Overview
- Revenue rose 17% year over year to $1.54 billion, edging past estimates, and adjusted EPS of $1.22 slightly beat consensus.
- GAAP operating income declined 1% to $541.9 million, with operating margin contracting 630 basis points to 35.2% due to acquisition-related expenses; adjusted margin was 40.7%.
- Fiscal 2026 adjusted EPS guidance increased to $5.43–$5.53 (9%–11% growth) as sales guidance stayed at 16.5%–18.5%, or $6.49 billion–$6.60 billion.
- Management highlighted early cost and revenue synergies from the Paycor acquisition, higher revenue per client, and continued investment in AI and technology.
- Shares fell as much as roughly 7% intraday before trading down about 4%–5% later, with some commentators suggesting the reaction was excessive.