| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 80 | 17.5x | 17.8x | Top tier | |
Growth | 19 | -4.4% | 7.1% | Bottom tier | |
Quality | 84 | 21.5% | 4.5% | Top tier | |
Safety | 58 | 1.6x | 2.6x | Around median | |
Capital Return | 61 | 1.64% | 2.12% | Around median | |
Momentum | 82 | -1.7% | 2.9% | Top tier | |
Sentiment | 40 | 5 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
TriNet Group provides human resources services to small and medium-sized businesses through a professional employer organization model, including payroll, benefits, insurance, workforce management, and compliance. Its revenue comes from insurance services, professional services, and interest, with business volume linked to the number of worksite employees WSE covered by its services; in Q2 fiscal 2026, total WSE was approximately 300 thousand, including 274 thousand under the co-employment model. The company is also expanding its smaller ASO business, which achieved double-digit growth during the quarter, and is adding revenue from Cocoon following its acquisition to provide leave-of-absence management solutions.
In Q2 fiscal 2026, revenue was $1.2 billion, down 5% year over year, while net income according to EDGAR data was approximately $53 million and diluted earnings per share were $1.15. Professional services revenue was $159 million, down 8%, and interest revenue was $12 million, down 33%, while insurance services revenue declined 4% and insurance costs fell 8%. This resulted in a four-point improvement in the insurance cost ratio to 86%, while adjusted earnings before interest, taxes, depreciation, and amortization were $128 million at a 10.9% margin.
On a trailing twelve-month basis in fiscal 2026, the latest EDGAR data showed revenue of $4.9 billion, net income of $175 million, and earnings per share of approximately $3.80. In Q2 fiscal 2026, TriNet generated $88 million in operating cash flow and $67 million in free cash flow, up 18%, and returned $31 million to shareholders through the repurchase of approximately 500 thousand shares for $18 million and a cash dividend of $0.29 per share.
Automated analysis for informational purposes only — not investment advice.
Analyst consensus on TNET stock is neutral, with an average target of $85 and a wide range of $62 to $140; the average is above the 52-week range high of $73.08, while the low is $33.61. The higher target suggests recovery potential if the WSE base stabilizes and sales investments translate into growth, but the wide target range and the absence of an available price-to-earnings multiple make the valuation sensitive to the sustainability of the insurance improvement and the company's ability to halt revenue contraction.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Revenue declined 5% year over year to $1.2 billion because of lower WSE volumes, partially offset by pricing for insurance services and professional services. Total WSE was approximately 300 thousand, down 12%, and co-employment WSE declined 11% to 274 thousand. Professional services revenue also declined 8% to $159 million, and interest revenue fell 33% to $12 million. Management maintained the fiscal 2026 revenue range at $4.75 billion to $4.9 billion, with results trending at or slightly below the midpoint of the range.
Insurance costs declined 8% compared with a 4% decline in insurance services revenue, improving the insurance cost ratio by four points to 86%. Approximately two points of this improvement came from favorable prior-year reserve development, and approximately two points came from a nonrecurring recovery of insurance administrative costs. Adjusted earnings before interest, taxes, depreciation, and amortization were $128 million at a 10.9% margin, while net income according to EDGAR was approximately $53 million. These results prompted the company to raise its fiscal 2026 adjusted earnings margin range to 8.5%–9% and its adjusted earnings per share range to $4.50–$5.10.
The WSE base had not returned to growth through Q2 fiscal 2026; total WSE of approximately 300 thousand was sequentially stable but 12% lower year over year. In contrast, customer attrition declined 36%, with healthcare pricing-related attrition down 58% and service-related attrition down 47%. Management expects retention to continue improving and new sales to increase in the second half of fiscal 2026, but it did not provide a precise timeline for WSE to return to growth. It views the nearer-term step as a return to revenue growth when the impact of pricing exceeds the slowing decline in WSE.
TriNet Assistant handled approximately 50% of customer-initiated chat sessions since its launch in spring 2026, including questions about benefits, payroll, and workforce management. The company uses an artificial intelligence-powered customer health score to aggregate engagement signals and link them to customer satisfaction and retention. It has also introduced artificial intelligence into matching customers with health plan packages and the prospecting tools used by the sales team. In July 2026, it launched an enhanced health plan pricing engine aimed at improving the quality, speed, and consistency of proposals.
The broker channel represented 32% of new sales by the end of Q2 fiscal 2026, and requests for proposals through the channel increased 54% year over year. The number of sales representatives with more than four years of experience increased 7%, their productivity rose 13%, and they were, on average, five times more productive than first-year representatives. TriNet hired more than 100 representatives through ASCEND, and the first cohort of slightly more than 20 representatives moved into production in Q3 fiscal 2026. The company expects to end fiscal 2026 with approximately 20% more sales consultants than at the end of fiscal 2025.
Healthcare cost trends remained in the high single digits during Q2 fiscal 2026, despite being stable and slightly better than management's expectations. The company expects the insurance cost ratio to rise in the second half of fiscal 2026 because of utilization patterns, the satisfaction of deductibles, and the resetting of pooling limits. It also said that lower prescription drug cost inflation does not represent a confirmed change in trend because high-cost drugs may enter the market in the future. Therefore, TriNet continues to price toward the upper end of its long-term insurance cost ratio range of 86% to 90%.
