Paychex, Inc. Reports First Quarter Results

Paychex, Inc., an industry-leading human capital management (HCM) company, has released its financial results for the first quarter of fiscal 2026, ending August 31, 2025. The company reported strong double-digit revenue growth and raised its full-year earnings outlook, reflecting successful integration milestones following the acquisition of Paycor HCM, Inc.

Financial Highlights

For the first quarter of fiscal 2026, Paychex reported the following key financial metrics:

• Total revenue increased by 17% to $1.54 billion compared to $1.32 billion in the same period last year.
• Operating income slightly decreased by 1% to $541.9 million.
• Adjusted operating income, excluding acquisition-related costs, grew by 15% to $626.7 million.
• Diluted earnings per share (EPS) decreased by 10% to $1.06, while adjusted diluted EPS increased by 5% to $1.22.

Business and Operational Highlights

Paychex's total revenue growth was driven by a 21% increase in Management Solutions revenue, reaching $1.2 billion. The acquisition of Paycor contributed approximately 17% to this growth. Additionally, Professional Employer Organization (PEO) and Insurance Solutions revenue increased by 3% to $329.1 million.

Interest on funds held for clients rose by 27% to $47.6 million, attributed to higher average investment balances resulting from the Paycor acquisition.

Strategic Initiatives and Corporate Developments

During the first quarter, Paychex made significant strides in integrating Paycor, realizing early cost and revenue synergies. The company also continued its strategic investments in AI and technology to enhance client experience and operational efficiency.

Paychex returned value to shareholders by paying cumulative dividends of $1.08 per share, totaling $389.1 million, and repurchasing 1.1 million shares of common stock for $160.1 million.

Management's Perspective

John Gibson, President and CEO of Paychex, expressed satisfaction with the company's strong start to fiscal 2026, highlighting the robust revenue growth and successful integration of Paycor. He emphasized the strategic importance of the acquisition and the company's ongoing investments in technology and AI to drive innovation and long-term value for shareholders.

Future Outlook

Paychex has updated its business outlook for fiscal 2026, now anticipating adjusted diluted EPS growth in the range of 9% to 11%. The company remains confident in its strategic direction and ability to navigate the current market conditions.

SEC Filing: PAYCHEX INC [ PAYX ] - 8-K - Sep. 30, 2025