HR outsourcing provider Insperity (NYSE: NSP) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 1.7% year on year to $1.69 billion. Its non-GAAP profit of $0.34 per share was 6.9% above analysts’ consensus estimates.

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“We are pleased that our second quarter results reflect meaningful progress on our top 2026 priority of margin recovery, with worksite employee growth and profitability metrics meeting or exceeding our forecasted ranges,” said Paul J. Sarvadi, Insperity chairman and chief executive officer.

Company Overview

Pioneering the professional employer organization (PEO) industry it helped establish, Insperity (NYSE: NSP) provides human resources outsourcing services to small and medium-sized businesses, handling payroll, benefits, compliance, and HR administration.

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years.

With $6.87 billion in revenue over the past 12 months, Insperity is one of the larger companies in the business services industry and benefits from a well-known brand that influences purchasing decisions.

As you can see below, Insperity grew its sales at a solid 8.7% compounded annual growth rate over the last five years. This shows it had high demand, a useful starting point for our analysis.

Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Insperity’s recent performance shows its demand has slowed as its annualized revenue growth of 2.5% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.

This quarter, Insperity reported modest year-on-year revenue growth of 1.7% but beat Wall Street’s estimates by 0.7%.

Looking ahead, sell-side analysts expect revenue to grow 2.6% over the next 12 months, similar to its two-year rate. This projection is underwhelming and implies its newer products and services will not catalyze better top-line performance yet.

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Adjusted Operating Margin

Insperity was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 3% was weak for a business services business.

Looking at the trend in its profitability, Insperity’s adjusted operating margin decreased by 3.8 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Insperity’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers.

In Q2, Insperity’s breakeven margin was 0.4%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Sadly for Insperity, its EPS declined by 27.1% annually over the last five years while its revenue grew by 8.7%. This tells us the company became less profitable on a per-share basis as it expanded.

We can take a deeper look into Insperity’s earnings to better understand the drivers of its performance. As we mentioned earlier, Insperity’s adjusted operating margin was flat this quarter but declined by 3.8 percentage points over the last five years. Its share count also grew by 3%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Insperity, its two-year annual EPS declines of 60.1% show it’s continued to underperform. These results were bad no matter how you slice the data.

In Q2, Insperity reported adjusted EPS of $0.34, up from $0.26 in the same quarter last year. This print beat analysts’ estimates by 6.9%. Over the next 12 months, Wall Street expects Insperity’s full-year EPS to grow 176% from $0.85 to $2.34.

Key Takeaways from Insperity’s Q2 Results

We enjoyed seeing Insperity beat analysts’ full-year EPS guidance expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its EPS guidance for next quarter missed. Overall, this print had some key positives. The stock remained flat at $52.83 immediately following the results.

Is Insperity an attractive investment opportunity at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).