GET DAILY SIGNALSCBIZ (CBZ) Delivers Q3 2026 Earnings With Steady Growth Despite Acquisition Deal
Key Takeaways
- CBIZ reported third-quarter 2026 revenue of $702.2 million, up 1.2% year over year but below the roughly $727.7 million consensus estimate.
- Adjusted diluted earnings per share (EPS) came in at $1.21, missing the $1.28 consensus forecast.
- Net income rose 56.7% to $47.2 million, while GAAP diluted EPS climbed to $0.79 from $0.48 a year earlier.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 6.3% to $131.9 million.
- The company withheld full-year guidance and skipped its earnings call because of its pending all-cash acquisition by Grant Thornton.
Why This Quarter Stands Out
This quarterly report arrives at an unusual moment for CBZ. In July 2026, the professional services firm agreed to be acquired by Grant Thornton, backed by New Mountain Capital, in an all-cash deal valued at $5.0 billion, or $55.00 per share. Because the transaction is pending, CBZ did not issue full-year 2026 guidance or host a conference call. As a result, investors are weighing the strength of underlying operations against a deal that is expected to take the company private. The results offer a final independent look at demand across the firm's Financial Services and Benefits and Insurance Services segments before the acquisition is expected to close later in the year. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
The Numbers in Detail
For the third quarter ended September 30, 2026, CBZ reported total revenue of $702.2 million, a 1.2% increase from $693.8 million in the prior-year period but below analysts' consensus estimate of about $727.7 million. Financial Services revenue grew 1.2% to $597.8 million, while Benefits and Insurance Services revenue rose 1.0% to $104.4 million.
Net income increased 56.7% to $47.2 million, and GAAP diluted EPS rose to $0.79 from $0.48 a year ago. Adjusted diluted EPS of $1.21 fell short of the $1.28 consensus expectation. Adjusted EBITDA climbed 6.3% to $131.9 million, with an adjusted EBITDA margin of 18.8%, up from 17.9% in the year-ago quarter.
For the nine months ended September 30, 2026, total revenue rose 0.8% to $2.23 billion, while net income increased 12.2% to $219 million. Adjusted diluted EPS grew 5.9% to $4.64. Operating cash flow improved by $98 million and free cash flow by $91 million compared with the prior-year period.
How the Market Is Responding
CBZ shares were little changed in after-hours trading following the release, reflecting how the pending acquisition has largely anchored the stock near the $55.00-per-share deal price. With the stock trading in the mid-$54 range, sentiment is dominated less by quarterly fundamentals than by progress toward closing the transaction. The EPS and revenue shortfalls against consensus are notable, but they carry limited weight for a stock whose near-term value is tied to an agreed cash offer. Investor attention has instead shifted to the deal's approval process, including shareholder consent and regulatory clearances, which remain the primary drivers of the share price heading into the fourth quarter.
What to Watch Next
The most important catalyst ahead is the completion of the Grant Thornton acquisition. The transaction is expected to close in the fourth quarter of 2026, subject to shareholder approval, regulatory clearances, and other customary closing conditions. Once completed, CBZ's common stock will no longer be listed on the New York Stock Exchange, and the company will become private.
Until then, investors will be watching for any updates on the regulatory review process, the shareholder vote, and whether any closing conditions are waived or delayed. Any sign that the deal could be renegotiated, terminated, or pushed beyond its expected timeline would likely matter far more to the stock than a single quarter's results.
From an operating standpoint, the third quarter showed modest revenue growth but improved profitability, with expanding gross margin and adjusted EBITDA margin. Demand across both the Financial Services and Benefits and Insurance Services segments remained steady but subdued. However, with guidance suspended and no earnings call scheduled, there is limited additional operating detail for investors to assess until the transaction resolves.
Using AI for Earnings Analysis
In my own research process, Tickeron's AI Screener has become a go-to resource for quickly filtering stocks by fundamentals, technical patterns, and sector trends. It allows me to compare earnings performance across peers and spot potential opportunities without spending hours on manual data pulls. This kind of tool helps keep the focus on what matters most when evaluating situations like the one with CBZ.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CBZ saw its Stochastic Oscillator peaks and leaves the overbought zone
The Stochastic Oscillator for CBZ moved out of overbought territory on September 29, 2026. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 75 similar instances where the indicator exited the overbought zone. In 43 of the 75 cases the stock moved lower. This puts the odds of a downward move at 57%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for CBZ moved out of overbought territory on October 12, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 similar instances where the indicator moved out of overbought territory. In 18 of the 37 cases, the stock moved lower in the following days. This puts the odds of a move lower at 49%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CBZ declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 53%.
CBZ broke above its upper Bollinger Band on October 08, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 22, 2026. You may want to consider a long position or call options on CBZ as a result. In 60 of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 73%.
Following a +0.13% 3-day Advance, the price is estimated to grow further. Considering data from situations where CBZ advanced for three days, in 222 of 341 cases, the price rose further within the following month. The odds of a continued upward trend are 65%.
The Aroon Indicator entered an Uptrend today. In 164 of 268 cases where CBZ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 61%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 37 (best 1 - 100 worst), indicating steady price growth. CBZ’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 62 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.611) is normal, around the industry mean (5.894). P/E Ratio (26.211) is within average values for comparable stocks, (31.342). Projected Growth (PEG Ratio) (1.219) is also within normal values, averaging (1.946). Dividend Yield (0.000) settles around the average of (0.027) among similar stocks. P/S Ratio (1.214) is also within normal values, averaging (9.694).
The Tickeron PE Growth Rating for this company is 75 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 75 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CBZ’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock better than average.
The Tickeron SMR rating for this company is 80 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a provider of financial and employee benefits services
Industry OfficeEquipmentSupplies
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