PAYCHEX (PAYX) Company Report

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.

Sep 30, 2025, 1:30 PM

Presentation

Paychex reports Q1 2026 results

PAYX

Earnings

Guidance Update

M&A

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.

Sep 30, 2025, 1:30 PM

Transcript

Paychex reports Q1 FY2026 results

PAYX

Earnings

Guidance Update

M&A

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.

Sep 30, 2025, 12:41 PM

8-K

Paychex reports mixed Q3 results

PAYX

Earnings

Revenue Acceleration/Inflection

M&A

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).

Sep 29, 2025, 4:02 PM

WSJ

Paychex Highlights Strategic Growth and AI Investments in Special Call

PAYX

M&A

Dividends

New Projects/Investments

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.

May 13, 2025, 2:51 PM

Transcript

Paychex Completes Acquisition of Paycor

PAYX

M&A

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.

Apr 14, 2025, 12:00 AM

8-K

Paychex Inc Issues $4.2 Billion in Senior Notes

PAYX

Debt Issuance

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..

Apr 10, 2025, 12:00 AM

8-K

Paychex Inc Announces Merger-Related Events and Auditor Consent

PAYX

M&A

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 ).

Apr 8, 2025, 12:00 AM

8-K

Paychex Reports Q3 2025 Results with Paycor Acquisition Update

PAYX

Earnings

M&A

Guidance Update

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.

Mar 26, 2025, 1:31 PM

Transcript

Paychex Reports Q3 2025 Earnings

PAYX

Earnings

M&A

Dividends

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.

Mar 26, 2025, 1:30 PM

Presentation

Earnings Transcripts

Quarterly earnings call transcripts for PAYCHEX.