TriNet Q1 Adjusted EPS Rises 25% to $2.48 as Revenues Decline 5%
TNET•TriNet reported 11% GAAP EPS growth to $1.90 and 25% adjusted EPS growth to $2.48 in Q1 2026, with adjusted EBITDA margin rising to 15.2% from 12.6%. Total revenues fell 5% to $1.2 billion and average worksite employees declined 12% to approximately 300,000.
1. Profit and Revenue
TriNet posted GAAP net income of $89 million, or $1.90 per diluted share, up 11% year over year, and adjusted net income per share rose 25% to $2.48. Total Q1 revenues declined 5% to $1.2 billion, including a 10% drop in professional service revenue to $189 million.
2. Margin Expansion and Cash Flow
Adjusted EBITDA reached $186 million, lifting the margin to 15.2% from 12.6% a year earlier. The company generated $149 million in operating cash flow and $123 million in free cash flow, deploying approximately $71 million to dividends and share repurchases.
3. Workforce Trends and Outlook
Average worksite employees decreased 12% to about 300,000, reflecting pacing from the prior year. TriNet reaffirmed full-year 2026 guidance, forecasting revenues of $4.75 billion to $4.90 billion, an adjusted EBITDA margin of 7.5% to 8.7%, and adjusted diluted EPS of $3.70 to $4.70.
