Samad Samana's questions to PAYCHEX (PAYX) leadership • Q1 2026
Question
Samad Samana questioned the implied 7-8% recurring revenue growth for Paycor (excluding float), noting it as a material slowdown from standalone performance, and asked if integration disruption was a factor. He also inquired about the 4% organic growth for Management Solutions, seeking clarity on its acceleration through the year.
Answer
CFO Bob Schrader clarified that Paycor's recurring revenue growth was closer to double digits and in line with expectations, with performance building throughout the year. President and CEO John Gibson reiterated that Paycor's performance met expectations, emphasizing the difficulty in disaggregating its specific growth due to strategic segmentation. Schrader explained that the 4% organic growth for Management Solutions in Q1 was anticipated, with acceleration expected in the back half of the year as PEO MPP headwinds anniversary and revenue synergies build.