Paychex Inc Financials
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Paychex Inc has an operating margin of 39.6%, meaning the company retains $40 of operating profit per $100 of revenue. This strong profitability earns a score of 100/100, reflecting efficient cost management and pricing power. This is down from 41.2% the prior year.
Paychex Inc's revenue grew 5.6% year-over-year to $5.6B, a solid pace of expansion. This earns a growth score of 44/100.
Paychex Inc carries a low D/E ratio of 1.10, meaning only $1.10 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 70/100, indicating a strong balance sheet with room for future borrowing.
Paychex Inc's current ratio of 1.28 indicates adequate short-term liquidity, earning a score of 31/100. The company can meet its near-term obligations, though with limited headroom.
Paychex Inc converts 30.7% of revenue into free cash flow ($1.7B). This strong cash generation earns a score of 100/100.
Paychex Inc earns a strong 40.2% return on equity (ROE), meaning it generates $40 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 100/100. This is down from 44.5% the prior year.
Paychex Inc scores 2.75, placing it in the grey zone between 1.81 and 2.99. The score is driven primarily by a large market capitalization ($33.9B) relative to total liabilities ($12.4B). This signals moderate financial risk that warrants monitoring.
Paychex Inc passes 4 of 9 financial strength tests. 3 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Paychex Inc generates $1.15 in operating cash flow ($1.9B OCF vs $1.7B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Paychex Inc earns $20.9 in operating income for every $1 of interest expense ($2.2B vs $105.4M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
This page shows Paychex Inc (PAYX) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 18 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Paychex Inc generated $5.6B in revenue in fiscal year 2025. This represents an increase of 5.6% from the prior year.
Paychex Inc's EBITDA was $2.4B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 2.8% from the prior year.
Paychex Inc generated $1.7B in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 1.6% from the prior year.
Paychex Inc reported $1.7B in net income in fiscal year 2025. This represents a decrease of 2.0% from the prior year.
Paychex Inc earned $4.58 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 1.9% from the prior year.
Paychex Inc held $1.6B in cash against $4.5B in long-term debt as of fiscal year 2025.
Paychex Inc paid $4.02 per share in dividends in fiscal year 2025. This represents an increase of 10.1% from the prior year.
Paychex Inc had 360M shares outstanding in fiscal year 2025. This represents an increase of 0.0% from the prior year.
Paychex Inc's gross margin was 72.4% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 0.4 percentage points from the prior year.
Paychex Inc's operating margin was 39.6% in fiscal year 2025, reflecting core business profitability. This is down 1.6 percentage points from the prior year.
Paychex Inc's net profit margin was 29.7% in fiscal year 2025, showing the share of revenue converted to profit. This is down 2.3 percentage points from the prior year.
Paychex Inc's ROE was 40.2% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 4.3 percentage points from the prior year.
Paychex Inc spent $104.5M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 38.2% from the prior year.
Paychex Inc invested $191.8M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 18.8% from the prior year.
PAYX Income Statement
| Metric | Q2'25 | Q1'25 | Q3'25 | Q2'24 | Q1'24 | Q3'24 | Q2'23 | Q1'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.6B+1.1% | $1.5B+2.1% | $1.5B+14.6% | $1.3B-0.1% | $1.3B-8.4% | $1.4B+14.4% | $1.3B-2.2% | $1.3B |
| Cost of Revenue | $412.2M-0.4% | $413.8M+6.8% | $387.4M+2.2% | $379.1M-0.2% | $380.0M+0.1% | $379.8M+4.3% | $364.1M+1.1% | $360.2M |
| Gross Profit | $1.1B+1.7% | $1.1B+0.4% | $1.1B+19.6% | $937.8M-0.1% | $938.5M-11.4% | $1.1B+18.5% | $893.8M-3.5% | $925.8M |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $573.5M-1.8% | $584.3M+35.9% | $429.8M+7.5% | $399.7M+2.0% | $391.8M-4.4% | $409.7M+5.7% | $387.6M-0.5% | $389.5M |
| Operating Income | $571.9M+5.5% | $541.9M-21.7% | $691.8M+28.6% | $538.1M-1.6% | $546.7M-15.9% | $649.8M+28.4% | $506.2M-5.6% | $536.3M |
| Interest Expense | $68.5M+0.4% | $68.2M+201.8% | $22.6M+137.9% | $9.5M-1.0% | $9.6M-3.0% | $9.9M+16.5% | $8.5M-9.6% | $9.4M |
| Income Tax | $124.8M+9.8% | $113.7M-31.7% | $166.5M+27.8% | $130.3M+0.5% | $129.7M-19.2% | $160.6M+28.3% | $125.2M-3.6% | $129.9M |
| Net Income | $395.4M+3.0% | $383.8M-26.1% | $519.3M+25.6% | $413.4M-3.3% | $427.4M-14.3% | $498.6M+27.0% | $392.7M-6.3% | $419.2M |
| EPS (Diluted) | $1.10+3.8% | $1.06-25.9% | $1.43+25.4% | $1.14-3.4% | $1.18-14.5% | $1.38+27.8% | $1.08-6.9% | $1.16 |
PAYX Balance Sheet
| Metric | Q2'25 | Q1'25 | Q3'25 | Q2'24 | Q1'24 | Q3'24 | Q2'23 | Q1'23 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $16.5B-0.9% | $16.7B+48.5% | $11.2B+6.3% | $10.6B+0.6% | $10.5B-19.5% | $13.0B+8.1% | $12.1B-1.2% | $12.2B |
| Current Assets | $8.9B-1.4% | $9.0B+11.9% | $8.1B+8.7% | $7.4B+0.9% | $7.4B-25.5% | $9.9B+10.8% | $8.9B-1.8% | $9.1B |
| Cash & Equivalents | $1.5B+83.6% | $809.0M-48.3% | $1.6B+30.1% | $1.2B-17.6% | $1.5B-13.8% | $1.7B+24.2% | $1.4B-17.2% | $1.6B |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Goodwill | $4.5B+0.1% | $4.5B+140.9% | $1.9B-0.1% | $1.9B-0.3% | $1.9B+0.1% | $1.9B0.0% | $1.9B0.0% | $1.9B |
| Total Liabilities | $12.6B-0.4% | $12.7B+78.6% | $7.1B+7.2% | $6.6B-0.1% | $6.6B-28.4% | $9.3B+8.8% | $8.5B-1.0% | $8.6B |
| Current Liabilities | $7.0B-1.2% | $7.1B+22.9% | $5.8B+8.8% | $5.3B-0.3% | $5.3B-33.2% | $8.0B+10.3% | $7.3B-1.2% | $7.3B |
| Long-Term Debt | $4.6B0.0% | $4.6B+469.5% | $799.0M0.0% | $798.9M0.0% | $798.7M0.0% | $798.5M0.0% | $798.4M0.0% | $798.3M |
| Total Equity | $3.9B-2.3% | $4.0B-3.5% | $4.1B+4.9% | $3.9B+2.0% | $3.9B+2.8% | $3.7B+6.3% | $3.5B-1.8% | $3.6B |
| Retained Earnings | $1.9B-5.8% | $2.1B-13.3% | $2.4B+7.3% | $2.2B+2.7% | $2.2B-1.0% | $2.2B+8.8% | $2.0B-4.4% | $2.1B |
PAYX Cash Flow Statement
| Metric | Q2'25 | Q1'25 | Q3'25 | Q2'24 | Q1'24 | Q3'24 | Q2'23 | Q1'23 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $444.9M-38.1% | $718.4M+0.3% | $716.0M+142.7% | $295.0M-46.0% | $546.1M-18.7% | $671.7M+115.8% | $311.3M-55.1% | $693.0M |
| Capital Expenditures | $62.1M+11.1% | $55.9M+14.8% | $48.7M+3.6% | $47.0M+32.0% | $35.6M-12.5% | $40.7M0.0% | $40.7M+5.2% | $38.7M |
| Free Cash Flow | $382.8M-42.2% | $662.5M-0.7% | $667.3M+169.1% | $248.0M-51.4% | $510.5M-19.1% | $631.0M+133.2% | $270.6M-58.6% | $654.3M |
| Investing Cash Flow | $376.3M+128.9% | -$1.3B-6303.3% | $21.0M+110.9% | -$192.7M-75.2% | -$110.0M-1258.0% | -$8.1M+91.6% | -$96.5M-631.1% | -$13.2M |
| Financing Cash Flow | -$582.4M-13.0% | -$515.4M-18988.9% | -$2.7M+99.1% | -$291.4M+39.9% | -$485.0M-257.7% | $307.5M+157.3% | -$537.1M-150.2% | $1.1B |
| Dividends Paid | $387.9M-0.3% | $389.1M+10.2% | $353.0M+0.1% | $352.8M-0.2% | $353.4M+10.3% | $320.4M+0.1% | $320.2M-0.5% | $321.9M |
| Share Buybacks | $126.5M-21.0% | $160.1M | $0-100.0% | $500K-99.5% | $104.0M | $0 | N/A | N/A |
PAYX Financial Ratios
| Metric | Q2'25 | Q1'25 | Q3'25 | Q2'24 | Q1'24 | Q3'24 | Q2'23 | Q1'23 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 73.5%+0.4pp | 73.1%-1.2pp | 74.3%+3.1pp | 71.2%+0.0pp | 71.2%-2.4pp | 73.6%+2.6pp | 71.0%-0.9pp | 72.0% |
| Operating Margin | 36.7%+1.5pp | 35.2%-10.6pp | 45.8%+5.0pp | 40.9%-0.6pp | 41.5%-3.7pp | 45.1%+4.9pp | 40.2%-1.5pp | 41.7% |
| Net Margin | 25.4%+0.5pp | 24.9%-9.5pp | 34.4%+3.0pp | 31.4%-1.0pp | 32.4%-2.2pp | 34.6%+3.4pp | 31.2%-1.4pp | 32.6% |
| Return on Equity | 10.2%+0.5pp | 9.7%-2.9pp | 12.6%+2.1pp | 10.5%-0.6pp | 11.1%-2.2pp | 13.3%+2.2pp | 11.1%-0.5pp | 11.7% |
| Return on Assets | 2.4%+0.1pp | 2.3%-2.3pp | 4.6%+0.7pp | 3.9%-0.2pp | 4.1%+0.2pp | 3.8%+0.6pp | 3.3%-0.2pp | 3.4% |
| Current Ratio | 1.270.0 | 1.27-0.1 | 1.390.0 | 1.39+0.0 | 1.38+0.1 | 1.240.0 | 1.230.0 | 1.24 |
| Debt-to-Equity | 1.17+0.0 | 1.15+1.0 | 0.190.0 | 0.200.0 | 0.210.0 | 0.21-0.0 | 0.230.0 | 0.22 |
| FCF Margin | 24.6%-18.4pp | 43.0%-1.2pp | 44.2%+25.4pp | 18.8%-19.9pp | 38.7%-5.1pp | 43.8%+22.3pp | 21.5%-29.4pp | 50.9% |
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Frequently Asked Questions
What is Paychex Inc's annual revenue?
Paychex Inc (PAYX) reported $5.6B in total revenue for fiscal year 2025. This represents a 5.6% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Paychex Inc's revenue growing?
Paychex Inc (PAYX) revenue grew by 5.6% year-over-year, from $5.3B to $5.6B in fiscal year 2025.
Is Paychex Inc profitable?
Yes, Paychex Inc (PAYX) reported a net income of $1.7B in fiscal year 2025, with a net profit margin of 29.7%.
What is Paychex Inc's earnings per share (EPS)?
Paychex Inc (PAYX) reported diluted earnings per share of $4.58 for fiscal year 2025. This represents a -1.9% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Paychex Inc's EBITDA?
Paychex Inc (PAYX) had EBITDA of $2.4B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Paychex Inc have?
As of fiscal year 2025, Paychex Inc (PAYX) had $1.6B in cash and equivalents against $4.5B in long-term debt.
What is Paychex Inc's gross margin?
Paychex Inc (PAYX) had a gross margin of 72.4% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Paychex Inc's operating margin?
Paychex Inc (PAYX) had an operating margin of 39.6% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Paychex Inc's net profit margin?
Paychex Inc (PAYX) had a net profit margin of 29.7% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Paychex Inc pay dividends?
Yes, Paychex Inc (PAYX) paid $4.02 per share in dividends during fiscal year 2025.
What is Paychex Inc's return on equity (ROE)?
Paychex Inc (PAYX) has a return on equity of 40.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Paychex Inc's free cash flow?
Paychex Inc (PAYX) generated $1.7B in free cash flow during fiscal year 2025. This represents a -1.6% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Paychex Inc's operating cash flow?
Paychex Inc (PAYX) generated $1.9B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Paychex Inc's total assets?
Paychex Inc (PAYX) had $16.6B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Paychex Inc's capital expenditures?
Paychex Inc (PAYX) invested $191.8M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
Does Paychex Inc buy back shares?
Yes, Paychex Inc (PAYX) spent $104.5M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
How many shares does Paychex Inc have outstanding?
Paychex Inc (PAYX) had 360M shares outstanding as of fiscal year 2025.
What is Paychex Inc's current ratio?
Paychex Inc (PAYX) had a current ratio of 1.28 as of fiscal year 2025, which is considered adequate.
What is Paychex Inc's debt-to-equity ratio?
Paychex Inc (PAYX) had a debt-to-equity ratio of 1.10 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Paychex Inc's return on assets (ROA)?
Paychex Inc (PAYX) had a return on assets of 10.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Paychex Inc's Altman Z-Score?
Paychex Inc (PAYX) has an Altman Z-Score of 2.75, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Paychex Inc's Piotroski F-Score?
Paychex Inc (PAYX) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Paychex Inc's earnings high quality?
Paychex Inc (PAYX) has an earnings quality ratio of 1.15x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Paychex Inc cover its interest payments?
Paychex Inc (PAYX) has an interest coverage ratio of 20.9x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Paychex Inc?
Paychex Inc (PAYX) scores 74 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.