PAYCHEX (PAYX) Company Report

Paychex’s Board authorized $1 billion in share repurchases, replacing the prior $400 million authorization
The Board declared a regular quarterly cash dividend of $1.08 per share, payable in February 2026

3 days ago

Press Release

Paychex approves $1B share buyback

PAYX

Share Buyback

Dividends

Guidance Update

Board approved a new $1.0 billion share repurchase program (≈2.5% of shares), replacing a prior $400 million authorization and to be executed via open-market purchases
Maintained quarterly cash dividend at $1.08 per share (forward yield ~3.9%)
Raised adjusted EPS growth outlook to 10–11% for fiscal 2026 and announced acceleration of AI integration across its HCM products
In its most recent quarter, delivered EPS of $1.26 (vs. $1.23 consensus) and revenue of $1.56 billion (vs. $1.55 billion consensus), with ROE of 46.38%, net margin of 26.45% and 18.3% y/y revenue growth

3 days ago

Morningstar

Paychex authorizes $1 billion stock buyback and declares $1.08 dividend

PAYX

Share Buyback

Dividends

Board authorized up to $1 billion of Paychex common stock repurchases, replacing the prior $400 million authorization
Declared a quarterly cash dividend of $1.08 per share

3 days ago

Press Release

Paychex announces $1 billion stock repurchase authorization and dividend declaration

PAYX

Share Buyback

Dividends

Paychex’s Board authorized up to $1 billion of common stock repurchases, replacing the prior $400 million program.
Declared a quarterly cash dividend of $1.08 per share, payable February 27, 2026, to shareholders of record as of January 28, 2026.
In fiscal 2025, returned over $1.5 billion to shareholders through dividends and share repurchases.
The new authorization and dividend declaration reflect confidence in the company’s business strength and cash flow generation.

3 days ago

Press Release

Paychex reports Q2 2026 results

PAYX

Earnings

Guidance Update

M&A

Paychex delivered 18% revenue growth to $1.6 billion and 21% adjusted operating income growth, with adjusted diluted EPS up 11% to $1.26.
Management solutions revenue rose 21% to $1.2 billion, PEO and insurance solutions revenue grew 6% to $337 million, and interest on funds held for clients increased 51% to $54 million.
Fiscal 2026 guidance was reaffirmed, with adjusted diluted EPS growth raised to 10–11%, interest on funds held now expected at the high end of $190–$200 million, and an effective tax rate of ~24%.
The Paycor acquisition integration is on track, with ~$100 million in cost synergies expected for FY 2026 and revenue synergies progressing; strategic AI initiatives include a patent-pending Knowledge Mesh and GenAI-powered platforms.
Operating cash flow was $445 million, with $514 million returned to shareholders; cash, restricted cash, and investments total $1.6 billion, debt of $5 billion, and 12-month ROE of 40%.

Dec 19, 2025, 2:30 PM

Transcript

Paychex reports Q2 2026 results

PAYX

Earnings

Guidance Update

M&A

In Q2, total revenue rose 18% to $1.6 billion, driven by management solutions up 21% to $1.2 billion and PEO & insurance solutions up 6% to $337 million.
Expenses increased 27% to $986 million, with adjusted operating margin expanding 80 bps YoY to 41.7% and adjusted diluted EPS up 11% to $1.26.
The company ended the quarter with $1.6 billion in cash/restricted cash and investments, $5 billion of borrowings, generated $445 million in operating cash flow, and returned $514 million to shareholders.
For FY 2026, Paychex reaffirmed its guidance, raised adjusted EPS growth to 10–11%, expects interest on client funds at the high end of $190–200 million, and sees $100 million in cost synergies from the Paycor integration.

Dec 19, 2025, 2:30 PM

Transcript

Paychex announces Q2 FY26 results

PAYX

Earnings

M&A

New Projects/Investments

Reported $1.558 B in total revenue, up 18% year-over-year; adjusted operating income of $649 M (+21%); adjusted diluted EPS of $1.26 (+11%).
PEO & Insurance Solutions revenue grew to $1.166 B, leading segment performance, while Management Solutions reached $337 M (+6% YoY).
Maintained strong liquidity with $1.6 B in cash and investments and a net leverage ratio of 1.2x, supporting capital returns.
Continued integration of Paycor drives client and revenue synergies; launched AI-driven payroll automation and GenAI HR platforms to enhance service capabilities.

Dec 19, 2025, 2:30 PM

Presentation

Paychex reports Q2 2026 results

PAYX

Earnings

Guidance Update

M&A

Paychex delivered 18% revenue growth to $1.6 billion and 21% adjusted operating income growth, achieving a 41.7% adjusted operating margin in Q2 FY2026.
Diluted EPS declined 4% to $1.10, while adjusted EPS increased 11% to $1.26.
Management Solutions revenue rose 21% to $1.2 billion, PEO & Insurance revenue grew 6% to $337 million, with Paycor contributing approximately 17 percentage points to MS growth; integration is on track for $100 million in FY2026 cost synergies.
Fiscal 2026 guidance reaffirmed, raising adjusted EPS growth to 10–11%, expecting revenue growth at the low end of prior ranges; Q3 guided to ~18% revenue growth and 47–48% adjusted operating margin.

Dec 19, 2025, 2:30 PM

Transcript

Paychex reports Q2 FY2026 results and raises earnings outlook

PAYX

Earnings

Guidance Update

Total revenue for Q2 FY2026 was $1.5576 billion, up 18% year-over-year.
Operating income was $571.9 million (+6%), and adjusted operating income was $649.0 million (+21%).
Diluted EPS came in at $1.10 (–4%), while adjusted diluted EPS was $1.26 (+11%).
Full-year adjusted diluted EPS growth guidance was raised to 10%–11% for fiscal 2026.

Dec 19, 2025, 1:36 PM

8-K

Paychex announces Q2 fiscal 2026 results

PAYX

Earnings

Guidance Update

Product Launch

Total revenue increased 18% to $1.56 billion in Q2 fiscal 2026 ended November 30, 2025.
Adjusted operating income rose 21% to $649.0 million, and adjusted EPS climbed 11% to $1.26, while GAAP diluted EPS was $1.10, down 4% year-over-year.
Raised full-year guidance, with adjusted diluted EPS now expected to grow 10–11% for fiscal 2026.
Unveiled AI-powered workforce management solutions, including agentic payroll automation and GenAI advisory tools.

Dec 19, 2025, 1:30 PM

Press Release

Earnings Transcripts

Quarterly earnings call transcripts for PAYCHEX.

Q2 2026

Dec 19, 2025

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Q1 2026

Sep 30, 2025

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Q4 2025

Jun 25, 2025

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View All Transcripts

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PAYCHEX (PAYX)

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Executives

John Gibson

Adam Ante

Mason Argiropoulos

Robert Schrader

Ryan Bergstrom

Sipi Bhandari

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Joseph Tucci

Joseph Velli

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Kevin Price

Martin Mucci

Pamela Joseph

Theresa Payton

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