)
Company Research6 Feb 2024
Paychex: From $3,000 and a Vision to Market Leader
Explore Paychex's growth since its inception in 1971 to a leading HCM provider, serving 740,000 SMBs globally and achieving a 1,300x return since its IPO.
Paychex (PAYX) investor relations material
Paychex Q1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Q1 2026 earnings summary30 Sep, 2025
Executive summary
Achieved 17% year-over-year revenue growth in Q1 FY26, reaching $1.54 billion, driven by the Paycor acquisition and strong demand across core business lines.
Adjusted diluted EPS increased 5% to $1.22, while GAAP diluted EPS declined 10% to $1.06 due to acquisition-related costs and higher interest expense.
Completed key integration milestones for the Paycor acquisition, realizing early cost and revenue synergies and expanding AI-driven HCM solutions.
Returned $549 million to shareholders in Q1 through $389 million in dividends and $160 million in share repurchases.
Recognized for innovation, workplace excellence, and ethics by Newsweek, Fortune, and Ethisphere.
Financial highlights
Total revenue rose 17% year-over-year to $1.54 billion in Q1 FY26.
Management Solutions revenue grew 21% to $1.16 billion, with Paycor contributing 17% to this growth.
PEO and Insurance Solutions revenue increased 3% to $329 million, driven by worksite employee growth and insurance revenues.
Adjusted operating income rose 15% to $626.7 million, while operating income decreased 1% to $541.9 million due to acquisition costs.
Interest on funds held for clients grew 27% to $48 million.
Outlook and guidance
Fiscal 2026 revenue expected to grow 16.5%–18.5%; adjusted diluted EPS guidance raised to 9%–11% growth.
Management Solutions revenue guidance: 20%–22% growth; PEO and Insurance Solutions: 6%–8%.
Adjusted operating income margin expected at ~43%.
Q2 revenue growth anticipated at ~18% with adjusted operating margin of ~41%.
Investment portfolio for FY26 expected to average $7.4 billion, with 40% in short-term and 60% in AFS securities.
Paycor's net impact on Q1 operating profit?
What is the outlook for operating margins?
Debt reduction strategy and timeline?
What Paycor client segments show most cross-sell upside?
How is PEO balancing risk vs. growth in Florida?
How is agentic AI measured for productivity gains?
Partial view of Summaries dataset, powered by Quartr API
Research faster. Power your platform.
The essential earnings season companion
The #1 app for live earnings calls, transcripts, analyst estimates, and more. All for free.
Live calls and transcripts
Listen to earnings calls, CMDs, investor conferences, and more – with a podcast-like experience.
Find what you need faster
Search for any keyword across all transcripts simultaneously.
Easily store key findings
Capturing important takeaways is as simple as it gets. Even during your lunch run or commute.
Your watchlist. Your dashboard.
Follow the companies that matter to you. Get a personalized feed with real-time updates.
Be the first to know
Set keyword alerts for any company, product, or competitor. Get notified the moment they're mentioned.
Consensus estimates
Access analyst consensus estimates, valuation multiples, and revenue segments splits.
All IR material in one place
The easiest way to stay updated during earnings season.
Global coverage
All events from public companies. Live and recorded.
Just click and listen
No webcast links. No manual registrations.
excellent app, it gives me free access to company earnings calls and annual reports. I also love the convenience of calls being available offline so I can listen in whilst doing other things and even when internet or WiFi isn't available.
)
Leroy DaleyApp Store
One of the very few apps you could call perfect. If something was to add to it, maybe the share price of the company when you search for it, but it's already excellent.
)
Eferix Drawings Google Play
This is genuinely one of the cleanest and fastest finance apps out there to track the market.
anuj283App Store
excellent app, it gives me free access to company earnings calls and annual reports. I also love the convenience of calls being available offline so I can listen in whilst doing other things and even when internet or WiFi isn't available.
Leroy DaleyApp Store
One of the very few apps you could call perfect. If something was to add to it, maybe the share price of the company when you search for it, but it's already excellent.
Eferix Drawings Google Play
This is genuinely one of the cleanest and fastest finance apps out there to track the market.
anuj283App Store
I can't remember the last time an app had such a positive impact on my investment process.
)
@ankurshah47_ x.com
Love the app! Quartr makes it really easy to keep track of earnings calls. It also includes the reports and slides to make it easier to follow along.
Amina0781App Store
Quartr is amazing, no way around it. It is the best right now for earnings calls, presentations, and the like.
@theshortbearx.com
I can't remember the last time an app had such a positive impact on my investment process.
@ankurshah47_ x.com
Love the app! Quartr makes it really easy to keep track of earnings calls. It also includes the reports and slides to make it easier to follow along.
Amina0781App Store
Quartr is amazing, no way around it. It is the best right now for earnings calls, presentations, and the like.
@theshortbearx.com
Related articles
)
Edge3 Oct 2025
Epiroc: A Culture of Moving Mountains
From automation to electrification, Swedish industrial giant Epiroc is leading a transformation in how the world mines.
)
Company Research22 Sep 2025
Moody's: Shaping Global Credit
Explore Moody's evolution from publishing manuals to becoming a giant in credit ratings, guiding issuers, investors, and regulators worldwide.
Frequently asked questions
Payroll, HR, Benefits, and More
Paychex, Inc. is an American company that specializes in integrated solutions for HR, payroll, benefits, and similar matters. Primarily serving small to medium-sized businesses, Paychex offers a comprehensive suite of products and services that help employers manage their workforce effectively and in line with employees' expectations, as well as with regulatory standards. The company is headquartered in Rochester, New York, and its shares are traded on the Nasdaq.
Started with $3,000
Paychex was founded in 1971 by B. Thomas Golisano. He started the company with just $3,000 and a vision to make payroll outsourcing easy and affordable for small businesses. Initially operating out of a small office in Rochester, New York, Paychex focused on providing payroll services to small businesses.
This market was largely underserved by larger payroll service providers at the time, allowing the company to grow rapidly. By the late 1970s, Paychex had expanded its operations nationwide. Over the years, Paychex evolved its service offerings, incorporating HR, benefits, and insurance services, adapting to the changing needs of its growing client base. Over the years, Paychex has established itself as a major player in human capital management solutions together with names such as ADP, Workday, and Intuit.
Payrolls and HR
At its core, Paychex specializes in payroll processing services, simplifying and automating payroll tasks, tax preparation, and filing for businesses. This includes managing employee payment options like direct deposit and electronic paycards.
Beyond payroll, Paychex also offers a broad spectrum of human resource (HR) services. This encompasses handling essential functions, streamlining the employee onboarding process, and offering comprehensive HR administration and compliance support to ensure businesses comply with labor laws and regulations.
Further reading: Paychex: From $3,000 and a Vision to Market Leader
Other Services
In addition to its payroll services, Paychex provides performance management tools and resources, aiding businesses in evaluating employee performance in conjunction with their strategic goals. The company also offers robust training and development programs, improving employees’ skills and ensuring compliance with industry standards. Recruitment and applicant tracking solutions are another critical aspect of their offerings, optimizing the hiring process and giving recruiters useful tips.
Furthermore, Paychex also offers solutions in benefits administration, including health insurance and retirement plan management, helping businesses construct and offer competitive employee benefits.
Quartr provides global coverage of all investor relation material from public companies.
Mobile app: Research anytime, anywhere with the #1 app for live earnings calls, transcripts, analyst estimates, and more. All for free.
Desktop (Quartr Pro): The leading platform for qualitative research, used daily by top firms and financial institutions.
Quartr API: Build custom solutions powered by live earnings calls, live transcripts, filings and reports, slide presentations, and more.
Yes, the Quartr mobile app is free on both iOS and Android.
Yes. Quartr provides global, industry-leading live coverage of company events such as regular earnings calls, capital markets days, M&A announcements, and investor conferences. Live with zero delays. Just click and listen.
Yes, capturing important takeaways is as simple as it gets. Even during your lunch run or commute.
Yes. Follow the companies that matter to you. Get a personalized feed with real-time updates, a tailored earnings calendar, and instant alerts when earnings calls go live.
Yes. Set keyword alerts for any company, product, or competitor. Get notified the moment they're mentioned, regardless of who's talking.
Explore our global coverage