CBIZ Q2 revenue misses estimates; to be acquired by Grant Thornton

Overview

• US professional services advisor's Q2 revenue declined and missed analyst expectations

• Adjusted EPS for Q2 rose and beat analyst expectations

• Company to be acquired by Grant Thornton in $5 bln all-cash deal

Outlook

• CBIZ is withdrawing fiscal 2026 guidance and has suspended further updates due to the pending acquisition

Result Drivers

• INVESTMENTS AND INTEGRATION - Co said it made significant investments in integrating Marcum, expanding AI capabilities, and enhancing its go-to-market approach

• NEW BUSINESS MOMENTUM - Co cited new client wins and cross-serving across banking, construction, real estate, and food beverage markets

• GLOBAL DELIVERY EXPANSION - Acquisition of BINDZ added India-based professionals and a scalable global delivery platform, which co said unlocks margin expansion levers

Company press release: ID:nGNX2tmy9c

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for CBIZ Inc is $45.00, about 3.6% below its July 28 closing price of $46.70

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

• July 28 - Huron Consulting Q2 revenue before reimbursable expenses rises 16%

• July 27 - Kforce Q2 revenue slightly beats estimates as Flex sales grow

• July 28 - Exlservice Q2 revenue beats estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)