Paychex, Inc. is a leading provider of integrated human capital management (HCM) solutions, offering a comprehensive suite of technology and advisory services in human resources (HR), employee benefits, insurance, and payroll for small- to medium-sized businesses in the United States and parts of Europe . The company's product offerings are divided into two main categories: Management Solutions and Professional Employer Organization (PEO) and Insurance Solutions . Paychex continues to invest in technology and advisory solutions to support its clients, maintaining a strong financial position with high-quality cash flows and earnings .
- Management Solutions - Provides integrated HCM services and HR solutions, including payroll processing, HR management, and administration services, which clients can select on an á la carte basis or as part of various product bundles. Revenue is recognized over time as services are performed .
- Professional Employer Organization (PEO) and Insurance Solutions - Involves co-employment arrangements where Paychex offers health insurance coverage and assumes risks related to workers' compensation insurance. Revenue is recognized over time as services are performed .
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
John B. Gibson ExecutiveBoard | President and CEO | None | Joined PAYX in 2013; became CEO in October 2022; instrumental in digital expansion and HR advisory services growth. | View Report → |
Beaumont Vance Executive | Senior Vice President of Data, Analytics, and AI | None | Joined PAYX in March 2024; previously Managing Director of AI and Investments at WestCap Management. | |
Christopher Simmons Executive | Vice President, Controller, and Treasurer | None | Joined PAYX in 2014; became Controller and Treasurer in October 2023; previously held roles in tax and treasury. | |
Elizabeth Roaldsen Executive | Senior Vice President of Operations and Customer Experience | None | Joined PAYX in May 2023; previously held leadership roles at HSBC and State Street Corporation. | |
Mark A. Bottini Executive | Senior Vice President of Sales | None | Joined PAYX in October 2011; leads sales operations. | |
Mason Argiropoulos Executive | Chief Human Resources Officer (CHRO) | None | Joined PAYX in April 2024; previously CHRO at UnitedLex and iQor. | |
Michael E. Gioja Executive | Senior Vice President of Information Technology and Product Development | None | Joined PAYX in November 2008; oversees IT and product development. | |
Robert L. Schrader Executive | Senior Vice President and CFO | None | Joined PAYX in 2014; became CFO in October 2023; previously held roles in finance and investor relations. | |
Sipi Bhandari Executive | Chief Legal Officer, Chief Ethics Officer, and Secretary | None | Joined PAYX in May 2024; extensive legal experience at AIG, Freddie Mac, and Deutsche Bank. | |
Joseph G. Doody Board | Director | Board Member at Casella Waste Systems; Emeritus Member of The College at Brockport Foundation Board | PAYX director since 2010; extensive experience in business services and governance. | |
Joseph M. Tucci Board | Lead Independent Director | Co-Founder and Chairman of Bridge Growth Partners; Board Member at Motorola Solutions and Syniti | PAYX director since 2000; former CEO of EMC Corporation; extensive experience in technology and business leadership. | |
Joseph M. Velli Board | Director | Board Member at Computershare, Cognizant Technology Solutions, and AssetMark Financial Holdings | PAYX director since 2007; extensive experience in financial technology and capital markets. | |
Kara Wilson Board | Director | Senior Advisor at KKR & Co.; Board Member at Accela, Alludo, OneStream, OutSystems, ReliaQuest, and SkyHive | PAYX director since 2017; extensive experience in software and technology leadership. | |
Kevin A. Price Board | Director | Founder and President of KAP Holdings, LLC d/b/a PartScription | PAYX director since 2021; entrepreneur with expertise in e-commerce and business strategy. | |
Martin Mucci Board | Chairman of the Board | Board Member at Cintas Corporation; Member of Madison Dearborn Partners' Advisory Team | Former CEO of PAYX (2010-2022); now Chairman; led significant revenue and market cap growth during his tenure as CEO. | |
Pamela A. Joseph Board | Director | Executive Chair of Xplor Technologies; Board Chair at TransUnion; Board Member at Adyen N.V.; Operating Partner at Advent International | PAYX director since 2018; extensive experience in financial services and payment industries. | |
Theresa M. Payton Board | Director | Federal Advisory Board Member at CyberArk | PAYX director since 2023; former White House CIO and founder of Fortalice Solutions; cybersecurity expert. | |
Thomas F. Bonadio Board | Director | Founder and Chairman of The Bonadio Group; General Partner of Impact Capital; Board Member at Viridi and Royal Oak | PAYX director since 2017; founder of a major accounting firm and active in venture capital and private company boards. |
- With clients not adding new locations and this trend impacting your unit growth, how do you plan to accelerate growth in the current economic environment where your clients are hesitant to expand?
- Rising healthcare costs are a significant concern for your clients seeking affordable benefits; how do you intend to offer cost-effective benefit solutions without compromising your margins?
- You've made considerable investments in your new go-to-market strategy, including marketing and sales technology—can you provide specific metrics that demonstrate the return on these investments, and what is your plan if these initiatives don't meet expectations?
- As you introduce AI-driven products like the Paychex Recruiting Copilot, how are you addressing data privacy and security concerns, and what steps are you taking to maintain a competitive edge in the rapidly evolving AI landscape?
- While you mention that the outsourcing message of PEOs is building back, what challenges do you anticipate in sustaining high growth in worksite employees given the competitive HR outsourcing market, and how are you differentiating your offerings from technologically advanced competitors?
Research analysts who have asked questions during PAYCHEX earnings calls.
Jason Kupferberg
Bank of America
5 questions for PAYX
Kartik Mehta
Northcoast Research
5 questions for PAYX
Mark Marcon
Baird
5 questions for PAYX
Scott Wurtzel
Wolfe Research
5 questions for PAYX
Tien-tsin Huang
JPMorgan Chase & Co.
5 questions for PAYX
Andrew Nicholas
William Blair & Company
4 questions for PAYX
Ashish Sabadra
RBC Capital Markets
4 questions for PAYX
Bryan Bergin
TD Cowen
4 questions for PAYX
James Faucette
Morgan Stanley
4 questions for PAYX
Samad Samana
Jefferies
4 questions for PAYX
Bryan Keane
Deutsche Bank
3 questions for PAYX
Ramsey El-Assal
Barclays
3 questions for PAYX
Kevin McVeigh
Credit Suisse Group AG
2 questions for PAYX
Peter Christiansen
Citigroup Inc.
2 questions for PAYX
Daniel Maxwell
William Blair & Company, L.L.C.
1 question for PAYX
Jared Levine
TD Cowen
1 question for PAYX
Michael Infante
Morgan Stanley
1 question for PAYX
Will Chi
RBC Capital Markets
1 question for PAYX
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Identified as a direct competitor in the human capital management (HCM) industry, providing similar payroll and HR services. | |
Included in the peer group for fiscal 2024, indicating alignment with the company's business and metrics. | |
Part of the peer group for fiscal 2024, suggesting comparable industry or revenue characteristics. | |
Listed in the peer group for fiscal 2024, reflecting its relevance in the financial and HR solutions space. | |
Corpay, Inc. | Previously known as FleetCor Technologies, Inc., rebranded on March 25, 2024, and included in the peer group for fiscal 2024. |
Added to the peer group for fiscal 2024, aligning with the company's business focus. | |
Part of the fiscal 2024 peer group, indicating its role in related services such as data and analytics. | |
Included in the fiscal 2024 peer group, suggesting comparability in industry or financial metrics. | |
Added to the fiscal 2024 peer group, reflecting alignment with the company's business operations. | |
Included in the fiscal 2024 peer group, indicating relevance in technology-enabled financial and HR services. | |
Part of the fiscal 2024 peer group, highlighting its role in analytics and decision-making solutions. | |
Listed in the fiscal 2024 peer group, reflecting its involvement in data and analytics services. | |
Fiserv, Inc. | Included in the fiscal 2024 peer group, indicating alignment with the company's service offerings. |
Part of the fiscal 2024 peer group, suggesting comparability in analytics and data-driven solutions. | |
Listed in the fiscal 2024 peer group, reflecting its role in research and advisory services. | |
Added to the fiscal 2024 peer group, aligning with the company's business focus. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Paycor HCM, Inc. | 2025 | Paychex, Inc. is acquiring Paycor HCM, Inc. in an all-cash deal with an enterprise value of approximately $4.1 billion and a share price of $22.50 (a 19% premium); the transaction is expected to deliver run-rate cost synergies of over $80 million, be neutral to slightly accretive initially, and close in H1 2025 subject to regulatory approvals. |
Alterna Capital Solutions, LLC | 2024 | Through the acquisition effective July 31, 2023, Paychex, Inc. obtained Alterna’s portfolio which includes $146.1 million in net accounts receivable, $18.9 million in intangible client list assets, and $46.7 million of tax‐deductible goodwill, executed with a base purchase price of $95.1 million plus immediate debt settlement, albeit with a minimal impact on financial results. |
Immaterial benefits administration software acquisition | 2022 | This immaterial acquisition was designed to enhance Paychex’s benefits administration software by integrating a state-of-the-art, mobile-enabled technology into its agency and PEO services, thereby improving efficiencies and user experience, though no significant financial terms were disclosed. |
Recent press releases and 8-K filings for PAYX.
- PAYX delivered $1.54 B total revenue, up 17% y/y, driven by 21% growth in Management Solutions and 3% in PEO & Insurance Solutions.
- GAAP net income was $383.8 M, down 10%, with diluted EPS of $1.06, down 10%; on a non-GAAP basis, adjusted diluted EPS was $1.22, up 5%.
- Strong liquidity with $1.72 B in cash and investments, a net leverage ratio of 1.2x, and free cash flow of $662.5 M, supporting a 1.7x dividend coverage ratio.
- Fiscal 2026 guidance raised to 9–10% revenue growth and 11–12% adjusted EPS growth, up from prior ranges of 8–9% and 9–10%, respectively.
- Total revenue grew 17% to $1.5 billion, with adjusted diluted EPS up 5% to $1.22 (diluted EPS $1.06, –10%) in Q1 2026.
- Fiscal 2026 guidance reaffirmed revenue growth of 16.5–18.5%, adjusted operating margin of ~43%, and raised adjusted EPS growth target to 9–11%, with Q2 revenue expected +18% and ~41% margin.
- Paycor integration is on track, achieving cost synergy run‐rate of ~$90 million and initial revenue synergies, while building a robust cross‐sell pipeline.
- Continued product innovation and service expansion with the launch of BillPay by Bill.com in Paychex Flex, new AI‐driven HR tools, and PEO growth delivering mid single-digit worksite employee growth and record retention.
- Paychex delivered 17% revenue growth to $1.54 billion for the quarter ended August 31, 2025.
- Operating income was $541.9 million (–1%), adjusted operating income was $626.7 million (+15%); diluted EPS was $1.06 (–10%), adjusted EPS was $1.22 (+5%).
- Integration of Paycor reached key milestones, contributing 17% to Management Solutions revenue growth.
- Raised full-year adjusted diluted EPS growth guidance to 9–11%.
- Returned $549.2 million to shareholders via dividends of $389.1 million and share repurchases of $160.1 million.
- Paychex delivered 16.8% year-over-year revenue growth to $1.54 billion, meeting expectations, with non-GAAP EPS of $1.22 slightly above estimates.
- The operating margin fell to 35.2% from 41.5%, while the free cash flow margin rose to 43%.
- Five-year sales growth stands at a 7.8% CAGR, two-year growth at 6.7%, and analysts project a 14.4% revenue increase over the next 12 months.
- Revenue gains were driven by the Paycor acquisition, which expanded the client base and increased revenue per client through price realization and deeper product penetration.
- The company maintains a strong liquidity position with $1.7 billion in cash and investments and earned recognition as one of America’s Most Innovative Companies (third consecutive year) and World’s Most Ethical Companies (17th time).
- Healthy SME labor market observed with no recessionary signs and strong employee retention as small businesses continue to rely on Paychex’s comprehensive HR solutions.
- Strategic expansion was emphasized through the acquisition of Paycor, which extended the total addressable market to $100 billion and enhanced upmarket capabilities.
- Investment in AI and technology is driving both cost efficiency and new revenue opportunities, with initiatives ranging from automated customer service to advanced compensation analytics.
- Paychex has successfully completed its all-cash acquisition of Paycor HCM, Inc. at $22.50 per share, representing an enterprise value of approximately $4.1 billion.
- The merger positions Paycor as a wholly owned subsidiary with expected annual cost synergies of over $80 million in fiscal 2026 and anticipated EPS accretion in the same period.
- The document details Paychex’s issuance of $4.2 billion in senior notes, including $1.5 billion of 5.100% Senior Notes due 2030, $1.5 billion of 5.350% Senior Notes due 2032, and $1.2 billion of 5.600% Senior Notes due 2035, as established by a Supplemental Indenture executed on April 10, 2025.
- The filing confirms the completion of the financing transaction, including registration under a Form S-3 and the involvement of underwriters such as J.P. Morgan Securities LLC and BofA Securities, Inc..
- Paychex Inc filed a Form 8-K on April 8, 2025, reporting key corporate events and updates (document ).
- The filing details the merger agreement with Paycor HCM, Inc. and its subsidiary, effective from January 7, 2025 (document ).
- It incorporates the consent of independent auditor Ernst & Young LLP to reference their report dated August 22, 2024 regarding Paycor’s consolidated financial statements (document ).
- The report was duly signed by Prabha Sipi Bhandari, the Chief Legal Officer, Chief Ethics Officer, and Secretary (document ).
- Q3 2025 Financial Results: Reported total revenue growth of 5% (or 6% excluding the ERTC headwind) with improved operating margins (up by 180 basis points) and diluted EPS increases of 4% (reported) and 8% (adjusted).
- Paycor Acquisition: Announced the pending acquisition of Paycor, expected to deliver cost synergies over $80 million and be accretive to adjusted EPS next fiscal year, with detailed integration planning underway.
- Guidance and Market Outlook: Full-year guidance anticipates total revenue growth in the low end of 4% to 5.5%, alongside strong client retention and stable demand in PEO and HR solutions.
- Q3 FY25 revenue increased to $1,509M compared to $1,439M in Q3 FY24, with adjusted operating income rising to $708M and EPS improving to $1.49, reflecting robust quarter-over-quarter performance.
- The company achieved solid margin expansion (by 180 basis points) and sustained growth in key segments including HR Solutions, Retirement, and Funding Solutions.
- Paychex announced a definitive agreement to acquire 100% of Paycor at $22.50 per share, valued at approximately $4.1B, with anticipated annual cost synergies exceeding $80M and revenue synergies over the coming years.
- The firm returned $1,163M to shareholders year-to-date through dividends ($1,059M) and share repurchases ($104M), underscoring its commitment to shareholder value.