Paychex earnings
Paychex's next results are expected on December 18, 2026. The key thing to watch is whether Paychex's underlying demand strengthens in the next quarterly report.
What has Paychex guided for the year?
Paychex’s September 23, 2026 outlook for the year ending May 2027 calls for total revenue growth of 5.0%–6.0% and adjusted diluted earnings-per-share growth of 7.0%–9.0%. Revenue is what customers pay; earnings per share is the profit assigned to each share. “Adjusted” earnings exclude selected acquisition-related costs, including Paycor intangible-asset amortization, integration compensation and severance.
Paychex raised its PEO and Insurance Solutions growth outlook to 7.0%–8.0% and its client-fund interest outlook to $200.0 million–$210.0 million, but left its overall targets unchanged. Reported EPS was $1.21 against adjusted EPS of $1.34 in the first quarter of fiscal 2027. The important test is whether Paycor eventually creates enough revenue and efficiency to outweigh the real costs excluded from adjusted results.
| Period guided | Low | High | Date given | |
|---|---|---|---|---|
| Total revenue growth | Year to May 2027 | 5.0% | 6.0% | Sep 23, 2026 |
| PEO and Insurance Solutions revenue growth | Year to May 2027 | 7.0% | 8.0% | Sep 23, 2026 |
| Interest on funds held for clients | Year to May 2027 | 200.0 | 210.0 | Sep 23, 2026 |
| Adjusted operating margin | Year to May 2027 | 44.0% | 44.0% | Sep 23, 2026 |
| Effective income tax rate | Year to May 2027 | 24.0% | 24.0% | Sep 23, 2026 |
| Adjusted diluted earnings per share growth | Year to May 2027 | 7.0% | 9.0% | Sep 23, 2026 |
What this means. The adjusted operating margin and adjusted earnings per share leave out costs from buying other companies, so they can make the business look more profitable than it really is.
Has Paychex kept its past promises?
Paycor’s promised benefits provide the strongest test. Paychex’s January 2025 investor presentation promised annual cost savings above US$80 million, followed by an increase in adjusted earnings per share. Fiscal 2026 adjusted earnings per share reached US$5.51, up 11%, but company-wide growth cannot prove the acquisition’s separate contribution. The real question is whether Paycor’s technology, recruiting capabilities and customer relationships produce durable gains after integration. The evidence so far suggests alignment between leaders and shareholders, but not yet a completed case that management has earned their trust.
What do Paychex's last eight quarters show?
This quarter gives a cleaner view because both periods contained a full quarter of Paycor. Management Solutions grew more slowly than PEO and Insurance Solutions, while client-fund interest also helped revenue. That mix shows growth inside the combined business, not merely the mathematical effect of an acquisition.
| Aug 2026 | May 2026 | Feb 2026 | Nov 2025 | Aug 2025 | May 2025 | Feb 2025 | Nov 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1,630.5 | 1,605.5 | 1,808.9 | 1,557.6 | 1,540.0 | 1,427.3 | 1,509.0 | 1,316.9 |
| Operating income | 619.2 | 604.7 | 792.0 | 571.9 | 541.9 | 431.1 | 691.8 | 538.1 |
| Net income | 429.7 | 420.6 | 560.3 | 395.4 | 383.8 | 297.2 | 519.3 | 413.4 |
| EPS, diluted | 1.21 | 1.17 | 1.56 | 1.10 | 1.06 | 0.82 | 1.43 | 1.14 |
What this means. Revenue jumps are not fully comparable because the company bought Paycor during 2025, so later quarters include its sales while earlier quarters do not.
What should Paychex investors watch next?
The next quarterly report should clarify whether underlying demand is strengthening. Management expects second-quarter revenue growth of about 4%, partly because the prior year included acquisition-related revenue benefits and investment gains. WISE Hire’s October 20–22 demonstration at the HR Technology Conference matters less than subsequent adoption and revenue.