Revenue Growth and Synergies
Paychex delivered 10% revenue growth in Q4 and 6% for the fiscal year 2025, with a 60 basis point increase in adjusted operating income margin despite ERTC headwinds. They achieved cost synergy expectations of approximately $90 million for fiscal year '26 from the Paycor acquisition.
Client Retention and Expansion
Client retention rates increased year-over-year, and Paychex grew its client base to approximately 800,000, with HR outsourcing worksite employees reaching 2.5 million.
Positive Financial Metrics
Management Solutions revenue increased 12% in Q4, and PEO and Insurance Solutions revenue increased 4%. Interest on funds held for clients grew by 18% in Q4.
Strategic Investments
Paychex is investing in both the Paycor and Flex roadmaps, the SurePayroll platform, and expanding its sales teams and territories. They also launched the Paychex Partner Pro platform to enhance CPA client management.