CBIZ earnings fell short of analyst expectations in the third quarter of 2026 despite higher revenue and profit. The professional-services company reported adjusted diluted earnings of $1.21 per share and revenue of $702.2 million on October 19, while withholding full-year guidance because of its pending $55-a-share cash acquisition.
Key Takeaways
- Adjusted diluted EPS missed estimates by $0.05, while revenue fell $19.79 million short.
- Quarterly net income rose 56.7%, outpacing revenue growth of 1.2%.
- The proposed acquisition remained subject to shareholder and regulatory approvals.
Table of Contents
- CBIZ earnings rise despite missing expectations
- Nine-month results show a more mixed profit trend
- Pending cash acquisition replaces the annual outlook
- Conclusion
CBIZ earnings rise despite missing expectations
CBIZ’s third-quarter 2026 results announcement showed revenue of $702.2 million for the three months ended September 30, up from $693.8 million a year earlier. Adjusted diluted EPS increased 14.2% to $1.21, but both measures were below analyst expectations.
Reported net income reached $47.2 million, compared with $30.1 million a year earlier. GAAP diluted EPS rose 64.6% to $0.79, while adjusted EBITDA increased 6.3% to approximately $132 million.
Profitability improved more sharply than sales. Operating expenses declined to $588.2 million from $603.7 million, and corporate general and administrative expenses also fell. Operating margin widened to 12.8% from 8.5%, distinguishing the stronger year-over-year performance from the shortfall against estimates.
Adjusted earnings exclude items including acquisition-related costs, integration costs and amortization of acquired intangible assets. They supplement rather than replace GAAP results.
| Item | Details |
|---|---|
| Nine-month revenue | Approximately $2.233 billion, up 0.8% year over year. |
| Nine-month net income | Approximately $219 million, up 12.2%. |
| Nine-month GAAP EPS | $3.62, up 18.3%. |
| Nine-month adjusted EBITDA | Approximately $479 million, down 1.2%. |
| Nine-month adjusted diluted EPS | $4.64, up 5.9%. |
Nine-month results show a more mixed profit trend
For the first nine months of 2026, revenue and adjusted diluted EPS increased, but adjusted EBITDA declined. That contrast means the quarterly improvement in adjusted EBITDA did not extend across the full year-to-date period.
Operating cash flow increased by $98 million from the comparable nine-month period, while free cash flow rose by $91 million. CBIZ provides accounting, tax, advisory, benefits, insurance and technology services to middle-market businesses nationwide.
Pending cash acquisition replaces the annual outlook
CBIZ and a U.S. Grant Thornton affiliate backed by New Mountain Capital announced a definitive merger agreement on July 29, 2026. Under the agreement, the affiliate would acquire CBIZ for $55 per share in cash, with an enterprise value of $5.0 billion.
The companies expected completion in the fourth quarter of 2026, subject to CBIZ shareholder approval, required regulatory approvals and other customary closing conditions. Completion was not assured. If the transaction closes, CBIZ would become privately held and its shares would cease trading on the New York Stock Exchange.
CBIZ said the proposed transaction was the reason it would neither provide full-year 2026 financial guidance nor host a conference call to discuss the third-quarter results.
Conclusion
CBIZ delivered stronger quarterly profit but missed earnings and revenue expectations. The next milestone is the proposed acquisition’s expected fourth-quarter 2026 closing, which remains dependent on shareholder and regulatory approvals and other closing conditions.
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