Paychex beats fiscal Q4 estimates as double-digit revenue growth and stronger operating income support results.
Stock Earnings Results
June 24, 2026
Table of Contents
June 24, 2026
Paychex, Inc. (NASDAQ: PAYX) reported fiscal fourth-quarter 2026 results above expectations, supported by double-digit revenue growth, stronger operating income, adjusted EPS growth, and continued shareholder returns.
Paychex provides payroll, human resources, benefits, insurance, advisory, and workforce management solutions for small and mid-sized businesses.
The company reported adjusted EPS of $1.32, above estimates of $1.31, representing a 0.8% earnings surprise. Revenue was $1.61 billion, up 12% from the prior-year quarter.
Total revenue increased 12% to $1.61 billion from $1.43 billion a year earlier.
Management Solutions revenue increased 14% to $1.18 billion, helped by Paycor, higher product penetration, HR Solutions growth, and stronger revenue per client.
PEO and Insurance Solutions revenue increased 9% to $369.7 million, driven by growth in average PEO worksite employees and higher PEO insurance revenue.
Interest on funds held for clients increased 15% to $52.2 million due to higher average investment balances following the Paycor acquisition.
Operating income increased 40% to $604.7 million. Adjusted operating income rose 17% to $675.8 million, while adjusted operating margin improved to 42.1% from 40.4%.
Diluted EPS increased 43% to $1.17, while adjusted diluted EPS rose 11% to $1.32.
Fourth-quarter results reflected a full quarter of revenue and expenses from Paycor, which Paychex acquired in April 2025.
Paycor contributed about 8 percentage points to Management Solutions revenue growth and helped expand Paychex’s upmarket client base.
Paychex also launched WISE, its AI-powered intelligence engine, across its HCM platforms and internal operations. Management said WISE uses patent-pending technology to unlock insights from unstructured data and improve productivity and client outcomes.
For fiscal 2026, total revenue increased 17% to $6.51 billion.
Operating income rose 14% to $2.51 billion, while adjusted operating income increased 19% to $2.81 billion. Adjusted EPS increased 11% to $5.51.
Cash flow from operations was $2.6 billion. Paychex returned $2.2 billion to shareholders during the year, including $1.6 billion in dividends and $611 million in share repurchases.
For fiscal 2027, Paychex expects total revenue growth of 5% to 6%, Management Solutions revenue growth of 5% to 6%, and PEO and Insurance Solutions revenue growth of 6% to 7%.
The company expects adjusted operating margin of about 44% and adjusted diluted EPS growth of 7% to 9%.
Paychex delivered a strong finish to fiscal 2026.
Revenue grew double digits, adjusted margins expanded, EPS beat expectations, and cash generation supported major shareholder returns. The key question is whether Paychex can keep converting Paycor integration, AI-driven productivity, and upmarket expansion into steady earnings growth in fiscal 2027.
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