Insperity's Q2 Earnings Surprise: Analysts Cut Revenue Forecasts and Price Target

Insperity, Inc. (NYSE:NSP) reported a surprise loss of $0.14 per share on revenues of $1.7b, despite analysts expecting a profit. The stock is down 17% to $50.66. Analysts have lowered their earnings forecasts for next year, with revenues expected to grow 2.2% and EPS to decline 13%. The average price target fell 22% to $57.75, with some analysts valuing the company at $74.00 and others at $50.00.

Insperity, Inc. (NYSE:NSP) has reported a surprise loss of $0.14 per share on revenues of $1.7 billion for the second quarter of 2025, despite analysts expecting a profit. The stock has fallen 17% to $50.66 following the announcement. Analysts have revised their earnings forecasts for the next year, with revenues expected to grow by 2.2% and EPS to decline by 13%. The average price target has fallen by 22% to $57.75, with some analysts valuing the company at $74.00 and others at $50.00.

The company reported a quarterly earnings miss of $0.26 EPS against estimates of $0.41, and has shown a modest revenue growth of 3.3% year-over-year. Insperity's price target has been reduced by Roth Capital from $85.00 to $74.00, suggesting a potential upside of 61.15% from the stock's previous close [1]. Other firms like JPMorgan Chase and Truist Financial have also cut their price targets, with JPMorgan lowering it from $68.00 to $51.00 and Truist from $70.00 to $50.00, indicating a more cautious outlook.

The appointment of James Allison as Chief Financial Officer (CFO) following the retirement of Douglas Sharp has brought new leadership to the company. Allison faces his first major test with the Q2 2025 earnings report, which will be critical to validating the integration progress of Insperity's strategic partnership with Workday (NASDAQ: WDAY) [2]. The partnership aims to expand into the mid-market HR technology segment but faces execution risks.

Investors will be closely watching Insperity's ability to pass on cost increases to clients through pricing adjustments. The company's ability to stabilize margins and maintain client trust will be pivotal in determining its near-term valuation stability. The Q2 2025 earnings report represents a critical inflection point for Insperity, as it navigates leadership transitions, margin pressures, and a strategic pivot into the mid-market HR technology sector.

References:
[1] https://www.marketbeat.com/instant-alerts/insperity-nysensp-price-target-lowered-to-7400-at-roth-capital-2025-08-04/
[2] https://www.ainvest.com/news/insperity-q2-2025-earnings-pivotal-moment-leadership-margin-resilience-long-term-growth-2507/