CBIZ (NYSE:CBZ) Releases Quarterly Earnings Results, Beats Estimates By $0.19 EPS

Key Points

• CBIZ reported adjusted EPS of $0.91, beating the $0.72 analyst consensus by $0.19. First-half revenue rose 0.6% to $1.53 billion, while net income increased 4.1% to $171.4 million.
• Grant Thornton Advisors agreed to acquire CBIZ in an all-cash deal valued at approximately $5.0 billion, or $55 per share. The transaction is expected to close in the fourth quarter of 2026, pending required approvals.
• Quarterly GAAP results were weaker, with revenue down 0.2%, net income falling 55.6% to $18.6 million, and GAAP EPS declining to $0.31. CBIZ withdrew its 2026 guidance because of the pending acquisition and disclosed an employee stock-plan rescission offer tied to internal-control remediation.

CBIZ (NYSE:CBZ - Get Free Report) posted its quarterly earnings results on Wednesday. The business services provider reported $0.91 EPS for the quarter, beating the consensus estimate of $0.72 by $0.19, Zacks reports. CBIZ had a net margin of 5.57% and a return on equity of 12.62%.

CBIZ Price Performance

CBIZ stock traded up $7.99 during mid-day trading on Wednesday, hitting $54.69. The company's stock had a trading volume of 9,777,886 shares, compared to its average volume of 1,076,795. The stock has a market capitalization of $2.93 billion, a P/E ratio of 21.98, a P/E/G ratio of 0.94 and a beta of 0.99. CBIZ has a twelve month low of $24.29 and a twelve month high of $76.70. The stock's fifty day moving average price is $35.36 and its two-hundred day moving average price is $33.56. The company has a quick ratio of 1.63, a current ratio of 1.63 and a debt-to-equity ratio of 0.77.

Key Stories Impacting CBIZ

Here are the key news stories impacting CBIZ this week:

• Positive Sentiment: Grant Thornton Advisors agreed to acquire CBIZ in an all-cash transaction valued at approximately $5.0 billion, or $55 per share. The deal provides a clear near-term valuation and is expected to close in the fourth quarter of 2026, subject to shareholder, regulatory and other approvals. CBIZ to be acquired by Grant Thornton Advisors
• Positive Sentiment: The acquisition is being viewed as a major strategic transaction for the accounting and consulting sector and helped push CBZ toward the proposed cash consideration. Grant Thornton seals accounting sector’s largest takeover in a generation
• Positive Sentiment: CBIZ reported adjusted diluted EPS of $0.91, beating the $0.72 analyst consensus by $0.19. First-half revenue increased 0.6% to $1.53 billion, net income rose 4.1% to $171.4 million, and operating cash flow improved substantially. CBIZ Reports Second-Quarter and First-Half 2026 Financial Results
• Neutral Sentiment: CBIZ withdrew its 2026 financial guidance and suspended further updates because of the pending acquisition. The company also said it would not hold an earnings conference call or webcast.
• Negative Sentiment: Quarterly operating performance was weaker on a GAAP basis: revenue fell 0.2% to $682.2 million, net income declined 55.6% to $18.6 million, GAAP EPS dropped to $0.31 from $0.66, and adjusted EBITDA decreased 14.3%. CBIZ Q2 revenue dips to $682 million as net income falls
• Negative Sentiment: CBIZ disclosed an employee stock purchase plan rescission offer and plans to remediate internal-control issues related to inadvertent purchases, creating additional compliance uncertainty. CBIZ Announces ESPP Rescission Offer, Control Remediation Plans

Institutional Investors Weigh In On CBIZ

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

Analyst Upgrades and Downgrades

A number of research analysts recently commented on CBZ shares. Stephens set a $37.00 price objective on CBIZ in a research note on Friday, May 1st. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $42.00 price target on shares of CBIZ in a research report on Thursday, April 30th. Weiss Ratings upgraded shares of CBIZ from a "sell (d)" rating to a "sell (d+)" rating in a research note on Monday, May 4th. Finally, Barrington Research began coverage on CBIZ in a research report on Wednesday, June 24th. They set an "outperform" rating and a $45.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $39.25.

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.

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