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Paychex 8-K Report, Financial Results (Dec 19, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed December 19, 2025
Period End
December 19, 2025
Security
PAYX
In the record · 2016–202610-K1110-Q328-K99

PAYX filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 99 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Sep ’17Sep ’17
  2. Material agreement8-K · Feb ’20Feb ’20
  3. Leadership change8-K · Jan ’23Jan ’23
  4. Material agreement8-K · Jan ’25Jan ’25

01—Abstract

Summary

Summary of the 8-K filed December 19, 2025. Cited figures are marked; the original filing is the authoritative source.

Paychex, Inc. reported financial results for the three and six months ended November 30, 2025 (fiscal second quarter of fiscal 2026) in a press release furnished as Exhibit 99.1.

Total revenue rose 18% to $1,557.6 milliona for the quarter, with Management Solutions revenue up 21% to $1,166.4 million, and the company attributed much of this growth to the April 2025 acquisition of Paycor HCM, Inc., which contributed approximately 17% to Management Solutions revenue growth. GAAP operating income increased 6% to $571.9 million, but GAAP diluted earnings per share declined 4% to $1.10 and operating margin fell to 36.7% from 40.9%. Excluding $77.0 million of Paycor acquisition-related costs, adjusted operating income grew 21% to $649.0 million and adjusted diluted earnings per share rose 11% to $1.26.

For the six months, total revenue increased 18% to $3.1 billionb, while diluted EPS decreased 7% to $2.16 and adjusted diluted EPS increased 8% to $2.48. Interest expense rose $59.0 million to $68.5 million for the quarter, reflecting debt issued to finance the Paycor acquisition. As of November 30, 2025, the company reported cash, restricted cash and total corporate investments of $1.6 billion and short- and long-term borrowings of $5.0 billion.

The company paid $777.0 millionc in dividends and repurchased 2.1 million shares for $286.6 million during the six months. Management updated fiscal 2026 guidance, now anticipating adjusted diluted earnings per share growth of 10% to 11%, with other guidance unchanged. The company also noted it expects to file its Form 10-Q for the quarter within the next couple of business days.

02—Key points

Key Highlights

  1. Total revenue rose 18% to $1,557.6 million in the second quarter, with Management Solutions revenue up 21% to $1,166.4 million; Paycor contributed approximately 17% to Management Solutions growth.
  2. GAAP diluted EPS fell 4% to $1.10, while adjusted diluted EPS rose 11% to $1.26, excluding $77.0 million of Paycor acquisition-related costs.
  3. GAAP operating margin declined to 36.7% from 40.9%; adjusted operating margin was 41.7% versus 40.9% in the prior-year period.
  4. Interest expense increased $59.0 million to $68.5 million, primarily from incremental debt issued to finance the Paycor acquisition.
  5. Fiscal 2026 guidance updated: adjusted diluted EPS now anticipated to grow 10% to 11%; other guidance unchanged.
  6. Six-month cash flow from operations was $1.2 billion; the company paid $777.0 million in dividends and repurchased $286.6 million of common stock.
  7. Financial position as of November 30, 2025 included $1.6 billion in cash, restricted cash and corporate investments and $5.0 billion in borrowings.

03—Questions

Frequently Asked Questions

  1. Why did GAAP earnings decline while revenue grew 18%?

    Total expenses rose 27% to $985.7 million, driven mainly by compensation and intangible amortization tied to the Paycor acquisition, plus higher technology, selling and marketing investments. Selling, general and administrative expenses increased 43% to $573.5 million, and the filing notes $77.0 million of Paycor acquisition-related costs in that line. Interest expense also rose to $68.5 million, reducing net income to $395.4 million, down 4%.

  2. How much of the revenue growth came from the Paycor acquisition?

    The filing states that Paycor HCM, Inc., acquired in April 2025, contributed approximately 17% to Management Solutions revenue growth year-over-year. Management Solutions revenue grew 21% overall, and the company also cited higher revenue per client from Paycor's upmarket client base, price realization and product penetration.

  3. What changed in the company's fiscal 2026 outlook?

    Adjusted diluted earnings per share is now anticipated to grow 10% to 11%. The outlook excludes acquisition-related costs, and the company stated that other aspects of its fiscal 2026 guidance remain unchanged. The company cautioned that changes in the macroeconomic environment could alter its guidance.

  4. How is the company returning capital to stockholders?

    During the six months ended November 30, 2025, Paychex paid cumulative dividends of $2.16 per share totaling $777.0 million and repurchased 2.1 million shares of common stock for $286.6 million.

04—Continue

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