA:

Three Months Ended
June 30,

Six Months Ended June
30,

(in millions)

2026

2025

2026

2025

Net income

$       53

$       37

$      142

$      122

Provision for income taxes

21

14

55

44

Stock based compensation

17

18

33

31

Interest expense, bank fees and other

14

15

27

29

Depreciation and amortization of intangible assets

19

17

36

34

Amortization of cloud computing arrangements

3

2

6

5

Restructuring costs

(1)

2

13

3

Acquisition and integration costs

2

—

2

—

Adjusted EBITDA

$      128

$      105

$      314

$      268

Adjusted EBITDA Margin

10.9 %

8.5 %

13.1 %

10.6 %

The table below presents a reconciliation of Net income to Adjusted Net Income and Adjusted Net Income per share - diluted:

Three Months Ended June 
30,

Six Months Ended

June 30,

(in millions, except per share data)

2026

2025

2026

2025

Net income

$           53

$           37

$         142

$         122

Effective income tax rate adjustment

2

1

5

2

Stock based compensation

17

18

33

31

Amortization of intangible assets

3

3

5

5

Non-cash interest expense

1

—

1

1

Restructuring costs

(1)

2

13

3

Acquisition and integration costs

2

—

2

—

Income tax impact of pre-tax adjustments

(5)

(6)

(13)

(10)

Adjusted Net Income

$           72

$           55

$         188

$         154

GAAP weighted average shares of common stock - diluted

46

49

47

49

Adjusted Net Income per share - diluted

$         1.55

$         1.15

$         4.04

$         3.15

The table below presents a reconciliation of Net cash provided by operating activities to Free Cash Flow:

Three Months Ended 
June 30,

Six Months Ended

June 30,

(in millions)

2026

2025

2026

2025

Net cash provided by operating activities

$        88

$        75

$      237

$      170

Acquisitions of property and equipment and software

(21)

(18)

(47)

(34)

Free Cash Flow (a)

$        67

$        57

$      190

$      136

Adjusted EBITDA (b)

$      128

$      105

$      314

$      268

Free Cash Flow Conversion Ratio (a)/(b)

52 %

54 %

61 %

51 %

Reconciliation of GAAP to Non-GAAP Measures for the full-year 2026 guidance.

Low and high percentages represent increases (decreases) from the same period in the previous year.

The table below presents a reconciliation of net income to Adjusted Net Income and Adjusted Net Income per share - diluted:

FY 2025

Year 2026 Guidance

(in millions, except per share data)

Actual

Low

High

Net income

$155

(15) %

— %

Effective income tax rate adjustment

8

(66)

(67)

Stock based compensation

65

4

4

Amortization of intangible assets

10

16

16

Non-cash interest expense

3

(62)

(62)

Restructuring costs

11

71

133

Income tax impact of pre-tax adjustments

(22)

14

22

Adjusted Net Income

$230

(10) %

3 %

GAAP weighted average shares of common stock - diluted

49

Adjusted Net Income per share - diluted

$4.73

$4.50

$5.10

SOURCE TriNet Group, Inc.

, /PRNewswire/ -- TriNet (NYSE: TNET), a leading provider of comprehensive human resources solutions for small and medium-size businesses (SMBs), today announced it will release financial results for the second quarter ended June 30, 2026, before U.S. market hours on Thursday, July 30, 2026.

TriNet will host a conference call at 5:30 a.m. PT (8:30 a.m. ET) on July 30, 2026, to discuss the financial results. A live webcast of the conference call can be accessed on the Investor Relations section of TriNet's website at investor.trinet.com. Participants can pre-register for the webcast by going to: https://events.q4inc.com/attendee/927481617 or pre-register for the conference call by visiting https://dpregister.com/sreg/10210705/1048397dc5d (note that you will get a unique PIN to enable instant access to the call).

Participants who do not pre-register for the call can still join by dialing +1 (412) 317-5426 and asking to attend the TriNet second quarter earnings conference call.

A replay of the webcast will be available on the TriNet site for approximately one year.

About TriNet
TriNet (NYSE: TNET) provides comprehensive HR solutions, technology, expertise, and access to world-class benefits that enable SMBs to attract and develop top-tier talent. Rooted in more than 30 years of supporting entrepreneurs and adapting to the ever-changing modern workplace, TriNet empowers SMBs to focus on what matters most—growing their business and enabling their people. For more information, visit TriNet.com or follow us on Facebook, LinkedIn and Instagram. 

TriNet and the TriNet logo are registered trademarks of TriNet. All other trademarks, service marks, registered trademarks, or registered service marks are the property of their respective owners.

SOURCE TriNet Group, Inc.

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

TriNet (TNET - Free Report) is a stock many investors are watching right now. TNET is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 14.76, while its industry has an average P/E of 17.09. TNET's Forward P/E has been as high as 19.82 and as low as 12.04, with a median of 16.29, all within the past year.

Finally, our model also underscores that TNET has a P/CF ratio of 12.26. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. TNET's current P/CF looks attractive when compared to its industry's average P/CF of 17.06. Over the past 52 weeks, TNET's P/CF has been as high as 15.80 and as low as 10.38, with a median of 12.48.

These are just a handful of the figures considered in TriNet's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TNET is an impressive value stock right now.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is TriNet (TNET - Free Report) . TNET is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 14.76, while its industry has an average P/E of 16.60. Over the last 12 months, TNET's Forward P/E has been as high as 19.82 and as low as 12.04, with a median of 16.29.

Finally, investors should note that TNET has a P/CF ratio of 12.26. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.37. TNET's P/CF has been as high as 15.80 and as low as 10.38, with a median of 12.48, all within the past year.

These are only a few of the key metrics included in TriNet's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TNET looks like an impressive value stock at the moment.

May 5–7 sessions will cover AI, recruitment/retention, compliance, growth strategies, and more

, /PRNewswire/ -- TriNet (NYSE: TNET), a leading provider of human resources solutions for small and medium-size businesses (SMBs), today announced its National Small Business Week Virtual Summit, a three-day online event designed to help entrepreneurs and business leaders navigate today's evolving workplace and scale with confidence.

TriNet's National Small Business Week Virtual Summit is a three-day online event, taking place May 5-7, that is designed to help entrepreneurs and business leaders navigate today’s evolving workplace and scale with confidence. Taking place during National Small Business Week, May 5–7, the virtual summit will bring together TriNet executives and partners, industry experts, and successful entrepreneurs for timely, practical discussions focused on the real challenges facing SMBs in 2026 and into the future.

Sessions will cover top-of-mind business topics including artificial intelligence, recruitment and retention, compliance, workplace productivity, and growth strategies.

"Through every major wave of change, small and medium-size businesses have demonstrated the ability to adapt and take advantage of major trends," said Mike Simonds, President and CEO of TriNet. "Our summit is designed to provide SMB leaders with actionable insights across AI, the workforce, economy, and regulation to help them lead the way once again in today's rapidly changing market."

TriNet's three-day virtual summit is free to attend. For those interested in joining, registration and the full agenda can be found here.

About TriNet
TriNet is a leading provider of Human Resources solutions for small and medium-size businesses, offering advanced technology-enabled services that include human capital expertise, employee benefits such as health insurance and retirement plans, payroll and payroll tax administration, risk mitigation, and compliance consulting. Our long-term objective is to be the premier provider of HR services for a broad range of SMBs through industry leading benefits, sales distribution excellence, and a world class services delivery model. For more information, visit TriNet.com or follow us on Facebook, LinkedIn and Instagram.

TriNet and the TriNet logo are registered trademarks of TriNet. All other trademarks, service marks, registered trademarks, or registered service marks are the property of their respective owners.

SOURCE TriNet

On April 28, 2026, Trinet Group Inc TNET shares rose 3.9%, closing at $41.85. The stock has fluctuated in a 52-week range from $33.61 to $86.78, reflecting significant volatility over the past year.

GF Value™ verdict: The current price of $41.85 is 60.9% undervalued compared to the GF Value™ of $107.17.GF Score™: With a score of 68/100, TNET is rated as Above Average.Most notable signal: Financial Strength is rated 5/10, indicating moderate stability. Is TNET Overvalued or Undervalued? Trinet Group Inc TNET is currently trading at $41.85, significantly below its estimated GF Value™ of $107.17. This represents a potential upside of 60.9%, suggesting that the stock is undervalued. However, the GF Valuation label indicates that TNET could be a possible value trap, which warrants caution for those considering entering a position. The margin of safety provided by this discrepancy suggests an investment opportunity, but investors should be aware of the risks associated with a stock that has shown considerable price volatility and a low predictability rating of 1 star.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

How Does TNET's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 13.2x 18.0x (5-Year Median) Forward P/E 9.8x N/A TNET's current P/E (TTM) of 13.2x is 27% below its 5-year median P/E of 18.0x, indicating that the stock is trading below its historical valuation levels. This P/E analysis aligns with the GF Value™ verdict, reinforcing the notion that TNET is undervalued based on both historical trading multiples and the present valuation metrics.

What Does TNET's GF Score™ Tell Us? Metric Rating GF Score™ 68/100 Financial Strength 5/10 Profitability 8/10 Growth 5/10 Valuation 2/10 Momentum 2/10 TNET's GF Score™ of 68/100 indicates that the company has strengths in profitability (8/10), but its valuation and momentum ranks are notably weaker at 2/10. The moderate financial strength score of 5/10 suggests that while there is some stability, it is not robust. Overall, TNET's strongest area lies in profitability, while valuation and momentum present potential concerns for long-term investors.

What Are Insiders Doing with TNET Stock? In the last three months, there has been no insider buying or selling activity, with insiders selling $0.0M worth of shares. This lack of activity may suggest that insiders are not currently optimistic about the stock's immediate prospects, or they may be holding off on transactions due to market conditions.

What This Means for Investors Based on the GF Value™ assessment, Trinet Group Inc TNET is currently undervalued. However, potential investors should take into account the risks associated with its low predictability rating and the possibility of it being a value trap.

For the complete analysis, visit the Trinet Group Inc TNET stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is TNET's GF Score™?

TNET's GF Score™ is 68/100, indicating an above-average potential for long-term returns based on its financial metrics and growth prospects.

Is TNET overvalued or undervalued?

TNET is currently undervalued, trading at $41.85 compared to a GF Value™ of $107.17, representing a potential upside of 60.9%.

What is TNET's P/E ratio?

TNET's P/E (TTM) is 13.2x, which is 27% below its 5-year median P/E of 18.0x, indicating the stock is trading below its historical valuation levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

TriNet Group (TNET - Free Report) came out with quarterly earnings of $2.48 per share, beating the Zacks Consensus Estimate of $1.91 per share. This compares to earnings of $1.99 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +29.84%. A quarter ago, it was expected that this human resources services outsourcing company would post earnings of $0.37 per share when it actually produced earnings of $0.46, delivering a surprise of +24.32%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

TriNet, which belongs to the Zacks Outsourcing industry, posted revenues of $370 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 14.24%. This compares to year-ago revenues of $350 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

TriNet shares have lost about 27.5% since the beginning of the year versus the S&P 500's gain of 4.2%.

What's Next for TriNet?While TriNet has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for TriNet was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.07 on $272.19 million in revenues for the coming quarter and $4.18 on $1.1 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Outsourcing is currently in the bottom 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Barrett Business Services (BBSI - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.

This human resources management company is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of -300%. The consensus EPS estimate for the quarter has been revised 7.6% lower over the last 30 days to the current level.

Barrett Business Services' revenues are expected to be $2.16 billion, up 3.4% from the year-ago quarter.

TriNet Group, Inc. (TNET) Q1 2026 Earnings Call Transcript

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is TriNet (TNET - Free Report) . TNET is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 14.76 right now. For comparison, its industry sports an average P/E of 17.16. TNET's Forward P/E has been as high as 19.82 and as low as 12.04, with a median of 16.29, all within the past year.

Finally, our model also underscores that TNET has a P/CF ratio of 12.26. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. TNET's P/CF compares to its industry's average P/CF of 17.03. TNET's P/CF has been as high as 15.80 and as low as 10.38, with a median of 12.48, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that TriNet is likely undervalued currently. And when considering the strength of its earnings outlook, TNET sticks out as one of the market's strongest value stocks.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

TriNet (TNET - Free Report) is a stock many investors are watching right now. TNET is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 14.76 right now. For comparison, its industry sports an average P/E of 17.79. Over the past 52 weeks, TNET's Forward P/E has been as high as 19.82 and as low as 12.04, with a median of 16.29.

Finally, investors will want to recognize that TNET has a P/CF ratio of 12.26. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TNET's P/CF compares to its industry's average P/CF of 15.46. Over the past 52 weeks, TNET's P/CF has been as high as 15.80 and as low as 10.38, with a median of 12.48.

These figures are just a handful of the metrics value investors tend to look at, but they help show that TriNet is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TNET feels like a great value stock at the moment.

Added enhancements help SMBs simplify HR and accelerate growth

, /PRNewswire/ -- TriNet (NYSE: TNET), a leading provider of comprehensive human resources solutions for small and medium-size businesses (SMBs), today announced that its Administrative Services Organization (ASO) solution offering, HR Plus, has surpassed 40,000 users, marking a key milestone since its launch last year.

TriNet’s HR Plus Offering Surpasses 40,000 Users and Expands HR Support Capabilities for SMBs The company also announced new HR Plus enhancements designed to give SMBs a more streamlined and flexible way to help manage HR, payroll, and compliance, helping them stay focused on growing their business. These enhancements further expand support, deepen talent and organizational expertise, and give customers and broker partners even greater flexibility.

"HR Plus has experienced remarkable growth and reached the milestone of supporting more than 40,000 users since its launch last year, reflecting the demand for a more agile and modern way to access the HR expertise and technology organizations need to grow," said Chris Winslow, Vice President of ASO at TriNet. "With these latest enhancements, we're expanding support, increasing employee access, and adding deeper talent capabilities to help organizations navigate change and scale with confidence."

TriNet's HR Plus enhancements, available now, include: 

Greater flexibility for customers and broker partners: A pre-built integration with Employee Navigator is being offered as an add-on, allowing broker partners to work within a system they know, or use TriNet's existing native benefits administration platform.

Streamlined Support for Administrators and Employees: Faster, direct support that leverages AI for administrators and employees. This also gives employees direct access to support for common needs such as pay stub questions, password resets, and document retrieval.

New Talent & Organizational Development services: Talent and organization strategic services provide tailored, hands-on support to help SMBs align strategy, people, and culture through change and complex workforce challenges.

New specialized service packages: Customers can also purchase additional specialized service packages aligned with their needs. Payroll Pro provides dedicated payroll and payroll tax expertise, while People Pro offers strategic talent and dedicated HR expertise, both with hands-on support to help organizations align with their growth goals. 

For more information, go to: https://www.trinet.com/hr-plus. 

TriNet anticipates further expanding HR Plus to deliver an even stronger HR experience for customers and their employees, including a leave of absence offering (LOA) that leverages the company's recently announced acquisition of Cocoon, a market leader in leave management technology. 

About TriNet 
TriNet is a leading provider of Human Resources solutions for small and medium-size businesses, offering advanced technology-enabled services that include human capital expertise, employee benefits such as health insurance and retirement plans, payroll and payroll tax administration, risk mitigation, and compliance consulting. Our long-term objective is to be the premier provider of HR services for a broad range of SMBs through industry leading benefits, sales distribution excellence, and a world class services delivery model. For more information, visit TriNet.com or follow us on Facebook, LinkedIn and Instagram. 

Forward-looking Statements 
This press release contains forward-looking statements, including statements regarding the anticipated expansion of HR Plus and the expected benefits of TriNet's recently announced acquisition of Cocoon. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including those described in TriNet's filings with the Securities and Exchange Commission. TriNet undertakes no obligation to update these statements, except as required by law.

SOURCE TriNet