| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 1.5K | 16.5% |
| Total Income | 1.5K | 16.5% |
| Expenditure | 998.10 | 29.3% |
| PBT | 497.50 | 10.7% |
| Net Profit | 383.80 | 10.2% |
| OPM | 36.31% | 6.37pp |
| NPM | 25.72% | 7.65pp |
| EPS | 1.07 | 10.1% |
Paychex Reports Q1 FY2026 Revenue Up 17% to $1.54 Billion
04 May 2026 · 4 May, 9:04 am
Summary
Paychex, Inc. reported strong first-quarter results for fiscal year 2026, with total revenue increasing by 17% to $1.5 billion. Management Solutions revenue saw a significant boost, growing by 21%, driven by the Paycor acquisition. Adjusted operating income grew by 15% to $626.7 million, while adjusted diluted earnings per share increased by 5% to $1.22. The company has updated its business outlook, anticipating adjusted diluted earnings per share to grow in the range of 9% to 11%.
Key Highlights
- 1
Paychex reported total revenue of $1.5 billion for the first quarter, an increase of 17% year-over-year.
- 2
Management Solutions revenue increased by 21% to $1.2 billion in the first quarter, with Paycor contributing approximately 17% to this growth.
- 3
Professional Employer Organization (PEO) and Insurance Solutions revenue grew by 3% to $329.1 million for the first quarter.
- 4
Adjusted operating income increased by 15% to $626.7 million for the first quarter.
- 5
Adjusted diluted earnings per share increased by 5% to $1.22 per share for the first quarter.
- 6
Interest on funds held for clients increased 27% to $47.6 million for the first quarter.
- 7
The company has raised its full-year earnings outlook.
Management Comments
John Gibson
"We are pleased to report a strong start to fiscal 2026, delivering robust double-digit revenue growth." "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." "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."
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