A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, U.S. February 18, 2025. REUTERS/Eli Hartman/File Photo Purchase Licensing Rights, opens new tab
CompaniesMay 6 (Reuters) - Western Midstream Partners (WES.N), opens new tab said on Wednesday it would acquire privately held Brazos Delaware II in a $1.6 billion deal, expanding its gathering and processing footprint in the core of the Permian Basin.
The company will pay about $800 million in cash and issue roughly $800 million in common units as part of the transaction, which is expected to close in the second quarter.
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Brazos, one of the largest privately held gathering and processing platforms in the Texas Delaware Basin, has assets across the oil-rich region.
The assets include about 900 miles of pipeline, 460 million cubic feet per day of nameplate natural-gas processing capacity at the Comanche processing complex.
Reporting by Sumit Saha in Bengaluru; Editing by Sriraj Kalluvila
Our Standards: The Thomson Reuters Trust Principles., opens new tab
For the quarter ended March 2026, Western Midstream (WES - Free Report) reported revenue of $1.12 billion, up 22.5% over the same period last year. EPS came in at $0.85, compared to $0.79 in the year-ago quarter.
The reported revenue represents a surprise of +13.02% over the Zacks Consensus Estimate of $994.13 million. With the consensus EPS estimate being $0.74, the EPS surprise was +15.18%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Western Midstream performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Throughput Attributable to Noncontrolling Interest for Natural Gas Assets per day: 184 millions of cubic feet per day compared to the 181.05 millions of cubic feet per day average estimate based on two analysts.Throughput for natural-gas assets per day - Total throughput: 5393 millions of cubic feet per day versus 5330.22 millions of cubic feet per day estimated by two analysts on average.Total throughput attributable to WES for natural-gas assets per day: 5209 millions of cubic feet per day compared to the 5149.18 millions of cubic feet per day average estimate based on two analysts.Throughput for natural-gas assets per day - Equity Investment: 464 millions of cubic feet per day compared to the 526.57 millions of cubic feet per day average estimate based on two analysts.Throughput for natural-gas assets per day - Delaware Basin: 2035 millions of cubic feet per day compared to the 2019.29 millions of cubic feet per day average estimate based on two analysts.Throughput for produced-water assets per day - Delaware Basin: 2848 millions of barrels of oil per day versus the two-analyst average estimate of 2836.23 millions of barrels of oil per day.Throughput for natural-gas assets per day - Equity investments: 464 millions of cubic feet per day versus the two-analyst average estimate of 526.57 millions of cubic feet per day.Throughput for crude-oil and NGLs assets per day - Delaware Basin: 272 millions of barrels of oil per day compared to the 261.64 millions of barrels of oil per day average estimate based on two analysts.Throughput for crude-oil and NGLs assets per day - DJ Basin: 97 millions of barrels of oil per day compared to the 95.55 millions of barrels of oil per day average estimate based on two analysts.Throughput for crude-oil and NGLs assets per day - Equity investments: 102 millions of barrels of oil per day versus 99.41 millions of barrels of oil per day estimated by two analysts on average.Throughput for crude-oil and NGLs assets per day - Other: 35 millions of barrels of oil per day versus 36.16 millions of barrels of oil per day estimated by two analysts on average.Throughput for natural-gas assets per day - DJ Basin: 1520 millions of cubic feet per day versus the two-analyst average estimate of 1465.81 millions of cubic feet per day.View all Key Company Metrics for Western Midstream here>>>
Shares of Western Midstream have returned +3.6% over the past month versus the Zacks S&P 500 composite's +10.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
and Participation in Upcoming Investor Conferences
, /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that tomorrow before the market open it will make available on its website at www.westernmidstream.com a post-earnings interview with Oscar K. Brown, President and Chief Executive Officer, and Jon Greenberg, Vice President and Head of Corporate Development and New Ventures, that provides additional insights related to WES's first-quarter 2026 results and the agreement to acquire Brazos Delaware II, LLC.
WES intends to participate in the following investor conferences during the second and third quarters of 2026:
TPH & Co. Hotter 'N Hell 2026 in Houston, Texas on May 13, 2026 The 23rd Annual Energy Infrastructure CEO & Investor Conference in Aventura, Florida on May 19 – 20, 2026 Stifel's Ninth Annual Boston Cross Sector 1x1 Conference on June 2, 2026 Institute of Private Investors Mid-Year Forum in New York, New York on June 10 – 11, 2026 J.P. Morgan Natural Resources Conference in New York, New York on June 24, 2026 Citi's 2026 Natural Resources Conference in Las Vegas, Nevada on August 11 – 12, 2026 ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering, transporting, recycling, treating, and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells residue, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES's cash flows are protected from direct exposure to commodity price volatility through fee-based contracts.
For more information about WES, please visit www.westernmidstream.com.
WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations
[email protected]
866-512-3523
Key Takeaways Western Midstream produced-water throughput surged 140% in Q1 2026 following the Aris acquisition.WES reported higher natural gas and crude oil throughput across the DJ Basin and the DBM oil system.WES maintained 2026 EBITDA & DCF guidance. It also raised its quarterly distribution to 93 cents per unit. Western Midstream Partners LP (WES - Free Report) reported first-quarter 2026 earnings of 85 cents per unit, up 7.6% from 79 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of 74 cents by 14.9%.
Total quarterly revenues of $1.1 billion topped the Zacks Consensus Estimate of $944.1 million. The top line increased 22.5% from the prior-year level of $917.1 million.
The strong quarterly results can be primarily attributed to higher throughputs across its natural gas, crude oil and natural gas liquid (NGL) assets. An increase in total operating expenses partially offset the positives.
Western Midstream Sees Broad-Based Throughput GainsOperationally, Western Midstream logged sequential gains across its three core product lines. The throughput attributable to Western Midstream Partners’ natural gas assets totaled 5,209 million cubic feet per day (MMcf/d), up 2% from the prior-year quarter’s figure of 5,110 MMcf/d and up 1% sequentially. The increase was primarily driven by higher volume from the DJ Basin and Chipeta complexes. The commissioning of a new Red Bluff Express receipt point in fourth-quarter 2025 further enhanced throughput volume. However, volume growth from the Powder River Basin and the Mi Vida plant slightly offset the positives.
Total throughput for crude oil and NGL assets was 521 thousand barrels per day (MBbls/d) compared with 503 MBbls/d in the first quarter of 2025. The 3% year-over-year increase is due to higher volumes from the partnership’s DBM oil system. Crude oil and NGL throughput increased 3% sequentially, driven by higher volumes from the DBM oil system and the FRP pipeline.
Total operated throughput for crude oil and NGLs assets was 429 MBbls/d compared with 411 MBbls/d in the prior-year quarter.
Total throughput attributable to WES for produced-water assets was 2,795 MBbls/d, up 140% from 1,166 MBbls/d in the year-ago quarter. The increase was driven by expanded capacity at DBM water systems following the acquisition of Aris.
Per management, Delaware Basin growth occurred despite curtailments linked to weak and volatile Waha natural-gas pricing, which it expects to persist through the second quarter amid downstream maintenance.
WES Keeps Tight Grip on Operating CostsCost discipline was another key support for the quarter. Total operating expenses for the quarter stood at $662.5 million, higher than the prior-year reported figure of $523.1 million, reflecting higher cost of product, operation and maintenance, and depreciation and amortization alongside the expanded asset base. Operation and maintenance expenses were $264.2 million, up from $226.5 million in the year-ago quarter, while general and administrative expenses were $75.2 million compared with $66.8 million last year.
Cash Flow of WESNet cash provided by operating activities totaled $444.5 million in the first quarter of 2026, down from $511.5 million in the corresponding period of 2025. The partnership’s free cash flow for the quarter was $242.3 million.
Balance Sheet of WESAs of March 31, 2026, the partnership’s long-term debt was $8.2 billion. Its cash and cash equivalents stood at $647.5 million. WES reported trailing 12-month net leverage of about 3.1X and more than $2.5 billion of total liquidity at quarter end.
WES Maintains 2026 Guidance, Lifts Quarterly PayoutFor 2026, WES kept its prior guidance intact. The partnership reiterated Adjusted EBITDA guidance of $2.5-$2.7 billion and Distributable Cash Flow (DCF) guidance of $1.85-$2.05 billion, while maintaining total capital expenditure expectations of $850 million to $1 billion.
WES increased its quarterly distribution to 93 cents per unit, payable May 15, 2026. Management plans to revisit 2026 guidance ranges alongside second-quarter results, after the anticipated closing of the Brazos transaction.
Some better-ranked stocks from the energy sector that have also reported results are YPF Sociedad Anónima (YPF - Free Report) , Chevron Corporation (CVX - Free Report) and Eni S.p.A. (E - Free Report) .YPF, CVX and E each currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
YPF reported first-quarter 2026 earnings of $1.03 per share, which beat the Zacks Consensus Estimate of 83 cents by 24.1%. The bottom line surpassed the year-ago quarter’s 32 cents.
As of March 31, 2026, YPF had cash and cash equivalents worth $1.7 billion and net debt of $8.4 billion.
Chevron reported first-quarter 2026 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of 92 cents.
As of March 31, 2026, CVX reported $5.3 million in cash and cash equivalents. At the quarter's end, its total debt amounted to $45.4 billion.
Eni reported first-quarter 2026 adjusted earnings from continuing operations of 81 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of $1.13.
As of March 31, 2026, E had a long-term debt of €21.7 billion, and cash and cash equivalents of €8.3 billion.
Western Midstream Partners offers an 8.35% yield, 5-8% targeted distribution growth, and a compelling risk-adjusted return at $45 per unit. WES's Q1 results were strong, with a record $683.1M adjusted EBITDA, 15% YoY growth, and a 2.2% distribution increase. The $1.6B Brazos Delaware acquisition expands WES's Delaware Basin footprint by 50%, is immediately accretive, and maintains pro forma leverage near 3.0x.
Western Midstream Partners, LP, offers an attractive distribution growth profile for income-focused investors. I see WES's value underpinned by robust core natural gas business growth, expanding pipeline assets, and strong projected natural gas demand. The recent $1.6B Brazos Delaware acquisition expands WES's Delaware Basin footprint by ~49% (to over 1.4M acres), adding significant pipeline and processing capacity.
A month has gone by since the last earnings report for Western Midstream (WES - Free Report) . Shares have added about 4.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Western Midstream due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
WES Q1 Earnings Beat on Higher Throughput VolumeWestern Midstream reported first-quarter 2026 earnings of 85 cents per unit, up 7.6% from 79 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of 74 cents by 14.9%.
Total quarterly revenues of $1.1 billion topped the Zacks Consensus Estimate of $944.1 million. The top line increased 22.5% from the prior-year level of $917.1 million.
The strong quarterly results can be primarily attributed to higher throughputs across its natural gas, crude oil and natural gas liquid (NGL) assets. An increase in total operating expenses partially offset the positives.
Western Midstream Sees Broad-Based Throughput GainsOperationally, Western Midstream logged sequential gains across its three core product lines. The throughput attributable to Western Midstream Partners’ natural gas assets totaled 5,209 million cubic feet per day (MMcf/d), up 2% from the prior-year quarter’s figure of 5,110 MMcf/d and up 1% sequentially. The increase was primarily driven by higher volume from the DJ Basin and Chipeta complexes. The commissioning of a new Red Bluff Express receipt point in fourth-quarter 2025 further enhanced throughput volume. However, volume growth from the Powder River Basin and the Mi Vida plant slightly offset the positives.
Total throughput for crude oil and NGL assets was 521 thousand barrels per day (MBbls/d) compared with 503 MBbls/d in the first quarter of 2025. The 3% year-over-year increase is due to higher volumes from the partnership’s DBM oil system. Crude oil and NGL throughput increased 3% sequentially, driven by higher volumes from the DBM oil system and the FRP pipeline.
Total operated throughput for crude oil and NGLs assets was 429 MBbls/d compared with 411 MBbls/d in the prior-year quarter.
Total throughput attributable to WES for produced-water assets was 2,795 MBbls/d, up 140% from 1,166 MBbls/d in the year-ago quarter. The increase was driven by expanded capacity at DBM water systems following the acquisition of Aris.
Per management, Delaware Basin growth occurred despite curtailments linked to weak and volatile Waha natural-gas pricing, which it expects to persist through the second quarter amid downstream maintenance.
WES Keeps Tight Grip on Operating CostsCost discipline was another key support for the quarter. Total operating expenses for the quarter stood at $662.5 million, higher than the prior-year reported figure of $523.1 million, reflecting higher cost of product, operation and maintenance, and depreciation and amortization alongside the expanded asset base. Operation and maintenance expenses were $264.2 million, up from $226.5 million in the year-ago quarter, while general and administrative expenses were $75.2 million compared with $66.8 million last year.
Cash Flow of WESNet cash provided by operating activities totaled $444.5 million in the first quarter of 2026, down from $511.5 million in the corresponding period of 2025. The partnership’s free cash flow for the quarter was $242.3 million.
Balance Sheet of WESAs of March 31, 2026, the partnership’s long-term debt was $8.2 billion. Its cash and cash equivalents stood at $647.5 million. WES reported trailing 12-month net leverage of about 3.1X and more than $2.5 billion of total liquidity at quarter end.
WES Maintains 2026 Guidance, Lifts Quarterly PayoutFor 2026, WES kept its prior guidance intact. The partnership reiterated Adjusted EBITDA guidance of $2.5-$2.7 billion and Distributable Cash Flow (DCF) guidance of $1.85-$2.05 billion, while maintaining total capital expenditure expectations of $850 million to $1 billion.
WES increased its quarterly distribution to 93 cents per unit, payable May 15, 2026. Management plans to revisit 2026 guidance ranges alongside second-quarter results, after the anticipated closing of the Brazos transaction.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 10.34% due to these changes.
VGM ScoresCurrently, Western Midstream has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Western Midstream has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
, /PRNewswire/ -- Western Midstream Partners, LP ("WES" or the "Partnership") (NYSE: WES) today announced it closed the previously announced acquisition of Brazos Delaware II, LLC ("Brazos") for approximately $1.6 billion. Transaction consideration comprised approximately $800 million in cash and approximately $800 million in WES common units. WES issued approximately 19.4 million units based on the volume weighted average WES common unit price at the time the acquisition agreement was signed. The Brazos acquisition expands WES's gathering and processing footprint in the Delaware Basin and aligns with WES's philosophy of only deploying capital that sustains or grows its distribution. The transaction also met the objectives of accretion to per-unit metrics, protecting the Partnership's balance sheet and investment grade credit ratings, and diversifying its customer base and ownership.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering, transporting, recycling, treating, and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells residue, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES's cash flows are protected from direct exposure to commodity-price volatility through fee-based contracts.
For more information about WES, please visit www.westernmidstream.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements. WES's management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this news release. These factors include our ability to realize the expected benefits from the Brazos acquisition; meet financial guidance or distribution expectations; our ability to safely and efficiently operate WES's assets and integrate the Brazos assets into our portfolio; the supply of, demand for, and price of oil, natural gas, NGLs, and related products or services; our ability to meet projected in-service dates for capital-growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" section of WES's most-recent Form 10-K filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements, except as required by applicable law.
WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations
[email protected]
866.512.3523
Insperity, Inc. (NYSE: NSP - Get Free Report)'s share price gapped up before the market opened on Friday after an insider bought additional shares in the company. The stock had previously closed at $22.72, but opened at $24.79. Insperity shares last traded at $25.3490, with a volume of 330,304 shares. Specifically, CEO Paul J. Sarvadi bought
Shares of Insperity, Inc. (NYSE:NSP – Get Free Report) have been assigned a consensus recommendation of “Reduce” from the five ratings firms that are presently covering the firm, MarketBeat.com reports. Three equities research analysts have rated the stock with a sell rating, one has issued a hold rating and one has given a buy rating to the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $47.50.
Several equities research analysts recently commented on NSP shares. Wall Street Zen cut Insperity from a “hold” rating to a “sell” rating in a report on Saturday, March 28th. Weiss Ratings reiterated a “sell (d)” rating on shares of Insperity in a research report on Friday, March 27th. The Goldman Sachs Group set a $62.00 price objective on Insperity in a research note on Monday, January 5th. Robert W. Baird set a $36.00 price objective on Insperity in a report on Wednesday, February 11th. Finally, Roth Mkm set a $62.00 target price on Insperity in a research note on Monday, January 5th.
Get Our Latest Stock Analysis on Insperity
Insider Activity In other Insperity news, EVP James D. Allison bought 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, March 10th. The stock was acquired at an average cost of $20.45 per share, with a total value of $204,500.00. Following the completion of the purchase, the executive vice president directly owned 94,272 shares in the company, valued at approximately $1,927,862.40. This trade represents a 11.87% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this link. Also, CEO Paul J. Sarvadi bought 160,000 shares of Insperity stock in a transaction that occurred on Wednesday, March 18th. The shares were acquired at an average price of $23.22 per share, with a total value of $3,715,200.00. Following the completion of the acquisition, the chief executive officer directly owned 972,912 shares of the company’s stock, valued at $22,591,016.64. This represents a 19.68% increase in their position. The SEC filing for this purchase provides additional information. In the last 90 days, insiders have bought 214,437 shares of company stock valued at $4,941,246. Insiders own 5.29% of the company’s stock.
Institutional Inflows and Outflows Several institutional investors have recently modified their holdings of the stock. Goldman Sachs Group Inc. boosted its stake in shares of Insperity by 140.5% during the 4th quarter. Goldman Sachs Group Inc. now owns 1,471,160 shares of the business services provider’s stock worth $56,963,000 after acquiring an additional 859,326 shares in the last quarter. Invesco Ltd. grew its holdings in shares of Insperity by 117.8% in the 4th quarter. Invesco Ltd. now owns 1,137,255 shares of the business services provider’s stock worth $44,035,000 after acquiring an additional 615,100 shares during the last quarter. Reinhart Partners LLC. raised its position in shares of Insperity by 24.6% during the fourth quarter. Reinhart Partners LLC. now owns 2,745,035 shares of the business services provider’s stock worth $106,288,000 after purchasing an additional 542,709 shares during the period. Norges Bank acquired a new stake in shares of Insperity during the second quarter worth $26,960,000. Finally, Two Sigma Investments LP lifted its holdings in shares of Insperity by 601.2% during the third quarter. Two Sigma Investments LP now owns 470,820 shares of the business services provider’s stock valued at $23,164,000 after purchasing an additional 403,679 shares during the last quarter. Institutional investors own 93.44% of the company’s stock.
Insperity Stock Performance Shares of NSP opened at $29.31 on Tuesday. The firm has a 50-day moving average price of $28.42 and a 200 day moving average price of $37.26. The firm has a market capitalization of $1.11 billion, a PE ratio of -146.55 and a beta of 0.39. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 8.02. Insperity has a 52-week low of $18.57 and a 52-week high of $88.11.
Insperity (NYSE:NSP – Get Free Report) last released its quarterly earnings results on Tuesday, February 10th. The business services provider reported ($0.60) EPS for the quarter, missing analysts’ consensus estimates of ($0.47) by ($0.13). The company had revenue of $1.67 billion for the quarter, compared to the consensus estimate of $1.68 billion. Insperity had a negative return on equity of 12.09% and a negative net margin of 0.10%.The firm’s quarterly revenue was up 3.4% compared to the same quarter last year. During the same quarter last year, the firm posted $0.05 earnings per share. Insperity has set its Q1 2026 guidance at 1.030-1.500 EPS and its FY 2026 guidance at 1.690-2.720 EPS. On average, sell-side analysts anticipate that Insperity will post 2.33 earnings per share for the current fiscal year.
Insperity Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Friday, March 6th were issued a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 8.2%. The ex-dividend date of this dividend was Friday, March 6th. Insperity’s dividend payout ratio is presently -1,200.00%.
Insperity Company Profile (Get Free Report)
Insperity, Inc is a leading provider of human resources and business performance solutions designed to help small and midsize businesses operate more efficiently. Headquartered in Kingwood, Texas, the company offers a comprehensive suite of products and services that span workforce management, payroll administration, employee benefits, risk management, and talent development. By leveraging its proprietary technology platform and team of HR experts, Insperity enables clients to focus on core business objectives while outsourcing complex administrative functions.
The company’s flagship offering is its Professional Employer Organization (PEO) service, which allows clients to outsource critical HR tasks such as payroll processing, workers’ compensation administration, and compliance with employment regulations.
Read More Five stocks we like better than Insperity
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HOUSTON--(BUSINESS WIRE)--Insperity, Inc. (NYSE: NSP), a leading provider of human resources and business performance solutions for America's best businesses, will release its first quarter earnings before the opening of the New York Stock Exchange on Thursday, April 30, 2026. A teleconference hosted by Insperity's management will be held at 8:30 a.m. ET to discuss the quarter and business trends. Investors, analysts, media and other interested persons may access the call at 877-545-0523, confe.
HOUSTON--(BUSINESS WIRE)--Insperity, Inc. (NYSE: NSP), a leading provider of human resources and business performance solutions for America's best businesses, announced today that is has changed the time of its first quarter earnings conference call. The call will now take place at 5:00 p.m. ET instead of 8:30 a.m. ET on the same date (Thursday, April 30, 2026). All other details regarding the earnings release and conference call remain unchanged. About Insperity Since 1986, Insperity's mission.
Kforce (KFRC - Free Report) came out with quarterly earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.4 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +15.00%. A quarter ago, it was expected that this staffing company would post earnings of $0.47 per share when it actually produced earnings of $0.43, delivering a surprise of -8.51%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Kforce, which belongs to the Zacks Staffing Firms industry, posted revenues of $330.36 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.72%. This compares to year-ago revenues of $330.03 million. The company has topped consensus revenue estimates four 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.
Kforce shares have added about 4.8% since the beginning of the year versus the S&P 500's gain of 4.7%.
What's Next for Kforce?While Kforce 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 Kforce 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 $0.58 on $337 million in revenues for the coming quarter and $2.24 on $1.34 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, Staffing Firms is currently in the top 33% 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.
Another stock from the same industry, Insperity, Inc. (NSP - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on April 30.
This company is expected to post quarterly earnings of $1.24 per share in its upcoming report, which represents a year-over-year change of -21%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Insperity, Inc.'s revenues are expected to be $1.89 billion, up 1.3% from the year-ago quarter.
On April 28, 2026, Insperity Inc (NSP) shares rose 4.8% today, bringing the current price to $35.25. The stock has experienced significant volatility over the p
Launched on 02/03/2015, the ProShares Russell 2000 Dividend Growers ETF (SMDV - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Small Cap Value category of the market.
What Are Smart Beta ETFs?The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & IndexThe fund is managed by Proshares. SMDV has been able to amass assets over $654.71 million, making it one of the average sized ETFs in the Style Box - Small Cap Value. SMDV, before fees and expenses, seeks to match the performance of the Russell 2000 Dividend Growth Index.
The Russell 2000 Dividend Growth Index targets companies that are currently members of the Russell 2000 Index and have increased dividend payments each year for at least 10 years.
Cost & Other ExpensesExpense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.40%.
SMDV's 12-month trailing dividend yield is 2.40%.
Sector Exposure and Top HoldingsETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
For SMDV, it has heaviest allocation in the Financials sector --about 33.1% of the portfolio --while Industrials and Utilities round out the top three.
Looking at individual holdings, Insperity Inc (NSP) accounts for about 1.23% of total assets, followed by Andersons Inc/the (ANDE) and Power Integrations Inc (POWI).
SMDV's top 10 holdings account for about 9.77% of its total assets under management.
Performance and RiskThe ETF has added roughly 9.79% so far this year and is up roughly 15.99% in the last one year (as of 04/30/2026). In the past 52-week period, it has traded between $63.09 and $73.94
The ETF has a beta of 0.80 and standard deviation of 18.60% for the trailing three-year period, making it a medium risk choice in the space. With about 103 holdings, it effectively diversifies company-specific risk .
AlternativesProShares Russell 2000 Dividend Growers ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) tracks NASDAQ US Dividend Achievers Select Index. iShares Core Dividend Growth ETF has $39.09 billion in assets, Vanguard Dividend Appreciation Index Fund ETF Shares has $104.03 billion. DGRO has an expense ratio of 0.08% and VIG changes 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Small Cap Value
Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
HOUSTON--(BUSINESS WIRE)--Insperity, Inc. (NYSE: NSP), a leading provider of human resources and business performance solutions for America’s best businesses, today reported results for the first quarter ended March 31, 2026. Insperity will be hosting a conference call today at 5:00 p.m. ET to discuss these results and our 2026 outlook and will be posting an accompanying presentation to our investor website at http://ir.insperity.com.
Highlights for the quarter included:
Q1 revenues up 2% year-over-year Q1 average paid WSEEs down 1% to 303,049 Q1 net income of $33 million; adjusted EBITDA of $103 million Q1 diluted EPS of $0.88; adjusted EPS of $1.31 First Quarter Results
“We are pleased with our Q1 financial results, which reflect the effectiveness of our efforts to overcome margin pressure experienced in 2025,” said Paul J. Sarvadi, Insperity chairman and chief executive officer. “We are working to reestablish growth momentum over the balance of the year and to capitalize on the opportunity we see ahead in the evolving AI landscape for Insperity’s strategic HR services, technology, and expertise.”
The average number of worksite employees (“WSEE”) paid per month decreased 1% from Q1 2025 to 303,049 WSEEs. Revenues in Q1 2026 increased 2% to $1.9 billion on a 3% increase in revenue per WSEE on higher pricing, partially offset by the decrease in paid WSEEs.
Gross profit decreased 3% to $302 million in Q1 2026, which represents a significant improvement compared to the 21% decline we experienced in Q4 2025. These results reflect our margin recovery efforts, including our pricing, and client renewal strategy, the new contract terms with UnitedHealthcare, plan design changes and a slightly lower than expected claim cost trend. Our benefits costs per covered employee increased 5% over Q1 2025.
Operating expenses decreased 1% to $240 million in Q1 2026, including $9 million in restructuring charges primarily related to severance associated with a workforce realignment. Excluding the restructuring charges, operating expenses decreased 5% over Q1 2025. Operating expenses included $8 million in Q1 2026 and $13 million in Q1 2025 related to our Workday strategic partnership.
Reported net income was $33 million and diluted EPS was $0.88. Adjusted EBITDA and adjusted EPS were $103 million and $1.31, respectively.
“We are pleased with our gross profit results and the progress we have made in our margin recovery plan, which we expect to continue throughout 2026,” said James D. Allison, executive vice president of finance, chief financial officer and treasurer. “Our operating expenses in the first quarter of 2026 were slightly better than expected, reflecting the actions we have taken to align our cost structure with the needs of our business and to support profitability recovery.”
Cash outlays in the first three months of 2026 included the repurchase of approximately 171,000 shares of our common stock at a cost of $4 million, dividends totaling $23 million, and capital expenditures of $6 million. Adjusted cash at March 31, 2026 totaled $36 million and we had outstanding borrowings of $370 million under our credit facility.
2026 Guidance
The company also announced its updated guidance for 2026, including the second quarter of 2026. Please refer to the accompanying financial tables at the end of this press release for the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures.
Q2 2026
Full Year 2026
Average WSEEs paid
302,500
—
304,500
303,000
—
307,000
Year-over-year decrease
(2.1)%
—
(1.5)%
(2.3)%
—
(1.0)%
Adjusted EPS1
$0.02
—
$0.50
$1.60
—
$2.60
Year-over-year increase (decrease)
(92)%
—
92%
55%
—
152%
Adjusted EBITDA (in millions)
$18
—
$46
$170
—
$230
Year-over-year increase (decrease)
(44)%
—
44%
30%
—
76%
Definition of Key Metrics
Average WSEEs paid — Determined by calculating the company’s cumulative WSEEs paid during the period divided by the number of months in the period.
Adjusted EPS — Represents diluted net income per share computed in accordance with GAAP, excluding the impact of non-cash stock-based compensation and restructuring charge.
Adjusted EBITDA — Represents net income computed in accordance with GAAP, plus interest expense, income taxes, depreciation and amortization expense, amortization of SaaS implementation costs, non-cash stock-based compensation, and restructuring charge.
Conference Call and Webcast
Insperity will be hosting a conference call today at 5:00 p.m. ET to discuss these results and the guidance discussed in this press release, and answer questions from investment analysts. To listen in, call 877-545-0523 and use conference i.d. number 830492. The call will also be webcast at http://ir.insperity.com. The conference call script will be available at the same website later today. A replay of the conference call will be available at 877-481-4010, conference i.d. number 53885. The webcast will be archived for one year.
About Insperity
Since 1986, Insperity’s mission has been to help businesses succeed so communities prosper. Offering a suite of the most comprehensive, scalable HR solutions available in the marketplace, Insperity is defined by an unrivaled breadth and depth of services and level of care. Through an optimal blend of premium HR service and technology, Insperity delivers the administrative relief, reduced liabilities and better benefit solutions that businesses need to drive performance and growth. With 2025 revenues of $6.8 billion and sales and service operations throughout the U.S., Insperity is currently making a difference in thousands of businesses and communities nationwide. For more information, visit http://www.insperity.com.
Forward-Looking Statements
The statements contained herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify such forward-looking statements by the words “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “forecasts,” “likely,” “possibly,” “probably,” “could,” “goal,” “opportunity,” “objective,” “target,” “assume,” “outlook,” “guidance,” “predicts,” “appears,” “indicator” and similar expressions. Forward-looking statements involve a number of risks and uncertainties. In the normal course of business, in an effort to help keep our stockholders and the public informed about our operations, from time to time, we may issue such forward-looking statements, either orally or in writing. Generally, these statements relate to business plans or strategies, including our strategic partnership with Workday, Inc.; projected or anticipated benefits or other consequences of such plans or strategies; or projections involving anticipated revenues, earnings, average number of worksite employees, benefits and workers’ compensation costs, or other operating results. We base these forward-looking statements on our current expectations, estimates and projections. We caution you that these statements are not guarantees of future performance and involve risks, uncertainties and assumptions that we cannot predict. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Therefore, the actual results of the future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are:
adverse economic conditions; disallowance of employee retention tax credits under certain COVID-19 relief programs; bank failures or other events affecting financial institutions; labor shortages, increasing competition for highly skilled workers, and evolving employee expectations regarding the workplace; impact of inflation and changes in U.S. trade policy; vulnerability to regional economic factors because of our geographic market concentration; failure to comply with covenants under our credit facility; impact of a future outbreak of highly infectious or contagious disease; our liability for WSEE payroll, payroll taxes and benefits costs, or other liabilities associated with actions of our client companies or WSEEs, including if our clients fail to pay us; increases in health insurance costs and workers’ compensation rates and underlying claims trends; financial solvency of workers’ compensation carriers, other insurers or financial institutions; the ability to adjust service fees for increases in state and local taxes, including state unemployment tax rates; an adverse determination regarding our status as the employer of our WSEEs for tax and benefit purposes and an inability to offer alternative benefit plans following such a determination; cancellation of client contracts on short notice, or the inability to renew client contracts or attract new clients; disruption from healthcare reform or the inability to secure competitive replacement contracts for health insurance and workers’ compensation insurance at expiration of current contracts; regulatory and tax developments and possible adverse application of various federal, state and local regulations; failure to manage growth of our operations and the effectiveness of our sales and marketing efforts; the impact of the competitive environment and other developments in the human resources services industry, including the professional employer organization (or PEO) industry, on our growth and/or profitability; an adverse final judgment or settlement of claims against Insperity; disruptions of our information technology systems or failure to enhance our service and technology offerings to address new regulations or client expectations; our liability or damage to our reputation relating to disclosure of sensitive or private information as a result of data theft, cyberattacks or security vulnerabilities; failure of third-party providers, such as financial institutions, data centers or cloud service providers; our ability to fully realize the anticipated benefits of our strategic partnership and joint solution with Workday, Inc.; and our ability to integrate or realize expected returns on future product offerings, including through acquisitions, strategic partnerships, and investments. These factors are discussed in further detail in Insperity’s filings with the U.S. Securities and Exchange Commission. Any of these factors, or a combination of such factors, could materially affect the results of our operations and whether forward-looking statements we make ultimately prove to be accurate.
Any forward-looking statements are made only as of the date hereof and, unless otherwise required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Insperity, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, 2026
December 31, 2025
(in millions)
Assets
Cash and cash equivalents
$
537
$
642
Restricted cash
80
82
Marketable securities
18
18
Accounts receivable, net
880
826
Prepaid insurance and related assets
67
6
Income taxes receivable
30
29
Other current assets
118
119
Total current assets
1,730
1,722
Property and equipment, net
172
177
Right-of-use leased assets
60
63
Deposits and prepaid health insurance
173
165
Goodwill and other intangible assets, net
13
13
Deferred income taxes, net
—
22
Other assets
48
41
Total assets
$
2,196
$
2,203
Liabilities and stockholders' equity
Accounts payable
$
6
$
6
Payroll taxes and other payroll deductions payable
471
544
Accrued worksite employee payroll cost
818
764
Accrued health insurance costs
67
30
Accrued workers’ compensation costs
82
84
Accrued corporate payroll and commissions
53
78
Other accrued liabilities
91
114
Total current liabilities
1,588
1,620
Accrued workers’ compensation costs, net of current
104
102
Long-term debt
369
369
Operating lease liabilities, net of current
61
66
Deferred income taxes, net
7
—
Total noncurrent liabilities
541
537
Stockholders’ equity:
Common stock
1
1
Additional paid-in capital
244
257
Treasury stock, at cost
(826
)
(850
)
Retained earnings
648
638
Total stockholders' equity
67
46
Total liabilities and stockholders’ equity
$
2,196
$
2,203
Insperity, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31,
(in millions, except per share amounts)
2026
2025
Change
Operating results:
Revenues(1)
$
1,895
$
1,863
2
%
Payroll taxes, benefits and workers’ compensation costs
1,593
1,553
3
%
Gross profit
302
310
(3
)%
Salaries, wages and payroll taxes
140
142
(1
)%
Stock-based compensation
13
11
18
%
Commissions
10
11
(9
)%
Advertising
11
7
57
%
General and administrative expenses
55
60
(8
)%
Depreciation and amortization
11
11
—
Total operating expenses
240
242
(1
)%
Operating income
62
68
(9
)%
Other income (expense):
Interest income
7
10
(30
)%
Interest expense
(6
)
(6
)
—
Income before income tax expense
63
72
(13
)%
Income tax expense
30
21
43
%
Net income
$
33
$
51
(35
)%
Net income per share of common stock
Basic
$
0.88
$
1.37
(36
)%
Diluted
$
0.88
$
1.35
(35
)%
Three Months Ended March 31,
(in millions)
2026
2025
Gross billings
$
12,146
$
12,144
Less: WSEE payroll cost
10,251
10,281
Revenues
$
1,895
$
1,863
Insperity, Inc.
KEY FINANCIAL AND STATISTICAL DATA
Three Months Ended March 31,
2026
2025
Change
Average WSEEs paid
303,049
306,023
(1
)%
Statistical data (per WSEE per month):
Revenues(1)
$
2,084
$
2,029
3
%
Gross profit
332
338
(2
)%
Operating expenses
264
264
—
Operating income
68
74
(8
)%
Net income
36
56
(36
)%
Three Months Ended March 31,
(per WSEE per month)
2026
2025
Gross billings
$
13,360
$
13,228
Less: WSEE payroll cost
11,276
11,199
Revenues
$
2,084
$
2,029
Insperity, Inc.
Non-GAAP FINANCIAL MEASURES
(Unaudited)
Non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used to their most directly comparable GAAP financial measures as provided in the tables below.
Non-GAAP Measure
Definition
Benefit of Non-GAAP Measure
Non-bonus payroll cost
Non-bonus payroll cost is a non-GAAP financial measure that excludes the impact of bonus payrolls paid to our WSEEs.
Our management refers to non-bonus payroll cost in analyzing, reporting and forecasting our workers’ compensation costs.
Bonus payroll cost varies from period to period, but has no direct impact to our ultimate workers’ compensation costs under the current program.
We include these non-GAAP financial measures because we believe they are useful to investors in allowing for greater transparency related to the costs incurred under our current workers’ compensation program.
Adjusted cash, cash equivalents and marketable securities
Excludes funds associated with:
• federal and state income tax withholdings,
• employment taxes,
• other payroll deductions, and
• client prepayments.
We believe that the exclusion of the identified items helps us reflect the fundamentals of our underlying business model and analyze results against our expectations, against prior periods, and to plan for future periods by focusing on our underlying operations. We believe that the adjusted results provide relevant and useful information for investors because they allow investors to view performance in a manner similar to the method used by management and improves their ability to understand and assess our operating performance. Adjusted EBITDA is used by our lenders to assess our leverage and ability to make interest payments.
Adjusted operating expenses
Represents operating expenses excluding the impact of the following:
• restructuring charges.
EBITDA
Represents net income computed in accordance with GAAP, plus:
• interest expense,
• income tax expense,
• depreciation and amortization expense, and
• amortization of SaaS implementation costs.
Adjusted EBITDA
Represents EBITDA plus:
• non-cash stock-based compensation, and
• restructuring charges.
Adjusted net income
Represents net income computed in accordance with GAAP, excluding:
• non-cash stock-based compensation,
• restructuring charges, and
• the income tax effect at our effective tax rate of these pre-tax adjustments.(1)
Adjusted EPS
Represents diluted net income per share computed in accordance with GAAP, excluding:
• non-cash stock-based compensation,
• restructuring charges, and
• the income tax effect at our effective tax rate of these pre-tax adjustments.(1)
Following is a reconciliation of payroll cost (GAAP) to non-bonus payroll costs (non-GAAP):
Three Months Ended March 31,
(in millions, except per WSEE per month)
2026
2025
Per
WSEE
Per
WSEE
Payroll cost
$
10,251
$
11,276
$
10,281
$
11,199
Less: Bonus payroll cost
2,118
2,330
2,243
2,444
Non-bonus payroll cost
$
8,133
$
8,946
$
8,038
$
8,755
Payroll cost % change period over period
—
1
%
6
%
5
%
Non-bonus payroll cost % change period over period
1
%
2
%
3
%
2
%
Following is a reconciliation of cash, cash equivalents and marketable securities (GAAP) to adjusted cash, cash equivalents and marketable securities (non-GAAP):
(in millions)
March 31,
2026
December 31,
2025
Cash, cash equivalents and marketable securities
$
555
$
660
Less:
Amounts payable for withheld federal and state income taxes, employment taxes and other payroll deductions
415
468
Client prepayments
104
135
Adjusted cash, cash equivalents and marketable securities
$
36
$
57
Following is a reconciliation of operating expenses (GAAP) to adjusted operating expenses (non-GAAP):
(in millions, except per WSEE per month)
Three Months Ended March 31,
2026
2025
Per
WSEE
Per
WSEE
Operating expenses
$
240
$
264
$
242
$
264
Less: Restructuring charges
9
10
—
—
Adjusted operating expenses
$
231
$
254
$
242
$
264
Operating expenses % change period over period
(1
)%
—
2
%
2
%
Adjusted operating expenses % change period over period
(5
)%
(4
)%
2
%
2
%
Following is a reconciliation of net income (GAAP) to EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP):
(in millions, except per WSEE per month)
Three Months Ended March 31,
2026
2025
Per
WSEE
Per
WSEE
Net income
$
33
$
36
$
51
$
56
Income tax expense
30
33
21
22
Interest expense
6
7
6
7
Amortization of SaaS implementation costs
1
1
2
2
Depreciation and amortization
11
12
11
12
EBITDA
81
89
91
99
Stock-based compensation
13
14
11
12
Restructuring charges
9
10
—
—
Adjusted EBITDA
$
103
$
113
$
102
$
111
Net income % change period over period
(35
)%
(36
)%
(35
)%
(36
)%
Adjusted EBITDA % change period over period
1
%
2
%
(28
)%
(29
)%
Following is a reconciliation of net income (GAAP) to adjusted net income (non-GAAP):
Three Months Ended March 31,
(in millions)
2026
2025
Net income
$
33
$
51
Non-GAAP adjustments:
Stock-based compensation
13
11
Restructuring charges
9
—
Total non-GAAP adjustments
22
11
Tax effect
(5
)
(3
)
Total non-GAAP adjustments, net
17
8
Adjusted net income
$
50
$
59
Net income % change period over period
(35
)%
(35
)%
Adjusted net income % change period over period
(15
)%
(31
)%
Following is a reconciliation of diluted EPS (GAAP) to adjusted EPS (non-GAAP):
Three Months Ended March 31,
(amounts per share)
2026
2025
Diluted EPS
$
0.88
$
1.35
Non-GAAP adjustments:
Stock-based compensation
0.35
0.30
Restructuring charges
0.23
—
Total non-GAAP adjustments
0.58
0.30
Tax effect
(0.15
)
(0.08
)
Total non-GAAP adjustments, net
0.43
0.22
Adjusted EPS
$
1.31
$
1.57
Diluted EPS % change period over period
(35
)%
(35
)%
Adjusted EPS % change period over period
(17
)%
(31
)%
The following is a reconciliation of GAAP to non-GAAP financial measures for second quarter and full year 2026 guidance:
Insperity, Inc. (NSP - Free Report) came out with quarterly earnings of $1.31 per share, beating the Zacks Consensus Estimate of $1.24 per share. This compares to earnings of $1.57 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +5.37%. A quarter ago, it was expected that this company would post a loss of $0.49 per share when it actually produced a loss of $0.6, delivering a surprise of -22.45%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Insperity, which belongs to the Zacks Staffing Firms industry, posted revenues of $1.9 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.43%. This compares to year-ago revenues of $1.86 billion. The company has topped consensus revenue estimates just once 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.
Insperity shares have lost about 3.9% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Insperity?While Insperity 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 Insperity 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 $0.52 on $1.68 billion in revenues for the coming quarter and $2.17 on $6.99 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, Staffing Firms is currently in the top 34% 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.
Another stock from the same industry, Kelly Services (KELYA - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.
This staffing company is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of -82.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Kelly Services' revenues are expected to be $1.02 billion, down 12.4% from the year-ago quarter.
Key Takeaways Insperity delivered Q1 adjusted EPS of $1.31 on $1.90B in revenues, both beating consensus.NSP cited margin recovery actions and better benefit-cost outcomes, lifting gross profit per employee.NSP onboarded HRScale beta clients, with nearly 6,000 worksite employees committed to join within six months. Insperity, Inc. (NSP - Free Report) delivered adjusted earnings of $1.31 per share in the first quarter of 2026, down 17% from the year-ago quarter but surpassing the Zacks Consensus Estimate of $1.24 by 5.7%. Revenues came in at $1.90 billion, up 2% year over year and beating the consensus mark of $1.89 billion by 0.4%.
Results reflected improving profitability trends as management executed a margin recovery plan, even as average paid worksite employees slipped 1% to 303,049.
NSP Shows Early Progress in Profit RebuildTotal gross profit declined 3% year over year to $302 million, but the performance marked a notable sequential improvement from the margin pressure seen late last year. On a unit basis, gross profit per worksite employee was $332 per month, reflecting better-than-expected benefit cost outcomes that helped offset softer unit volume.
Benefits costs per covered employee increased 5% from the prior-year period, an improvement from the higher trend encountered through much of 2025. Management attributed the progress to a favorable shift in client mix tied to pricing and renewal actions, plan design changes and updated contract terms with UnitedHealthcare, which included a pooling level change that is expected to shift more claim reimbursements to later quarters.
Insperity Trims Costs While Funding HRScaleOperating expenses decreased 1% to $240 million and included a $9-million restructuring charge related largely to severance from a workforce realignment. Excluding that charge, operating expenses fell 5%, underscoring tighter cost discipline alongside ongoing investments tied to the Workday strategic partnership.
In the quarter, Insperity invested $13 million in HRScale, including $8 million in operating expenses and $5 million in capitalized costs. A higher effective tax rate of 41% (versus 29% a year ago) weighed on the adjusted earnings comparison, led by a lower stock price reducing the tax benefit associated with stock-based compensation vesting that is concentrated in the first quarter.
NSP Returns Cash, Maintains Ample LiquidityCapital return remained a focus. The company paid out $23 million in dividends and repurchased 171,000 shares for $4 million during the quarter, continuing its regular shareholder return program even amid ongoing operating adjustments.
Insperity ended the period with $36 million of adjusted cash, with management citing seasonal working capital timing items as a driver of the decline. Liquidity appeared solid, supported by $380 million of unused capacity under the company’s credit facility, with roughly $330 million available to borrow.
Insperity Positions HRScale & AI as Growth LeversManagement highlighted early operational milestones for HRScale, noting that initial beta clients were onboarded in March, and payrolls and invoices were processed in April as scheduled. Early commercial traction was framed around a growing pipeline, including signed commitments for nearly 6,000 worksite employees expected to onboard within the next six months, with interest centered on the combined offering of Insperity’s HR services and Workday client-facing technology.
Beyond HRScale, leadership emphasized an expanding AI strategy intended to improve internal productivity and enhance client experience. Initiatives discussed included rolling out AI agents to support HR and payroll workflows, improving HR360 platform navigation, and enabling more responsive client and employee support during major events, alongside longer-term plans to introduce conversational reporting capabilities.
NSP Updates 2026 View as SMB Sentiment SoftensFollowing the quarter, management updated its outlook for the balance of 2026, citing weaker small-business sentiment and a somewhat larger impact of pricing and renewal actions on new client sales and retention. The company guided for adjusted earnings per share of 2-50 cents for the second quarter of 2026 and $1.60-$2.60 for the year, reflecting an effective tax rate assumption of 28% for the second quarter and 36% for the year.
The company also projected adjusted EBITDA of $18-$46 million for the second quarter and $170-$230 million for 2026. Management noted that quarterly earnings seasonality is expected to be flatter than historical patterns, reflecting the revised UnitedHealthcare pooling structure and the expectation that the benefits of the margin recovery plan become more pronounced as the year progresses.
NSP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings SnapshotGartner, Inc. (IT - Free Report) delivered first-quarter 2026 adjusted earnings of $3.32 per share, beating the Zacks Consensus Estimate of $2.99 by 11%. Adjusted earnings increased 11.4% from the year-ago quarter.
Total revenues were $1.51 billion, falling 1.5% year over year and lagging the consensus estimate of $1.52 billion by 0.6%.
Fiserv, Inc. (FISV - Free Report) reported first-quarter 2026 adjusted earnings of $1.79 per share, beating the Zacks Consensus Estimate of $1.57 by 14%. Adjusted earnings declined 16.4% from the year-ago quarter.
The revenue performance was softer. Adjusted revenues were $4.68 billion, missing the consensus mark of $4.76 billion by 1.7% and decreasing 8.9% year over year.
HOUSTON--(BUSINESS WIRE)--Insperity, Inc. (NYSE: NSP), a leading provider of human resources and business performance solutions for America’s best businesses, today announced that its board of directors has declared a quarterly cash dividend of $0.60 per share. The cash dividend will be paid on June 18, 2026, to all stockholders of record as of June 4, 2026.
About Insperity
Since 1986, Insperity’s mission has been to help businesses succeed so communities prosper. Offering a suite of the most comprehensive, scalable HR solutions available in the marketplace, Insperity is defined by an unrivaled breadth and depth of services and level of care. Through an optimal blend of premium HR service and technology, Insperity delivers the administrative relief, reduced liabilities and better benefit solutions that businesses need to drive performance and growth. With 2025 revenues of $6.8 billion and sales and service operations throughout the U.S., Insperity is currently making a difference in thousands of businesses and communities nationwide. For more information, visit http://www.insperity.com.
[url="]Insperity, Inc.[/url] (NYSE: NSP), a leading provider of [url="]human resources and business performance solutions[/url] for America's best businesses,
Key Takeaways Insperity shares rallied 51% in three months, outperforming the industry's 20.6% return.NSP targets margin recovery; Q1 2026 gross profit rose 75.6% sequentially despite a 3% YoY dip.NSP ended Q1 2026 with $635M cash and zero current debt, but SMB sentiment is turning cautious. Insperity, Inc. (NSP - Free Report) shares have jumped 51% over the past three months, outpacing the industry’s 20.6% return.
NSP’s revenues are expected to increase 1.1% and 4.5% year over year in 2026 and 2027, respectively. Earnings are anticipated to surge 106.8% in 2026 and 41.5% in 2027.
Factors That Augur Well for NSP’s SuccessFavorable Market Trend: Per Spherical Insights, the global professional employer organization (PEO) market is expected to grow from $73.6 billion in 2025 to $212.7 billion by 2036, at a CAGR of 11.2%. This swiftly growing industry is currently being driven by the proliferation of small and medium-sized businesses (SMBs), increased costs related to workers’ compensation insurance coverage, workplace safety programs, employee-related complaints and litigation, complex regulation of payroll, payroll tax and employment issues. Insperity, a leader in PEO services, should benefit from this tailwind.
Margin Recovery: NSP prioritizes margin recovery in the first year of its three-year plan. During the first quarter of 2026, the company registered $302 million in gross profit, highlighting a 3% year-over-year dip. Despite this minor decline, the company witnessed a massive 75.6% year- over-year hike sequentially. This lofty growth can be attributed to NSP’s new agreement with UnitedHealthcare, a benefit plan design change, strategic pricing and client selection and enhancement in operational efficiency.
HRScale Rollout: Insperity launched HRScale, which bridges the company’s HR expertise with Workday’s client-facing technology. It is expected to target 150-5,000 employees, resolving historical churn where small clients left NSP post-scaling into large companies requiring human capital management technology. The company was successful at onboarding initial beta clients ahead of schedule in March 2026, and boasts signed client commitments of nearly 6,000 worksite employees to be deployed over the next six months.
Strong Liquidity Profile: Insperity held $635 million in cash at the end of the first quarter of 2026, against zero current debt. It demonstrates that the company holds ample liquidity to drive growth. Furthermore, NSP’s current ratio is at 1.09, a marginal improvement from the preceding quarter’s 1.06. While it may not have surpassed the industry average of 1.39, it exceeds 1, which is a green flag for investors as it signals effective coverage of short-term obligations.
Image Source: Zacks Investment Research
Risks Faced by InsperityMacroeconomic Headwinds: NSP’s client business outlook survey highlights a significant shift in sentiment with small- and medium-sized businesses becoming cautious regarding the broader economy. Negative sentiments heightened around the economy, with 54% of the surveyed clients expecting their businesses to face challenges, up from 42% in January. Furthermore, a noticeable weakness is witnessed in client optimism regarding sales volume, hiring, net earnings and compensation.
Fierce Competition: Insperity operates in the PEO industry, which is highly fragmented and competitive. Competition in the PEO industry persists primarily in terms of the quality of services offered, and benefits around packaging and pricing. Moreover, PEOs are substantially dependent on climatic conditions and the targeted herd of the markets in which they operate. It creates challenges for NSP in terms of balancing profitability and growth.
NSP’s Zacks Rank & Stocks to ConsiderThe company has a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks from the broader Zacks Business Services sector are Skillsoft (SKIL - Free Report) and TransUnion (TRU - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Skillsoft has a long-term earnings growth expectation of 10%. SKIL delivered a trailing four-quarter earnings surprise of 71.3%, on average.
TransUnion has a long-term earnings growth expectation of 13.5%. TRU delivered a trailing four-quarter earnings surprise of 6.3%, on average.
On May 28, 2026, Insperity Inc (NSP) shares rose 3.3% today, closing at $34.05. The stock has seen a range of performance over the past year, with a 52-week hig
Recognition reflects strong company culture, focused on workforce readiness, employee engagement, community impact and wellbeing initiatives
HOUSTON--(BUSINESS WIRE)--Insperity, Inc. (NYSE: NSP), a leading provider of human resources and business performance solutions, is proud to be Certified™ by Great Place To Work® for the third year in a row. The prestigious award is solely based on what current employees say about their experience working at Insperity.
“The Great Place to Work Certification reflects our commitment to a people-first culture at Insperity,” said Paul Sarvadi, Insperity’s chairman and chief executive officer. “Our values guide how we support our employees, champion wellbeing, and make a meaningful impact in the communities where we live and work. That same commitment extends to how we support our clients—we want to help every client to be an ‘employer of choice.’”
Great Place To Work® is the global authority on workplace culture, employee experience and the leadership behaviors proven to deliver market-leading revenue, employee retention and increased innovation. According to Great Place To Work research, employees at Certified workplaces are 93% more likely to look forward to coming to work.
Insperity, grounded in its mission of helping businesses succeed so communities prosper, continues to create lasting impact, support wellbeing and drive meaningful employee engagement, for which the company receives recognition from many leading organizations, including Great Place To Work® (see below).
Strengthening workforce readiness: Through our commitment to professional development and innovation, Insperity’s workforce builds skills critical to the future of work, driving professional growth and building careers. Insperity’s dedication to workforce readiness also extends outside of its company to underserved populations entering the workforce. By working with 12 Houston-area nonprofits, Insperity provides essential readiness skills and resources to high school students, college students, veterans, neurodiverse individuals, formerly incarcerated persons, caregivers and persons experiencing homelessness.
HR.com Best Technology Innovation Implementation, 2025 HR.com Future Workforce Innovation 2nd Place, 2025 RippleMatch Campus Forward Awards Best in Class, 2025 RippleMatch Campus Forward Awards Excellence in Recruitment Strategies, 2025 and 2026 RippleMatch Campus Forward Awards Tech Innovation, 2025 RippleMatch Campus Forward Awards Innovation in Action, 2026 RippleMatch Campus Forward Awards Excellence in Candidate Experience, 2026 Leading culture, employee engagement and community impact: Reflecting our focus on creating a high-performing and supportive workplace, Insperity offers flexibility with 21% of employees working remotely and 64% hybrid. Additionally, Insperity delivered more than $5.6 million in philanthropic impact in 2025, with 77% of employees volunteering over 42,000 total hours across more than 1,100 events nationwide.
PEOPLE® Companies that Care, 2025 Fortune Best Workplaces for Women™ 2025 Forbes America’s Best Employers for Company Culture 2025 Newsweek America’s Greatest Workplaces for Culture, Belonging & Community 2026 Newsweek America’s Most Charitable Companies 2026 Championing employee wellbeing: In 2025, Insperity employees and worksite employees accessed benefits such as parental leave, caregiver support, physical fitness and financial coaching—all evidence of Insperity’s culture of care and total wellbeing support for its employees, clients and their families.
Fortune Best Workplaces for Parents™ 2025 Newsweek America's Greatest Workplaces for Parents & Families 2025 U.S. News & World Report Best Companies to Work For: Supporting Family Caregiving 2025 Mental Health America Platinum Bell Seal for Workplace Mental Health, 2026 Insperity’s programs and the awards it has received reflect the company’s positive impact both within the organization and in the communities it serves. Additional information can be found in Insperity's 2025 Corporate Social Responsibility Report.
About Insperity
Since 1986, Insperity’s mission has been to help businesses succeed so communities prosper. Offering a suite of the most comprehensive, scalable HR solutions available in the marketplace, Insperity is defined by an unrivaled breadth and depth of services and level of care. Through an optimal blend of premium HR service and technology, Insperity delivers the administrative relief, reduced liabilities and better benefit solutions that businesses need to drive performance and growth. With 2025 revenues of $6.8 billion and sales and service operations throughout the U.S., Insperity is currently making a difference in thousands of businesses and communities nationwide. For more information, visit http://www.insperity.com.
About Great Place to Work Certification™
Great Place To Work® Certification™ is the most definitive “employer-of-choice” recognition that companies aspire to achieve. It is the only recognition based entirely on what employees report about their workplace experience – specifically, how consistently they experience a high-trust workplace. Great Place to Work Certification is recognized worldwide by employees and employers alike and is the global benchmark for identifying and recognizing outstanding employee experience. Every year, more than 10,000 companies across 60 countries apply to get Great Place To Work-Certified.
About Great Place To Work®
As the global authority on workplace culture, Great Place To Work® brings 30 years of groundbreaking research and data to help every place become a great place to work for all. Their proprietary platform and For All™ Model helps companies evaluate the experience of every employee, with exemplary workplaces becoming Great Place To Work Certified™ or receiving recognition on a coveted Best Workplaces™ List.
Learn more at greatplacetowork.com and follow Great Place To Work on LinkedIn, Twitter, Facebook and Instagram.
Paul J. Sarvadi, Chairman of the Board and CEO of Insperity (NSP 3.21%), reported an open-market purchase of 233,000 shares for a total consideration of approximately $7.93 million, according to a SEC Form 4 filing.
Transaction summaryMetricValueShares traded233,000Transaction value$7.9 millionPost-transaction shares (direct)699,670Post-transaction value (direct ownership)~$23.09 millionTransaction value based on SEC Form 4 weighted average purchase price ($34.05); post-transaction value based on June 3, 2026 adjusted market close ($33.00).
Key questionsHow does this transaction compare in scale to Sarvadi’s historical buying or selling patterns?
This 233,000-share purchase is the largest single transaction in Sarvadi’s reported history, nearly twelve times the mean size of prior sell-only events (~19,400 shares), and substantially exceeds all prior activity in the timeframe.What is the impact on Sarvadi’s aggregate holdings and ownership structure?
Following the trade, Sarvadi’s direct ownership stands at 699,670 shares, with indirect holdings at 1,105,912 shares via Our Ship Limited Partnership, Ltd., underscoring a dual-entity stake and a post-transaction directly-held position value of ~$23.09 million as of June 3, 2026.Was this a derivative-driven or options-based purchase?
No; the purchase was an open-market acquisition of common stock without any associated derivative or options exercise component.How does the timing of this purchase relate to recent price action and capacity?
The trade was executed as the stock reached a one-year decline of 39.33% (as of June 3, 2026), with Sarvadi allocating capital at a cycle low.Company overviewMetricValueRevenue (TTM)$6.84 billionNet income (TTM)($25.00 million)Price (as of adjusted market close June 3, 2026)$33.00* 1-year performance data is calculated using June 3, 2026 as the reference date.
Company snapshotComprehensive HR solutions, including payroll, benefits administration, compliance management, employee training, and a cloud-based HCM platform, form the core service portfolio.Insperity generates revenue primarily through professional employer organization services and human capital management offerings, charging clients on a per-employee or service basis.The company targets small and medium-sized businesses across the United States, focusing on organizations seeking to outsource HR functions and improve workforce efficiency.Insperity operates at scale, serving over 300,000 employees and delivering integrated HR and business solutions to a broad base of U.S. enterprises. The company leverages its proprietary platforms and national sales presence to address complex workforce management needs, positioning itself as a strategic partner for growing businesses.
Its diversified service suite and technology-driven approach provide competitive differentiation in the staffing and employment services industry.
What this transaction means for investorsThe June 3 purchase of Insperity stock by the company’s co-founder, CEO and Chairman of the Board, Paul Sarvadi, suggests he has a bullish outlook towards shares. The transaction comes at an interesting time.
The stock fell to a 52-week low of $18.57 in March yet Sarvadi’s buy was made after shares recovered to some degree. This indicates he believes the price can rise higher. After all, shares remain far below the 52-week high of $64.12 reached in June of 2025.
Insperity’s stock price fell as the company’s margins shrank. In 2025, it reported a net loss of $7 million compared to net income of $91 million in 2024.
Insperity management vowed to improve margins, and its results for the first quarter are encouraging. It reported 2% year-over-year revenue growth to $1.9 billion and net income of $33 million, up from a Q4 net loss of $33 million.
The company’s valuation is not at a low point, but it’s more attractive than it was a year ago. Insperity’s price-to-sales ratio of 0.2 is notably lower than its 0.5 sales multiple at the end of Q1 last year. This indicates the stock remains at a compelling valuation, which explains Sarvadi’s June 3 purchase, and if you believe Insperity can continue to improve its profitability, then now looks like a good time to buy.
Insperity to spotlight HR solutions that help employers support managers, strengthen employee connection and navigate artificial intelligence (AI) workplace change
HOUSTON--(BUSINESS WIRE)--Insperity, Inc. (NYSE: NSP), a leading provider of human resources and business performance solutions, will showcase its Insperity HR360, Insperity HRCore and Insperity HRScale™ solutions at SHRM26, the annual conference and expo for HR professionals hosted by SHRM.
As AI continues to transform the workplace, employers across industries are facing critical questions around workforce readiness, talent and culture. These timely issues will be a key focus at SHRM26, where Insperity will meet with HR leaders exploring the future of work and the importance of their people strategy.
“We know HR leaders attending SHRM26 are focused on a common challenge: the right balance of AI-driven transformation and human expertise,” said Paul Sarvadi, Insperity’s chairman and chief executive officer. “Insperity’s solutions, which combine premium HR service and technology, help organizations simplify HR administration and gain deeper workforce insights, creating the foundation HR leaders need to support their people and improve their business.”
At SHRM26, attendees can visit Insperity at booth #3937 to learn how its HR solutions help organizations streamline workforce management, develop talent and navigate workplace transformation.
To learn more about Insperity’s solutions, visit https://www.insperity.com/our-products/.
About Insperity
Since 1986, Insperity’s mission has been to help businesses succeed so communities prosper. Offering a suite of the most comprehensive, scalable HR solutions available in the marketplace, Insperity is defined by an unrivaled breadth and depth of services and level of care. Through an optimal blend of premium HR service and technology, Insperity delivers the administrative relief, reduced liabilities and better benefit solutions that businesses need to drive performance and growth. With 2025 revenues of $6.8 billion and sales and service operations throughout the U.S., Insperity is currently making a difference in thousands of businesses and communities nationwide. For more information, visit http://www.insperity.com.
BLOOMINGTON, Minn.--(BUSINESS WIRE)--The Toro Company (NYSE: TTC), a leading global provider of solutions for the outdoor environment, today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.39 per share of TTC’s common stock. This dividend is payable on April 13, 2026, to shareholders of record at the close of business on March 30, 2026.
About The Toro Company
The Toro Company (NYSE: TTC) is a leading global provider of solutions for the outdoor environment including turf and landscape maintenance, snow and ice management, underground construction, rental and specialty construction, and irrigation and outdoor lighting solutions. With net sales of $4.5 billion in fiscal 2025, The Toro Company’s global presence extends to more than 125 countries through a family of brands that includes Toro, Ditch Witch, Exmark, BOSS, Ventrac, Tornado, HammerHead, American Augers, Spartan, Subsite, Radius, Hayter, Perrot, Unique Lighting Systems, Irritrol, and Lawn-Boy. Through constant innovation and caring relationships built on trust and integrity, The Toro Company and its family of brands have built a legacy of excellence by helping customers work on golf courses, sports fields, construction sites, public green spaces, commercial and residential properties and agricultural operations. For more information, visit www.thetorocompany.com.
, /PRNewswire/ -- Scholarship America and The Toro Company are celebrating a milestone in 2026: fifty years of partnership expanding access to higher education.
In 1976, The Toro Company became Scholarship America's first corporate client. The program has granted scholarships worth more than $4.7 million.
"Our partnership with Scholarship America reflects who we are as a company and what we believe in. Education changes lives — not just for individuals, but for families and communities," said Rick Olson, Chairman and CEO of The Toro Company. "By investing in our scholarship program, we are investing in the children of our employees and supporting their academic journeys, their ambitions, and their futures. This commitment honors our people and ensures opportunities continue for generations to come."
"We are thrilled to celebrate a half-century of partnership with The Toro Company," said Mike Nylund, Scholarship America President & CEO. "While higher education has changed immensely over the past fifty years, the company's dedication to students is unwavering, and we look forward to many more decades of collaborative impact."
Both organizations remain united by the same conviction that has defined this partnership from the start: that every student deserves the opportunity to pursue their future.
About The Toro Company:
The Toro Company (NYSE: TTC) is a leading global provider of solutions for the outdoor environment including turf and landscape maintenance, snow and ice management, underground utility construction, rental and specialty construction, and irrigation and outdoor lighting solutions. With net sales of $4.5 billion in fiscal 2025, The Toro Company's global presence extends to more than 125 countries through a family of brands that includes Toro, Ditch Witch, Exmark, BOSS, Ventrac, Tornado, HammerHead, American Augers, Spartan, Subsite, Radius, Hayter, Perrot, Unique Lighting Systems, Irritrol, and Lawn-Boy. Through constant innovation and caring relationships built on trust and integrity, The Toro Company and its family of brands have built a legacy of excellence by helping customers work on golf courses, sports fields, construction sites, public green spaces, commercial and residential properties and agricultural operations. For more information, visit www.thetorocompany.com.
About Scholarship America:
Scholarship America is a non-profit organization that eliminates barriers to educational success so that students can pursue their dreams. Since 1958, Scholarship America has distributed $6 billion to 3.5 million students. Learn more at scholarshipamerica.org.
Burns Matteson Capital Management LLC bought a new position in Toro Company (The) (NYSE:TTC – Free Report) in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor bought 7,353 shares of the company’s stock, valued at approximately $579,000.
Other institutional investors and hedge funds also recently made changes to their positions in the company. KLP Kapitalforvaltning AS grew its stake in Toro by 0.6% in the third quarter. KLP Kapitalforvaltning AS now owns 32,900 shares of the company’s stock worth $2,507,000 after purchasing an additional 200 shares during the period. GAMMA Investing LLC raised its holdings in Toro by 8.1% in the third quarter. GAMMA Investing LLC now owns 3,155 shares of the company’s stock worth $240,000 after purchasing an additional 237 shares in the last quarter. Wesbanco Bank Inc. lifted its position in Toro by 4.3% during the third quarter. Wesbanco Bank Inc. now owns 9,716 shares of the company’s stock valued at $740,000 after buying an additional 400 shares during the period. Willis Investment Counsel boosted its holdings in shares of Toro by 3.0% during the 3rd quarter. Willis Investment Counsel now owns 17,653 shares of the company’s stock valued at $1,345,000 after buying an additional 508 shares in the last quarter. Finally, Davis Capital Management bought a new stake in shares of Toro during the 3rd quarter valued at $42,000. Hedge funds and other institutional investors own 87.95% of the company’s stock.
Insider Buying and Selling In related news, CEO Richard M. Olson sold 119,400 shares of the business’s stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $100.15, for a total value of $11,957,910.00. Following the completion of the transaction, the chief executive officer directly owned 38,186 shares in the company, valued at $3,824,327.90. The trade was a 75.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director James Calvin O’rourke sold 4,951 shares of the company’s stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $99.40, for a total value of $492,129.40. Following the completion of the transaction, the director directly owned 2,704 shares in the company, valued at $268,777.60. This trade represents a 64.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.88% of the stock is owned by insiders.
Toro Price Performance TTC opened at $93.31 on Wednesday. The firm has a market cap of $9.04 billion, a PE ratio of 27.94 and a beta of 0.80. The stock has a 50-day moving average price of $96.14 and a 200-day moving average price of $83.29. Toro Company has a 1 year low of $62.34 and a 1 year high of $105.18. The company has a debt-to-equity ratio of 0.75, a current ratio of 1.69 and a quick ratio of 0.73.
Toro (NYSE:TTC – Get Free Report) last announced its quarterly earnings data on Thursday, March 5th. The company reported $0.74 EPS for the quarter, beating the consensus estimate of $0.65 by $0.09. The company had revenue of $1.04 billion for the quarter, compared to the consensus estimate of $1 billion. Toro had a net margin of 7.28% and a return on equity of 29.60%. Toro’s revenue for the quarter was up 4.2% on a year-over-year basis. During the same period in the prior year, the firm posted $0.65 EPS. Toro has set its FY 2026 guidance at 4.400-4.600 EPS. Sell-side analysts predict that Toro Company will post 4.41 earnings per share for the current fiscal year.
Toro Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Monday, April 13th. Investors of record on Monday, March 30th will be given a dividend of $0.39 per share. The ex-dividend date of this dividend is Monday, March 30th. This represents a $1.56 annualized dividend and a dividend yield of 1.7%. Toro’s dividend payout ratio (DPR) is 46.71%.
Analyst Upgrades and Downgrades Several research analysts recently issued reports on the stock. Robert W. Baird increased their price target on shares of Toro from $100.00 to $105.00 and gave the stock a “neutral” rating in a research note on Friday, March 6th. Raymond James Financial cut shares of Toro from an “outperform” rating to a “market perform” rating in a report on Wednesday, February 18th. DA Davidson raised their target price on shares of Toro from $97.00 to $117.00 and gave the company a “buy” rating in a research note on Monday, March 9th. Zacks Research upgraded shares of Toro from a “strong sell” rating to a “hold” rating in a report on Tuesday, January 20th. Finally, Wall Street Zen raised Toro from a “buy” rating to a “strong-buy” rating in a research report on Sunday, March 15th. Two analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $100.40.
Check Out Our Latest Analysis on TTC
Toro Company Profile (Free Report)
The Toro Company (NYSE: TTC) specializes in the design, manufacture and marketing of a broad range of outdoor environment equipment for residential, commercial and professional markets. Its product portfolio includes lawn mowers, utility vehicles, snow throwers, irrigation systems and landscape maintenance equipment. Toro’s offerings span walk-behind and ride-on mowers, zero-turn radius mowers, snow blowers, sprinklers, drip irrigation products, spreaders and specialty turf maintenance machines tailored to golf courses, sports fields and municipal parks.
Founded in 1914 and headquartered in Bloomington, Minnesota, Toro has built a century-long legacy of innovation in the grounds-care industry.
See Also Five stocks we like better than Toro
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Toro Company (The) (NYSE:TTC – Get Free Report) saw unusually large options trading on Wednesday. Traders bought 1,176 put options on the stock. This represents an increase of 1,709% compared to the average daily volume of 65 put options.
Wall Street Analyst Weigh In A number of equities research analysts have recently issued reports on TTC shares. Wall Street Zen raised shares of Toro from a “buy” rating to a “strong-buy” rating in a report on Sunday, March 15th. Zacks Research upgraded shares of Toro from a “strong sell” rating to a “hold” rating in a research report on Tuesday, January 20th. Robert W. Baird upped their price objective on shares of Toro from $100.00 to $105.00 and gave the company a “neutral” rating in a research note on Friday, March 6th. DA Davidson increased their price objective on shares of Toro from $97.00 to $117.00 and gave the company a “buy” rating in a report on Monday, March 9th. Finally, Raymond James Financial lowered shares of Toro from an “outperform” rating to a “market perform” rating in a research note on Wednesday, February 18th. Two investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $100.40.
Get Our Latest Analysis on Toro
Toro Trading Up 0.1% TTC opened at $93.52 on Thursday. The stock has a market capitalization of $9.07 billion, a PE ratio of 28.00 and a beta of 0.80. Toro has a one year low of $62.34 and a one year high of $105.18. The company has a debt-to-equity ratio of 0.75, a quick ratio of 0.73 and a current ratio of 1.69. The business’s 50 day moving average price is $96.22 and its 200 day moving average price is $83.36.
Toro (NYSE:TTC – Get Free Report) last posted its earnings results on Thursday, March 5th. The company reported $0.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.65 by $0.09. Toro had a return on equity of 29.60% and a net margin of 7.28%.The company had revenue of $1.04 billion during the quarter, compared to analysts’ expectations of $1 billion. During the same quarter last year, the firm earned $0.65 earnings per share. The firm’s quarterly revenue was up 4.2% compared to the same quarter last year. Toro has set its FY 2026 guidance at 4.400-4.600 EPS. As a group, equities research analysts expect that Toro will post 4.41 EPS for the current year.
Toro Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Monday, April 13th. Investors of record on Monday, March 30th will be issued a $0.39 dividend. This represents a $1.56 annualized dividend and a yield of 1.7%. The ex-dividend date is Monday, March 30th. Toro’s payout ratio is 46.71%.
Insider Buying and Selling In other Toro news, CEO Richard M. Olson sold 119,400 shares of the stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $100.15, for a total transaction of $11,957,910.00. Following the completion of the transaction, the chief executive officer owned 38,186 shares of the company’s stock, valued at $3,824,327.90. This represents a 75.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director James Calvin O’rourke sold 4,951 shares of Toro stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $99.40, for a total value of $492,129.40. Following the completion of the sale, the director directly owned 2,704 shares in the company, valued at $268,777.60. This represents a 64.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.88% of the stock is owned by corporate insiders.
Institutional Inflows and Outflows Large investors have recently bought and sold shares of the stock. KLP Kapitalforvaltning AS increased its position in shares of Toro by 0.6% during the third quarter. KLP Kapitalforvaltning AS now owns 32,900 shares of the company’s stock valued at $2,507,000 after acquiring an additional 200 shares during the last quarter. Rothschild Investment LLC lifted its holdings in shares of Toro by 6.0% in the 4th quarter. Rothschild Investment LLC now owns 3,609 shares of the company’s stock worth $284,000 after acquiring an additional 203 shares during the last quarter. GAMMA Investing LLC boosted its position in shares of Toro by 8.1% during the 3rd quarter. GAMMA Investing LLC now owns 3,155 shares of the company’s stock worth $240,000 after purchasing an additional 237 shares during the period. Wesbanco Bank Inc. boosted its position in shares of Toro by 4.3% during the 3rd quarter. Wesbanco Bank Inc. now owns 9,716 shares of the company’s stock worth $740,000 after purchasing an additional 400 shares during the period. Finally, Russell Investments Group Ltd. increased its holdings in Toro by 0.3% in the 4th quarter. Russell Investments Group Ltd. now owns 125,625 shares of the company’s stock valued at $9,889,000 after purchasing an additional 410 shares during the last quarter. Institutional investors and hedge funds own 87.95% of the company’s stock.
About Toro (Get Free Report)
The Toro Company (NYSE: TTC) specializes in the design, manufacture and marketing of a broad range of outdoor environment equipment for residential, commercial and professional markets. Its product portfolio includes lawn mowers, utility vehicles, snow throwers, irrigation systems and landscape maintenance equipment. Toro’s offerings span walk-behind and ride-on mowers, zero-turn radius mowers, snow blowers, sprinklers, drip irrigation products, spreaders and specialty turf maintenance machines tailored to golf courses, sports fields and municipal parks.
Founded in 1914 and headquartered in Bloomington, Minnesota, Toro has built a century-long legacy of innovation in the grounds-care industry.
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The Toro Company (TTC) is rated a buy, driven by robust growth in its professional segment, which accounts for over 80% of revenue. TTC benefits from structural tailwinds in infrastructure, data center-linked fiber deployment, and strong golf market demand, offsetting residential weakness. Margin prospects are supported by the AMP program's cost savings, favorable product mix, and ongoing innovation, despite tariff headwinds.
The Toro Company (NYSE:TTC) willreport its second quarter financial results before the opening bell on Thursday, June 4.
Analysts expect the Minneapolis, Minnesota-based company to an EPS of $1.51 on revenue of $1.39 billion. The Toro Company guided to full-year 2026 adjusted EPS of $4.40-$4.60 and net sales growth of 3%-6.5%.
The company has announced its quarterly cash dividend at $0.39 per share, payable on July 10, 2026, to shareholders of record on June 16, 2026.
The Toro Company shares rose 1.20% to close at $90.95 on Wednesday.
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CrowdStrike (CRWD 0.95%) was priced for perfection heading into this earnings report. It was trading for well over 100 times earnings, and for nearly 40 times sales. Although the business is growing impressively, is a 26% top-line growth rate worth paying such a premium for? The market seems to be questioning that after this report.
Let's be clear. This wasn't a bad quarter. Far from it. But it wasn't a blowout quarter either. With CrowdStrike's stock price roughly doubling over the past three months, investors were looking for the company to hit a home run with its earnings report. That didn't happen, and it's why we're getting a bit of a pullback in the stock.
2. Why AVGO, FIVE, and VEEV are Falling in Early Trade Broadcom (AVGO 1.55%) fell around 14% ahead of the opening bell due to results detailing guidance below analysts' expectations, including not raising its overall AI semiconductor sales guidance for 2026. Despite this, the coming quarter AI revenue is due to jump 200% year over year (YoY). Five Below (FIVE 2.69%) dropped about 13% in pre-market trading as the latest results came with cautious second-half guidance. CFO Daniel Sullivan is assuming "tariff rates that return to levels that they were at, at the start of our fiscal year." Veeva Systems (VEEV 2.15%) declined by over 6% before the market opened. The latest earnings revealed a slower pace of growth and lower operating margins due to heavier investments. 3. Quantinuum Goes Public as Sector Expands Quantinuum is set to go public today, raising $1.68 billion, in what will be one of the largest tech IPOs of the year and a key test of investor appetite for quantum computing.
Shares priced above earlier expectations at $60: The company increased the price from $53-$55, as well as boosting the number of shares on offer, a good sign of demand. Even after floating, Honeywell (HON +1.76%) will retain 48.1% of combined voting power, having been the majority owner since Quantinuum was formed in 2021. Potential for quantum computing to have widespread adoption: The IPO is another step toward the sector gaining more traction, although challenges remain due to high development costs and technological complexity. 4. Next Up: Stock Advisor Earnings From Team RB Recs The Toro Company (TTC 0.29%) reports before the market opens and is expected to grow revenue and earnings by 5-6% YoY, building on last quarter. The Dividend Investor rec has increased the dividend for 22 consecutive years. ServiceTitan (TTAN 1.77%) posts results after the market closes, as investors look for continued growth in usage-based and AI-driven products, factors that helped drive a 21% revenue gain last quarter. Lululemon (LULU 2.76%) should release earnings following the closing bell. Recommended by Team Hidden Gems as well, investors will be watching for progress on full-price sales recovery in North America after the region disappointed last quarter. 5. Today's Take: The Best Bet Inside SpaceX
The actual "space" part of SpaceX was a bit of an afterthought in the company's S-1, overshadowed by higher projected growth areas like AI and Starlink. I have real questions about the long-term outlook for both of those businesses, but the core rocket business has the potential to be a big moneymaker.-- Lou Whiteman Team Hidden Gems
For me, Terafab and its proposed investments in advanced semiconductors and related equipment could prove foundational for building spacefaring data centers.-- Tim Beyers Team Rule Breakers
6. Your Take What stocks have you added to your portfolio in the last few weeks, and why?
Share with friends and family, or become a member to hear what your fellow Fools are saying!
This image and article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Broadcom, CrowdStrike, Honeywell International, Lululemon Athletica Inc., and Veeva Systems. The Motley Fool recommends Five Below, ServiceTitan, and Toro. The Motley Fool has a disclosure policy.
BLOOMINGTON, Minn.--(BUSINESS WIRE)--The Toro Company (NYSE: TTC), a leading global provider of solutions for the outdoor environment, today reported results for its fiscal second-quarter ended May 1, 2026.
"We grew adjusted earnings per share by double-digits once again in the second quarter. This was driven by strong demand across our portfolio and continued margin expansion from operational execution,” said Richard M. Olson, chairman and chief executive officer. “The strength of our portfolio is based in the quality and performance of our products in attractive end markets which drives demand and ultimately the strong financial results delivered by the team in the second quarter. Combined with disciplined working capital management, this execution also supported another quarter of robust free cash flow and value creation for our shareholders through dividends and share repurchases.”
OUTLOOK
“The focus on our key strategic priorities to accelerate profitable growth, drive operational excellence, and empower people is driving results. Importantly, the team achieved these results despite macroeconomic and geopolitical headwinds and increasing inflationary pressures. We continue to capitalize on market opportunities in underground construction, landscape contractor and golf, while successfully executing our margin improvement initiatives. This performance gives us the confidence to raise our full-year guidance, while also reflecting the persistent and dynamic inflationary environment.”
The company is raising its full-year net sales and *adjusted EPS guidance and now expects total company net sales growth in the range of 4.0% to 6.5%, up from the previous range of 3.0% to 6.5%, and *adjusted EPS in the range of $4.50 to $4.62, up from the previous range of $4.40 to $4.60.
SECOND-QUARTER FISCAL 2026 FINANCIAL HIGHLIGHTS
Reported
Adjusted*
(dollars in millions, except per share data)
F26 Q2
F25 Q2
% Change
F26 Q2
F25 Q2
% Change
Net Sales
$
1,424.7
$
1,317.9
8.1
%
$
1,424.7
$
1,317.9
8.1
%
Net Earnings
$
145.4
$
136.8
6.3
%
$
155.4
$
141.8
9.6
%
Diluted EPS
$
1.50
$
1.37
9.5
%
$
1.60
$
1.42
12.7
%
SECOND-QUARTER FISCAL 2026 SEGMENT RESULTS
Professional Segment
Professional segment net sales for the second quarter were $1,106.6 million, up 9.1% from $1,014.1 million in the same period last year. The increase was driven primarily by net price realization, the Tornado acquisition, and higher shipments of underground construction equipment and zero-turn mowers. Professional segment earnings for the second quarter were $224.4 million, up from $202.1 million in the same period last year, and when expressed as a percentage of net sales, 20.3%, up from 19.9% in the prior-year period. The increase in profitability was primarily due to net price realization, productivity improvements, and net sales leverage, partially offset by higher material, manufacturing, and freight costs, as well as product mix. Residential Segment
Residential segment net sales for the second quarter were $310.4 million, up 4.4% from $297.40 million in the same period last year. The increase was primarily driven by net price realization and higher shipments of zero-turn mowers, partially offset by lower shipments of snow products. Residential segment earnings for the second quarter were $30.3 million, up from $16.10 million in the same period last year, and when expressed as a percentage of net sales, 9.8%, up from 5.4% in the prior-year period. The increase was largely driven by net price realization, productivity improvements, prior year inventory valuation adjustments that did not recur, cost savings measures, and net sales leverage, partially offset by higher material, manufacturing, and freight costs. OPERATING RESULTS
Gross margin and *adjusted gross margin for the second quarter were 33.9% and 34.5%, respectively, up from 33.1% and 33.4%, respectively, in the same prior-year period. The change in gross margin was primarily due to net price realization and productivity improvements, partially offset by higher material, manufacturing, and freight costs, as well as product mix.
SG&A expense as a percentage of net sales for the second quarter was 20.2%, compared with 19.8% in the prior-year period, primarily driven by higher warranty and incentive expenses, partially offset by net sales leverage and lower warehousing costs.
Operating earnings as a percentage of net sales were 13.7% for the second quarter, compared with 13.3% in the same prior-year period. *Adjusted operating earnings as a percentage of net sales for the second quarter were 14.4%, compared with 13.7% in the same prior-year period.
Interest expense was $14.8 million for the second quarter, down $1.0 million from the same prior-year period. This decrease was primarily due to lower average interest rates and lower average outstanding borrowings.
The reported effective tax rate for the second quarter was 20.7%, compared with 18.9% in the same prior-year period. The *adjusted effective tax rate for the second quarter was 21.7% compared with 18.7% in the same prior-year period. The increase in both the reported and adjusted effective tax rate was primarily due to a less favorable geographic mix of earnings
*Non-GAAP financial measure. Please refer to the “Use of Non-GAAP Financial Information” for details regarding these measures, as well as the tables provided for a reconciliation of historical non-GAAP financial measures to the most comparable GAAP measures.
LIVE CONFERENCE CALL
June 4, 2026 at 10:00a.m. CT
www.thetorocompany.com/invest
The Toro Company will conduct its earnings call and webcast for investors beginning at 10:00a.m. CT on June 4, 2026. The webcast will be available at www.thetorocompany.com/invest. Webcast participants will need to complete a brief registration form and should allocate extra time before the webcast begins to register and, if necessary, install audio software.
About The Toro Company
The Toro Company (NYSE: TTC) is a leading global provider of solutions for the outdoor environment including turf and landscape maintenance, snow and ice management, underground construction, rental and specialty construction, and irrigation and outdoor lighting solutions. With net sales of $4.5 billion in fiscal 2025, The Toro Company’s global presence extends to more than 125 countries through a family of brands that includes Toro, Ditch Witch, Exmark, BOSS, Ventrac, Tornado, HammerHead, American Augers, Spartan, Subsite, Radius, Hayter, Perrot, Unique Lighting Systems, Irritrol, and Lawn-Boy. Through constant innovation and caring relationships built on trust and integrity, The Toro Company and its family of brands have built a legacy of excellence by helping customers work on golf courses, sports fields, construction sites, public green spaces, commercial and residential properties and agricultural operations. For more information, visit www.thetorocompany.com.
Use of Non-GAAP Financial Information
This press release and the related earnings call reference certain non-GAAP financial measures, which are not calculated or presented in accordance with U.S. GAAP, as information supplemental and in addition to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP. The non-GAAP financial measures included within this press release and the related earnings call that are utilized as measures of the company’s operating performance consist of gross profit, gross margin, operating earnings, earnings before income taxes, net earnings, diluted EPS, and the effective tax rate, each as adjusted. The non-GAAP financial measures included within this press release and the related earnings call that are utilized as measures of the company’s liquidity consist of free cash flow and free cash flow conversion percentage.
The Toro Company uses these non-GAAP financial measures in making operating decisions and assessing liquidity because it believes these non-GAAP financial measures provide meaningful supplemental information regarding core operational performance and cash flows, as a measure of the company's liquidity, and provide the company with a better understanding of how to allocate resources to both ongoing and prospective business initiatives. Additionally, these non-GAAP financial measures facilitate the company's internal comparisons for both historical operating results and competitors' operating results by factoring out potential differences caused by charges and benefits not related to its regular, ongoing business, including, without limitation, certain non-cash, large, and/or unpredictable charges and benefits; acquisitions and dispositions; legal judgments, settlements, or other matters; and tax positions. The company believes that these non-GAAP financial measures, when considered in conjunction with the financial measures prepared in accordance with U.S. GAAP, provide investors with useful supplemental financial information to better understand its core operational performance and cash flows.
Reconciliations of historical non-GAAP financial measures to the most comparable U.S. GAAP financial measures are included in the financial tables contained in this press release. These non-GAAP financial measures, however, should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the U.S. GAAP financial measures included within this press release and the company’s related earnings call. These non-GAAP financial measures may differ from similar measures used by other companies.
The Toro Company does not provide a quantitative reconciliation of the company’s projected range for adjusted diluted EPS for fiscal 2026 to diluted EPS, which is the most directly comparable GAAP measure, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The company’s adjusted diluted EPS guidance for fiscal 2026 excludes certain items that are inherently uncertain and difficult to predict, including certain non-cash, large and/or unpredictable charges and benefits; acquisitions and dispositions; legal judgments, settlements, or other matters; and tax positions. Due to the uncertainty of the amount or timing of these future excluded items, management does not forecast them for internal use and therefore cannot create a quantitative adjusted diluted EPS for fiscal 2026 to diluted EPS reconciliation without unreasonable efforts. A quantitative reconciliation of adjusted diluted EPS for fiscal 2026 to diluted EPS would imply a degree of precision and certainty as to these future items that does not exist and could be confusing to investors. From a qualitative perspective, it is anticipated that the differences between adjusted diluted EPS for fiscal 2026 to diluted EPS will consist of items similar to those described in the financial tables later in this release, including, for example and without limitation, certain non-cash, large, and/or unpredictable charges and benefits; acquisitions and dispositions; legal judgments, settlements, or other matters; and tax positions. The timing and amount of any of these excluded items could significantly impact the company’s diluted EPS for a particular period.
Forward-Looking Statements
This news release contains forward-looking statements, which are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current assumptions and expectations of future events, and often can be identified by words such as “expect,” “strive,” “looking ahead,” “outlook,” “guidance,” “forecast,” “goal,” “optimistic,” “encourage,” “anticipate,” “continue,” “plan,” “estimate,” “project,” “target,” “improve,” “believe,” “become,” “should,” “could,” “will,” “would,” “possible,” "remain," “promise,” “may,” “likely,” “intend,” “can,” “seek,” “pursue,” “potential,” variations of such words or the negative thereof, and similar expressions or future dates. Forward-looking statements involve risks and uncertainties that could cause actual events and results to differ materially from those projected or implied. Forward-looking statements in this release include the company’s fiscal 2026 financial guidance, expectations regarding demand trends, our recent strategic acquisition, and the success of new products, supply chain stabilization and AMP, and other statements made under the "Outlook" section of this release. Particular risks and uncertainties that may affect the company’s operating results or financial position or cause actual events and results to differ materially from those projected or implied include: adverse worldwide economic conditions, including inflationary pressures and higher interest rates; the effect of abnormal weather patterns; customer, government and municipal revenue, budget spending levels and cash conservation efforts; loss of any substantial customer or strategic partnership; inventory adjustments or changes in purchasing patterns by customers; fluctuations in the cost and availability of commodities, components, parts, and accessories, including steel, engines, hydraulics, and resins; disruption at or in proximity to its facilities or in its manufacturing or other operations, or those in its distribution channel customers, mass retailers or home centers where its products are sold, or suppliers; risks associated with acquisitions and dispositions, including the company's recent acquisition of Tornado Infrastructure Equipment Ltd. and possible additional future impairment of goodwill or other intangible assets; impacts AMP and any future restructuring activities or productivity or cost savings initiatives; the effect of natural disasters, social unrest, war and global pandemics; the level of growth or contraction in its key markets; the company’s ability to develop and achieve market acceptance for new products; increased competition; the risks attendant to international relations, operations and markets; foreign currency exchange rate fluctuations; financial viability of and/or relationships with the company’s distribution channel partners; management of strategic partnerships, key customer relationships, alliances or joint ventures, including Red Iron Acceptance, LLC; impact of laws, regulations and standards, consumer product safety, accounting, taxation, trade, tariffs and/or antidumping and countervailing duties petitions, healthcare, and environmental, health and safety matters; unforeseen product quality problems; loss of or changes in executive management or key employees; the occurrence of litigation or claims, including those involving intellectual property or product liability matters; impact of increased scrutiny on its environmental, social, and governance practices; and other risks and uncertainties described in the company’s most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q and other filings with the Securities and Exchange Commission. The company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances occurring or existing after the date any forward-looking statement is made.
(Financial tables follow)
THE TORO COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings (Unaudited)
(Dollars and shares in millions, except per-share data)
Three Months Ended
Six Months Ended
May 1, 2026
May 2, 2025
May 1, 2026
May 2, 2025
Net sales
$
1,424.7
$
1,317.9
$
2,461.0
$
2,312.9
Cost of sales
942.0
881.2
1,641.8
1,540.6
Gross profit
482.7
436.7
819.2
772.3
Gross margin
33.9
%
33.1
%
33.3
%
33.4
%
Selling, general and administrative expense
287.7
261.9
537.1
519.7
Operating earnings
195.0
174.8
282.1
252.6
Interest expense
(14.8
)
(15.8
)
(29.0
)
(30.8
)
Other income, net
3.2
9.7
17.2
13.0
Earnings before income taxes
183.4
168.7
270.3
234.8
Income tax provision
38.0
31.9
57.0
45.2
Net earnings
$
145.4
$
136.8
$
213.3
$
189.6
Basic net earnings per share of common stock
$
1.51
$
1.37
$
2.19
$
1.88
Diluted net earnings per share of common stock
$
1.50
$
1.37
$
2.18
$
1.88
Weighted-average number of shares of common stock outstanding — Basic
96.6
99.8
97.3
100.6
Weighted-average number of shares of common stock outstanding — Diluted
97.1
100.1
97.7
100.9
Segment Data (Unaudited)
(Dollars in millions)
Three Months Ended
Six Months Ended
Segment net sales
May 1, 2026
May 2, 2025
May 1, 2026
May 2, 2025
Professional
$
1,106.6
$
1,014.1
$
1,930.6
$
1,782.9
Residential
310.4
297.4
516.4
518.4
Other
7.7
6.4
14.0
11.6
Total net sales*
$
1,424.7
$
1,317.9
$
2,461.0
$
2,312.9
*Includes international net sales of:
$
278.8
$
255.6
$
466.3
$
467.0
Three Months Ended
Six Months Ended
Segment earnings (loss) before interest and taxes
May 1, 2026
May 2, 2025
May 1, 2026
May 2, 2025
Professional
$
224.4
$
202.1
$
362.0
$
329.3
Residential
30.3
16.1
43.5
33.3
Other
(56.5
)
(33.7
)
(106.2
)
(97.0
)
Total segment earnings before interest and taxes
$
198.2
$
184.5
$
299.3
$
265.6
THE TORO COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in millions)
May 1, 2026
May 2, 2025
October 31, 2025
ASSETS
Cash and cash equivalents
$
180.4
$
176.5
$
341.0
Receivables, net
575.1
602.5
378.2
Inventories, net
923.4
1,119.8
920.8
Prepaid expenses and other current assets
81.3
80.1
65.1
Total current assets
1,760.2
1,978.9
1,705.1
Property, plant, and equipment, net
623.0
635.8
615.8
Goodwill
591.0
450.8
450.9
Other intangible assets, net
433.8
487.3
390.3
Right-of-use assets
115.7
110.9
114.7
Investment in finance affiliate
45.0
51.2
41.0
Deferred income taxes
120.7
58.6
105.8
Other assets
17.2
14.6
15.2
Total assets
$
3,706.6
$
3,788.1
$
3,438.8
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt and short-term borrowings
$
—
$
20.0
$
—
Accounts payable
551.8
516.0
367.6
Accrued liabilities
559.2
536.7
525.5
Short-term lease liabilities
20.2
18.5
19.3
Total current liabilities
1,131.2
1,091.2
912.4
Long-term debt, less current portion
1,016.8
1,077.1
921.5
Long-term lease liabilities
100.0
96.2
100.3
Deferred income taxes
19.9
0.6
0.8
Other long-term liabilities
70.6
46.4
50.5
Stockholders’ equity:
Common stock1
1.0
99.0
97.9
Retained earnings
1,386.2
1,419.6
1,390.5
Accumulated other comprehensive loss
(19.1
)
(42.0
)
(35.1
)
Total stockholders’ equity
1,368.1
1,476.6
1,453.3
Total liabilities and stockholders’ equity
$
3,706.6
$
3,788.1
$
3,438.8
1 During the company’s second quarter ended May 1, 2026 the company amended its certificate of incorporation to change the par value of its preferred and common stock from $1.00 per share to $0.01 per share. This change has been adopted prospectively.
THE TORO COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Dollars in millions)
Six Months Ended
May 1, 2026
May 2, 2025
Cash flows from operating activities:
Net earnings
$
213.3
$
189.6
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Non-cash income from finance affiliate
(7.8
)
(9.8
)
Distributions from finance affiliate, net
3.8
7.8
Depreciation of property, plant, and equipment
48.9
48.0
Amortization of other intangible assets
21.1
15.6
Stock-based compensation expense
12.5
9.8
Deferred income taxes1
(13.3
)
(11.9
)
Other
(3.4
)
0.9
Changes in operating assets and liabilities, net of the effect of acquisitions:
Receivables, net
(189.5
)
(141.6
)
Inventories, net
37.7
(78.7
)
Other assets1
6.2
63.2
Accounts payable
166.3
59.5
Other liabilities1
(2.3
)
(29.3
)
Net cash provided by operating activities
293.5
123.1
Cash flows from investing activities:
Purchases of property, plant, and equipment
(28.0
)
(38.4
)
Proceeds from sales of property, plant, and equipment
11.6
0.2
Acquisitions, net of cash received
(210.3
)
(4.2
)
Net cash used in investing activities
(226.7
)
(42.4
)
Cash flows from financing activities:
Borrowings under debt arrangements1
350.0
740.0
Repayments under debt arrangements1
(255.0
)
(565.0
)
Proceeds from exercise of stock options
37.4
1.3
Payments of withholding taxes for stock awards
(1.2
)
(1.8
)
Common stock repurchases
(285.1
)
(200.0
)
Dividends paid on common stock
(75.8
)
(76.3
)
Other
(2.7
)
(3.1
)
Net cash used in financing activities
(232.4
)
(104.9
)
Effect of exchange rates on cash and cash equivalents
5.0
1.2
Net decrease in cash and cash equivalents
(160.6
)
(23.0
)
Cash and cash equivalents as of the beginning of the fiscal period
341.0
199.5
Cash and cash equivalents as of the end of the fiscal period
$
180.4
$
176.5
1 Presentation of prior year deferred income taxes has been conformed to the current year presentation. There was no change to net cash used in operating activities.
THE TORO COMPANY AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(Dollars in millions, except per-share data)
The following tables provide a reconciliation of the non-GAAP financial performance measures used in this press release and our related earnings call to the most directly comparable measures calculated and reported in accordance with U.S. GAAP for the three and six month periods ended May 1, 2026 and May 2, 2025:
Adjusted Profit & Loss Statement
Three Months Ended
Six Months Ended
May 1, 2026
May 2, 2025
May 1, 2026
May 2, 2025
Gross profit
$
482.7
$
436.7
$
819.2
$
772.3
Acquisition-related costs1
2.4
—
4.1
—
Productivity initiative2
7.0
3.7
15.4
7.5
Adjusted gross profit
$
492.1
$
440.4
$
838.7
$
779.8
Gross margin
33.9
%
33.1
%
33.3
%
33.4
%
Acquisition-related costs1
0.1
%
—
%
0.2
%
—
%
Productivity initiative2
0.5
%
0.3
%
0.6
%
0.3
%
Adjusted gross margin
34.5
%
33.4
%
34.1
%
33.7
%
Operating earnings
$
195.0
$
174.8
$
282.1
$
252.6
Acquisition-related costs1
3.5
—
5.7
—
Productivity initiative2
7.3
5.6
19.7
21.8
Adjusted operating earnings
$
205.8
$
180.4
$
307.5
$
274.4
Operating earnings margin
13.7
%
13.3
%
11.5
%
10.9
%
Acquisition-related costs1
0.2
%
—
%
0.2
%
—
%
Productivity initiative2
0.5
%
0.4
%
0.8
%
1.0
%
Adjusted operating earnings margin
14.4
%
13.7
%
12.5
%
11.9
%
Earnings before income taxes
$
183.4
$
168.7
$
270.3
$
234.8
Acquisition-related costs1
3.5
—
5.7
—
Productivity initiative2
11.5
5.7
14.9
22.2
Adjusted earnings before income taxes
$
198.4
$
174.4
$
290.9
$
257.0
Income tax provision
$
38.0
$
31.9
$
57.0
$
45.2
Acquisition-related costs1
0.7
—
1.2
—
Productivity initiative2
2.5
0.9
3.2
4.2
Tax impact of share-based compensation3
1.8
(0.2
)
1.5
(0.1
)
Adjusted income tax provision
43.0
32.6
62.9
49.3
Net earnings
$
145.4
$
136.8
$
213.3
$
189.6
Acquisition-related costs, net of tax1
2.8
—
4.5
—
Productivity initiative, net of tax2
9.0
4.8
11.7
18.0
Tax impact of share-based compensation3
(1.8
)
0.2
(1.5
)
0.1
Adjusted net earnings
$
155.4
$
141.8
$
228.0
$
207.7
Net earnings per diluted share
$
1.50
$
1.37
$
2.18
$
1.88
Acquisition-related costs, net of tax1
0.03
—
0.05
—
Productivity initiative, net of tax2
0.09
0.05
0.12
0.18
Tax impact of share-based compensation3
(0.02
)
—
(0.02
)
—
Adjusted net earnings per diluted share
$
1.60
$
1.42
$
2.33
$
2.06
Effective tax rate
20.7
%
18.9
%
21.1
%
19.3
%
Productivity initiative1
—
%
(0.1
)%
—
%
—
%
Tax impact of share-based compensation3
1.0
%
(0.1
)%
0.5
%
(0.1
)%
Adjusted effective tax rate
21.7
%
18.7
%
21.6
%
19.2
%
1 On December 8, 2025, the company completed the acquisition of Tornado Infrastructure Equipment. Acquisition-related costs for the three and six month periods ended May 1, 2026 represent integration costs and amortization of the backlog intangible asset resulting from purchase accounting adjustments.
2 In the first quarter of fiscal 2024, the company launched the "Amplifying Maximum Productivity" or AMP initiative. The company considered the nature, frequency, and scale of this initiative compared to prior productivity initiatives when determining that the expenses associated with AMP, unlike prior productivity initiatives, are not common, normal, recurring operating expenses and are not representative of the company's ongoing business operations. Productivity initiative charges for the three and six month periods ended May 1, 2026 and May 2, 2025 primarily represent facility exit-related costs and gains, severance and termination benefits, compensation for fully-dedicated AMP personnel, third-party consulting costs, and product-line exit costs.
3 The accounting standards codification guidance governing employee stock-based compensation requires that any excess or deficient tax deduction for stock-based compensation be immediately recorded within income tax expense. Employee stock-based compensation activity, including the exercise of stock options, can be unpredictable and can significantly impact our net earnings, net earnings per diluted share, and effective tax rate. These amounts represent the discrete tax benefits recorded as excess tax deductions for stock-based compensation during the three and six month periods ended May 1, 2026 and May 2, 2025.
Organic Sales Growth
Three Months Ended May 1, 2026
(Percentage change versus the prior year period)
Reported (GAAP) Net Sales Growth
Acquisitions & Divestitures
Foreign Exchange Impact1
Organic Sales Growth/ (Decrease) (Non-GAAP)
Professional
9.1
%
(2.4
)%
(0.7
)%
6.0
%
Residential
4.4
%
—
%
(0.3
)%
4.1
%
Other
20.3
%
—
%
—
%
20.3
%
Total
8.1
%
(1.8
)%
(0.6
)%
5.7
%
1The foreign exchange impact to sales growth measures the change in sales between current and prior year periods using constant exchange rates.
Six Months Ended May 1, 2026
(Percentage change versus the prior year period)
Reported (GAAP) Net Sales Growth
Acquisitions & Divestitures
Foreign Exchange Impact1
Organic Sales Growth/ (Decrease) (Non-GAAP)
Professional
8.3
%
(2.3
)%
(0.6
)%
5.4
%
Residential
(0.4
)%
—
%
(0.3
)%
(0.7
)%
Other
20.7
%
—
%
—
%
20.7
%
Total
6.4
%
(1.8
)%
(0.5
)%
4.1
%
1The foreign exchange impact to sales growth measures the change in sales between current and prior year periods using constant exchange rates.
Three Months Ended May 2, 2025
(Percentage change versus the prior year period)
Reported (GAAP) Net Sales Growth
Acquisitions & Divestitures
Foreign Exchange Impact1
Organic Sales Growth/ (Decrease) (Non-GAAP)
Professional
0.8
%
0.2
%
0.2
%
1.2
%
Residential
(11.4
)%
1.4
%
0.2
%
(9.8
)%
Other
(17.9
)%
—
%
—
%
(17.9
)%
Total
(2.3
)%
0.5
%
0.2
%
(1.6
)%
1The foreign exchange impact to sales growth measures the change in sales between current and prior year periods using constant exchange rates.
Six Months Ended May 2, 2025
(Percentage change versus the prior year period)
Reported (GAAP) Net Sales Growth
Acquisitions & Divestitures
Foreign Exchange Impact1
Organic Sales Growth/ (Decrease) (Non-GAAP)
Professional
1.2
%
0.1
%
0.3
%
1.6
%
Residential
(10.0
)%
2.1
%
0.2
%
(7.7
)%
Other
(11.5
)%
—
%
—
%
(11.5
)%
Total
(1.6
)%
0.6
%
0.2
%
(0.8
)%
1The foreign exchange impact to sales growth measures the change in sales between current and prior year periods using constant exchange rates.
Reconciliation of Non-GAAP Liquidity Measures
The company defines free cash flow as net cash provided by operating activities less purchases of property, plant and equipment. Free cash flow conversion percentage represents free cash flow as a percentage of net earnings. The company considers free cash flow and free cash flow conversion percentage to be non-GAAP liquidity measures that provide useful information to management and investors about the company's ability to convert net earnings into cash resources that can be used to pursue opportunities to enhance shareholder value, fund ongoing and prospective business initiatives, and strengthen the company's Consolidated Balance Sheets, after reinvesting in necessary capital expenditures required to maintain and grow the company's business. The following table provides a reconciliation of non-GAAP free cash flow and free cash flow conversion percentage to net cash provided by operating activities, which is the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP, for the six month periods ended May 1, 2026 and May 2, 2025:
Six Months Ended
(Dollars in millions)
May 1, 2026
May 2, 2025
Net cash provided by (used in) operating activities
The Toro Company (NYSE: TTC), a leading global provider of solutions for the outdoor environment, today reported results for its fiscal second-quarter ended Ma
Toro (TTC - Free Report) came out with quarterly earnings of $1.6 per share, beating the Zacks Consensus Estimate of $1.5 per share. This compares to earnings of $1.42 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +6.43%. A quarter ago, it was expected that this landscaping, maintenance and irrigation equipment maker would post earnings of $0.65 per share when it actually produced earnings of $0.74, delivering a surprise of +13.85%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Toro, which belongs to the Zacks Tools - Handheld industry, posted revenues of $1.42 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 2.46%. This compares to year-ago revenues of $1.32 billion. 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.
Toro shares have added about 15.5% since the beginning of the year versus the S&P 500's gain of 10.4%.
What's Next for Toro?While Toro 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 Toro 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 $1.24 on $1.17 billion in revenues for the coming quarter and $4.52 on $4.73 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, Tools - Handheld is currently in the bottom 13% 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.
Another stock from the broader Zacks Consumer Discretionary sector, Trip.com (TCOM - Free Report) , has yet to report results for the quarter ended March 2026.
This travel services company is expected to post quarterly earnings of $0.85 per share in its upcoming report, which represents a year-over-year change of +3.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Trip.com's revenues are expected to be $2.33 billion, up 22% from the year-ago quarter.
The Toro Company: A Baby Bull Market Is Gaining TractionToro NYSE: TTC raised its full-year outlook after reporting stronger-than-expected fiscal second-quarter results, with executives pointing to broad demand across its professional and residential businesses, improving margins and benefits from its productivity initiatives.
Chairman and Chief Executive Officer Rick Olson said The Toro Company delivered second-quarter net sales growth of 8% and adjusted earnings per share of $1.60, marking the company’s second consecutive quarter of double-digit adjusted earnings growth. He said the results were driven by “strong demand and improving margins” despite macroeconomic and geopolitical headwinds and higher inflationary pressures.
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The 8 best agricultural ETFs to consider for your portfolio“This disciplined approach is delivering results,” Olson said, citing the company’s priorities of accelerating profitable growth, driving productivity and operational excellence, and empowering people.
Professional Segment Leads Growth Vice President and Chief Financial Officer Angela Drake said total second-quarter sales were $1.42 billion, up 8.1%, or 5.7% organically. Adjusted operating margin rose 70 basis points to 14.4%, which Drake said was the company’s highest operating margin in the past 12 quarters.
Toro Stock is Worth Getting Off Season The Professional segment generated net sales of $1.1 billion, up 9.1%, or 6% organically. Segment earnings were $224 million, with margin rising 40 basis points to 20.3%. Drake said the improvement was driven by volume, productivity and net price realization, partially offset by material cost.
Olson said Professional segment growth was broad-based, including mid-single-digit sales growth in golf and grounds, high-single-digit growth in landscape contractor, and low-double-digit organic growth in underground and specialty construction.
In underground construction, Olson highlighted demand for the JT-120 horizontal directional drill, which he said is designed for uptime and difficult job-site conditions. He said customer response has been strong, with a “robust and growing order pipeline.” During the question-and-answer session, Olson also cited demand for the JT21 compact horizontal directional drill, which he said is used in applications such as fiber-to-the-home installation.
Olson said the Ditch Witch underground business was a “very strong contributor” to the quarter, supported by sustained demand and improved production output. He said operations teams in some cases doubled production to meet demand.
Residential Margins Improve Residential segment net sales were $310 million, up 4.1% organically. Segment earnings were $30 million, while margins increased 430 basis points to 9.8%. Drake attributed the improvement to net price realization, productivity and volume, partially offset by material, manufacturing and freight costs.
Olson said residential sales grew 4% in the quarter. He described the residential channel inventory situation as more normal than in recent years, after the company worked through higher field inventories in prior periods. He said demand exceeded expectations, and the company had “good flow” from its facilities.
Inventory levels remain healthy in the Professional segment, with underground and golf “largely normalized,” Olson said. However, he said field inventory for landscape contractor and residential products is somewhat below desired levels as the company works to meet elevated demand in areas such as zero-turn mowers.
Asked about consumer demand, Olson said some traditional residential customers appear to be “buying down” toward the lower end of the company’s range. However, he said higher-end homeowners buying professional-grade landscape contractor products have been less affected, while true landscape contractors remain healthy.
AMP Program Supports Margin Expansion Executives repeatedly pointed to Toro’s AMP productivity program as a key factor behind margin improvement. Drake said strategic facility closures, reductions in salaried workforce, and divestitures of non-core businesses and product lines contributed to stronger margins.
President and Chief Operating Officer Edrick Funk said Toro delivered its highest level of operating margin in three years through productivity and operational execution. He said AMP remains on track to deliver $125 million in run-rate savings by the end of fiscal 2026.
Funk said the program includes lean principles, Kaizen events and continuous improvement projects. He also described technology initiatives across the company, including industrial collaborative robots, AI-enabled vision systems, machine learning tools to verify component accuracy and augmented reality to verify weld specifications.
“AMP is about even more than cost savings,” Funk said, adding that teams are using technology to enhance capabilities and drive innovation.
Guidance Raised as Cash Flow Improves Toro raised its fiscal 2026 sales growth outlook to a range of 4% to 6.5%, compared with prior guidance of 3% to 6.5%. The company now expects adjusted EPS of $4.50 to $4.62, up from its previous range of $4.40 to $4.60.
Drake said the updated guidance reflects strength in the Professional segment, which is now expected to grow 5% to 7% for the year. The residential sales outlook also improved, and the company now expects full-year residential sales to be about flat, despite challenging consumer confidence and inflation.
Drake said the revised EPS midpoint reflects a $0.10 per-share second-quarter beat, partially offset by material and fuel inflation of about $0.16 per share and a roughly $0.04 EPS headwind from a higher tax rate due to geographic earnings mix. Planned productivity and pricing actions are expected to offset about $0.16 per share.
For the third quarter, Drake said Toro expects total company sales to rise in the mid-single digits, with Professional sales up mid-single digits and Residential sales up low single digits. She said margins are expected to be lower than in the second quarter due to normal seasonality, inflation and tariff pressures, and the timing of mitigation actions.
Free cash flow was $266 million in the quarter, up $181 million year over year, primarily due to lower inventory levels. Drake said free cash flow conversion was 125%. Toro returned $361 million to shareholders through share repurchases and dividends in the first half of the year.
Tariffs, Acquisitions and Golf Demand Discussed During the Q&A portion of the call, Funk said the net tariff impact on fiscal 2026 guidance is expected to be minimal. He said the company now estimates gross tariff expense of $120 million, up from a prior $100 million estimate, but expects about $20 million in refunds during the fiscal year. Drake said the company expects to accrue about $8 million of the anticipated refund in the third quarter, with the remainder in the fourth quarter.
Olson said the integration of Tornado is progressing well and contributing more than two percentage points to top-line sales. He said Tornado’s growth is slightly better than anticipated and that the need for soft excavation is significant and growing as more jurisdictions require safe uncovering of underground utilities.
On golf, Funk said demand and orders have been stronger than expected, particularly after prior discussion about whether there could be an “air gap” following strong growth. He said golf equipment demand has remained solid, while irrigation continues to benefit from a long pipeline of projects.
Olson closed by saying Toro is making progress in electric, smart, connected and autonomous solutions, while also exploring applications of artificial intelligence in areas such as autonomous navigation, research and development prototyping, simulation and back-office processes.
About Toro NYSE: TTCThe Toro Company NYSE: TTC specializes in the design, manufacture and marketing of a broad range of outdoor environment equipment for residential, commercial and professional markets. Its product portfolio includes lawn mowers, utility vehicles, snow throwers, irrigation systems and landscape maintenance equipment. Toro's offerings span walk-behind and ride-on mowers, zero-turn radius mowers, snow blowers, sprinklers, drip irrigation products, spreaders and specialty turf maintenance machines tailored to golf courses, sports fields and municipal parks.
Founded in 1914 and headquartered in Bloomington, Minnesota, Toro has built a century-long legacy of innovation in the grounds-care industry.
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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The Toro Company delivered a strong Q2 2026, beating revenue and profit expectations, and raised full-year guidance. TTC's turnaround is driven by Professional segment growth, cost-cutting (AMP initiative), and exposure to the expanding global golf industry. Despite operational improvements and a 23.9% stock gain since last May, TTC remains fairly valued or slightly pricey versus peers.
Announces new multi‑year sustainability goals to accelerate progress across global operations
BLOOMINGTON, Minn.--(BUSINESS WIRE)--The Toro Company (NYSE: TTC), a leading global provider of solutions for the outdoor environment, today released its fiscal 2025 Sustainability Impact Report. The annual report highlights the company’s continued focus and progress toward its strategic priorities while introducing new sustainability commitments to drive further impact. The full report can be found at www.thetorocompany.com/sustainability.
“We believe that sustainability is a shared journey—one that empowers our partners, customers and communities to thrive together,” said Richard M. Olson, chairman and chief executive officer of The Toro Company. “By advancing responsible practices and innovative solutions, we are committed to creating lasting positive impact for people and the planet, today and for generations to come.”
TTC’s strategy in corporate responsibility is grounded in a purpose of helping customers enrich the beauty, productivity and sustainability of the land, and organized around three core pillars of Product, People and Process. In 2025, TTC completed and achieved meaningful progress against its first set of multi‑year impact goals. Building on this momentum, TTC is announcing a new set of goals to guide continued action and results across its global operations. These newly adopted goals include:
By 2030, reduce absolute Scopes 1 and 2 GHG emissions by 15% compared to an FY25 baseline. By 2030, achieve a global Zero Waste to Landfill (ZWTL) target of 90% diversion of waste from landfill. Foster a safety culture that results in maintaining a Total Recordable Incident Rate (TRIR) at or below 1.0 through 2030. Deliver a more sustainable product portfolio every year through integrated New Product Development (NPD) sustainability gates. Driving Innovation
TTC’s approach to product innovation is shaped through close collaboration with customers, grounding every solution in real‑world needs with a focus on safety, resource efficiency, responsible sourcing and technological advancement. Notable achievements in fiscal 2025 include:
Created new sustainability checkpoints into the New Product Development (NPD) process to identify opportunities for delivering a more sustainable product portfolio each year. Introduced the Ditch Witch® JT21 directional drill to combine efficient drilling with reduced environmental impact, using small entry and exit pits to leave surrounding areas largely untouched. Strengthened our partnership with The Battery Network to enable battery collection and recycling at Lowe’s locations across 48 U.S. states, supporting the safe and responsible recycling of high‑energy batteries used in outdoor tools and equipment. Launched Toro® Spatial Adjust™ software for golf courses, transforming everyday turf management into powerful data-driven irrigation decisions through the collection of thousands of moisture readings during routine mowing. Expanded autonomous and battery-powered portfolio to help customers better leverage their labor resources, increase productivity and reduce engine emissions. Advancing Operational Efficiency
Across TTC’s portfolio of global brands remains an enduring commitment to operational excellence throughout the product life cycle. Guided by lean principles and continuous improvement, TTC advances sustainability, prioritizes safety and upholds a legacy of quality across the entire supply chain. Notable achievements in fiscal 2025 include:
Delivered significant productivity savings through initiatives targeting energy efficiency, reduced packaging waste, and enhanced ergonomic designs to improve workplace safety and productivity. Empowered employees at all levels to drive productivity through the Amplifying Maximum Productivity (AMP) initiative, resulting in more than 2,000 ideas submitted via the Productivity Generator tool to identify smarter ways to use time, resources and technology across operations. Launched a Zero Waste to Landfill (ZWTL) program aimed at streamlining waste processes across North American operations, diverting more than 18,000 tons of waste from landfill in 2025. The program continues to expand across locations and key waste streams, including hazardous, non-hazardous, liquid, solid, compostable, and recyclable materials. Strengthened governance and supply chain transparency by deploying a third-party platform across thousands of suppliers to modernize compliance data collection and centralize visibility on forced labor, conflict minerals, country of origin, and other emerging regulations. Empowering People
To meet the challenges of a rapidly changing world, TTC is committed to creating an environment where employees feel empowered, valued and prepared. By investing in development, encouraging engagement and advancing inclusion, TTC is building a resilient workforce that drives innovation and creates meaningful impact in the communities it serves. Notable achievements in fiscal 2025 include:
Achieved an approximate 57% reduction in Total Recordable Incident Rate (TRIR) compared to 2021 baseline, reflecting several years of focused work to emphasize near-miss reporting and proactive hazard identification. Awarded scholarships to nearly 100 students, investing in the next generation of leaders and promoting academic excellence for employees and their families. Partnered with Habitat for Humanity to support sustainable, affordable housing through employee volunteerism and in‑kind donations, including irrigation solutions and battery‑powered lawn equipment to help new homeowners care for their properties efficiently. Welcomed nearly 60 interns across U.S. locations into a variety of functions, offering hands-on experience that helps them explore career pathways and build professional networks within TTC. Expanded on-site medical services to seven key manufacturing locations to support employee health and productivity. The full sustainability report, which was prepared with reference to the Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB), can be found at: www.thetorocompany.com/sustainability.
About The Toro Company
The Toro Company (NYSE: TTC) is a leading global provider of solutions for the outdoor environment including turf and landscape maintenance, snow and ice management, underground construction, rental and specialty construction, and irrigation and outdoor lighting solutions. With net sales of $4.5 billion in fiscal 2025, The Toro Company’s global presence extends to more than 125 countries through a family of brands that includes Toro, Ditch Witch, Exmark, BOSS, Ventrac, Tornado, HammerHead, American Augers, Spartan, Subsite, Radius, Hayter, Perrot, Unique Lighting Systems, Irritrol, and Lawn-Boy. Through constant innovation and caring relationships built on trust and integrity, The Toro Company and its family of brands have built a legacy of excellence by helping customers work on golf courses, sports fields, construction sites, public green spaces, commercial and residential properties and agricultural operations. For more information, visit www.thetorocompany.com.
The Toro Company (NYSE: TTC), a leading global provider of solutions for the outdoor environment, today released its fiscal 2025 Sustainability Impact Report.
Tenable Holdings is downgraded to "Neutral" as growth decelerates and backlog slows, despite a modest valuation. TENB maintains high gross margins in the low 80s and a recurring revenue base of 96% but faces functional overlap with emerging AI competitors. FY26 guidance implies tepid 7%-8% revenue growth and a 5% EPS raise to $1.94, with valuation at 2.3x EV/revenue and 10.7x P/E.
Shares of Tenable (TENB - Free Report) have gained 18.8% over the past four weeks to close the last trading session at $20.89, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $28.79 indicates a potential upside of 37.8%.
The average comprises 19 short-term price targets ranging from a low of $19.00 to a high of $40.00, with a standard deviation of $6.12. While the lowest estimate indicates a decline of 9.1% from the current price level, the most optimistic estimate points to a 91.5% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in TENB. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why TENB Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 3.9% over the past month, as two estimates have gone higher compared to no negative revision.
Moreover, TENB currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much TENB could gain, the direction of price movement it implies does appear to be a good guide.
Tenable (TENB - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
Analysts' growing optimism on the earnings prospects of this cybersecurity software company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Tenable, as there has been strong agreement among the covering analysts in raising estimates.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsThe company is expected to earn $0.46 per share for the current quarter, which represents a year-over-year change of +35.3%.
Over the last 30 days, two estimates have moved higher for Tenable compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 10.94%.
Current-Year Estimate RevisionsThe company is expected to earn $1.93 per share for the full year, which represents a change of +21.4% from the prior-year number.
The revisions trend for the current year also appears quite promising for Tenable, with seven estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 16.89%.
Favorable Zacks RankThanks to promising estimate revisions, Tenable currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineWhile strong estimate revisions for Tenable have attracted decent investments and pushed the stock 20.8% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
Tenable Holdings remains a buy despite a 22% price drop and sector-wide SaaS headwinds. TENB posted solid Q1 results with 9.6% revenue growth, strong cash flow, and robust margins, but guidance signals slowing growth. AI disruption fears weigh on valuation, yet management views AI as a collaborative force, not a replacement, and is integrating AI into its platform.
