PAYX
Paychex, Inc.115.22
-0.16-0.14%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q3 '26
Organic accelerates, Paycor cross-sell surges
Q&A unpacked organic revenue growth hitting ~6% in H2 FY26—up from 4% first half—via PEO strength, easier comps, and sequential gains, aligning with consensus FY27 models sans early guidance. Paycor bookings reaccelerated to pre-acquisition levels, fueling cross-sell like bigger PEO/broker deals; execs add enterprise sales headcount. AI agents scale for sales/service productivity, spurring margin debates in planning. PEO WSE expands on net new clients, record retention. Management directly fielded FY27, macro probes with stable tone. Synergies crushed. Watch cross-sell firepower.
Key Stats
Market Cap
41.47BP/E (TTM)
25.83Basic EPS (TTM)
4.46Dividend Yield
0.04%Recent Filings
10-Q
Q3 FY2026 results
Paychex posted Q3 FY2026 revenue of $1.8B, up 20% y/y, with Management Solutions surging 23% y/y to $1.4B on Paycor's April 2025 acquisition ($4.1B cash/stock consideration, $2.6B goodwill, $1.8B intangibles) while PEO and Insurance grew 9% y/y; operating income rose 14% y/y to $792M despite $71M acquisition costs, but interest expense jumped to $68M from Paycor debt. Diluted EPS hit $1.56, matching 359.5M shares. Cash swelled to $1.7B, operating cash flow $2.0B YTD, $2B revolver available; repurchased $75M shares. Solid momentum, yet Paycor integration poses risks.
8-K
Q3 revenue surges 20%
8-K
Paychex upsizes, extends revolvers
Paychex amended its 2017 and 2019 revolving credit facilities on January 23, 2026, boosting the 2017 facility from $750M to $1.0B with maturity extended to 2031, while tweaking the 2019 $1.0B facility's rates and covenants. Lenders terminated the unused $250M 2020 PNC facility for Paychex Advance. Bolstered liquidity secures ample funding through 2031.
8-K
Board expansion, $1B buyback
Paychex expanded its board to 11 members, appointing J. Michael Hansen—ex-CFO of Cintas and former Paycor director—as independent director effective January 16, 2026; he joins the Audit Committee. The board also authorized $1B in stock repurchases, replacing the prior $400M program, and declared a $1.08 quarterly dividend payable February 27. Signals strong cash flow confidence. Yet fiscal 2025 returned over $1.5B to shareholders already.
10-Q
Q2 FY2026 results
Paychex posted Q2 revenue of $1.6B, up 18% y/y, driven by 21% Management Solutions growth ($1.2B) from Paycor acquisition closed April 2025 for $4.1B (mostly cash via $4.2B bonds), while PEO and Insurance added 6%. Operating income rose 6% y/y to $572M despite $77M acquisition costs; margins held at 36.7% as interest expense quadrupled to $69M on new debt. Diluted EPS fell 4% y/y to $1.10, reconciling to 360.4M shares. Cash dipped to $1.5B with $5.0B long-term debt, $2.0B revolver available, and $1.2B YTD operating cash flow. Free cash flow not disclosed in the 10-Q. Share repurchases trimmed 1M shares. Paycor integration weighs on near-term profits.
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