Paychex FY2026: revenue up 17.0% to $6.51 billion, adjusted EPS up 11.0%
Paychex closed fiscal 2026 with revenue of $6.51 billion, up 17.0%, and adjusted diluted EPS of $5.51, up 11.0%. Most of that growth came from owning Paycor for a full year rather than from the existing business, and management guides fiscal 2027 revenue growth down to 5% to 6%. Verdict: Neutral — a high-margin, cash-generative business entering a slower, more leveraged phase.
1 · Expected vs. Actual
Free preview belowFull-year diluted EPS was $4.89, up 7.0%, while adjusted diluted EPS was $5.51, up 11.0%, with the gap mostly explained by $304.2 million of acquisition-related costs. Fourth-quarter diluted EPS jumped 43.0% to $1.17, but that compares against a prior-year quarter carrying $145.6 million of acquisition costs, so the adjusted figure of $1.32, up 11.0%, is the cleaner comparison. Adjusted net income of $1.98 billion rose 10.0% against 6.0% growth in GAAP net income of $1.76 billion.
Fiscal 2026 total revenue was $6.51 billion, up 17.0%, of which $6.30 billion was service revenue and $210.9 million was interest on funds held for clients. The fourth quarter is the better read on the run rate: revenue rose 12.0% to $1.61 billion, and Management Solutions growth of 14.0% included roughly 8 percentage points from Paycor, leaving mid-single-digit growth for the rest of that segment. PEO and Insurance Solutions grew 7.0% for the year to $1.43 billion, a steadier but slower engine.
Log in to read 35 analyses a week for free
Create a free account to read 35 full earnings analyses each week — all five steps: expected vs. actual, guidance tracker, money flow, balance sheet and risks. Members get unlimited access.
Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
Answers are based on the earnings release and the analysis above. Free accounts get 3 questions a week; members get 30 a day.