Paychex Q1 FY2027: revenue up 6.0%, margin 38.0%, PEO guide raised
Paychex opened FY2027 with 6.0% revenue growth to $1.63 billion, a 38.0% operating margin and 14.0% GAAP EPS growth, and left its full-year revenue and EPS outlook alone while raising its PEO and client-interest outlook. Read the quarter as margin-led: profit grew faster than sales, helped by lower acquisition costs, while cash generation and buybacks stepped back. Verdict: Bullish.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS rose 14.0% to $1.21 from $1.06, while adjusted diluted EPS rose 10.0% to $1.34 from $1.22. The gap is acquisition-related costs of $65.5 million this quarter versus $84.8 million a year ago, mostly Paycor intangible amortization and integration pay, which drags GAAP profit and is stripped out of the adjusted figure. A smaller share count helped as well: diluted shares fell to 356.6 million from 361.9 million.
Total revenue rose 6.0% to $1.63 billion. The income statement splits that into $1.58 billion of service revenue and $49.8 million of interest on funds held for clients — service revenue alone is what the structured data labels "revenue," which is why two different top-line figures appear. Management Solutions grew 4.0% to $1.21 billion, PEO and Insurance Solutions grew 12.0% to $367.6 million, and gross margin on service revenue was 72.8% versus 72.3% a year ago.
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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 2026-09-24
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