Paychex (PAYX)
NASDAQ:PAYX
Earnings Data
Report Date
Jul 01, 2026Before Open (Confirmed)
Period Ending
2026 (Q4)Consensus EPS Forecast
1.31Last Year’s EPS
1.19Same Quarter Last Year
Based on 14 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a predominately positive operational and financial picture: strong 20% revenue growth, margin expansion, robust cash flow, progress on Paycor integration and clear momentum in PEO and AI initiatives. The primary negatives related to acquisition-driven expense and leverage, some agency drag, slower revenue conversion for large deals, and timing-driven quarter-to-quarter volatility. Overall, the positives (revenue, margins, cash generation, integration progress, AI/product traction) substantially outweigh the noted challenges.Company Guidance
Strong Top-Line Growth
Total revenue increased 20% year-over-year to $1.8 billion in Q3 FY2026, representing an acceleration in organic growth versus the first half of the year.
Operating Income and Margin Expansion
Adjusted operating income rose 22% year-over-year; adjusted operating income margin expanded ~80 basis points to 47.7% (operating income margin was 43.8%).
Management Solutions Outperformance
Management Solutions revenue grew 23% to $1.4 billion, with the Paycor contribution accounting for ~19 percentage points of growth.
PEO & Insurance Momentum
PEO and Insurance Solutions revenue increased 9% to $398 million; PEO saw high-single-digit worksite employee (WSE) growth, record retention rates, double-digit bookings, and strong January medical enrollment (medical enrollment up high-single digits to ~near double digits in annual enrollment).
Earnings and Adjusted EPS Progress
Diluted EPS increased 9% to $1.56 and adjusted diluted EPS increased 15% to $1.71 per share for the quarter.
Robust Cash Generation and Capital Return
Operating cash flows were nearly $2.0 billion year-to-date; free cash flow increased 27% year-over-year. Cash, restricted cash, and total corporate investments totaled $1.8 billion. Company returned $463 million this quarter and over $1.5 billion year-to-date via dividends and buybacks; announced a $1.0 billion new repurchase authorization.
Interest Income Growth
Interest on funds held for clients increased 33% year-over-year to $57 million in the quarter (largely driven by addition of Paycor balances); full-year expectation raised to $200–$210 million.
Paycor Integration and Synergy Progress
Paycor integration is progressing well and management expects to exceed FY2026 synergy targets. Leading indicators (bookings and broker referrals) have reaccelerated to pre-acquisition levels and the company is adding enterprise sales headcount to capture demand.
AI and Product Innovation Acceleration
Company has deployed over 500 AI-powered capabilities/agents. Generative-AI employment law/compliance platform processed tens of thousands of inquiries; AI-driven benefits intelligence improved enrollment outcomes; voice and email payroll agents and agentic sales/service tools are being scaled to improve productivity and client outcomes.
Strategic Product Adoption and Distribution Wins
Paychex Perks grew to 25+ benefit offerings with purchases by nearly 350,000 unique employees in 18 months. Paychex Flex and Paycor platforms received 2026 Lighthouse Tech Awards, and the firm was named one of the World’s Most Ethical Companies for the 18th time.
Guidance Reaffirmation and Q4 Color
Company reaffirmed FY2026 guidance (other than raising interest income expectations). Q4 growth is anticipated around 12% with an adjusted operating margin of 41%–42%; management signals sequential organic acceleration in the back half.
PAYX Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
PAYX Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Mar 25, 2026 | $90.61 | $93.36 | +3.03% |
Dec 19, 2025 | $113.06 | $111.12 | -1.72% |
Sep 30, 2025 | $125.99 | $124.25 | -1.38% |
Jun 25, 2025 | $148.12 | $134.19 | -9.40% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Paychex (PAYX) report earnings?
Paychex (PAYX) is schdueled to report earning on Jul 01, 2026, Before Open (Confirmed).
What is Paychex (PAYX) earnings time?
Paychex (PAYX) earnings time is at Jul 01, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is PAYX EPS forecast?
PAYX EPS forecast for the fiscal quarter 2026 (Q4) is 1.31.
