| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 1.5K | 0.7% | 17.4% |
| Total Income | 1.5K | 0.7% | 17.4% |
| Expenditure | 985.70 | 1.2% | 26.6% |
| PBT | 520.20 | 4.6% | 4.3% |
| Net Profit | 395.40 | 3.0% | 4.3% |
| OPM | 38.04% | 1.73pp | 3.97pp |
| NPM | 26.30% | 0.59pp | 5.98pp |
| EPS | 1.10 | 2.8% | 4.3% |
Paychex Reports Q2 FY26 Revenue Up 18% to $1.6 Billion
04 May 2026 · 4 May, 6:53 am
Summary
Paychex reported strong second quarter results with total revenue increasing 18% to $1.6 billion. Adjusted operating income grew 21% year-over-year, driven by disciplined cost management and productivity improvements. The acquisition of Paycor contributed significantly to the growth in Management Solutions revenue. The company has raised its full year earnings outlook, now anticipating adjusted diluted earnings per share to grow in the range of 10% to 11%.
Key Highlights
- 1
Total revenue increased by 18% to $1.6 billion for the second quarter of fiscal year 2026.
- 2
Management Solutions revenue increased by 21% to $1.2 billion for the second quarter, with Paycor contributing approximately 17% to this growth.
- 3
Professional Employer Organization (PEO) and Insurance Solutions revenue increased by 6% to $336.9 million for the second quarter.
- 4
Interest on funds held for clients increased by 51% to $54.3 million for the second quarter.
- 5
Adjusted operating income grew by 21% to $649.0 million for the second quarter.
- 6
Adjusted diluted earnings per share increased by 11% to $1.26 per share for the second quarter.
- 7
Adjusted diluted earnings per share is now anticipated to grow in the range of 10% to 11% for fiscal year 2026.
Management Comments
John Gibson
"We delivered solid second quarter results, with revenue increasing 18% and adjusted operating income growing 21% year-over-year." "We are proud of the significant progress we've made on key strategic priorities, enabling us to deliver the most comprehensive suite of HCM solutions in the industry. Disciplined cost management and productivity improvements, driven in part by our expanding AI capabilities, are enabling us to operate more efficiently while delivering enhanced value to clients." "Innovation remains central to our strategy as we accelerate the deployment of AI-powered technologies to transform workforce management. Leveraging one of the industry’s largest and richest datasets, we are democratizing enterprise-grade AI for businesses of all sizes. Our recent advancements—from agentic AI payroll automation to GenAI-powered advisory tools—are delivering tangible benefits by automating routine tasks and providing precise, actionable insights. These AI-driven solutions are enhancing client satisfaction, improving operational efficiency, and positioning Paychex for the next era of AI-enabled human capital management."
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