Insperity’s NSP second-quarter 2026 adjusted earnings were 34 cents per share in the second quarter of 2026, rising 31% year over year and surpassing the Zacks Consensus Estimate of 33 cents by 3%. Revenues increased 2% to $1.69 billion and beat the consensus mark of $1.67 billion by 0.5%.
How Is Insperity Doing?
Insperity entered the third quarter of 2026 with nearly 8,000 WSEEs in sold HRScale accounts, including more than 5,000 live and about 3,000 in implementation. HRScale extends its PEO offering to companies with 150-5,000 employees through Workday Human Capital Management and is priced above HR360.
While adoption remains early, management reported progress across migrations and new prospects. Management also anticipates HRScale profitability over the next several years to be comparable with or better than HR360.
Working capital increased to $180 million as of June 30, 2026, from $102 million at the end of 2025, while adjusted cash rose to $95 million from $57 million. The rally came alongside a $50-million working-capital draw, leaving $330 million available under the $750-million revolving facility. Management anticipates cash, operating cash flows and facility availability to meet liquidity requirements through the remainder of 2026.
Insperity paid out dividends of $84 million, $89 million and $90 million in 2023, 2024 and 2025, respectively, followed by $46 million in the first half of 2026. The board maintained a quarterly dividend of 60 cents per share in the first two quarters of 2026. Buybacks have moderated, with no program repurchases in the first half of 2026, making dividends the more dependable component of capital returns.
Meanwhile, the company operates in a fragmented PEO market, where some competitors offer lower-priced services. In the first half of 2026, sales and retention finished at the lower end of typical ranges following pricing and process changes tied to margin recovery, while average paid WSEEs declined 1%. Fierce competition raises the need to invest heavily to remain on the competitive track, which might create imbalances in growth and profitability.
Insperity had $419 million of revolving borrowings as of June 30, 2026, versus $369 million of long-term debt at the end of 2025. The $50-million second-quarter draw addressed working-capital timing needs, while operating activities used $19 million in cash in the first half. Management expects liquidity to remain adequate through 2026, supported by $330 million in unused facility capacity. Even so, higher borrowings lower remaining financial flexibility and raise exposure to variable interest rates.
Earnings Snapshot of Peers
Paychex PAYX reported an impressive first quarter of fiscal 2027.
PAYX registered adjusted earnings of $1.34 per share, rising 9.8% year over year and beating the Zacks Consensus Estimate of $1.33 by a slight margin. Total revenues grew 5.9% to $1.63 billion, topping the consensus mark of $1.62 billion by a small margin.
Docusign DOCU posted impressive second-quarter fiscal 2027 results.
DOCU reported second-quarter fiscal 2027 adjusted earnings of $1.16 per share, which rallied 26.1% year over year and surpassed the Zacks Consensus Estimate of $1.08. Revenues increased 9.4% to $875.7 million and beat the consensus mark of $867.6 million by 0.9%.
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