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WISE agents proactively help prevent payroll errors, enable more consultative service, and increase efficiency across the Paychex enterprise – enhancing customer experiencesResults from more than 50,000 early adopters reinforce the value of WISE across Paychex’s HCM platformsCompany continues to scale WISE based on early adopter success
ROCHESTER, N.Y., Aug. 31, 2026 (GLOBE NEWSWIRE) -- Paychex, Inc. (Nasdaq: PAYX), a leading provider of expert-enabled HR, payroll, and benefits, today shared early results from more than 50,000 businesses using WISE (Workforce Intelligence, Strengthened by Expertise). Early adopter data shows WISE is helping customers proactively prevent payroll errors, resolve service interactions faster, and improve efficiency across the Paychex enterprise — validating the company’s strategy to bring agentic AI into mission-critical workforce workflows.

Preventing Payroll Errors Before They Happen
Recurring payroll issues waste time, create risk, and can undermine employee trust. Companies average a 1.2% payroll error rate, and employees often begin looking for a new job after just two payroll mistakes. As business leaders are increasingly expected to do more with less, persistent demands and expanding priorities leave limited time for manual correction.

With WISE intelligence, Intelligent Pay Cycle continuously monitors the pay cycle for anomalies and proactively flags missing pay data, incomplete time records, and unresolved approvals before they become payroll problems, including:

Enabled proactive payroll management, with nearly 90% of identified time and pay rate errors corrected before payroll run day.Average time to review and resolve direct deposit changes fell from approximately three days to less than two days.

“WISE is not a set of AI features. It’s a shared intelligence engine embedded across our platforms to help customers complete work more efficiently and effectively,” said Ryan Bergstrom, Paychex Chief Product and Technology Officer. “From proactively identifying payroll issues to automating service interactions, WISE is already delivering measurable value at scale for customers and across our operations.”

Based on strong early adoption and validation, payroll intelligence and direct deposit approval capabilities reached general availability across Paychex Flex® users in late July, with missing punch and missing pay rate capabilities rolling out through September.

Driving Efficiency and Increasing Client Satisfaction
Delivered through both email and phone agents, WISE agentic intelligence runs through a customer lifecycle, from payroll pre-flight through post-cycle service. Thoughtfully developed to drive personalization and user confidence, WISE is delivering a faster, more positive client experience:

Across voice and email, WISE agents have handled more than 350,000 workforce conversations, with more than 20% resolved without human involvement.The WISE payroll voice agent operates at nearly 100% accuracy — with more than 40,000 users regularly choosing AI over a live representative.The WISE email agent has handled nearly 300,000 interactions with an average processing time of three minutes – more than 80% faster than human handling. “By automating routine interactions and surfacing issues earlier, WISE enables our service professionals to spend less time on repetitive tasks and more time helping clients solve broader workforce challenges,” Bergstrom added. “That shift from transaction handling to higher-value guidance is one of the most important benefits of our AI strategy.”

Unlocking Insights to Drive Organizational Effectiveness
Paychex continues to expand WISE across its operations to increase efficiency, accelerate service delivery, and enhance the customer experience. Over the past year, the company has equipped sales and service professionals with AI-powered tools that deliver real-time answers to customer questions and help teams respond more quickly and effectively. Paychex is also leveraging AI to modernize implementation workflows, helping new clients onboard faster and more efficiently.

To learn more about WISE and AI at Paychex, visit paychex.com/ai. 

About WISE
WISE (Workforce Intelligence Strengthened by Expertise) is the AI-powered intelligence engine transforming business operations with embedded context-aware intelligence, expert-enabled guidance, and autonomous execution. With Paychex’s five decades of trusted data and human expertise at its core, WISE transforms AI from a passive tool to expert-designed agentic workflows with the ability to complete tasks autonomously, making work faster, smarter, and more efficient.

About Paychex
Paychex, Inc. (Nasdaq: PAYX) provides a comprehensive suite of expert-enabled technology and advisory solutions that help businesses manage HR, payroll, and benefits. Serving approximately 840,000 customers and paying 1 in 11 U.S. private sector workers, Paychex combines scale, trusted expertise, and innovation to help businesses succeed. Built on more than 50 years of workforce experience and one of the industry’s largest proprietary HR datasets, Paychex’s WISE agentic AI engine embeds intelligence directly into workflows to improve productivity, enhance decision-making, and deliver better outcomes. Learn more at paychex.com.

Media Contact
Chelsea Wernick
Public Relations Program Manager
Paychex, Inc.
(585) 216-2974
[email protected]

AssuredPartners Investment Advisors LLC bought a new position in Paychex, Inc. (NASDAQ:PAYX – Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 6,237 shares of the business services provider’s stock, valued at approximately $613,000.

A number of other large investors have also modified their holdings of PAYX. Johnson Financial Group Inc. acquired a new position in shares of Paychex in the 2nd quarter valued at $1,021,000. Tocqueville Asset Management L.P. acquired a new stake in Paychex during the 2nd quarter valued at approximately $30,544,000. West Family Investments Inc. acquired a new stake in Paychex during the second quarter worth about $228,000. NewEdge Wealth LLC purchased a new position in shares of Paychex during the 2nd quarter valued at approximately $2,269,000. Finally, Danica Pension Livsforsikringsaktieselskab purchased a new position in Paychex during the second quarter worth approximately $9,157,000. Hedge funds and other institutional investors own 83.47% of the company’s stock.

Analyst Ratings Changes PAYX has been the topic of several research analyst reports. Citigroup raised their price objective on Paychex from $140.00 to $150.00 and gave the company a “buy” rating in a report on Thursday, July 30th. UBS Group increased their target price on Paychex from $105.00 to $115.00 and gave the company a “neutral” rating in a research report on Wednesday, July 22nd. Morgan Stanley lifted their price target on shares of Paychex from $107.00 to $109.00 and gave the company an “equal weight” rating in a research note on Tuesday, June 30th. Stifel Nicolaus boosted their price target on shares of Paychex from $105.00 to $110.00 and gave the stock a “hold” rating in a report on Wednesday, June 17th. Finally, Cantor Fitzgerald restated an “underweight” rating and set a $107.00 price objective on shares of Paychex in a research report on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have issued a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $109.20.

Read Our Latest Analysis on Paychex Insider Transactions at Paychex In other Paychex news, CFO Robert L. Schrader sold 2,600 shares of the firm’s stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $115.09, for a total transaction of $299,234.00. Following the sale, the chief financial officer owned 18,547 shares of the company’s stock, valued at approximately $2,134,574.23. This trade represents a 12.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Joseph M. Tucci sold 3,907 shares of the firm’s stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $98.25, for a total value of $383,862.75. Following the transaction, the director owned 67,364 shares in the company, valued at $6,618,513. This represents a 5.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.80% of the company’s stock.

Paychex Stock Up 2.1% Shares of NASDAQ:PAYX opened at $122.50 on Thursday. The business has a fifty day moving average of $110.13 and a two-hundred day moving average of $99.70. The stock has a market cap of $43.57 billion, a P/E ratio of 25.05 and a beta of 0.81. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. Paychex, Inc. has a 52-week low of $85.45 and a 52-week high of $141.19.

Paychex (NASDAQ:PAYX – Get Free Report) last released its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, beating the consensus estimate of $1.31 by $0.01. The firm had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.60 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The business’s revenue for the quarter was up 12.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, research analysts expect that Paychex, Inc. will post 5.96 earnings per share for the current year.

Paychex Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Tuesday, July 28th will be issued a dividend of $1.19 per share. The ex-dividend date is Tuesday, July 28th. This represents a $4.76 dividend on an annualized basis and a yield of 3.9%. Paychex’s dividend payout ratio is 97.34%.

Paychex Profile (Free Report)

Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.

Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.

See Also Five stocks we like better than Paychex Bloom Energy’s AI Surge Meets a Valuation Reality Check Target Is Winning Shoppers Back—Can the Rally Reach $180? IonQ’s Space Contract Points to a New Frontier for Quantum Investors Is Apple’s AI Strategy Smarter Than Skeptics Think? Want to see what other hedge funds are holding PAYX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Paychex, Inc. (NASDAQ:PAYX – Free Report).

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A month has gone by since the last earnings report for Paychex (PAYX - Free Report) . Shares have added about 14.4% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Paychex due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Paychex's Q4 Earnings:Paychex, Inc. reported solid fourth-quarter fiscal 2026 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues coming in line. Adjusted earnings of $1.32 per share surpassed the consensus estimate of $1.31 by a slight margin and increased 10.9% from the year-ago quarter. Total revenues of $1.61 billion rose 12.5% year over year and beat the consensus estimate by a slight margin.

The earnings upside was backed by segment growth, Paycor contributions and disciplined expense performance. Management Solutions led the quarter, while PEO and Insurance Solutions, and client fund interest added further support.

PAYX's Management Solutions Powers GrowthManagement Solutions’ revenues increased 14% year over year to $1.18 billion in the fiscal fourth quarter. The segment benefited from higher product penetration and growth in client worksite employees within Human Resources Solutions.

Paycor, acquired in April 2025, contributed about 8 percentage points to Management Solutions revenue growth. The acquisition also supported price realization and higher revenues per client, reflecting Paycor’s upmarket client base.

Management noted that the quarter included a full period of Paycor revenues and expenses compared with a partial period in the prior-year quarter. That comparison helped drive the sharper contribution from the acquired business in the latest quarter.

Paychex's PEO & Client Funds Add SupportProfessional Employer Organization and Insurance Solutions revenues were $369.7 million, up 9% from the year-ago quarter. Growth in the number of average PEO worksite employees supported the segment’s performance.

PEO insurance revenues also increased during the quarter. Interest on funds held for clients rose 15% to $52.2 million, driven by higher average investment balances resulting from the Paycor acquisition.

Total service revenues came in at $1.55 billion, up 12% from the year-ago period. The broad advance across core services showed that growth was not confined to one operating line.

PAYX's Margin Profile Expands in Q4Total expenses were relatively flat year over year at $1 billion. Increases in compensation-related expenses, amortization of intangible assets, technology investments, selling initiatives and marketing spending were offset by lower acquisition-related compensation and professional service costs.

Operating income rose 40% to $604.7 million. The operating margin expanded to 37.7% from 30.2% a year earlier, while the adjusted operating margin improved to 42.1% from 40.4%.

Adjusted operating income increased 17% to $675.8 million. The adjusted figure excludes acquisition-related costs, which were lower than in the prior-year quarter.

Paychex's Profitability Shows Earnings LeverageNet income increased 41% year over year to $420.6 million in the fiscal fourth quarter. Diluted earnings were $1.17 per share, up 43% from the prior-year period.

Adjusted net income rose 10% to $474.6 million. EBITDA increased 39% to $719.1 million, while adjusted EBITDA advanced 17% to $729.7 million, reflecting revenue gains and reduced acquisition-related drag.

Interest expenses increased to $64.7 million from $63.7 million. Other income, net, declined to $14.2 million from $21.9 million due to lower average balances on corporate investments and higher share repurchases in fiscal 2026.

PAYX's Balance Sheet Remains SolidPaychex ended fiscal 2026 with cash, restricted cash and total corporate investments of $1.2 billion. Short-term and long-term borrowings, net of debt issuance costs, totaled $4.6 billion as of May 31, 2026.

Cash flow from operations was $2.6 billion for the fiscal year. The company paid out cumulative dividends of $4.43 per share, totaling $1.6 billion, and repurchased 5.6 million shares for $611 million.

Fiscal 2026 total revenues increased 17% to $6.51 billion. Adjusted diluted earnings advanced 11% to $5.51 per share, whereas adjusted operating income grew 19% to $2.81 billion.

Paychex's FY27 View Points to GrowthFor fiscal 2027, Paychex expects total revenues to grow 5-6%. Management Solutions’ revenues are also projected to rise 5-6%, while PEO and Insurance Solutions revenues are expected to increase 6-7%.

Interest on funds held for clients is expected to be $195-$205 million. The company anticipates an adjusted operating margin of 44%, an effective income tax rate of 24% and adjusted diluted earnings growth of 7-9%.

Paychex also highlighted the launch of WISE, its AI-powered intelligence engine, across HCM platforms and internal operations. Management said that the platform is designed to unlock insights from unstructured data, increase productivity and enhance client outcomes.

Adjusted earnings of 99 cents per share beat the Zacks Consensus Estimate by 4.2% and increased 8.8% on a year-over-year basis. Total revenues of $1.2 billion also beat the Zacks Consensus Estimate by 0.5% and increased 7.4% year over year.

Revenues in Detail     

Revenues from Management Solutions segment increased 8% year over year to $895.3 million. The segment benefited from growth in the number of client employees served for human capital management (HCM) and additional worksite employees for HR Solutions. Also, improved revenue per client on price realization and higher product penetration, strong demand for HR Solutions, retirement, time and attendance solutions and expansion of HCM ancillary services acted as tailwinds.

Professional employer organization (“PEO”) and Insurance Solutions’ revenues were $273.3 million, up 4% from the year-ago quarter’s level. The uptick was owing to growth in the number of average worksite employees. Interest on funds held for clients increased 54% year over year to $21.7 million.

Operating Performance

Operating income increased 7% year over year to $472.3 million. EBITDA of $518.6 million increased 4.7% year over year.

Balance Sheet & Cash Flow

Paychex exited second-quarter fiscal 2022 with cash and cash equivalents of $1.1 billion compared with $1.18 billion reported at the end of the prior quarter. Long-term debt was $797.9 million compared with $797.8 million in the prior quarter. Cash provided by operating activities was $321.6 million in the reported quarter. During the reported quarter, PAYX paid out $284.7 million as dividends.

Fiscal 2023 View Tweaked

Paychex upped its adjusted earnings per share view with respect to year-over-year growth for fiscal 2023. Adjusted EPS is now expected to register 12-14% growth compared with the prior expectation of 11-12% growth. PAYX continues to expect total revenues to register 8% (prior view: 7-8%) growth. Management Solutions’ revenues are expected to grow 7-8% (prior view: 5-7%). PEO and Insurance Solutions’ revenues are expected to grow 5-7% (prior view: 8-10%).

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.

VGM ScoresAt this time, Paychex has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Paychex has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Delivered Strong Double-Digit Revenue and Earnings GrowthExpanded AI Leadership with the Launch of WISE Workforce Intelligence EngineReturned $2.2 Billion to Shareholders in Fiscal 2026
ROCHESTER, N.Y., June 24, 2026 (GLOBE NEWSWIRE) -- Paychex (Nasdaq: PAYX), a leading provider of expert-enabled HR, payroll, and benefits, today reported results for the fiscal quarter ended May 31, 2026 (the "fourth quarter") of the fiscal year ended May 31, 2026 ("fiscal 2026"). Results compared to the same period last year were as follows:

  Three months ended      Twelve months ended      May 31,      May 31,    In millions, except per share amounts 2026  2025  Change(2)
 2026  2025  Change(2)Total revenue $1,605.5  $1,427.3   12% $6,512.0  $5,571.7   17%Operating income $604.7  $431.1   40% $2,510.5  $2,207.7   14%Adjusted operating income(1) $675.8  $576.7   17% $2,814.7  $2,370.0   19%Diluted earnings per share $1.17  $0.82   43% $4.89  $4.58   7%Adjusted diluted earnings per share(1) $1.32  $1.19   11% $5.51  $4.98   11%                          (1)  Adjusted operating income and adjusted diluted earnings per share are not United States ("U.S.") generally accepted accounting principle ("GAAP") measures. Please refer to the "Non-GAAP Financial Measures" section of this press release for a discussion of non-GAAP measures.
(2)  Percentage changes are calculated based on unrounded numbers.

“We finished fiscal 2026 with strong momentum, delivering double-digit revenue and earnings growth while accelerating organic revenue growth throughout the year,” stated John Gibson, President and Chief Executive Officer. "These results reflect solid execution against two of our strategic priorities, the successful integration of Paycor to advance our upmarket expansion and AI innovation that further differentiates our HCM and advisory solutions. Our durable business model and strong cash generation enabled us to return $2.2 billion to shareholders this fiscal year while continuing to invest in innovation and future growth."

Gibson continued, “As businesses look for a trusted partner to help them manage increasing work and complexity, we believe Paychex is well positioned to deliver differentiated value through the combination of our AI-driven technology and deep advisory expertise. This quarter, we launched WISE, our AI-powered intelligence engine, across our HCM platforms and internal operations, enabling more proactive, autonomous execution. It leverages patent-pending technology to unlock insights from unstructured data to increase productivity and enhance client outcomes.”

Fourth Quarter Business Highlights

Fourth quarter results reflect a full quarter of revenue and expenses from Paycor HCM, Inc. (“Paycor”), acquired in April 2025, compared to a partial-quarter in the prior-year period.

Total revenue increased to $1.6 billion for the fourth quarter, representing growth of 12% over the prior year period. Highlights compared to the prior year period include:

Management Solutions revenue increased 14% to $1.2 billion for the fourth quarter. Paycor, acquired in April 2025, contributed approximately 8% to Management Solutions revenue growth year-over-year. Management Solutions revenue increased due to the following:

Higher product penetration and growth in client worksite employees for Human Resources ("HR") Solutions; andPrice realization and higher revenue per client driven by Paycor's upmarket client base. Professional Employer Organization ("PEO") and Insurance Solutions revenue increased 9% to $369.7 million for the fourth quarter, primarily due to the following:

Growth in the number of average PEO worksite employees; andIncrease in PEO insurance revenues. Interest on funds held for clients increased 15% to $52.2 million for the fourth quarter due to higher average investment balances resulting from the acquisition of Paycor.

Total expenses were relatively flat for the fourth quarter, primarily impacted by the following:

Increases in compensation-related expenses and amortization of intangible assets, primarily driven by the acquisition of Paycor; andHigher technology, selling, and marketing investments driven by the acquisition of Paycor and continued investments in our strategic priorities; offset byLower acquisition-related compensation and other acquisition-related costs, primarily consisting of professional service fees.
Operating income increased 40% to $604.7 million for the fourth quarter. The increase in operating income primarily reflected revenue growth and lower acquisition-related costs compared to the prior year period. Adjusted operating income(1), which excludes acquisition-related costs included in selling, general and administrative expenses, grew 17% to $675.8 million for the fourth quarter. Operating margin (operating income as a percentage of total revenue) was 37.7% for the fourth quarter compared to 30.2% for the prior year period. Adjusted operating margin(1) (adjusted operating income as a percentage of total revenue) was 42.1% for the fourth quarter compared to 40.4% for the prior year period.

Interest expense increased $1.0 million to $64.7 million for the fourth quarter, primarily due to the issuance of incremental debt in April 2025 to finance the acquisition of Paycor. The prior-year period also included acquisition-related financing costs.

Other income, net, decreased $7.7 million to $14.2 million for the fourth quarter, primarily as a result of lower average investment balances on our corporate investments resulting from the repayment of the Company's long-term private placement debt, Senior Notes, Series A, which matured in March 2026, and higher share repurchases in fiscal 2026.

Our effective income tax rate was 24.1% for the fourth quarter and 23.7% for the prior year period. Both periods were affected by the recognition of discrete tax impacts related to employee stock-based compensation payments.

Diluted earnings per share increased 43% to $1.17 per share and adjusted diluted earnings per share(1) increased 11% to $1.32 per share for the fourth quarter.

Fiscal Year Business Highlights

Highlights for fiscal 2026 as compared to the corresponding prior year period are as follows:

Total revenue increased 17% to $6.5 billion.Operating income increased 14% to $2.5 billion and adjusted operating income(1) increased 19% to $2.8 billion.Operating margin was 38.6% for the fiscal year compared to 39.6% for the prior year period. Adjusted operating margin(1) was 43.2% for the fiscal year compared to 42.5% for the prior year period.Diluted earnings per share increased 7% to $4.89 per share. Adjusted diluted earnings per share(1) increased 11% to $5.51 per share. Financial Position and Liquidity

Our financial position and cash flow generation remained strong during fiscal 2026. As of May 31, 2026, we had:

Cash, restricted cash, and total corporate investments of $1.2 billion.Short-term and long-term borrowings, net of debt issuance costs, of $4.6 billion.Cash flow from operations was $2.6 billion for the fiscal year.
Return to Stockholders During Fiscal 2026

Paid cumulative dividends of $4.43 per share totaling $1.6 billion.Repurchased 5.6 million shares of our common stock for $611.0 million. Business Outlook

Our outlook for the fiscal year ending May 31, 2027 ("fiscal 2027") reflects current assumptions and market conditions. Changes in the macroeconomic environment could alter our guidance. Our updated business outlook is as follows:

Total revenue is anticipated to grow in the range of 5% to 6%.Management Solutions revenue is anticipated to grow in the range of 5% to 6%.PEO and Insurance Solutions revenue is anticipated to grow in the range of 6% to 7%.Interest on funds held for clients is expected to be in the range of $195 million to $205 million.Adjusted operating margin(1) is anticipated to be approximately 44%.The effective income tax rate for fiscal 2027 is anticipated to be approximately 24%.Adjusted diluted earnings per share(1) is anticipated to grow in the range of 7% to 9%.
(1) Adjusted operating income, adjusted operating margin, and adjusted diluted earnings per share are not U.S. GAAP measures. Please refer to the "Non-GAAP Financial Measures" section of this press release for a discussion of non-GAAP measures. Forward-looking adjusted operating margin and adjusted diluted earnings per share exclude acquisition-related costs.

Non-GAAP Financial Measures

  Three months ended     Twelve months ended      May 31,     May 31,    $ in millions, except per share amounts 2026  2025  Change 2026  2025  ChangeOperating income $604.7  $431.1   40% $2,510.5  $2,207.7   14%Non-GAAP adjustments:                      Acquisition-related costs(1)  71.1   145.6      304.2   162.3    Adjusted operating income $675.8  $576.7   17% $2,814.7  $2,370.0   19%Adjusted operating margin  42.1%  40.4%     43.2%  42.5%                          Net income $420.6  $297.2   41% $1,760.1  $1,657.3   6%Non-GAAP adjustments:                      Acquisition-related costs(1)  71.1   166.4      304.2   196.3    Income tax benefit for acquisition-related costs  (17.1)  (33.3)     (73.3)  (40.6)   Discrete tax shortfall/(windfall) related to employee stock-based compensation payments(2)  0.0   (0.7)     (6.2)  (10.1)   Adjusted net income $474.6  $429.6   10% $1,984.8  $1,802.9   10%                       Diluted earnings per share(3) $1.17  $0.82   43% $4.89  $4.58   7%Non-GAAP adjustments:                      Acquisition-related costs(1)  0.20   0.46      0.84   0.54    Income tax benefit for acquisition-related costs  (0.05)  (0.09)     (0.20)  (0.11)   Discrete tax shortfall/(windfall) related to employee stock-based compensation payments(2)  0.00   (0.00)     (0.02)  (0.03)   Adjusted diluted earnings per share $1.32  $1.19   11% $5.51  $4.98   11%                       Net income $420.6  $297.2   41% $1,760.1  $1,657.3   6%Non-GAAP adjustments:                      Interest expense  64.7   63.7      269.5   105.4    Interest income on corporate investments  (13.0)  (20.5)     (63.4)  (72.8)   Income taxes  133.6   92.1      550.8   518.6    Depreciation and amortization expense  113.2   85.7      442.6   209.5    EBITDA $719.1  $518.2   39% $2,959.6  $2,418.0   22%Non-GAAP adjustments:                      Acquisition-related costs(1)  10.6   104.9      62.2   121.6    Adjusted EBITDA $729.7  $623.1   17% $3,021.8  $2,539.6   19%                          (1)  Acquisition-related costs included in selling, general and administrative expenses include:

$60.5 million for the fourth quarter and $242.0 million for the twelve months compared to $40.7 million for both corresponding prior-year periods, in amortization of intangibles acquired in the acquisition of Paycor,$10.4 million for the fourth quarter and $52.1 million for the twelve months compared to $70.8 million for both corresponding prior-year periods, in compensation costs related to the acquisition and integration of Paycor, including replacement awards, severance and retention bonuses, and$0.2 million for the fourth quarter and $10.1 million for the twelve months compared to $34.1 million and $50.8 million for corresponding prior-year periods, respectively, in other acquisition-related costs primarily consisting of professional service fees. In addition, acquisition-related costs for the three and twelve months ended May 31, 2025 include $20.8 million and $34.0 million, respectively, reflecting the amortization of financing fees related to debt instruments associated with the financing of the Paycor acquisition and the excluded component of the initial fair value of the interest rate swaption contracts that are included in Interest expense in the Company's Consolidated Statements of Income.

(2)  Net tax shortfall/(windfall) related to employee stock-based compensation payments recognized in income taxes. This item is subject to volatility and will vary based on employee decisions on exercising employee stock options and fluctuations in our stock price, neither of which is within the control of management.

(3)  The calculation of the impact of non-GAAP adjustments on diluted earnings per share is performed on each line independently. The table may not add down by +/- $0.01 due to rounding.

In addition to reporting operating income, operating margin, net income, and diluted earnings per share, which are U.S. GAAP measures, we present adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, earnings before interest, taxes, depreciation, and amortization ("EBITDA"), and adjusted EBITDA which are non-GAAP measures. We believe these additional measures are indicators of the performance of our core business operations period over period. Adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, EBITDA, and adjusted EBITDA are not calculated through the application of U.S. GAAP and are not required forms of disclosure by the Securities and Exchange Commission ("SEC"). As such, they should not be considered a substitute for the U.S. GAAP measures of operating income, operating margin, net income, and diluted earnings per share, and, therefore, they should not be used in isolation but in conjunction with the U.S. GAAP measures. The use of any non-GAAP measure may produce results that vary from the U.S. GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.

Annual Report on Form 10-K ("Form 10-K")

We anticipate filing our Form 10-K before the end of July 2026. Once filed, the report will be accessible via our Investor Relations portal at https://investor.paychex.com. This press release should be read in conjunction with the Form 10-K and the related Notes to Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in that Form 10-K.

Webcast Details

The Company will host an Earnings Conference Call on June 24, 2026 at 9:30 a.m. Eastern Time, to discuss these results. The live webcast will be available for replay on our Investor Relations portal at https://investor.paychex.com, where news releases, current financial information, and investor presentations are also accessible.

Contacts

Investor Relations:Media Relations:Rachel WhiteTracy VolkmannHead of Investor RelationsManager, Public Relations(513) 954-7388(585) [email protected]@paychex.com   About Paychex

Paychex, Inc. (Nasdaq: PAYX) provides a comprehensive suite of expert-enabled technology and advisory solutions that help businesses manage HR, payroll, and benefits. Serving approximately 800,000 clients and paying 1 in 11 U.S. private sector workers, Paychex combines scale, trusted expertise, and innovation to help businesses succeed. Built on more than 50 years of workforce experience and one of the industry’s largest proprietary HR datasets, Paychex’s WISE agentic AI platform embeds intelligence directly into workflows to improve productivity, enhance decision-making, and deliver better outcomes. Learn more at paychex.com.

Cautionary Note Regarding Forward-Looking Statements

Certain written statements in this press release may contain, and members of management may from time to time make or discuss statements which constitute, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by such words and phrases as "expect," "outlook," "will," "guidance," "projections," "strategy," "anticipate," "believe," "can," "continue," "could," "future," "may," "possible," "potential," "should," "see," and other similar words or phrases. Forward-looking statements include, without limitation, all matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding operating performance, events, or developments that we expect or anticipate will occur in the future, including statements relating to our outlook, revenue growth, earnings, earnings-per-share growth, and similar projections.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to known and unknown uncertainties, risks, changes in circumstances, and other factors that are difficult to predict, many of which are outside our control. Our actual performance and outcomes, including without limitation, our actual results and financial condition, may differ materially from those indicated in or suggested by the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:

our ability to keep pace with changes in technology or provide timely enhancements to our solutions and support;risks related to our use of artificial intelligence ("AI") and new technologies in our business;software defects, undetected errors, and development delays for our solutions;the possibility of cyberattacks, security vulnerabilities or Internet disruptions, including data security and privacy leaks, and data loss and business interruptions;the possibility of failure of our business continuity plan during a catastrophic event;the failure of third-party service providers to perform their functions;the possibility that we may be exposed to additional risks related to our co-employment relationship with our PEO business;changes in health insurance and workers’ compensation insurance rates and underlying claim trends;risks related to acquisitions and the integration and performance of the businesses we acquire;our clients’ failure to reimburse us for payments made by us on their behalf;the effect of changes in government regulations mandating the amount of tax withheld or the timing of remittances;our failure to comply with covenants in our corporate bonds and debt agreements;changes in our credit ratings;changes in governmental regulations, laws, and policies;our ability to comply with U.S., state, and foreign laws and regulations;our compliance with data privacy and AI laws and regulations;our failure to protect our intellectual property rights;potential outcomes related to pending or future litigation matters;the impact of macroeconomic factors on the U.S. and global economy, and in particular on our small- and medium-sized business clients;volatility in the political, market, and economic environment, including inflation and interest rate changes;our ability to attract and retain qualified people; andthe possible effects of negative publicity on our reputation and the value of our brand. Any of these factors, as well as such other factors as discussed in our SEC filings, could cause our actual results to differ materially from our anticipated results. The information provided in this document is based upon the facts and circumstances known as of the date of this press release, and any forward-looking statements made by us in this document speak only as of the date on which they are made. Except as required by law, we undertake no obligation to update these forward-looking statements after the date of issuance of this press release to reflect events or circumstances after such date, or to reflect the occurrence of unanticipated events.

PAYCHEX, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In millions, except per share amounts)               Three months ended     Twelve months ended      May 31,     May 31,      2026  2025  Change(2) 2026  2025  Change(2)Revenue:                      Management Solutions $1,183.6  $1,041.8   14% $4,867.9  $4,067.1   20%PEO and Insurance Solutions  369.7   340.3   9%  1,433.2   1,342.9   7%Total service revenue  1,553.3   1,382.1   12%  6,301.1   5,410.0   16%Interest on funds held for clients(1)  52.2   45.2   15%  210.9   161.7   30%Total revenue  1,605.5   1,427.3   12%  6,512.0   5,571.7   17%Expenses:                      Cost of service revenue  417.3   393.9   6%  1,674.5   1,540.4   9%Selling, general and administrative expenses  583.5   602.3   (3)%  2,327.0   1,823.6   28%Total expenses  1,000.8   996.2   0%  4,001.5   3,364.0   19%Operating income  604.7   431.1   40%  2,510.5   2,207.7   14%Interest expense  (64.7)  (63.7) n/m   (269.5)  (105.4) n/m Other income, net(1)  14.2   21.9   (35)%  69.9   73.6   (5)%Income before income taxes  554.2   389.3   42%  2,310.9   2,175.9   6%Income taxes  133.6   92.1   45%  550.8   518.6   6%Net income $420.6  $297.2   41% $1,760.1  $1,657.3   6%                       Basic earnings per share $1.18  $0.82   44% $4.90  $4.60   7%Diluted earnings per share $1.17  $0.82   43% $4.89  $4.58   7%Weighted-average common shares outstanding  357.6   360.3      358.9   360.2    Weighted-average common shares outstanding, assuming dilution  358.2   362.3      360.0   362.0                            (1)  Further information on interest on funds held for clients and other income, net, and the short- and long-term effects of changing interest rates can be found in our filings with the SEC, including our Quarterly Reports on Form 10-Q and our Annual Report on Form 10-K, as applicable, under the caption "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and subheadings "Results of Operations" and "Market Risk Factors." These filings are accessible at https://investor.paychex.com.
(2)  Percentage changes are calculated based on unrounded numbers.

n/m – not meaningful

PAYCHEX, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except per share amounts)
  May 31,   2026  2025 ASSETS        Cash and cash equivalents $1,088.2  $1,628.6 Restricted cash  52.8   47.9 Corporate investments  36.3   34.5 Interest receivable  36.1   27.9 Accounts receivable, net of allowance for credit losses  1,507.6   1,330.5 PEO unbilled receivables, net of advance collections  664.2   616.6 Prepaid income taxes  11.2   38.9 Prepaid expenses and other current assets  384.7   378.3 Current assets before funds held for clients  3,781.1   4,103.2 Funds held for clients  4,832.2   4,813.3 Total current assets  8,613.3   8,916.5 Property and equipment, net of accumulated depreciation  588.9   511.5 Operating lease right-of-use assets, net of accumulated amortization  63.9   63.8 Intangible assets, net of accumulated amortization  1,684.0   1,947.3 Goodwill  4,527.4   4,514.1 Long-term deferred costs  555.8   482.4 Other long-term assets  141.2   128.5 Total assets $16,174.5  $16,564.1          LIABILITIES        Accounts payable $154.8  $129.8 Accrued corporate compensation and related items  162.1   183.9 Accrued worksite employee compensation and related items  844.8   735.8 Short-term debt  —   18.6 Long-term debt, net, current portion  —   399.8 Accrued income taxes  87.8   — Deferred revenue  69.4   69.4 Other current liabilities  637.1   552.0 Current liabilities before client fund obligations  1,956.0   2,089.3 Client fund obligations  4,884.6   4,867.0 Total current liabilities  6,840.6   6,956.3 Accrued income taxes  140.5   119.0 Deferred income taxes  543.3   444.7 Long-term debt, net  4,556.1   4,548.4 Operating lease liabilities  52.2   55.5 Other long-term liabilities  306.7   312.2 Total liabilities  12,439.4   12,436.1          STOCKHOLDERS’ EQUITY        Common stock, $0.01 par value; Authorized: 600.0 shares;
Issued and outstanding: 355.6 shares as of May 31, 2026
and 360.5 shares as of May 31, 2025  3.6   3.6 Additional paid-in capital  1,975.6   1,901.1 Retained earnings  1,805.8   2,277.0 Accumulated other comprehensive loss  (49.9)  (53.7)Total stockholders’ equity  3,735.1   4,128.0 Total liabilities and stockholders’ equity $16,174.5  $16,564.1  PAYCHEX, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)
      Twelve months ended   May 31,   2026  2025 OPERATING ACTIVITIES        Net income $1,760.1  $1,657.3 Adjustments to reconcile net income to net cash provided by operating activities:        Depreciation and amortization  442.6   209.5 Amortization of discounts and premiums on available-for-sale securities, net  (7.6)  23.4 Amortization of deferred contract costs  249.2   236.5 Stock-based compensation costs  96.1   111.8 Provision for/(Benefit from) deferred income taxes  103.7   (15.8)Provision for allowance for credit losses  38.1   24.2 Net realized (gains)/losses on sales of available-for-sale securities  (7.6)  0.4 Net realized losses on disposal of assets  6.2   3.7 Premiums paid on cash flow hedges  —   (19.2)Changes in operating assets and liabilities:        Interest receivable  (8.2)  (3.8)Accounts receivable and PEO unbilled receivables, net  (105.8)  (130.7)Prepaid expenses and other current assets  40.0   (12.0)Accounts payable and other current liabilities  291.4   42.3 Deferred costs  (342.5)  (246.5)Net change in other long-term assets and liabilities  3.9   21.9 Net change in operating lease right-of-use assets and liabilities  (2.9)  (2.1)Net cash provided by operating activities  2,556.7   1,900.9 INVESTING ACTIVITIES        Purchases of available-for-sale securities  (12,226.2)  (14,302.9)Proceeds from sales and maturities of available-for-sale securities  11,517.6   14,292.5 Net change in purchased receivables  (166.1)  (157.3)Purchases of property and equipment  (234.9)  (191.8)Acquisition of businesses, net of cash acquired  (0.4)  (2,967.5)Purchases of other assets  (42.4)  (29.8)Net cash used in investing activities  (1,152.4)  (3,356.8)FINANCING ACTIVITIES        Net change in client fund obligations  17.6   (290.7)Net proceeds from short-term borrowings  (18.8)  — Payments on long-term debt  (400.0)  — Proceeds from the issuance of corporate bonds  —   4,180.9 Dividends paid  (1,589.6)  (1,448.5)Repurchases of common shares  (611.0)  (104.5)Debt issuance costs  —   (47.8)Activity related to equity-based plans  (52.0)  3.8 Net cash (used in)/provided by financing activities  (2,653.8)  2,293.2 Net change in cash, restricted cash, and equivalents  (1,249.5)  837.3 Cash, restricted cash, and equivalents, beginning of fiscal year  2,734.3   1,897.0 Cash, restricted cash, and equivalents, end of fiscal year $1,484.8  $2,734.3          Reconciliation of cash, restricted cash and equivalents        Cash and cash equivalents $1,088.2  $1,628.6 Restricted cash  52.8   47.9 Restricted cash and restricted cash equivalents included in funds held for clients  343.8   1,057.8 Total cash, restricted cash, and equivalents $1,484.8   $2,734.3