| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 1.8K | 16.6% | 19.5% |
| Total Income | 1.8K | 16.6% | 19.5% |
| Expenditure | 1.0K | 3.2% | 24.4% |
| PBT | 739.00 | 42.1% | 7.8% |
| Net Profit | 560.30 | 41.7% | 7.9% |
| OPM | 45.20% | 7.16pp | 1.98pp |
| NPM | 31.98% | 5.68pp | 3.44pp |
| EPS | 1.56 | 41.8% | 8.3% |
Paychex Reports Q3 FY26: Total Revenue Increased 20% to $1.8 Billion
04 May 2026 · 4 May, 12:20 am
Summary
Paychex reported strong third-quarter results, with total revenue increasing by 20% to $1.8 billion. Management Solutions revenue saw a significant boost, growing by 23%, driven by the acquisition of Paycor. Operating income also increased, rising by 14% to $792.0 million. According to John Gibson, President and CEO, the company's performance was driven by effective execution and progress on strategic priorities, with clients increasingly relying on Paychex's advisory and benefits solutions.
Key Highlights
- 1
Total revenue increased to $1.8 billion for the third quarter, representing growth of 20% over the prior year period.
- 2
Management Solutions revenue increased 23% to $1.4 billion for the third quarter, with Paycor contributing approximately 19% to this growth year-over-year.
- 3
Professional Employer Organization (PEO) and Insurance Solutions revenue increased 9% to $397.5 million for the third quarter.
- 4
Interest on funds held for clients increased 33% to $56.8 million for the third quarter.
- 5
Operating income increased 14% to $792.0 million for the third quarter.
- 6
Adjusted operating income grew 22% to $863.2 million for the third quarter.
- 7
Diluted earnings per share increased 9% to $1.56 per share for the third quarter.
Management Comments
John Gibson
"This quarter, we delivered strong double-digit growth in revenue and operating income and accelerated our organic revenue growth, driven by effective execution and progress on our strategic priorities." "In a dynamic regulatory and macro environment, clients are increasingly relying on our comprehensive advisory and benefits solutions to help navigate complex, compliance-critical HR and workforce challenges, underscoring the breadth and differentiated value of our expert-enabled technology and advisory offerings." "We continue to drive investment and innovation in all areas of our business model to take full advantage of the power of AI to further enhance our leadership position in HCM. With mission-critical compliance capabilities, deep domain expertise, and unrivaled data advantage, we believe Paychex is well positioned to drive sustained growth in the AI era. The $1.5 billion returned to shareholders fiscal year to date, alongside our financial strength and durable model, underscores our commitment to long-term shareholder value and reflects confidence in the path ahead."
Informational and educational content only. Not investment advice.