Insperity

Q2 FY2026 EarningsQ2 FY26 results beat consensus across most key earnings metrics, despite a slight revenue beat and gross margin pressure. Revenue reached $1,686M, roughly 0.86% above the $1,672M consensus. Normalized EPS of $0.34 exceeded the $0.32 expectation by 6.86%, driven by aggressive corporate cost-cutting, including an 11% YoY reduction in salaries and wages. While gross margins missed expectations at 12.87% (vs. 13.80% consensus) due to elevated health insurance and workers' compensation costs, the company effectively passed through pricing increases (+3% per WSEE) to mitigate the impact.