CBIZ (NYSE:CBZ) Issues Quarterly Earnings Results

Key Points

• CBIZ reported Q1 EPS of $2.50, beating the $2.28 consensus, with revenue of $848.6M, and raised FY2026 adjusted EPS guidance to $4.00–$4.10.
• The company is rolling out agentic AI (initial data‑extraction efficiency ~20% rising toward 40%) and increasing offshoring and buybacks to drive productivity, margin expansion and reach a target of net leverage <2.5x by 2027.
• Benefits & Insurance revenue declined ~4% due to tough comps, commission weakness and an unexpected producer departure, while CFO Brad Lakhia purchased 12,775 shares, boosting his stake by about 9.4%.

CBIZ (NYSE:CBZ - Get Free Report) announced its quarterly earnings data on Wednesday. The business services provider reported $2.50 earnings per share for the quarter, beating the consensus estimate of $2.28 by $0.22, FiscalAI reports. The firm had revenue of $848.58 million during the quarter, compared to analysts' expectations of $700.07 million. CBIZ had a return on equity of 12.23% and a net margin of 4.19%.The company's quarterly revenue was up 1.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.33 EPS. 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 Price Performance

CBIZ stock opened at $33.23 on Thursday. The company has a debt-to-equity ratio of 0.79, a quick ratio of 1.22 and a current ratio of 1.22. CBIZ has a 52 week low of $24.29 and a 52 week high of $77.91. The stock has a market capitalization 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 stock has a fifty day moving average of $28.27 and a 200-day moving average of $41.39.

Insiders Place Their Bets

In other CBIZ news, CFO Brad S. Lakhia acquired 12,775 shares of CBIZ stock in a transaction that occurred on Friday, March 13th. The shares were acquired at an average cost of $25.97 per share, with a total value of $331,766.75. Following the completion of the purchase, the chief financial officer directly owned 148,480 shares of the company's stock, valued at $3,856,025.60. This represents a 9.41% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 4.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in CBZ. Balyasny Asset Management L.P. grew its holdings in shares of CBIZ by 4.9% during the 2nd quarter. Balyasny Asset Management L.P. now owns 4,969 shares of the business services provider's stock valued at $356,000 after purchasing an additional 230 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in CBIZ by 0.8% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 29,529 shares of the business services provider's stock valued at $2,117,000 after purchasing an additional 235 shares during the last quarter. Corient Private Wealth LLC boosted its position in CBIZ by 4.4% in the second quarter. Corient Private Wealth LLC now owns 9,747 shares of the business services provider's stock valued at $694,000 after buying an additional 408 shares in the last quarter. Caitong International Asset Management Co. Ltd boosted its position in CBIZ by 377.8% in the third quarter. Caitong International Asset Management Co. Ltd now owns 559 shares of the business services provider's stock valued at $30,000 after buying an additional 442 shares in the last quarter. Finally, EverSource Wealth Advisors LLC grew its stake in shares of CBIZ by 165.4% during the second quarter. EverSource Wealth Advisors LLC now owns 722 shares of the business services provider's stock worth $52,000 after buying an additional 450 shares during the last quarter. Institutional investors own 87.44% of the company's stock.

Analyst Upgrades and Downgrades

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