TriNet Group (NYSE:TNET) Posts Earnings Results, Beats Expectations By $0.09 EPS

TriNet Group (NYSE:TNET) issued its earnings results on Thursday. The business services provider reported $0.46 EPS for the quarter, topping analysts’ consensus estimates of $0.37 by $0.09, FiscalAI reports. The business had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $251.57 million. TriNet Group had a net margin of 2.64% and a return on equity of 212.38%. The company’s revenue for the quarter was down 2.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.44 EPS. TriNet Group updated its FY 2026 guidance to 3.700-4.700 EPS.

Here are the key takeaways from TriNet Group’s conference call:

• Completed a comprehensive health fee repricing and strengthened actuarial controls; ICR improved to ~90.8% in 2025 and management expects a 2026 combined ICR range of 90.75%–89.25% with moderating health fee increases starting April 1.
• Total WSEs fell roughly 10% (co‑employed WSEs down ~11%) and retention declined to ~80%, with elevated Q1 attrition from January renewals creating a near-term volume and revenue headwind.
• TriNet generated $234M of free cash flow (up 16%), improved FCF conversion to 55%, returned $235M to shareholders in 2025, and increased its share repurchase authorization to $400M.
• Growth initiatives are showing early traction: ASO users exceeded 39,000 with average PEPPM ≈ $50, broker partnerships contributed materially to January sales, and the Ascend sales trainee program is expanding to six regional hubs to boost selling capacity.
• Operating expenses fell 7% in 2025 (Q4 down 16%); management expects mid‑single‑digit OpEx reductions in 2026 while reinvesting some savings, and guided to an adjusted EBITDA margin of 7.5%–8.7% and adjusted EPS of $3.70–$4.70.

TriNet Group Stock Performance

Shares of NYSE:TNET traded down $4.92 during trading on Thursday, hitting $40.34. 667,169 shares of the stock traded hands, compared to its average volume of 438,770. The company has a quick ratio of 1.11, a current ratio of 1.11 and a debt-to-equity ratio of 8.14. The company has a fifty day moving average price of $59.13 and a two-hundred day moving average price of $62.18. TriNet Group has a 52-week low of $40.38 and a 52-week high of $88.56. The company has a market cap of $1.94 billion, a price-to-earnings ratio of 14.87 and a beta of 0.81.

TriNet Group Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, January 26th. Stockholders of record on Friday, January 2nd were issued a dividend of $0.275 per share. This represents a $1.10 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend was Friday, January 2nd. TriNet Group’s payout ratio is 40.59%.

Wall Street Analysts Forecast Growth

TNET has been the topic of several recent research reports. TD Cowen dropped their target price on shares of TriNet Group from $65.00 to $64.00 and set a “hold” rating on the stock in a report on Thursday, January 8th. Zacks Research cut shares of TriNet Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, December 29th. JPMorgan Chase & Co. dropped their price target on TriNet Group from $75.00 to $65.00 and set an “underweight” rating on the stock in a research note on Thursday, October 30th. UBS Group cut their price objective on shares of TriNet Group from $69.00 to $63.00 and set a “neutral” rating on the stock in a report on Thursday, October 30th. Finally, Weiss Ratings reissued a “sell (d+)” rating on shares of TriNet Group in a research report on Wednesday, January 21st. Five analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Reduce” and an average target price of $63.50.

Insider Activity at TriNet Group

In other TriNet Group news, CTO Jeffery Jon Hayward sold 1,437 shares of TriNet Group stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $57.51, for a total value of $82,641.87. Following the completion of the transaction, the chief technology officer owned 27,922 shares of the company’s stock, valued at approximately $1,605,794.22. The trade was a 4.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Anthony Shea Treadway sold 459 shares of the company’s stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $54.52, for a total transaction of $25,024.68. Following the completion of the transaction, the senior vice president owned 28,224 shares of the company’s stock, valued at approximately $1,538,772.48. This trade represents a 1.60% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 2,798 shares of company stock worth $162,593. 38.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On TriNet Group

Large investors have recently bought and sold shares of the company. Boston Partners purchased a new stake in shares of TriNet Group during the third quarter worth approximately $97,712,000. Man Group plc lifted its stake in shares of TriNet Group by 286.6% in the third quarter. Man Group plc now owns 468,897 shares of the business services provider’s stock worth $31,365,000 after buying an additional 347,622 shares in the last quarter. Federated Hermes Inc. boosted its position in TriNet Group by 958.6% during the fourth quarter. Federated Hermes Inc. now owns 245,163 shares of the business services provider’s stock worth $14,496,000 after acquiring an additional 222,003 shares during the last quarter. Millennium Management LLC grew its stake in TriNet Group by 3,995.7% during the 1st quarter. Millennium Management LLC now owns 138,926 shares of the business services provider’s stock valued at $11,008,000 after acquiring an additional 135,534 shares in the last quarter. Finally, Jane Street Group LLC raised its holdings in TriNet Group by 306.4% in the 2nd quarter. Jane Street Group LLC now owns 164,336 shares of the business services provider’s stock valued at $12,020,000 after acquiring an additional 123,898 shares during the last quarter. 96.81% of the stock is currently owned by hedge funds and other institutional investors.

TriNet Group News Summary

Here are the key news stories impacting TriNet Group this week:

• Positive Sentiment: Q4 EPS beat — TriNet reported $0.46 GAAP EPS vs. consensus ~$0.37, showing stronger-than-expected profitability for the quarter. TriNet Q4 Earnings Beat (Zacks)
• Positive Sentiment: $400M share repurchase — The board authorized up to $400 million for share buybacks, which supports EPS and can provide price support over time. Press Release: Q4 Results & Buyback (PR Newswire)
• Positive Sentiment: Short interest fell sharply in January (down ~22.5%), reducing a potential short‑squeeze tail risk and lowering bearish positioning.
• Neutral Sentiment: Institutional buying — Allianz Asset Management increased its stake by ~27.9%, a steadying signal from a large manager. Allianz Raises Holding
• Negative Sentiment: FY‑2026 guidance light — TriNet set FY‑2026 EPS guidance of $3.70–$4.70, below the prior Street consensus (~$4.55), which is a primary reason the stock is under pressure. Guidance & Results (PR Newswire)
• Negative Sentiment: Revenue softness — Q4 revenue was $1.25B, down ~2.3% year‑over‑year, underscoring near‑term top‑line pressure in a competitive SMB HCM market. Earnings Call Transcript (Seeking Alpha)

About TriNet Group

TriNet Group, Inc is a leading professional employer organization (PEO) that offers integrated human capital management solutions to small and medium-size businesses. Through a bundled suite of services, TriNet manages payroll administration, employee benefits, workers’ compensation, risk mitigation and federal and state compliance. Its cloud-based platform provides clients with centralized access to HR tools, analytics and streamlined workforce management capabilities.

Founded in 1988 and headquartered in Dublin, California, TriNet has grown to support thousands of organizations across the United States.