01—Abstract
Summary
Summary of the 8-K filed June 24, 2026. Cited figures are marked; the original filing is the authoritative source.
Paychex, Inc. (Nasdaq: PAYX) furnished an 8-K under Item 2.02 on June 24, 2026, attaching a press release (Exhibit 99.1) reporting results for the three and twelve months ended May 31, 2026 (fiscal 2026).
Fourth-quarter total revenue rose 12% to $1,605.5 milliona, while operating income rose 40% to $604.7 million and adjusted operating income rose 17% to $675.8 million. Diluted EPS was $1.17 (up 43%), and adjusted diluted EPS was $1.32 (up 11%). The quarter reflects a full period of Paycor HCM, Inc., acquired in April 2025, versus a partial period in the prior year.
Management Solutions revenue grew 14% to $1.2 billionb, with Paycor contributing approximately 8 percentage points of that growth. For the full fiscal year, total revenue increased 17% to $6.5 billion, operating income increased 14% to $2.5 billion, and diluted EPS increased 7% to $4.89. Cash flow from operations was $2.6 billion, and the company returned $2.2 billion to shareholders through $1.6 billion in dividends and $611.0 million in share repurchases.
Short- and long-term borrowings totaled $4.6 billionc at May 31, 2026. For fiscal 2027, management guided to total revenue growth of 5% to 6%, adjusted operating margin of approximately 44%, and adjusted diluted EPS growth of 7% to 9%.
The release also announced the launch of WISE, an AI-powered intelligence engine. The company anticipates filing its Form 10-K before the end of July 2026.
02—Key points
Key Highlights
- Q4 fiscal 2026 total revenue of $1,605.5 million, up 12%; Management Solutions revenue up 14% to $1.2 billion
- Q4 operating income of $604.7 million, up 40%; operating margin 37.7% versus 30.2% a year earlier
- Q4 adjusted operating income of $675.8 million, up 17%; adjusted operating margin 42.1%
- Fiscal 2026 total revenue of $6.5 billion, up 17%; diluted EPS of $4.89, up 7%; adjusted diluted EPS of $5.51, up 11%
- Fiscal 2026 cash flow from operations of $2.6 billion; $2.2 billion returned to shareholders via $1.6 billion in dividends and $611.0 million in buybacks
- Fiscal 2027 guidance: total revenue growth of 5% to 6%, adjusted operating margin of about 44%, adjusted diluted EPS growth of 7% to 9%
- Interest on funds held for clients guided to $195 million to $205 million for fiscal 2027
03—Questions
Frequently Asked Questions
How did Paychex perform in the fourth quarter of fiscal 2026?
Total revenue rose 12% to $1,605.5 million and operating income rose 40% to $604.7 million. Adjusted operating income grew 17% to $675.8 million, and diluted EPS was $1.17 versus $0.82 a year earlier. The filing attributes the growth partly to a full quarter of Paycor results compared with a partial quarter in the prior year.
What is the company's outlook for fiscal 2027?
Paychex anticipates total revenue growth of 5% to 6%, with Management Solutions revenue growing 5% to 6% and PEO and Insurance Solutions revenue growing 6% to 7%. Adjusted operating margin is expected to be approximately 44%, the effective tax rate approximately 24%, and adjusted diluted EPS growth 7% to 9%. Management notes that changes in the macroeconomic environment could alter this guidance.
How much capital did Paychex return to shareholders in fiscal 2026?
The company paid cumulative dividends of $4.43 per share totaling $1.6 billion and repurchased 5.6 million shares for $611.0 million, for a total of $2.2 billion returned to shareholders during the fiscal year.
What drove the change in interest expense and other income?
Interest expense rose $1.0 million to $64.7 million in the fourth quarter, mainly because of debt issued in April 2025 to finance the Paycor acquisition. Other income, net fell $7.7 million to $14.2 million, primarily due to lower average corporate investment balances after the repayment of Senior Notes, Series A, which matured in March 2026, and higher share repurchases.
What is the status of the annual report and what is WISE?
The company expects to file its Form 10-K before the end of July 2026. WISE is an AI-powered intelligence engine launched across Paychex's HCM platforms and internal operations this quarter, which the company says uses patent-pending technology to draw insights from unstructured data.
04—Continue