Insperity (NYSE:NSP) Releases Earnings Results, Beats Expectations By $0.07 EPS

Insperity (NYSE:NSP) released its quarterly earnings data 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. The business had revenue of $1.90 billion for the quarter, compared to analysts’ expectations of $1.89 billion. Insperity had a negative return on equity of 26.99% and a negative net margin of 0.37%.Insperity’s quarterly revenue was up 1.7% on a year-over-year basis. During the same period in the previous year, the business posted $1.57 earnings per share. 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 Price Performance

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

Insperity Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, March 20th. Investors of record on Friday, March 6th were paid a $0.60 dividend. The ex-dividend date of this dividend was Friday, March 6th. This represents a $2.40 annualized dividend and a yield of 8.4%. Insperity’s payout ratio is currently -1,200.00%.

More 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

Insider Buying and Selling at Insperity

In related news, EVP James D. Allison purchased 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, March 10th. The shares were acquired at an average price of $20.45 per share, with a total value of $204,500.00. Following the purchase, the executive vice president directly owned 94,272 shares in the company, valued at $1,927,862.40. This represents 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 the SEC website. Also, CEO Paul J. Sarvadi purchased 25,000 shares of the firm’s stock in a transaction that occurred on Thursday, March 19th. The stock was bought at an average cost 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 $23,550,723.20. This represents a 2.57% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last ninety days, insiders purchased 214,437 shares of company stock worth $4,941,246. 5.29% of the stock is owned by insiders.

Institutional Trading of Insperity

Institutional investors have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd boosted its stake in Insperity by 75.9% in the third quarter. Caitong International Asset Management Co. Ltd now owns 964 shares of the business services provider’s stock worth $47,000 after purchasing an additional 416 shares in the last quarter. UMB Bank n.a. grew its holdings in shares of Insperity by 62.9% during the fourth 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 during the last quarter. Parallel Advisors LLC grew its holdings in shares of Insperity by 501.1% during the fourth 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 during the last quarter. Geneos Wealth Management Inc. grew its holdings in shares of Insperity by 32.2% during the first 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 during the last quarter. Finally, Kestra Advisory Services LLC bought a new stake in shares of Insperity during the fourth quarter worth $87,000. Institutional investors and hedge funds own 93.44% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Roth Mkm set a $54.00 price objective on Insperity in a research report on Friday. UBS Group set a $56.00 price objective on Insperity in a research report on Wednesday, February 11th. JPMorgan Chase & Co. lowered their price objective on Insperity from $35.00 to $33.00 and set an “underweight” rating on the stock in a research report on Friday. The Goldman Sachs Group set a $62.00 price objective on Insperity in a research report on Monday, January 5th. Finally, Zacks Research upgraded Insperity from a “strong sell” rating to a “hold” rating in a research report on Monday, April 13th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Insperity currently has a consensus rating of “Reduce” and a consensus target price of $46.00.

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.