Paychex reports Q3 EPS $1.49, consensus $1.48

Reports Q3 revenue $1.5B, consensus $1.51B.President and Chief Executive Officer, John Gibson commented, “The third quarter of this fiscal year has been a transformational time at Paychex (PAYX). As we position ourselves for the digitally and AI driven future of human capital management , we believe the combination of our continued positive momentum and the pending acquisition of Paycor positions Paychex for continued growth. Total revenue growth in the third quarter was 5% and, excluding the impact of the discontinued Employee Retention Tax Credit or ERTC program, revenue growth was 6%, driven by the strength of our industry-leading HCM solutions. Diluted earnings per share increased 4% and adjusted diluted earnings per share increased 8% during the quarter. Our investments in automation and technology are also boosting efficiency across the organization resulting in operating margins of 45.8% and adjusted operating margins of 46.9%, an increase of 180 basis points compared to the prior year period.” Gibson also noted, “We look forward to welcoming Paycor to the Paychex family in the coming weeks. Our companies are highly complementary, and our dedicated employees share a common set of values, most importantly a strong customer orientation and focus on providing innovative solutions to real-world challenges. Our expected combined base of nearly 800,000 customers will benefit from having access to the most comprehensive, flexible, and innovative HCM solutions in the industry. By working together, we believe we will be even better positioned to achieve our shared mission of helping businesses, of all sizes, succeed in the years ahead.”