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Paychex, Inc.

Paychex, Inc.

NASDAQ•PAYX
CEO: Mr. John B. Gibson Jr.
Sector: Industrials
Industry: Staffing & Employment Services
Listing Date: 1983-08-26
Paychex, Inc., together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing. The company also provides HR solutions, including integrated HCM technology solutions and HR advisory services through both virtual and on-site availability of a professionally trained HR representative, as well as HR support to non-payroll clients through its HR Partner Plus solution; and retirement services administration, such as plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services. In addition, it offers cloud-based HR administration software products for employee benefits management and administration, time and attendance, digital communication solutions, recruiting, and onboarding solutions; plan administration outsourcing and state unemployment insurance services; various business services to small to medium-sized businesses comprising payroll funding and outsourcing services, which include payroll processing, invoicing, and tax preparation; and payment processing services, financial fitness programs, and a small-business loan resource center. Further, the company provides insurance services for property and casualty coverage, such as workers' compensation, business-owner policies, cyber security protection, and commercial auto, as well as health and benefits coverage, including health, dental, vision, and life. It markets and sells its services primarily through its direct sales force. The company was founded in 1971 and is headquartered in Rochester, New York.
Contact Information
911 Panorama Trail South, Rochester, NY, 14625-2396, United States
585-385-6666
www.paychex.com
Market Cap
$39.91B
P/E (TTM)
25.1
25.4
Dividend Yield
3.8%
52W High
$161.24
52W Low
$107.80
52W Range
6%
Rank8
7.3
F-Score
Modified Piotroski Analysis
Based on 10-year fundamentals
Strong • 7.3 / 9 points
Scoring Range (0-9)
8-9: Excellent Value
6-7: Strong Fundamentals
4-5: Average Quality
0-3: Weak Performance
Data Period: 2016-2025

Financial Dashboard

Q2 2026 Data

Revenue

$1.56B+18.28%
4-Quarter Trend

EPS

$1.10-4.35%
4-Quarter Trend

FCF

$382.80M+54.35%
4-Quarter Trend

2026 Q2 Earnings Highlights

Key Highlights

Total Revenue Growth Strong Total revenue reached $1.56B USD for the quarter, marking an 18% increase over the prior year period.
Adjusted Profitability Rises Adjusted net income grew 11% to $454.6M USD in the quarter, showing strong underlying performance.
Operating Cash Flow Surges Net cash provided by operating activities was $1.16B USD for six months, up 38% compared to prior year.
Paycor Integration Driving Growth Paycor acquisition contributed 17% to Management Solutions revenue growth for both the quarter and six months.

Risk Factors

GAAP Net Income Declines GAAP Net Income fell 4% to $395.4M USD for the quarter, impacted by acquisition-related expenses.
Interest Expense Significantly Higher Interest expense for six months totaled $136.7M USD, driven primarily by incremental debt for Paycor financing.
Acquisition Costs Impact Expenses Non-core acquisition-related costs totaled $161.9M USD for the six months, increasing total expenses 28%.
AFS Securities Unrealized Loss AFS securities reflected a net unrealized loss of $9.0M USD as of November 30, 2025, due to rate changes.

Outlook

Strategy Focuses Upmarket Mission centers on growing client base, increasing product penetration, and pursuing strategic acquisitions for long-term performance.
Active Capital Deployment Company used $286.6M USD for common share repurchases during the six months to manage stock dilution.
Investments In Technology Critical Ongoing investments in platforms and digital capabilities are critical to capitalize on opportunities for long-term growth.
Future Dividends Discretionary Future dividend payments are dependent on future earnings, cash flow, and are subject to Board of Directors discretion.

Peer Comparison

Revenue (TTM)

Delta Air Lines, Inc.DAL
$63.36B
+2.8%
Ferguson Enterprises Inc.FERG
$31.16B
+4.9%
PACCAR IncPCAR
$29.52B
-15.3%

Gross Margin (Latest Quarter)

Ferrovial SEFER
88.3%
-1.2pp
Paychex, Inc.PAYX
73.5%
+2.3pp
Fastenal CompanyFAST
45.3%
+0.3pp

Key Metrics

Symbol
Market Cap
P/E (TTM)
ROE (TTM)
Debt to Assets
LHX$64.82B36.89.1%28.9%
PCAR$63.74B23.714.6%35.9%
GWW$50.82B29.749.2%30.7%

Long-Term Trends

Last 4 Quarters
Revenue
Net Income
Operating Cash Flow
4Q Revenue CAGR
1.1%
Moderate Growth
4Q Net Income CAGR
-8.7%
Declining Profitability
Cash Flow Stability
100%
Strong Cash Flow

Research & Insights

Next earnings:Mar 24, 2026
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EPS:-
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Revenue:-
Reports
All Years
  • Form 10-Q - Q2 2026

    Period End: Nov 30, 2025|Filed: Dec 22, 2025|
    Revenue: $1.56B+18.3%
    |
    EPS: $1.10-4.3%
    Miss
  • Form 10-Q - Q1 2026

    Period End: Aug 31, 2025|Filed: Sep 30, 2025|
    Revenue: $1.54B+16.8%
    |
    EPS: $1.07-10.1%
    Miss
  • Form 10-K - FY 2025

    Period End: May 31, 2025|Filed: Jul 11, 2025|
    Revenue: $5.57B+5.6%
    |
    EPS: $4.60-1.9%
    Beat
  • Form 10-Q - Q3 2025

    Period End: Feb 28, 2025|Filed: Mar 26, 2025|
    Revenue: $1.51B+4.8%
    |
    EPS: $1.44+3.6%
    Meet
  • Form 10-Q - Q2 2025

    Period End: Nov 30, 2024|Filed: Dec 19, 2024|
    Revenue: $1.32B+4.7%
    |
    EPS: $1.15+5.5%
    Meet
  • Form 10-Q - Q1 2025

    Period End: Aug 31, 2024|Filed: Oct 1, 2024|
    Revenue: $1.32B+2.5%
    |
    EPS: $1.19+2.6%
    Beat
  • Form 10-K - FY 2024

    Period End: May 31, 2024|Filed: Jul 11, 2024|
    Revenue: $5.28B+5.4%
    |
    EPS: $4.69+8.6%
    Beat
  • Form 10-Q - Q3 2024

    Period End: Feb 29, 2024|Filed: Apr 2, 2024|
    Revenue: $1.44B+4.2%
    |
    EPS: $1.39+6.9%
    Meet