Track market-moving stories before they get noisy

Samsara Inc. is evolving into a critical AI-driven connected operations platform for the physical economy, bridging SaaS with real-world asset optimization. Fiscal Q1 2027 delivered 31% revenue growth to $478.8M, 30% ARR growth, and notable margin expansion, supporting a premium valuation. IOT's aggressive cross-selling, AI product launches, and enterprise customer growth underpin robust recurring revenue and expanding profitability.

Shares of Samsara Inc NYSE: IOT were trading around $36 early on Friday as the market continued to digest the company's Q1 earnings, released Thursday night. The stock has spent much of the past year trying to convince the market that it's not just another victim of the AI-driven SaaSpocalypse.

Samsara Inc. (IOT - Free Report) closed the last trading session at $34.06, gaining 17.2% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $43.67 indicates a 28.2% upside potential.

The mean estimate comprises 18 short-term price targets with a standard deviation of $5.35. While the lowest estimate of $30.00 indicates a 11.9% decline from the current price level, the most optimistic analyst expects the stock to surge 55.6% to reach $53.00. It's very important to 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 a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.

However, an impressive consensus price target is not the only factor that indicates a potential upside in IOT. 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.

Here's Why There Could be Plenty of Upside Left in IOTThere 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.

Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 23.2%, as one estimate has moved higher compared to no negative revision.

Moreover, IOT 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 IOT could gain, the direction of price movement it implies does appear to be a good guide.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Samsara Inc. (IOT - Free Report) Samsara provides a cloud-based Connected Operations Platform that enables organizations with physical operations to increase safety, efficiency, and sustainability. The platform unifies data from Internet-connected devices, third-party systems, and enterprise applications, delivering insights through a web dashboard, mobile apps, alerts, and automated workflows.

IOT is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Computer and Technology stock. IOT has a Momentum Style Score of A, and shares are up 18.6% over the past four weeks.

Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.05 to $0.74 per share. IOT boasts an average earnings surprise of +41.4%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, IOT should be on investors' short list.

Expands WES's natural-gas and crude-oil and NGLs gathering and processing footprint across the core of the Delaware Basin. Adds approximately 470,000 dedicated acres and 460 MMcf/d of natural-gas processing capacity, increasing WES's total Delaware Basin dedicated acres by approximately 49-percent to more than 1.4 million acres and natural-gas processing capacity by approximately 20-percent to approximately 2.750 Bcf/d. Diversifies WES's customer base through long-term, fixed-fee contracts anchored by high-quality, investment grade counterparties with a portfolio-wide weighted average remaining contract life of over nine years. Purchase price of $1.6 billion represents an ~8.0x multiple on 2027 estimated EBITDA(1), declining to ~7.5x with the commercialization of available processing capacity and identified synergies. Expected to be immediately accretive to estimated 2026 Distributable Cash Flow per unit. Transaction consideration consists of 50-percent cash and 50-percent equity, enabling WES to maintain pro forma net leverage of approximately 3.0x throughout 2026. , /PRNewswire/ -- Western Midstream Partners, LP ("WES" or the "Partnership") (NYSE: WES) today announced that it has entered into a definitive agreement pursuant to which WES will acquire all of the outstanding equity interests of Brazos Delaware II, LLC ("Brazos"), in a transaction valued at approximately $1.6 billion. Under the terms of the agreement, WES will pay approximately $800 million in cash and issue approximately $800 million in WES common units at closing. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close late in the second quarter of 2026.

Brazos is one of the largest privately held gathering and processing platforms in the Texas Delaware Basin, with natural-gas and crude-oil assets spanning Reeves, Ward, Pecos, Winkler, Culberson, and Loving counties. Brazos's assets include approximately 900 miles of pipeline, 460 MMcf/d of nameplate natural-gas processing capacity at the Comanche processing complex, and approximately 470,000 dedicated acres under long-term, fixed-fee contracts with a weighted average remaining contract life of more than nine years. The Brazos business, which processed an average of 336 MMcf/d of natural gas and 25 MBbls/d of crude oil in full-year 2025, is supported by a diversified portfolio of investment grade and private-equity backed Permian Basin focused producers. Nearly all drilling locations on acreage dedicated to Brazos are within two miles of the low-pressure infrastructure, limiting future growth capital needs and increasing Free Cash Flow generation.

CEO COMMENTARY

"We are very pleased to announce the acquisition of Brazos – a highly complementary and strategically compelling bolt-on addition to our existing Delaware Basin platform," commented Oscar K. Brown, President and Chief Executive Officer of WES. "The Brazos acquisition is in line with WES's M&A philosophy of making accretive, strategic acquisitions that enhance the value of WES's existing asset base, provide a diverse set of high-quality customers, and generate strong Free Cash Flow, all while protecting our investment grade credit ratings. More than 60-percent of WES's 2026 Adjusted EBITDA is expected to be generated from the Delaware Basin, and that proportion will only grow as the Brazos transaction is closed and integrated, and our organic growth projects, including the Pathfinder Pipeline and North Loving II, come online in the first and second quarters of 2027, respectively."

"Now that the Aris integration is complete, the combination of the Brazos and WES systems creates an even more integrated Delaware Basin network that is better positioned to compete for new business, provide enhanced flow assurance for our customers, and deliver incremental operational efficiencies across a broader footprint. With approximately 3,500 identified drilling locations at $65 per barrel, WES has line of sight to decades of new throughput. The addition of the Comanche processing complex also further strengthens our position as one of the largest natural-gas processors in the basin and provides meaningful capacity to support anticipated throughput growth from the Woodford and other high-return formations on the dedicated acreage."

"The Brazos acquisition is consistent with our disciplined approach to capital deployment, and our strong balance sheet and significant liquidity position has enabled us to take advantage of strategic M&A opportunities when they arise. Additionally, Brazos's strong Free Cash Flow conversion will support our goal of increasing distribution coverage while still delivering mid-to-low single digits annual distribution growth and maintaining our peer-leading leverage ratio," Mr. Brown concluded.

TERMS OF ACQUISITION

Under the terms of the agreement, WES will pay approximately $800 million in cash and issue approximately $800 million in WES common units at closing. WES expects to maintain pro forma net leverage of approximately 3.0x throughout 2026. For additional details on WES's acquisition of Brazos, please refer to the slide presentation available under the "Events and Presentations" tab at www.westernmidstream.com.

ADVISORS

Greenhill, a Mizuho affiliate, served as financial advisor and Troutman Pepper Locke LLP served as legal advisor to WES. Jefferies LLC served as financial advisor and Vinson & Elkins LLP served as legal advisor to Brazos.

ABOUT BRAZOS MIDSTREAM

Headquartered in Fort Worth, Texas, the Brazos Midstream entities ("Brazos Midstream") collectively represent the largest privately held midstream platform in the Permian Basin. On a combined basis, including both Brazos and Brazos Midland, Brazos Midstream's critical hydrocarbon infrastructure totals approximately 1,200 miles of natural-gas, natural-gas liquids and crude-oil gathering pipelines spanning the most prolific producing counties in the Midland and Delaware Basins; approximately 1.0 Bcf/d of total Permian-based processing capacity with expansion projects underway to expand to approximately 1.3 Bcf/d by year-end 2026; and 75,000 barrels of crude oil storage.

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.

(1)

This is a non-GAAP financial measure. Forecasted EBITDA is based on WES's projections for the business to be acquired. Forecasted EBITDA is not presented as an alternative to the nearest GAAP financial measure, net income, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. We are unable to present the most directly comparable GAAP measure or a reconciliation of forecasted EBITDA to net income because certain elements of net income, including interest, depreciation and taxes, are not available without unreasonable effort.

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 close and 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

Rhianna Disch
Manager, Investor Relations
[email protected]
866.512.3523

SOURCE Western Midstream Partners, LP

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.

Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.

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

Western Midstream Partners, LP Common Units (WES) Q1 2026 Earnings Call Transcript

Western Midstream Partners, LP Common Units (WES) Q1 2026 Earnings Call Transcript

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.

, /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

Rhianna Disch
Manager, Investor Relations
[email protected]
866.512.3523

SOURCE Western Midstream Partners, LP

Posted by Defense World Staff on Apr 3rd, 2026

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

Receive News & Ratings for Insperity Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Insperity and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEHead-To-Head Survey: DocGo (NASDAQ:DCGO) vs. CochLear (OTCMKTS:CHEOY)

NEXT HEADLINE »TD Cowen Has Lowered Expectations for Procter & Gamble (NYSE:PG) Stock Price

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.

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

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:

Q2 2026

Full Year 2026

(in millions, except per share amounts)

Guidance

Guidance

Net income

$(10) – $9

$18 – $56

Income tax expense

(5) – 4

19 – 41

Interest expense

6

24

SaaS implementation amortization

3

10

Depreciation and amortization

10

41

EBITDA

4 – 32

112 – 172

Stock-based compensation

14

49

Restructuring charges

—

9

Adjusted EBITDA

$18 – $46

$170 – $230

Diluted EPS

$(0.25) – $0.23

$0.48 – $1.48

Non-GAAP adjustments:

Stock-based compensation

0.36

1.27

Restructuring charges

—

0.23

Total non-GAAP adjustments

0.36

1.50

Tax effect

(0.09)

(0.38)

Total non-GAAP adjustments, net

0.27

1.12

Adjusted EPS

$0.02 – $0.50

$1.60 – $2.60

More News From Insperity, Inc.

Insperity, Inc. (NSP) Q1 2026 Earnings Call Transcript

-

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.

More News From Insperity, Inc.

Back to Newsroom

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.

-

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.

More News From Insperity, Inc.

Back to Newsroom

-

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.

More News From Insperity, Inc.

Back to Newsroom

, /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.

Media Contact: Iman Mohamed, [email protected]

SOURCE Scholarship America

Posted by Defense World Staff on Apr 2nd, 2026

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.

See Also Five stocks we like better than Toro Receive News & Ratings for Toro Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Toro and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEO-I Glass Target of Unusually High Options Trading (NYSE:OI)

NEXT HEADLINE »Stock Traders Purchase Large Volume of Call Options on Ameren (NYSE:AEE)

BLOOMINGTON, Minn.--(BUSINESS WIRE)--The Toro Company Declares Regular Quarterly Cash Dividend.

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.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period.

Considering buying TTC stock? Here’s what analysts think:

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

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

$

293.5

$

123.1

Less: Purchases of property, plant and equipment

28.0

38.4

Free cash flow

265.5

84.7

Net earnings

$

213.3

$

189.6

Free cash flow conversion percentage

124.5

%

44.7

%