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Paychex 8-K Report, Financial Results (Sep 23, 2026)

Reports
Earnings & Results
Filing Date
Filed September 23, 2026
Period End
September 23, 2026
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 · Jul ’17Jul ’17
  2. Material agreement8-K · Aug ’19Aug ’19
  3. Material agreement8-K · Sep ’21Sep ’21
  4. Leadership change8-K · Jul ’25Jul ’25

01—Abstract

Summary

Summary of the 8-K filed September 23, 2026. Cited figures are marked; the original filing is the authoritative source.

Paychex, Inc. reported results for its first quarter of fiscal 2027, the three months ended August 31, 2026, in a press release furnished as Exhibit 99.1 to this Form 8-K.

Total revenue rose 6% to $1,630.5 milliona, with Management Solutions revenue up 4% to $1,213.1 million and PEO and Insurance Solutions revenue up 12% to $367.6 million. Operating income grew 14% to $619.2 million, and operating margin was 38.0% compared with 35.2% a year earlier. Net income increased 12% to $429.7 million, and diluted earnings per share rose 14% to $1.21.

Management attributed the operating income growth primarily to revenue growth and lower acquisition-related costs. On a non-GAAP basis, adjusted operating income grew 9% to $684.7 millionb, adjusted operating margin was 42.0% versus 40.7%, and adjusted diluted earnings per share rose 10% to $1.34. Cash flow from operations was $413.5 million, compared with $718.4 million in the prior-year period, and dividends paid totaled $424.1 million, or $1.19 per share.

As of August 31, 2026, long-term borrowings, net of debt issuance costs, were $4.6 billionc. For fiscal 2027, Paychex raised its PEO and Insurance Solutions revenue growth outlook to 7% to 8% from 6% to 7%, and raised its interest on funds held for clients outlook to $200 million to $210 million from $195 million to $205 million. Total revenue growth (5% to 6%), Management Solutions revenue growth (5% to 6%), adjusted operating margin (about 44%), effective tax rate (about 24%), and adjusted diluted earnings per share growth (7% to 9%) were unchanged.

02—Key points

Key Highlights

  1. Total revenue increased 6% to $1,630.5 million; Management Solutions revenue rose 4% to $1,213.1 million and PEO and Insurance Solutions revenue rose 12% to $367.6 million.
  2. Operating income grew 14% to $619.2 million, with operating margin of 38.0% versus 35.2%, primarily reflecting revenue growth and lower acquisition-related costs.
  3. Diluted EPS increased 14% to $1.21; adjusted diluted EPS increased 10% to $1.34 (non-GAAP).
  4. Net income rose 12% to $429.7 million, and adjusted operating margin reached 42.0% versus 40.7%.
  5. Cash flow from operations was $413.5 million, compared with $718.4 million in the prior-year quarter; dividends paid were $424.1 million.
  6. Fiscal 2027 PEO and Insurance Solutions revenue growth outlook was raised to 7% to 8% from 6% to 7%, and interest on funds held for clients was raised to $200 million to $210 million from $195 million to $205 million.
  7. Other fiscal 2027 guidance was unchanged, including total revenue growth of 5% to 6%, adjusted operating margin of about 44%, and adjusted diluted EPS growth of 7% to 9%.

03—Questions

Frequently Asked Questions

  1. What drove Paychex's revenue growth in the first quarter of fiscal 2027?

    Total revenue rose 6% to $1,630.5 million. The filing attributes Management Solutions growth (4% to $1,213.1 million) to higher revenue per client from price realization and product penetration. PEO and Insurance Solutions growth (12% to $367.6 million) was primarily due to growth in average PEO worksite employees and increased PEO insurance volumes.

  2. Why did operating income grow faster than revenue?

    Operating income increased 14% to $619.2 million, primarily reflecting revenue growth and lower acquisition-related costs. Selling, general and administrative expenses decreased 1% to $581.2 million, while cost of service revenue rose 4% to $430.1 million.

  3. How did the company change its fiscal 2027 outlook?

    Paychex raised its PEO and Insurance Solutions revenue growth outlook to 7% to 8%, from 6% to 7%, and its interest on funds held for clients outlook to $200 million to $210 million, from $195 million to $205 million. Total revenue growth (5% to 6%), Management Solutions revenue growth (5% to 6%), adjusted operating margin (about 44%), effective tax rate (about 24%), and adjusted diluted EPS growth (7% to 9%) were unchanged.

  4. What are the adjusted (non-GAAP) results, and how do they differ from GAAP?

    Adjusted operating income was $684.7 million, up 9%, and adjusted diluted EPS was $1.34, up 10%. The main adjustment is acquisition-related costs of $65.5 million, which mainly include amortization of intangibles from the Paycor HCM, Inc. acquisition. Management notes these non-GAAP measures should be used together with GAAP measures.

  5. How did cash flow and capital returns look this quarter?

    Cash flow from operations was $413.5 million, versus $718.4 million a year earlier. Paychex paid dividends of $1.19 per share, totaling $424.1 million, and made no share repurchases in the quarter, compared with $160.1 million in the prior-year period. As of August 31, 2026, cash, restricted cash, and total corporate investments were $1.0 billion, and long-term borrowings were $4.6 billion.

04—Continue

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