Overview
- Paychex, which reported results Wednesday, beat expectations with revenue of $1.81 billion up 20% and adjusted EPS of $1.71 up 15%.
- The company kept its fiscal 2026 adjusted earnings goal at $5.48 to $5.53 per share, which points to 10% to 11% growth.
- Management Solutions revenue rose 23% with Paycor adding about 19 percentage points to that growth, while PEO and insurance revenue increased 9% to about $398 million.
- Adjusted operating margin improved about 80 basis points to 47.7% despite a 24% expense increase largely tied to Paycor.
- Shares rose after the release and were up 0.4% Thursday, though several Wall Street firms cut forecasts or price targets following the report.