Insperity's Workday Partnership Could Be a Game Changer for NSP’s Long-Term Growth Prospects

• In the past week, Truist analyst Tobey Sommer maintained a Hold rating on Insperity after a difficult quarter and lower full-year 2025 guidance, while management expressed optimism about recovering most of the year's earnings shortfall.
• Insperity also formally launched HRScale in partnership with Workday, a move highlighted as a potential long-term driver for growth by leveraging advanced HR solutions.
• Now, we'll explore how Insperity's new collaboration with Workday could reshape its investment outlook and long-term growth assumptions.

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Insperity Investment Narrative Recap

Investors in Insperity have to believe that the company’s long-term success hinges on executing higher-value HR services for mid-market clients, while actively managing volatile healthcare costs and cyclical SMB demand. The launch of HRScale with Workday marks a catalyst for future growth, but in the short term, the company’s reduced guidance and difficult quarter highlight the risk that execution delays or prolonged earnings setbacks could overshadow near-term improvement. The immediate earnings recovery is likely to remain the most important catalyst to watch, while expense management and margin compression from rising benefits costs are likely the greatest risks; nothing in the recent news event fundamentally alters this equation.

Of the recent announcements, the formal rollout of Insperity HRScale in partnership with Workday is especially relevant given management’s focus on restoring earnings growth and operating leverage. Positioned as a premium solution for the mid-market, HRScale has the potential to boost revenue and client size, but successful execution will be essential for it to offset margin headwinds and benefit from larger client opportunities.

By contrast, investors should be aware that persistent increases in benefit and healthcare costs can still squeeze profitability even as new offerings scale, and...

Read the full narrative on Insperity (it's free!)

Insperity's forecast envisions $7.7 billion in revenue and $109.6 million in earnings by 2028. This is based on 5.0% annual revenue growth and an increase in earnings of $69.6 million from the current $40.0 million.

Uncover how Insperity's forecasts yield a $45.00 fair value, a 39% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community fair value estimates for Insperity range widely from US$45 to US$174.64 per share, based on only 2 individual forecasts. While some see significant upside, concerns about execution risk and timing of returns from the Workday partnership remain front of mind for many market participants.

Explore 2 other fair value estimates on Insperity - why the stock might be worth just $45.00!

Build Your Own Insperity Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Insperity research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Insperity research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Insperity's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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