CBIZ (NYSE:CBZ) Releases Earnings Results, Beats Estimates By $1.70 EPS

CBIZ (NYSE:CBZ) released its earnings results on Wednesday. The business services provider reported $2.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.80 by $1.70, FiscalAI reports. CBIZ had a net margin of 4.19% and a return on equity of 12.23%. The company had revenue of $848.58 million for the quarter, compared to the consensus estimate of $700.07 million. During the same quarter in the previous year, the company earned $2.33 EPS. CBIZ’s quarterly revenue was up 1.3% compared to the same quarter last year. CBIZ updated its FY 2026 guidance to 4.000-4.100 EPS.

Here are the key takeaways from CBIZ’s conference call:

• CBIZ is reaffirming 2026 revenue, adjusted EBITDA, and free cash flow guidance and raised its adjusted EPS outlook to $4.00–$4.10, citing accretive share repurchases and lower share count.
• Q1 results were in line with expectations: consolidated revenue up 1.3% (organic +1%), adjusted EBITDA of $244M, and improved free cash flow largely aided by a one-time $53 million purchase price adjustment.
• The company began a company-wide rollout of agentic AI capabilities, citing a test-case data-extraction efficiency of 20% in year one (forecast to reach 40%) and expecting AI to drive productivity, higher-value advisory mix, better win rates, and cross-sell opportunities.
• Benefits & Insurance revenue declined ~4% in Q1 due to tough comps, contingent commission declines, and the unexpected departure of a producer and team in February, which the company says was isolated but dented near-term results.
• Strong free cash flow supports an active buyback program and deleveraging plan (targeting net leverage <2.5x by 2027), while planned offshoring increases (from ~6% to 10% of hours in 2026, >20% longer-term) are expected to drive margin expansion.

CBIZ Stock Up 2.3%

Shares of NYSE CBZ traded up $0.76 during midday trading on Wednesday, hitting $33.24. 1,411,154 shares of the stock traded hands, compared to its average volume of 1,188,552. The company has a market cap of $1.82 billion, a PE ratio of 18.78, a P/E/G ratio of 0.58 and a beta of 0.93. CBIZ has a one year low of $24.29 and a one year high of $77.91. The business has a 50 day moving average price of $28.20 and a two-hundred day moving average price of $41.45. The company has a debt-to-equity ratio of 0.79, a quick ratio of 1.22 and a current ratio of 1.22.

Insider Activity at CBIZ

In other news, CFO Brad S. Lakhia acquired 12,775 shares of the firm’s stock in a transaction dated Friday, March 13th. The stock was purchased at an average price of $25.97 per share, for a total transaction of $331,766.75. Following the completion of the acquisition, the chief financial officer directly owned 148,480 shares in the company, valued at $3,856,025.60. The trade was a 9.41% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. 4.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Durable Capital Partners LP purchased a new position in shares of CBIZ during the third quarter valued at approximately $207,872,000. Bank of Montreal Can purchased a new position in shares of CBIZ during the fourth quarter valued at approximately $113,596,000. State Street Corp boosted its position in shares of CBIZ by 4.6% during the second quarter. State Street Corp now owns 1,210,801 shares of the business services provider’s stock valued at $86,827,000 after buying an additional 53,099 shares during the last quarter. Sunriver Management LLC boosted its position in shares of CBIZ by 65.8% during the fourth quarter. Sunriver Management LLC now owns 989,349 shares of the business services provider’s stock valued at $49,913,000 after buying an additional 392,587 shares during the last quarter. Finally, Northern Trust Corp boosted its position in shares of CBIZ by 4.1% during the third quarter. Northern Trust Corp now owns 933,816 shares of the business services provider’s stock valued at $49,455,000 after buying an additional 36,420 shares during the last quarter. Hedge funds and other institutional investors own 87.44% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the stock. Weiss Ratings reiterated a “sell (d+)” rating on shares of CBIZ in a research report on Wednesday, January 21st. BMO Capital Markets initiated coverage on shares of CBIZ in a research report on Monday, March 30th. They set an “outperform” rating and a $33.00 target price on the stock. Zacks Research upgraded CBIZ from a “strong sell” rating to a “hold” rating in a report on Friday, March 27th. Deutsche Bank Aktiengesellschaft initiated coverage on CBIZ in a report on Monday, January 12th. They set a “hold” rating and a $60.00 price objective for the company. Finally, Stephens initiated coverage on CBIZ in a report on Friday, April 10th. They set an “equal weight” rating and a $31.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, CBIZ presently has a consensus rating of “Hold” and a consensus price target of $41.33.

About CBIZ

CBIZ, Inc (NYSE: CBZ), founded in 1996 and headquartered in Cleveland, Ohio, is a leading provider of professional business services in the United States. Since its inception, the company has grown through both organic expansion and strategic acquisitions to deliver a broad spectrum of financial, tax and advisory solutions tailored to the needs of small to mid-market organizations.

Through its Financial & Advisory Services segment, CBIZ offers accounting, tax preparation and compliance, audit support, and wealth management services.