TriNet Group (TNET)
NYSE:TNET
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TriNet Group
(NYSE:TNET)
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Rating:57Neutral
Price Target:
$44.00
â–²(13.49% Upside)
Action:ReiteratedDate:04/30/26
The score is primarily constrained by weakened profitability trends and high balance-sheet leverage despite solid cash generation. Technicals are constructive but look somewhat extended, while valuation is reasonable (moderate P/E and a ~2.6% yield). Earnings commentary was mixed: improving insurance profitability and reiterated guidance, but meaningful volume and revenue declines remain key risks.
Positive Factors
Cash generation & FCF conversion
Improved free cash flow conversion and solid operating cash flow show higher-quality earnings and internal funding capacity. Over the next 2–6 months this durable cash generation supports dividends, buybacks, selective M&A and product investments without immediate reliance on external financing.
Negative Factors
Elevated leverage & thin equity base
Very high leverage and a thin equity base materially constrain financial flexibility. This structural balance-sheet risk limits the company's ability to absorb adverse insurance or revenue shocks, slows deleveraging potential and restricts capital allocation options over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & FCF conversion
Improved free cash flow conversion and solid operating cash flow show higher-quality earnings and internal funding capacity. Over the next 2–6 months this durable cash generation supports dividends, buybacks, selective M&A and product investments without immediate reliance on external financing.
Read all positive factors
TriNet Group (TNET) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.05B
Dividend Yield1.81%
Average Volume (3M)353.37K
Price to Earnings (P/E)4.8
Beta (1Y)0.99
Revenue Growth-1.40%
EPS Growth-0.67%
CountryUS
Employees343,025
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)2.48
Shares Outstanding46,121,227
10 Day Avg. Volume333,211
30 Day Avg. Volume353,373
Financial Highlights & Ratios
PEG Ratio-2.35
Price to Book (P/B)52.56
Price to Sales (P/S)0.57
P/FCF Ratio9.28
Enterprise Value/Market Cap0.48
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit1.11
Enterprise Value/Ebitda2.53
Forecast
1Y Price Target
$54.00Price Target Upside39.28% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)4.26
Revenue Forecast (FY)$4.21B
TriNet Group Business Overview & Revenue Model
Company Description
TriNet Group, Inc. provides human resources (HR) solutions, payroll services, employee benefits, and employment risk mitigation services for small and midsize businesses in the United States. The company offers multi-state payroll processing and t...
How the Company Makes Money
TriNet makes money primarily by providing PEO and HR outsourcing services to client businesses under a co-employment arrangement, in which TriNet becomes the employer of record for certain HR and benefits purposes while the client retains control ...
TriNet Group Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The call presented a mix of significant operational and financial improvements alongside notable volume declines driven by prior repricing actions. Key positives included a 25% increase in adjusted EPS, a >4-point improvement in ICR to 84%, strong adjusted EBITDA and cash generation (free cash flow conversion up to 66%), doubling of ASO ARR, progress on AI-driven productivity (6% reduction in inbound contacts during tax season), and active capital return and M&A activity (Cocoon). Offsetting these were meaningful declines in revenue (-5% YoY), co‑employee and total WSE counts (-12% YoY), a 10% decline in professional services revenue, and near-term sales cadence pressure (longer time-to-close and March softness). Management reiterated full-year guidance and positioned the business to track to the top half of earnings guidance, noting the Q1 insurance favorability included a one-time prior-period benefit. Overall, the company emphasized that repricing actions and investments (AI, product, sales, Cocoon) are creating a foundation for stabilization and future sustainable growth, while acknowledging short-term headwinds from volumes and repricing.Positive Updates
Adjusted EPS Growth
Adjusted net income per diluted share of $2.48 in Q1, up 25% year-over-year, supported by disciplined pricing and expense management.
Negative Updates
Revenue Decline
Total revenues of $1.2 billion in Q1, down 5% year-over-year, driven by declining WSE volumes despite pricing benefits in insurance and professional services.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EPS Growth
Adjusted net income per diluted share of $2.48 in Q1, up 25% year-over-year, supported by disciplined pricing and expense management.
Read all positive updates
Company Guidance
TriNet reiterated its 2026 outlook, calling for total revenues of $4.75–$4.90 billion, professional services revenue of $625–$645 million, an insurance cost ratio (ICR) guidance band of roughly 89.25%–90.75%, adjusted EBITDA margin of 7.5%–8.7%, GAAP EPS of $2.15–$3.05 and adjusted EPS of $3.70–$4.70; management said strong Q1 results have shifted full‑year earnings toward the top half of those ranges. In Q1 the company reported $1.2 billion of revenue (‑5% YoY), adjusted EBITDA of $186 million (15.2% margin), GAAP EPS $1.90 and adjusted EPS $2.48; insurance services revenue was down 4% while insurance costs fell 9%, producing a Q1 ICR of 84% (improving over 4 points YoY) and insurance revenue per average co‑employee WSE up ~9.6%. Q1 professional services revenue was $189 million (‑10%), interest revenue $14 million (‑22%), total WSEs ~299,000 and co‑employed WSEs ~273,000 (both down ~12% YoY), net cash from operations $149 million and free cash flow $123 million; the company returned $71 million to shareholders (repurchased ~1.3M shares for $58M and paid a $0.275 dividend, raised to $0.29). Management kept the full‑year ICR range intact despite Q1’s favorable prior‑period development, noted Cocoon is modestly dilutive in 2026 and neutral in 2027, and emphasized that, absent a significant uncontrollable event, results are tracking to the more favorable end of guidance.TriNet Group Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
28
Negative
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.94B | 5.01B | 5.05B | 4.92B | 4.88B | 4.54B |
| Gross Profit | 874.00M | 870.00M | 952.00M | 1.10B | 1.12B | 937.00M |
| EBITDA | 385.00M | 365.00M | 374.00M | 662.00M | 610.00M | 520.00M |
| Net Income | 159.00M | 155.00M | 173.00M | 375.00M | 355.00M | 338.00M |
Balance Sheet | ||||||
| Total Assets | 3.42B | 3.80B | 4.12B | 3.69B | 3.44B | 3.31B |
| Cash, Cash Equivalents and Short-Term Investments | 340.00M | 1.98B | 360.00M | 352.00M | 430.00M | 747.00M |
| Total Debt | 946.00M | 979.00M | 1.02B | 1.14B | 552.00M | 547.00M |
| Total Liabilities | 3.34B | 3.74B | 4.05B | 3.62B | 2.67B | 2.43B |
| Stockholders Equity | 83.00M | 54.00M | 69.00M | 78.00M | 775.00M | 881.00M |
Cash Flow | ||||||
| Free Cash Flow | 330.00M | 306.00M | 201.00M | 470.00M | 506.00M | 178.00M |
| Operating Cash Flow | 357.00M | 303.00M | 279.00M | 545.00M | 562.00M | 218.00M |
| Investing Cash Flow | -48.00M | -43.00M | 153.00M | -70.00M | -226.00M | -135.00M |
| Financing Cash Flow | -200.00M | -49.00M | -207.00M | -546.00M | -536.00M | 12.00M |
TriNet Group Technical Analysis
Negative
38.77
Price Trends
38.87
Negative
48.93
Negative
56.48
Negative
Market Momentum
-0.38
Negative
53.46
Neutral
82.09
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNET, the sentiment is Negative. The current price of 38.77 is above the 20-day moving average (MA) of 37.28, below the 50-day MA of 38.87, and below the 200-day MA of 56.48, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 53.46 is Neutral, neither overbought nor oversold. The STOCH value of 82.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TNET.
TriNet Group Risk Analysis
TriNet Group disclosed 29 risk factors in its most recent earnings report. TriNet Group reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TriNet Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $33.33B | 15.02 | 40.94% | 3.70% | 16.44% | -5.79% | |
73 Outperform | $86.25B | 14.98 | 68.69% | 2.46% | 6.92% | 9.71% | |
65 Neutral | $771.66M | 16.87 | 23.66% | 0.88% | 8.37% | 4.58% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $2.05B | 4.81 | 185.63% | 1.81% | -1.40% | -0.67% | |
53 Neutral | $2.76B | 45.87 | 9.98% | 8.65% | -6.08% | -35.51% | |
50 Neutral | $1.09B | 7.72 | -7.69% | 6.37% | 3.04% | -139.52% |
* Industrials Sector Average
TNET
TriNet Group
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TriNet Group Corporate Events
Dividends
TriNet Declares Quarterly Dividend, Highlighting Shareholder Focus
Positive
Mar 19, 2026
On March 19, 2026, TriNet announced that its board approved a quarterly dividend of $0.29 per share on its common stock, with a record and ex-dividend date of April 1, 2026. The dividend is scheduled to be paid on April 27, 2026, signaling continu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.