CBIZ (NYSE:CBZ) Posts Earnings Results, Beats Expectations By $1.70 EPS

Key Points

• Big beat and upgraded guidance: CBIZ reported Q1 EPS of $2.50 versus $0.80 expected and revenue of $848.6M (vs. $700.1M est.), and raised FY2026 adjusted EPS guidance to $4.00–$4.10 while reaffirming revenue, adjusted EBITDA, and FCF guidance.
• Management is rolling out agentic AI (projected 20% data‑extraction efficiency in year one) and plans greater offshoring and active buybacks to drive productivity, margin expansion and reduce net leverage to below 2.5x by 2027.
• Near‑term headwind in Benefits & Insurance: revenue declined about 4% in Q1 due to tough comparisons, lower contingent commissions and the unexpected departure of a producer and team, which the company says was isolated.

CBIZ (NYSE:CBZ - Get Free Report) announced its quarterly earnings results on Wednesday. The business services provider reported $2.50 EPS for the quarter, beating analysts' consensus estimates of $0.80 by $1.70, FiscalAI reports. CBIZ had a return on equity of 12.23% and a net margin of 4.19%.The firm had revenue of $848.58 million for the quarter, compared to analyst estimates of $700.07 million. During the same period last year, the firm posted $2.33 earnings per share. The business's revenue for the quarter was up 1.3% on a year-over-year basis. 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 Trading Up 2.3%

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

Insiders Place Their Bets

In other CBIZ news, CFO Brad S. Lakhia acquired 12,775 shares of the stock in a transaction dated Friday, March 13th. The stock was purchased at an average cost of $25.97 per share, with a total value of $331,766.75. Following the transaction, the chief financial officer owned 148,480 shares in the company, valued at approximately $3,856,025.60. The trade was a 9.41% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. Insiders own 4.10% of the company's stock.

Institutional Investors Weigh In On CBIZ

Several institutional investors and hedge funds have recently made changes to their positions in CBZ. Corient Private Wealth LLC increased its holdings in CBIZ by 6.9% in the fourth quarter. Corient Private Wealth LLC now owns 6,368 shares of the business services provider's stock worth $321,000 after purchasing an additional 410 shares in the last quarter. Mercer Global Advisors Inc. ADV grew its position in shares of CBIZ by 26.2% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 8,791 shares of the business services provider's stock worth $444,000 after buying an additional 1,825 shares during the period. XTX Topco Ltd grew its position in shares of CBIZ by 694.2% during the 4th quarter. XTX Topco Ltd now owns 53,361 shares of the business services provider's stock worth $2,692,000 after buying an additional 46,642 shares during the period. Wellington Management Group LLP increased its stake in shares of CBIZ by 21.4% in the 4th quarter. Wellington Management Group LLP now owns 440,510 shares of the business services provider's stock valued at $22,224,000 after acquiring an additional 77,583 shares in the last quarter. Finally, Twinbeech Capital LP bought a new stake in shares of CBIZ in the 4th quarter valued at $1,386,000. Institutional investors own 87.44% of the company's stock.

Analyst Upgrades and Downgrades

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

CBIZ Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.