• Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • AI SuperconnectorNEW
  • Settings
  • RSS Feeds
Quantisnow Logo
  • Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • AI SuperconnectorNEW
  • Settings
  • RSS Feeds
PublishGo to AppAI Superconnector
    Quantisnow Logo

    © 2025 quantisnow.com
    Democratizing insights since 2022

    Services
    Live news feedsRSS FeedsAlertsPublish with Us
    Company
    AboutQuantisnow PlusContactJobsAI superconnector for talent & startupsNEW
    Legal
    Terms of usePrivacy policyCookie policy

    Paychex, Inc. Reports First Quarter Results

    9/30/25 8:30:00 AM ET
    $PAYX
    Diversified Commercial Services
    Industrials
    Get the next $PAYX alert in real time by email
    • Delivered Strong Double-Digit Revenue Growth in the First Quarter
    • Raises Full Year Earnings Outlook
    • Successfully Completed Key Paycor Integration Milestones

    Paychex, Inc. (NASDAQ:PAYX) (the "Company," "Paychex," "we," "our," or "us"), an industry-leading human capital management ("HCM") company, today reported results for the fiscal quarter ended August 31, 2025 (the "first quarter") of the fiscal year ending May 31, 2026 ("fiscal 2026"). Results compared with the same period last year were as follows:

     

     

    For the three months ended

     

     

     

     

     

     

     

    August 31,

     

     

    August 31,

     

     

     

     

     

    In millions, except per share amounts

     

    2025

     

     

    2024

     

     

    Change(2)

    Total revenue

     

    $

     

    1,540.0

     

     

    $

     

    1,318.5

     

     

     

    17

     

    %

    Operating income

     

    $

     

    541.9

     

     

    $

     

    546.7

     

     

     

    (1

    )

    %

    Adjusted operating income(1)

     

    $

     

    626.7

     

     

    $

     

    546.7

     

     

     

    15

     

    %

    Diluted earnings per share

     

    $

     

    1.06

     

     

    $

     

    1.18

     

     

     

    (10

    )

    %

    Adjusted diluted earnings per share(1)

     

    $

     

    1.22

     

     

    $

     

    1.16

     

     

     

    5

     

    %

     

    (1) Adjusted operating income and adjusted diluted earnings per share are not United States ("U.S.") generally accepted accounting principle ("GAAP") measures. Please refer to the "Non-GAAP Financial Measures" section of this press release for a discussion of non-GAAP measures.

     (2) Percentage changes are calculated based on unrounded numbers.

    "We are pleased to report a strong start to fiscal 2026, delivering robust double-digit revenue growth," stated John Gibson, President and Chief Executive Officer. "Our first quarter results reflect continued progress integrating Paycor and sustained demand for our comprehensive HCM solutions. The early realization of cost and revenue synergies from the Paycor acquisition reinforces our confidence in the strategic rationale of the deal, which includes significant cross-selling potential."

    Gibson added, "As the digitally driven HR leader, our ongoing strategic investments in AI and technology are driving meaningful innovation, elevating the client experience and delivering operational efficiency. We believe these continued advancements uniquely position us to help our clients navigate today's complex labor and regulatory landscape while delivering long-term value to our shareholders."

    First Quarter Business Highlights

    Total revenue increased to $1.5 billion for the first quarter, representing growth of 17% over the prior year period. Highlights compared to the prior year period include:

    • Management Solutions revenue increased 21% to $1.2 billion for the first quarter. Paycor HCM, Inc. ("Paycor"), acquired in April 2025, contributed approximately 17% to total Management Solutions revenue growth year-over-year. This increase was due to the following:
      • Growth in the number of clients served, primarily driven by the acquisition of Paycor and client worksite employees for Human Resources ("HR") Solutions; and
      • Higher revenue per client driven by Paycor's upmarket client base, price realization, and product penetration, including HR Solutions and Retirement.
    • Professional Employer Organization ("PEO") and Insurance Solutions revenue increased 3% to $329.1 million for the first quarter, primarily due to the following:
      • Growth in the number of average PEO worksite employees; and
      • Increase in PEO insurance revenues.
    • Interest on funds held for clients increased 27% to $47.6 million for the first quarter due to higher average investment balances resulting from the acquisition of Paycor.

    Total expenses increased 29% to $998.1 million for the first quarter, primarily due to the following:

    • Increases in compensation-related expenses and amortization of intangible assets, primarily driven by the acquisition of Paycor; and
    • Higher technology, selling, and marketing investments driven by the acquisition of Paycor and our continued strategic initiatives.

    Operating income decreased 1% to $541.9 million for the first quarter. Adjusted operating income(1), which excludes $84.1 million of Paycor acquisition-related costs included in selling, general and administrative expenses, grew 15% to $626.7 million for the first quarter. Operating margin (operating income as a percentage of total revenue) was 35.2% for the first quarter compared to 41.5% for the prior year period. Adjusted operating margin(1) (adjusted operating income as a percentage of total revenue) was 40.7% for the first quarter compared to 41.5% for the prior year period.

    Interest expense increased $58.6 million to $68.2 million for the first quarter, primarily due to the issuance of incremental debt to finance the acquisition of Paycor.

    Our effective income tax rate was 22.9% for the first quarter compared to 23.3% for the prior year period. Both periods were affected by the recognition of discrete tax impacts related to employee stock-based compensation payments.

    Diluted earnings per share decreased 10% to $1.06 per share and adjusted diluted earnings per share(1) increased 5% to $1.22 per share for the first quarter.

    (1) Adjusted operating income, adjusted operating margin, and adjusted diluted earnings per share are not U.S. GAAP measures. Please refer to the "Non-GAAP Financial Measures" section of this press release for a discussion of non-GAAP measures.

    Financial Position and Liquidity

    Our financial position and cash flow generation remained strong during the first three months of fiscal 2026. As of August 31, 2025, we had:

    • Cash, restricted cash, and total corporate investments of $1.7 billion.
    • Short-term and long-term borrowings, net of debt issuance costs, of $5.0 billion.
    • Cash flow from operations was $718.4 million for the first quarter.

    Return to Stockholders During the First Quarter

    • Paid cumulative dividends of $1.08 per share totaling $389.1 million.
    • Repurchased 1.1 million shares of our common stock for $160.1 million.

    Non-GAAP Financial Measures

     

     

    For the three months ended

     

     

     

     

     

     

     

    August 31,

     

     

    August 31,

     

     

     

     

     

    $ in millions, except per share amounts

     

    2025

     

     

    2024

     

     

    Change

    Operating income

     

    $

     

    541.9

     

     

    $

     

    546.7

     

     

     

    (1

    )

    %

    Non-GAAP adjustments:

     

     

     

     

     

     

     

     

     

     

     

     

    Acquisition-related costs(1)

     

     

     

    84.8

     

     

     

     

    —

     

     

     

     

     

    Adjusted operating income

     

    $

     

    626.7

     

     

    $

     

    546.7

     

     

     

    15

     

    %

    Adjusted operating margin

     

     

     

    40.7

    %

     

     

     

    41.5

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Net income

     

    $

     

    383.8

     

     

    $

     

    427.4

     

     

     

    (10

    )

    %

    Non-GAAP adjustments:

     

     

     

     

     

     

     

     

     

     

     

     

    Acquisition-related costs(1)

     

     

     

    84.8

     

     

     

     

    —

     

     

     

     

     

    Income tax benefit for acquisition-related costs

     

     

     

    (20.6

    )

     

     

     

    —

     

     

     

     

     

    Excess tax benefits related to employee stock-based compensation payments(2)

     

     

     

    (7.2

    )

     

     

     

    (6.2

    )

     

     

     

     

    Adjusted net income

     

    $

     

    440.8

     

     

    $

     

    421.2

     

     

     

    5

     

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

    Diluted earnings per share(3)

     

    $

     

    1.06

     

     

    $

     

    1.18

     

     

     

    (10

    )

    %

    Non-GAAP adjustments:

     

     

     

     

     

     

     

     

     

     

     

     

    Acquisition-related costs(1)

     

     

     

    0.23

     

     

     

     

    —

     

     

     

     

     

    Income tax benefit for acquisition-related costs

     

     

     

    (0.06

    )

     

     

     

    —

     

     

     

     

     

    Excess tax benefits related to employee stock-based compensation payments(2)

     

     

     

    (0.02

    )

     

     

     

    (0.02

    )

     

     

     

     

    Adjusted diluted earnings per share

     

    $

     

    1.22

     

     

    $

     

    1.16

     

     

     

    5

     

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

    Net income

     

    $

     

    383.8

     

     

    $

     

    427.4

     

     

     

    (10

    )

    %

    Non-GAAP adjustments:

     

     

     

     

     

     

     

     

     

     

     

     

    Interest expense

     

     

     

    68.2

     

     

     

     

    9.6

     

     

     

     

     

    Interest income on corporate investments

     

     

     

    (18.7

    )

     

     

     

    (19.9

    )

     

     

     

     

    Income taxes

     

     

     

    113.7

     

     

     

     

    129.7

     

     

     

     

     

    Depreciation and amortization expense

     

     

     

    109.3

     

     

     

     

    39.0

     

     

     

     

     

    EBITDA

     

    $

     

    656.3

     

     

    $

     

    585.8

     

     

     

    12

     

    %

    Non-GAAP adjustments:

     

     

     

     

     

     

     

     

     

     

     

     

    Acquisition-related costs(1)

     

     

     

    23.7

     

     

     

     

    —

     

     

     

     

     

    Adjusted EBITDA

     

    $

     

    680.0

     

     

    $

     

    585.8

     

     

     

    16

     

    %

     

    (1) Acquisition-related costs for the first quarter included in selling, general and administrative expenses include (i) $61.1 million in amortization of intangibles acquired in the acquisition of Paycor, (ii) $18.7 million in compensation costs related to the acquisition and integration of Paycor, including replacement awards, severance and retention bonuses, and (iii) $5.0 million in other acquisition-related costs, primarily reflecting professional service fees.

    (2) Net tax windfall benefits related to employee stock-based compensation payments recognized in income taxes. This item is subject to volatility and will vary based on employee decisions on exercising employee stock options and fluctuations in our stock price, neither of which is within the control of management.

    (3) The calculation of the impact of non-GAAP adjustments on diluted earnings per share is performed on each line independently. The table may not add down by +/- $0.01 due to rounding.

    In addition to reporting operating income, operating margin, net income, and diluted earnings per share, which are U.S. GAAP measures, we present adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, earnings before interest, taxes, depreciation, and amortization ("EBITDA"), and adjusted EBITDA which are non-GAAP measures. We believe these additional measures are indicators of the performance of our core business operations period over period. Adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, EBITDA, and adjusted EBITDA are not calculated through the application of U.S. GAAP and are not required forms of disclosure by the Securities and Exchange Commission ("SEC"). As such, they should not be considered a substitute for the U.S. GAAP measures of operating income, operating margin, net income, and diluted earnings per share, and, therefore, they should not be used in isolation but in conjunction with the U.S. GAAP measures. The use of any non-GAAP measure may produce results that vary from the U.S. GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.

    Business Outlook

    Our business outlook for fiscal 2026 incorporates current assumptions and market conditions and excludes acquisition-related costs. Changes in the macroeconomic environment could alter our guidance. With consideration of these impacts, we have updated our business outlook as follows:

    • Adjusted diluted earnings per share(1) is now anticipated to grow in the range of 9% to 11%.
    • Other aspects of our guidance for fiscal 2026 remain unchanged from what we provided previously.
    (1) Adjusted diluted earnings per share is not a U.S. GAAP measure. Please refer to the "Non-GAAP Financial Measures" section of this press release for a discussion of non-GAAP measures.

    Quarterly Report on Form 10-Q ("Form 10-Q")

    We anticipate filing our Form 10-Q for the first quarter within the next couple days, and it will be available at https://investor.paychex.com. This press release should be read in conjunction with the Form 10-Q and the related Notes to Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in that Form 10-Q.

    Webcast Details

    Interested parties may access the webcast of our Earnings Conference Call, scheduled for September 30, 2025, at 9:30 a.m. Eastern Time, at https://investor.paychex.com. The live webcast will be available for replay on our Investor Relations portal, where news releases, current financial information, SEC filings, and investor presentations are also accessible.

    About Paychex

    Paychex, Inc. (NASDAQ:PAYX) is the digitally driven HR leader that is reimagining how companies address the needs of today's workforce with the most comprehensive, flexible, and innovative HCM solutions for organizations of all sizes. Offering a full spectrum of HR advisory and employee solutions, Paychex pays one out of every 11 American private sector workers and is raising the bar in HCM for approximately 800,000 customers in the U.S. and Europe. Every member of the Paychex team is committed to fulfilling the Company's purpose of helping businesses succeed. Visit www.paychex.com to learn more.

    Cautionary Note Regarding Forward-Looking Statements

    Certain written statements in this press release may contain, and members of management may from time to time make or discuss statements which constitute, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by such words and phrases as "expect," "outlook," "will," guidance," "projections," "strategy," "mission," "anticipate," "believe," "can," "could," "design," "look forward," "may," "possible," "potential," "should" and other similar words or phrases. Forward-looking statements include, without limitation, all matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding the integration of Paycor, operating performance, events, or developments that we expect or anticipate will occur in the future, including statements relating to our outlook, revenue growth, earnings, earnings-per-share growth, and similar projections.

    Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to known and unknown uncertainties, risks, changes in circumstances, and other factors that are difficult to predict, many of which are outside our control. Our actual performance and outcomes, including without limitation, our actual results and financial condition, may differ materially from those indicated in or suggested by the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:

    • our ability to keep pace with changes in technology or provide timely enhancements to our solutions and support;
    • software defects, undetected errors, and development delays for our solutions;
    • the possibility of cyberattacks, security vulnerabilities or Internet disruptions, including data security and privacy leaks, and data loss and business interruptions;
    • the possibility of failure of our business continuity plan during a catastrophic event;
    • the failure of third-party service providers to perform their functions;
    • the possibility that we may be exposed to additional risks related to our co-employment relationship with our PEO business;
    • changes in health insurance and workers' compensation insurance rates and underlying claim trends;
    • risks related to acquisitions and the integration of the businesses we acquire, including risks related to the acquisition and integration of Paycor;
    • our clients' failure to reimburse us for payments made by us on their behalf;
    • the effect of changes in government regulations mandating the amount of tax withheld or the timing of remittances;
    • our failure to comply with covenants in our corporate bonds and debt agreements;
    • changes in our credit ratings;
    • changes in governmental regulations, laws, and policies;
    • our ability to comply with U.S. and foreign laws and regulations;
    • our compliance with data privacy and artificial intelligence laws and regulations;
    • our failure to protect our intellectual property rights;
    • potential outcomes related to pending or future litigation matters;
    • the impact of macroeconomic factors on the U.S. and global economy, and in particular on our small- and medium-sized business clients;
    • volatility in the political and economic environment, including inflation and interest rate changes;
    • our ability to attract and retain qualified people; and
    • the possible effects of negative publicity on our reputation and the value of our brand.

    Any of these factors, as well as such other factors as discussed in our SEC filings, could cause our actual results to differ materially from our anticipated results. The information provided in this document is based upon the facts and circumstances known as of the date of this press release, and any forward-looking statements made by us in this document speak only as of the date on which they are made. Except as required by law, we undertake no obligation to update these forward-looking statements after the date of issuance of this press release to reflect events or circumstances after such date, or to reflect the occurrence of unanticipated events.

    PAYCHEX, INC.

    CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

    (In millions, except per share amounts)

     

     

     

    For the three months ended

     

     

     

     

     

     

     

    August 31,

     

     

    August 31,

     

     

     

     

     

     

     

    2025

     

     

    2024

     

     

    Change(2)

    Revenue:

     

     

     

     

     

     

     

     

     

     

     

     

    Management Solutions

     

    $

     

    1,163.3

     

     

    $

     

    961.7

     

     

     

    21

     

    %

    PEO and Insurance Solutions

     

     

     

    329.1

     

     

     

     

    319.3

     

     

     

    3

     

    %

    Total service revenue

     

     

     

    1,492.4

     

     

     

     

    1,281.0

     

     

     

    17

     

    %

    Interest on funds held for clients(1)

     

     

     

    47.6

     

     

     

     

    37.5

     

     

     

    27

     

    %

    Total revenue

     

     

     

    1,540.0

     

     

     

     

    1,318.5

     

     

     

    17

     

    %

    Expenses:

     

     

     

     

     

     

     

     

     

     

     

     

    Cost of service revenue

     

     

     

    413.8

     

     

     

     

    380.0

     

     

     

    9

     

    %

    Selling, general and administrative expenses

     

     

     

    584.3

     

     

     

     

    391.8

     

     

     

    49

     

    %

    Total expenses

     

     

     

    998.1

     

     

     

     

    771.8

     

     

     

    29

     

    %

    Operating income

     

     

     

    541.9

     

     

     

     

    546.7

     

     

     

    (1

    )

    %

    Interest expense

     

     

     

    (68.2

    )

     

     

     

    (9.6

    )

     

    n/m

     

     

    Other income, net(1)

     

     

     

    23.8

     

     

     

     

    20.0

     

     

     

    19

     

    %

    Income before income taxes

     

     

     

    497.5

     

     

     

     

    557.1

     

     

     

    (11

    )

    %

    Income taxes

     

     

     

    113.7

     

     

     

     

    129.7

     

     

     

    (12

    )

    %

    Net income

     

    $

     

    383.8

     

     

    $

     

    427.4

     

     

     

    (10

    )

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

    Basic earnings per share

     

    $

     

    1.07

     

     

    $

     

    1.19

     

     

     

    (10

    )

    %

    Diluted earnings per share

     

    $

     

    1.06

     

     

    $

     

    1.18

     

     

     

    (10

    )

    %

    Weighted-average common shares outstanding

     

     

     

    360.1

     

     

     

     

    360.1

     

     

     

     

     

    Weighted-average common shares outstanding, assuming dilution

     

     

     

    361.9

     

     

     

     

    361.9

     

     

     

     

     

     

    (1) Further information on interest on funds held for clients and other income, net, and the short- and long-term effects of changing interest rates can be found in our filings with the SEC, including our Quarterly Reports on Form 10-Q and our Annual Report on Form 10-K, as applicable, under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations" and subheadings "Results of Operations" and "Market Risk Factors." These filings are accessible at https://investor.paychex.com.

    (2) Percentage changes are calculated based on unrounded numbers.

     

    n/m — not meaningful

     

     

    PAYCHEX, INC.

    CONSOLIDATED BALANCE SHEETS (Unaudited)

    (In millions, except per share amounts)

     

     

     

    August 31,

     

     

    May 31,

     

     

     

    2025

     

     

    2025

     

    ASSETS

     

     

     

     

     

     

     

     

    Cash and cash equivalents

     

    $

     

    809.0

     

     

    $

     

    1,628.6

     

    Restricted cash

     

     

     

    50.4

     

     

     

     

    47.9

     

    Corporate investments

     

     

     

    861.9

     

     

     

     

    34.5

     

    Interest receivable

     

     

     

    34.0

     

     

     

     

    27.9

     

    Accounts receivable, net of allowance for credit losses

     

     

     

    1,359.3

     

     

     

     

    1,330.5

     

    PEO unbilled receivables, net of advance collections

     

     

     

    609.4

     

     

     

     

    616.6

     

    Prepaid income taxes

     

     

     

    9.2

     

     

     

     

    38.9

     

    Prepaid expenses and other current assets

     

     

     

    379.4

     

     

     

     

    378.3

     

    Current assets before funds held for clients

     

     

     

    4,112.6

     

     

     

     

    4,103.2

     

    Funds held for clients

     

     

     

    4,927.4

     

     

     

     

    4,813.3

     

    Total current assets

     

     

     

    9,040.0

     

     

     

     

    8,916.5

     

    Property and equipment, net of accumulated depreciation

     

     

     

    525.4

     

     

     

     

    511.5

     

    Operating lease right-of-use assets, net of accumulated amortization

     

     

     

    64.2

     

     

     

     

    63.8

     

    Intangible assets, net of accumulated amortization

     

     

     

    1,886.8

     

     

     

     

    1,947.3

     

    Goodwill

     

     

     

    4,523.6

     

     

     

     

    4,514.1

     

    Long-term deferred costs

     

     

     

    489.0

     

     

     

     

    482.4

     

    Other long-term assets

     

     

     

    134.0

     

     

     

     

    128.5

     

    Total assets

     

    $

     

    16,663.0

     

     

    $

     

    16,564.1

     

     

     

     

     

     

     

     

     

     

    LIABILITIES

     

     

     

     

     

     

     

     

    Accounts payable

     

    $

     

    120.6

     

     

    $

     

    129.8

     

    Accrued corporate compensation and related items

     

     

     

    151.7

     

     

     

     

    183.9

     

    Accrued worksite employee compensation and related items

     

     

     

    779.7

     

     

     

     

    735.8

     

    Short-term borrowings

     

     

     

    18.5

     

     

     

     

    18.6

     

    Long-term borrowings, net, current portion

     

     

     

    399.9

     

     

     

     

    399.8

     

    Deferred revenue

     

     

     

    68.8

     

     

     

     

    69.4

     

    Other current liabilities

     

     

     

    641.1

     

     

     

     

    552.0

     

    Current liabilities before client fund obligations

     

     

     

    2,180.3

     

     

     

     

    2,089.3

     

    Client fund obligations

     

     

     

    4,948.4

     

     

     

     

    4,867.0

     

    Total current liabilities

     

     

     

    7,128.7

     

     

     

     

    6,956.3

     

    Accrued income taxes

     

     

     

    124.9

     

     

     

     

    119.0

     

    Deferred income taxes

     

     

     

    518.0

     

     

     

     

    444.7

     

    Long-term borrowings, net of debt issuance costs

     

     

     

    4,550.3

     

     

     

     

    4,548.4

     

    Operating lease liabilities

     

     

     

    52.9

     

     

     

     

    55.5

     

    Other long-term liabilities

     

     

     

    317.6

     

     

     

     

    312.2

     

    Total liabilities

     

     

     

    12,692.4

     

     

     

     

    12,436.1

     

     

     

     

     

     

     

     

     

     

    STOCKHOLDERS' EQUITY

     

     

     

     

     

     

     

     

    Common stock, $0.01 par value; Authorized: 600.0 shares;

    Issued and outstanding: 359.9 shares as of August 31, 2025 and 360.5 shares as of May 31, 2025

     

     

     

    3.6

     

     

     

     

    3.6

     

    Additional paid-in capital

     

     

     

    1,921.8

     

     

     

     

    1,901.1

     

    Retained earnings

     

     

     

    2,070.2

     

     

     

     

    2,277.0

     

    Accumulated other comprehensive loss

     

     

     

    (25.0

    )

     

     

     

    (53.7

    )

    Total stockholders' equity

     

     

     

    3,970.6

     

     

     

     

    4,128.0

     

    Total liabilities and stockholders' equity

     

    $

     

    16,663.0

     

     

    $

     

    16,564.1

     

     

    PAYCHEX, INC.

    CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

    (In millions)

     

     

    For the three months ended

     

     

     

    August 31,

     

     

    August 31,

     

     

     

    2025

     

     

    2024

     

    OPERATING ACTIVITIES

     

     

     

     

     

     

     

     

    Net income

     

    $

     

    383.8

     

     

    $

     

    427.4

     

    Adjustments to reconcile net income to net cash provided by operating activities:

     

     

     

     

     

     

     

     

    Depreciation and amortization

     

     

     

    109.3

     

     

     

     

    39.0

     

    Amortization of premiums and discounts on available-for-sale ("AFS") securities and long-term debt, net

     

     

     

    (2.1

    )

     

     

     

    (2.8

    )

    Amortization of deferred contract costs

     

     

     

    60.4

     

     

     

     

    58.5

     

    Stock-based compensation costs

     

     

     

    26.8

     

     

     

     

    16.5

     

    Provision on/(benefit from) deferred income taxes

     

     

     

    66.0

     

     

     

     

    (11.0

    )

    Provision for credit losses

     

     

     

    7.7

     

     

     

     

    7.5

     

    Net realized losses/(gains) on sales of AFS securities

     

     

     

    0.0

     

     

     

     

    (0.0

    )

    Changes in operating assets and liabilities:

     

     

     

     

     

     

     

     

    Interest receivable

     

     

     

    (6.1

    )

     

     

     

    0.4

     

    Accounts receivable and PEO unbilled receivables, net

     

     

     

    (18.9

    )

     

     

     

    (36.4

    )

    Prepaid expenses and other current assets

     

     

     

    29.5

     

     

     

     

    26.3

     

    Accounts payable and other current liabilities

     

     

     

    124.9

     

     

     

     

    65.6

     

    Deferred costs

     

     

     

    (68.5

    )

     

     

     

    (51.6

    )

    Net change in other long-term assets and liabilities

     

     

     

    6.3

     

     

     

     

    8.4

     

    Net change in operating lease right-of-use assets and liabilities

     

     

     

    (0.7

    )

     

     

     

    (1.7

    )

    Net cash provided by operating activities

     

     

     

    718.4

     

     

     

     

    546.1

     

    INVESTING ACTIVITIES

     

     

     

     

     

     

     

     

    Purchases of AFS securities

     

     

     

    (3,731.9

    )

     

     

     

    (1,029.7

    )

    Proceeds from sales and maturities of AFS securities

     

     

     

    2,547.3

     

     

     

     

    1,013.0

     

    Net purchases of short-term accounts receivable

     

     

     

    (47.0

    )

     

     

     

    (45.1

    )

    Purchases of property and equipment

     

     

     

    (55.9

    )

     

     

     

    (35.6

    )

    Acquisition of businesses, net of cash acquired

     

     

     

    (0.2

    )

     

     

     

    —

     

    Purchases of other assets, net

     

     

     

    (15.0

    )

     

     

     

    (12.6

    )

    Net cash used in investing activities

     

     

     

    (1,302.7

    )

     

     

     

    (110.0

    )

    FINANCING ACTIVITIES

     

     

     

     

     

     

     

     

    Net change in client fund obligations

     

     

     

    81.4

     

     

     

     

    (25.1

    )

    Dividends paid

     

     

     

    (389.1

    )

     

     

     

    (353.4

    )

    Repurchases of common shares

     

     

     

    (160.1

    )

     

     

     

    (104.0

    )

    Activity related to equity-based plans

     

     

     

    (47.6

    )

     

     

     

    (2.5

    )

    Net cash used in financing activities

     

     

     

    (515.4

    )

     

     

     

    (485.0

    )

    Net change in cash, restricted cash, and equivalents

     

     

     

    (1,099.7

    )

     

     

     

    (48.9

    )

    Cash, restricted cash, and equivalents, beginning of period

     

     

     

    2,734.3

     

     

     

     

    1,897.0

     

    Cash, restricted cash, and equivalents, end of period

     

    $

     

    1,634.6

     

     

    $

     

    1,848.1

     

     

     

     

     

     

     

     

     

     

    Reconciliation of cash, restricted cash, and equivalents

     

     

     

     

     

     

     

     

    Cash and cash equivalents

     

    $

     

    809.0

     

     

    $

     

    1,459.6

     

    Restricted cash

     

     

     

    50.4

     

     

     

     

    54.9

     

    Restricted cash and restricted cash equivalents included in funds held for clients

     

     

     

    775.2

     

     

     

     

    333.6

     

    Total cash, restricted cash, and equivalents

     

    $

     

    1,634.6

     

     

    $

     

    1,848.1

     

     

    View source version on businesswire.com: https://www.businesswire.com/news/home/20250930722782/en/

    Investor Relations:

    Rachel White

    Head of Investor Relations

    (513) 954-7388

    [email protected]

    Media Relations:

    Tracy Volkmann

    Manager, Public Relations

    (585) 387-6705

    [email protected]

    Get the next $PAYX alert in real time by email

    Crush Q3 2025 with the Best AI Superconnector

    Stay ahead of the competition with Standout.work - your AI-powered talent-to-startup matching platform.

    AI-Powered Inbox
    Context-aware email replies
    Strategic Decision Support
    Get Started with Standout.work

    Recent Analyst Ratings for
    $PAYX

    DatePrice TargetRatingAnalyst
    10/1/2025$143.00 → $140.00Market Perform
    BMO Capital Markets
    9/24/2025$160.00 → $143.00Market Perform
    BMO Capital Markets
    7/10/2025$160.00Market Perform
    BMO Capital Markets
    12/22/2023$132.00 → $123.00Outperform → Market Perform
    TD Cowen
    12/14/2023$107.00 → $126.00Underweight → Equal Weight
    Barclays
    11/7/2023$120.00Neutral
    UBS
    9/5/2023$130.00Sector Perform
    RBC Capital Mkts
    6/2/2023$115.00Neutral
    UBS
    More analyst ratings

    $PAYX
    Press Releases

    Fastest customizable press release news feed in the world

    View All

    Minimal Shifts in U.S. Small Business Employment in September

    Hourly earnings growth for workers ticks up in September, but remains below three percent According to the Paychex Small Business Employment Watch for September, job growth among U.S. small businesses with fewer than 50 employees remains largely unchanged over the last year. The Small Business Jobs Index, a primary component of the Paychex report that measures the pace of job growth using payroll data from the company's small business customers, has fluctuated just over a half percentage point over the last 12 months. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250930262765/en/According to Paychex data, job growth among U.S

    9/30/25 1:00:00 PM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    Paychex, Inc. Reports First Quarter Results

    Delivered Strong Double-Digit Revenue Growth in the First Quarter Raises Full Year Earnings Outlook Successfully Completed Key Paycor Integration Milestones Paychex, Inc. (NASDAQ:PAYX) (the "Company," "Paychex," "we," "our," or "us"), an industry-leading human capital management ("HCM") company, today reported results for the fiscal quarter ended August 31, 2025 (the "first quarter") of the fiscal year ending May 31, 2026 ("fiscal 2026"). Results compared with the same period last year were as follows:     For the three months ended               August 31,     August 31,      

    9/30/25 8:30:00 AM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    Paychex, Inc. Schedules First Quarter Fiscal 2026 Earnings Conference Call for September 30, 2025

    Paychex, Inc. (NASDAQ:PAYX), an industry-leading human capital management ("HCM") company, will release financial results for its fiscal 2026 first quarter ended August 31, 2025 before the financial markets open on Tuesday, September 30, 2025. The company will host a conference call at 9:30 a.m. ET on Tuesday, September 30, 2025, to review the results for the quarter. Participating in this call will be John Gibson, President and Chief Executive Officer, and Bob Schrader, Chief Financial Officer. The conference call will be webcast live and available for replay on the Paychex Investor Relations portal. About Paychex Paychex, Inc. (NASDAQ:PAYX) is the digitally driven HR leader that i

    9/16/25 4:15:00 PM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    $PAYX
    Insider Trading

    Insider transactions reveal critical sentiment about the company from key stakeholders. See them live in this feed.

    View All

    Large owner Golisano B Thomas gifted 736 shares (SEC Form 4)

    4 - PAYCHEX INC (0000723531) (Issuer)

    9/3/25 4:00:13 PM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    VP, Controller & Treasurer Simmons Christopher C covered exercise/tax liability with 296 shares, decreasing direct ownership by 5% to 5,427 units (SEC Form 4)

    4 - PAYCHEX INC (0000723531) (Issuer)

    8/18/25 4:00:19 PM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    Director Doody Joseph disposed of 761 shares and acquired 761 units of Common Stock - Family Trust, decreasing direct ownership by 82% to 164 units (SEC Form 4)

    4 - PAYCHEX INC (0000723531) (Issuer)

    7/21/25 4:00:05 PM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    $PAYX
    Analyst Ratings

    Analyst ratings in real time. Analyst ratings have a very high impact on the underlying stock. See them live in this feed.

    View All

    BMO Capital Markets reiterated coverage on Paychex with a new price target

    BMO Capital Markets reiterated coverage of Paychex with a rating of Market Perform and set a new price target of $140.00 from $143.00 previously

    10/1/25 8:27:36 AM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    BMO Capital Markets reiterated coverage on Paychex with a new price target

    BMO Capital Markets reiterated coverage of Paychex with a rating of Market Perform and set a new price target of $143.00 from $160.00 previously

    9/24/25 7:52:54 AM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    BMO Capital Markets initiated coverage on Paychex with a new price target

    BMO Capital Markets initiated coverage of Paychex with a rating of Market Perform and set a new price target of $160.00

    7/10/25 8:59:30 AM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    $PAYX
    Insider Purchases

    Insider purchases reveal critical bullish sentiment about the company from key stakeholders. See them live in this feed.

    View All

    Flaschen David J S bought $81,546 worth of Common Stock - Family Trust (700 units at $116.52), increasing direct ownership by 0.75% to 33,248 units (SEC Form 4)

    4 - PAYCHEX INC (0000723531) (Issuer)

    3/8/24 4:00:09 PM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    $PAYX
    SEC Filings

    View All

    SEC Form 10-Q filed by Paychex Inc.

    10-Q - PAYCHEX INC (0000723531) (Filer)

    9/30/25 4:02:42 PM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    Paychex Inc. filed SEC Form 8-K: Results of Operations and Financial Condition, Financial Statements and Exhibits

    8-K - PAYCHEX INC (0000723531) (Filer)

    9/30/25 8:41:46 AM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    SEC Form DEFA14A filed by Paychex Inc.

    DEFA14A - PAYCHEX INC (0000723531) (Filer)

    8/29/25 8:05:08 AM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    $PAYX
    Leadership Updates

    Live Leadership Updates

    View All

    Paychex Announces Efrain Rivera Plans to Retire as CFO

    Robert L. Schrader, Paychex Vice President of Finance and Investor Relations, to succeed Rivera as CFO effective October 13th Paychex, Inc., a leading provider of integrated human capital management software solutions for human resources, payroll, benefits, and insurance services, announced today that Efrain Rivera, senior vice president and chief financial officer will retire as CFO, effective October 12th, 2023. Rivera will remain as a senior advisor for the remainder of 2023. Robert L. Schrader, currently vice president of Finance and Investor Relations, will be named senior vice president and CFO, effective October 13, 2023. "On behalf of the board of directors, the management team,

    9/5/23 4:00:00 PM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    Paychex Expands Board of Directors, Appoints New Member

    Experienced business leader Theresa M. Payton appointed to Paychex Board of Directors ROCHESTER, N.Y., Jan. 24, 2023 /PRNewswire/ -- Paychex, Inc., a leading provider of integrated human capital management software solutions for human resources, payroll, benefits, and insurance services, today announced that the company's Board of Directors has voted to expand to 12 members from 11 members. The Board has also appointed Theresa M. Payton to fill the new position. Ms. Payton is the founder and CEO of Fortalice Solutions, a firm advising Fortune 150 Boards, C-Suite, and regulators on secured technology innovation and transformation efforts regarding customer delivery and privacy.

    1/24/23 8:44:00 AM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    Paychex Expands Board, Appoints President and CEO John B. Gibson, Jr.

    ROCHESTER, N.Y., Oct. 14, 2022 /PRNewswire/ -- Paychex, Inc., a leading provider of integrated human capital management software solutions for human resources, payroll, benefits, and insurance services, today announced that the company's board of directors has voted to expand from 10 to 11 members. The board has appointed Paychex president and CEO John B. Gibson, Jr. to fill the new position.   Gibson is the fourth president and CEO in the 50-year history of Paychex. In addition to his appointment to the board of directors, Gibson will serve on the executive committee of the b

    10/14/22 9:00:00 AM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    $PAYX
    Financials

    Live finance-specific insights

    View All

    Paychex, Inc. Reports First Quarter Results

    Delivered Strong Double-Digit Revenue Growth in the First Quarter Raises Full Year Earnings Outlook Successfully Completed Key Paycor Integration Milestones Paychex, Inc. (NASDAQ:PAYX) (the "Company," "Paychex," "we," "our," or "us"), an industry-leading human capital management ("HCM") company, today reported results for the fiscal quarter ended August 31, 2025 (the "first quarter") of the fiscal year ending May 31, 2026 ("fiscal 2026"). Results compared with the same period last year were as follows:     For the three months ended               August 31,     August 31,      

    9/30/25 8:30:00 AM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    Paychex, Inc. Schedules First Quarter Fiscal 2026 Earnings Conference Call for September 30, 2025

    Paychex, Inc. (NASDAQ:PAYX), an industry-leading human capital management ("HCM") company, will release financial results for its fiscal 2026 first quarter ended August 31, 2025 before the financial markets open on Tuesday, September 30, 2025. The company will host a conference call at 9:30 a.m. ET on Tuesday, September 30, 2025, to review the results for the quarter. Participating in this call will be John Gibson, President and Chief Executive Officer, and Bob Schrader, Chief Financial Officer. The conference call will be webcast live and available for replay on the Paychex Investor Relations portal. About Paychex Paychex, Inc. (NASDAQ:PAYX) is the digitally driven HR leader that i

    9/16/25 4:15:00 PM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    Paychex Declares Quarterly Dividend

    The Board of Directors of Paychex, Inc. (NASDAQ:PAYX) declared a regular quarterly cash dividend on Paychex common stock of $1.08 per share, payable on August 29, 2025, to shareholders of record as of July 21, 2025. About Paychex Paychex, Inc. (NASDAQ:PAYX) is the digitally driven HR leader that is reimagining how companies address the needs of today's workforce with the most comprehensive, flexible, and innovative HCM solutions for organizations of all sizes. Offering a full spectrum of HR advisory and employee solutions, Paychex pays one out of every 11 American private sector workers and is raising the bar in HCM for nearly 800,000 customers in the U.S. and Europe. Every member of the

    7/9/25 4:15:00 PM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    $PAYX
    Large Ownership Changes

    This live feed shows all institutional transactions in real time.

    View All

    Amendment: SEC Form SC 13G/A filed by Paychex Inc.

    SC 13G/A - PAYCHEX INC (0000723531) (Subject)

    11/13/24 10:27:58 AM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    SEC Form SC 13G filed by Paychex Inc.

    SC 13G - PAYCHEX INC (0000723531) (Subject)

    2/9/24 6:05:54 PM ET
    $PAYX
    Diversified Commercial Services
    Industrials

    SEC Form SC 13G filed by Paychex Inc.

    SC 13G - PAYCHEX INC (0000723531) (Subject)

    1/25/24 3:33:12 PM ET
    $PAYX
    Diversified Commercial Services
    Industrials