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

TriNet Group (NYSE:TNET) released its earnings results on Thursday. The business services provider reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.37 by $0.09, FiscalAI reports. TriNet Group had a return on equity of 212.38% and a net margin of 2.64%.The company had revenue of $1.25 billion for the quarter, compared to analyst estimates of $251.57 million. During the same period in the prior year, the firm posted $0.44 EPS. TriNet Group’s quarterly revenue was down 2.3% on a year-over-year basis. 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 Trading Down 10.7%

NYSE:TNET traded down $4.83 during mid-day trading on Thursday, reaching $40.43. 445,034 shares of the company’s stock traded hands, compared to its average volume of 433,138. The firm has a market capitalization of $1.94 billion, a price-to-earnings ratio of 14.91 and a beta of 0.81. TriNet Group has a 12-month low of $41.01 and a 12-month high of $88.56. The company has a 50 day moving average price of $59.13 and a 200-day moving average price of $62.18. The company has a debt-to-equity ratio of 8.14, a current ratio of 1.11 and a quick ratio of 1.11.

TriNet Group Dividend Announcement

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

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the company. Truist Financial assumed coverage on TriNet Group in a research note on Friday, December 5th. They set a “hold” rating and a $62.00 target price for the company. UBS Group lowered their price objective on TriNet Group from $69.00 to $63.00 and set a “neutral” rating for the company in a research note on Thursday, October 30th. Zacks Research downgraded shares of TriNet Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, December 29th. Weiss Ratings reissued a “sell (d+)” rating on shares of TriNet Group in a research report on Wednesday, January 21st. Finally, JPMorgan Chase & Co. lowered their price objective on shares of TriNet Group from $75.00 to $65.00 and set an “underweight” rating on the stock in a research report on Thursday, October 30th. Five equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Reduce” and an average price target of $63.50.

Insider Transactions at TriNet Group

In other TriNet Group news, SVP Anthony Shea Treadway sold 459 shares of the firm’s stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $54.52, for a total value of $25,024.68. Following the completion of the sale, the senior vice president directly owned 28,224 shares in the company, valued at $1,538,772.48. This trade represents a 1.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, SVP Sidney A. Majalya sold 775 shares of the company’s stock in a transaction on Friday, January 9th. The stock was sold at an average price of $61.86, for a total value of $47,941.50. Following the completion of the sale, the senior vice president directly owned 19,853 shares in the company, valued at approximately $1,228,106.58. The trade was a 3.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 2,798 shares of company stock valued at $162,593. Company insiders own 38.10% of the company’s stock.

Institutional Investors Weigh In On TriNet Group

Institutional investors have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in TriNet Group by 4.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 19,009 shares of the business services provider’s stock worth $1,506,000 after purchasing an additional 819 shares during the period. Millennium Management LLC grew its stake in shares of 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 during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of TriNet Group by 0.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 76,575 shares of the business services provider’s stock worth $6,068,000 after purchasing an additional 470 shares in the last quarter. Jane Street Group LLC bought a new stake in TriNet Group during the first quarter valued at about $3,204,000. Finally, Intech Investment Management LLC raised its stake in TriNet Group by 10.3% during the 1st quarter. Intech Investment Management LLC now owns 16,862 shares of the business services provider’s stock valued at $1,336,000 after purchasing an additional 1,577 shares during the period. 96.81% of the stock is owned by hedge funds and other institutional investors.

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.