Insperity (NYSE:NSP) Issues Earnings Results

Insperity (NYSE:NSP) posted its earnings results on Thursday. The business services provider reported $1.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.24 by $0.07, FiscalAI reports. Insperity had a negative return on equity of 26.99% and a negative net margin of 0.37%.The firm had revenue of $1.90 billion during the quarter, compared to analysts’ expectations of $1.89 billion. During the same period in the previous year, the firm earned $1.57 earnings per share. The company’s revenue was up 1.7% on a year-over-year basis. Insperity updated its FY 2026 guidance to 1.600-2.600 EPS and its Q2 2026 guidance to 0.020-0.500 EPS.

Here are the key takeaways from Insperity’s conference call:

• Q1 results beat expectations — Adjusted EPS was $1.31 and Adjusted EBITDA was $103M, driven by gross profit outperformance and tight operating expense control despite slightly lower paid worksite employee (WSE) levels.
• Margin recovery is underway — gross profit per WSE was $332 and benefits cost inflation improved to +5% YoY, and the new UnitedHealthcare contract should support margins going forward even though it will flatten the quarterly earnings pattern.
• HRScale rollout is live — initial beta clients onboarded (payrolls processed in April), with nearly 6,000 committed WSE to be onboarded over the next six months and a growing sales pipeline; Q1 HRScale investment was $13M with spending expected to taper in H2.
• Guidance and unit growth were lowered — full-year WSE now 303k–307k (down 1%–2.3% vs. 2025) and Adjusted EPS guidance trimmed to $1.60–$2.60, citing weaker SMB sentiment and some sales/retention impact from the margin recovery actions.
• AI strategy could be a future growth driver — Insperity is deploying AI agents (starting with an HR360 agent) to improve internal productivity and client service, but near-term financial impact remains uncertain.

Insperity Stock Performance

Shares of NSP traded down $6.85 during mid-day trading on Friday, reaching $28.72. The company’s stock had a trading volume of 2,034,975 shares, compared to its average volume of 876,571. The stock has a market cap of $1.10 billion, a P/E ratio of -143.60 and a beta of 0.60. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 8.02. Insperity has a 1-year low of $18.57 and a 1-year high of $72.23. The business has a 50-day simple moving average of $26.17 and a two-hundred day simple moving average of $34.57.

Insperity Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 20th. Stockholders of record on Friday, March 6th were given a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a dividend yield of 8.4%. The ex-dividend date of this dividend was Friday, March 6th. Insperity’s dividend payout ratio (DPR) is presently -1,200.00%.

Key Insperity News

Here are the key news stories impacting Insperity this week:

• Positive Sentiment: Q1 results beat on EPS and roughly met revenue expectations: management reported $1.31 EPS versus a $1.24 consensus and revenue of $1.90B vs ~$1.89B — the beat supports underlying operating performance. Zacks: Q1 EPS & Revenues Top Estimates
• Neutral Sentiment: Revenue growth was modest (year-over-year revenue up ~1.7%) and company materials (earnings slide deck and call transcript) provide details on margin trends and account volumes for those modeling forward quarters. Insperity Q1 Slide Deck Earnings Call Transcript
• Neutral Sentiment: Some analysts view margin progress as offsetting softer staffing volumes, leading to Hold/Neutral stances rather than upgrades — that suggests limited near-term upside from analyst revisions. TipRanks/William Blair: Hold Rating
• Negative Sentiment: Management cut guidance: Q2 EPS guide 0.020–0.500 (consensus ~0.420) and FY2026 guide 1.600–2.600 (consensus ~1.94). The wider/lower guidance range raises uncertainty about near-term volume and growth, pressuring the stock. MarketBeat: Guidance Update & Q1 Release
• Negative Sentiment: Analyst downgrade and price-target cut: JPMorgan moved to an “underweight” and trimmed its PT to $33 (noting limited near-term upside), which adds selling pressure from institutional managers. Benzinga: JPMorgan Lowers PT & Rating

Analysts Set New Price Targets

A number of research firms have issued reports on NSP. Wall Street Zen cut Insperity from a “hold” rating to a “sell” rating in a research note on Saturday, March 28th. The Goldman Sachs Group set a $62.00 target price on Insperity in a research note on Monday, January 5th. Robert W. Baird set a $36.00 target price on Insperity in a research note on Wednesday, February 11th. Weiss Ratings reissued a “sell (d)” rating on shares of Insperity in a research note on Friday, March 27th. Finally, Zacks Research raised Insperity from a “strong sell” rating to a “hold” rating in a research note on Monday, April 13th. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus price target of $46.00.

Insider Activity

In related news, EVP James D. Allison acquired 10,000 shares of the stock in a transaction on Tuesday, March 10th. The shares were purchased at an average price of $20.45 per share, for a total transaction of $204,500.00. Following the purchase, the executive vice president directly owned 94,272 shares in the company, valued at approximately $1,927,862.40. The trade was a 11.87% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Paul J. Sarvadi purchased 25,000 shares of the firm’s stock in a transaction dated Thursday, March 19th. The stock was acquired at an average price of $23.60 per share, for a total transaction of $590,000.00. Following the purchase, the chief executive officer owned 997,912 shares in the company, valued at approximately $23,550,723.20. The trade was a 2.57% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders acquired a total of 214,437 shares of company stock valued at $4,941,246 in the last quarter. Corporate insiders own 5.29% of the company’s stock.

Institutional Investors Weigh In On Insperity

Several hedge funds have recently modified their holdings of NSP. Caitong International Asset Management Co. Ltd lifted its stake in shares of Insperity by 75.9% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 964 shares of the business services provider’s stock valued at $47,000 after purchasing an additional 416 shares during the period. UMB Bank n.a. increased its holdings in Insperity by 62.9% during the 4th quarter. UMB Bank n.a. now owns 1,427 shares of the business services provider’s stock worth $55,000 after purchasing an additional 551 shares in the last quarter. Parallel Advisors LLC increased its holdings in Insperity by 501.1% during the 4th quarter. Parallel Advisors LLC now owns 1,587 shares of the business services provider’s stock worth $61,000 after purchasing an additional 1,323 shares in the last quarter. Geneos Wealth Management Inc. increased its holdings in Insperity by 32.2% during the 1st quarter. Geneos Wealth Management Inc. now owns 747 shares of the business services provider’s stock worth $67,000 after purchasing an additional 182 shares in the last quarter. Finally, Kestra Advisory Services LLC purchased a new stake in shares of Insperity during the fourth quarter valued at approximately $87,000. Institutional investors and hedge funds own 93.44% of the company’s stock.

About Insperity

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.