Paychex Reports Fourth Quarter and Full-Year 2026 Results
Rhea-AI Summary
Paychex (Nasdaq: PAYX) reported fourth quarter 2026 revenue of $1.61 billion, up 12%, with diluted EPS up 43% to $1.17 and adjusted EPS up 11% to $1.32. Full-year 2026 revenue rose 17% to $6.51 billion, with EPS up 7% to $4.89 and adjusted EPS up 11% to $5.51.
Operating income grew 40% in Q4 and 14% for the year, while adjusted operating margin for 2026 was 43.2%. The company launched its AI-powered WISE workforce intelligence engine, completed integration of Paycor, and returned $2.2 billion to shareholders via $1.6 billion in dividends and $611 million in buybacks. Fiscal 2027 guidance calls for 5–6% revenue growth and 7–9% adjusted EPS growth.
AI-generated analysis. Not financial advice.
Positive
- Q4 2026 revenue $1.61 billion, up 12% year-over-year
- Full-year 2026 revenue $6.51 billion, up 17% year-over-year
- Q4 operating income $604.7 million, up 40% year-over-year
- Adjusted EPS 2026 $5.51, up 11% from $4.98
- Adjusted EBITDA 2026 $3.02 billion, up 19% year-over-year
- Returned $2.2 billion to shareholders in fiscal 2026
Negative
- GAAP operating margin declined to 38.6% in 2026 from 39.6% in 2025
- Short- and long-term borrowings totaled $4.6 billion at May 31, 2026
- Interest expense 2026 was $269.5 million, up from $105.4 million
- Other income, net, decreased $7.7 million in Q4 2026 to $14.2 million
- Fiscal 2027 total revenue growth guided to 5–6% vs 17% in 2026
News Market Reaction – PAYX
On the day this news was published, PAYX declined 1.72%, reflecting a mild negative market reaction. This price movement removed approximately $614M from the company's valuation, bringing the market cap to $35.11B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Peers on Argus
PAYX was up about 2% with above-average volume while most close software/application peers (TEAM, DDOG, ROP, WDAY) were modestly negative and FICO was roughly flat, indicating a stock-specific move rather than a sector-wide rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jun 22 | Reputation recognition | Positive | -1.6% | Named one of America’s Most Trustworthy Companies and top workplace. |
| Jun 15 | Industry award | Positive | +0.3% | Recognized by TIME/Statista as a top WorkTech company highlighting AI strategy. |
| Jun 10 | Earnings call notice | Neutral | +0.8% | Scheduled date and details for upcoming Q4 and full-year earnings call. |
| Jun 02 | Macro index update | Positive | -1.6% | Small Business Jobs Index improved for third month with stronger earnings metrics. |
| May 19 | AI platform launch | Positive | +2.7% | Launched WISE AI platform enabling agentic digital workforce across HR workflows. |
Recent news often shows mixed follow-through, with both aligned and divergent price reactions to generally positive corporate updates.
Regulatory & Risk Context
Reported short interest is relatively low, suggesting limited short-squeeze potential and generally moderate incremental volatility from short covering alone.
Market Pulse Summary
This announcement shows solid double-digit growth, rising adjusted margins near 42–43%, and $2.2B returned via dividends and buybacks. Investors may weigh integration costs, leverage, and fiscal 2027 guidance against this momentum and prior mixed reactions to good news.
Key Terms
non-gaap financial
ebitda financial
adjusted ebitda financial
form 10-k regulatory
effective income tax rate financial
AI-generated analysis. Not financial advice.
- Delivered Strong Double-Digit Revenue and Earnings Growth
- Expanded AI Leadership with the Launch of WISE Workforce Intelligence Engine
- Returned
$2.2 Billion to Shareholders in Fiscal 2026
ROCHESTER, N.Y., June 24, 2026 (GLOBE NEWSWIRE) -- Paychex (Nasdaq: PAYX), a leading provider of expert-enabled HR, payroll, and benefits, today reported results for the fiscal quarter ended May 31, 2026 (the "fourth quarter") of the fiscal year ended May 31, 2026 ("fiscal 2026"). Results compared to the same period last year were as follows:
| Three months ended | Twelve months ended | |||||||||||||||||||||||
| May 31, | May 31, | |||||||||||||||||||||||
| In millions, except per share amounts | 2026 | 2025 | Change(2) | 2026 | 2025 | Change(2) | ||||||||||||||||||
| Total revenue | $ | 1,605.5 | $ | 1,427.3 | 12 | % | $ | 6,512.0 | $ | 5,571.7 | 17 | % | ||||||||||||
| Operating income | $ | 604.7 | $ | 431.1 | 40 | % | $ | 2,510.5 | $ | 2,207.7 | 14 | % | ||||||||||||
| Adjusted operating income(1) | $ | 675.8 | $ | 576.7 | 17 | % | $ | 2,814.7 | $ | 2,370.0 | 19 | % | ||||||||||||
| Diluted earnings per share | $ | 1.17 | $ | 0.82 | 43 | % | $ | 4.89 | $ | 4.58 | 7 | % | ||||||||||||
| Adjusted diluted earnings per share(1) | $ | 1.32 | $ | 1.19 | 11 | % | $ | 5.51 | $ | 4.98 | 11 | % | ||||||||||||
(1) Adjusted operating income and adjusted diluted earnings per share are not United States ("U.S.") generally accepted accounting principle ("GAAP") measures. Please refer to the "Non-GAAP Financial Measures" section of this press release for a discussion of non-GAAP measures.
(2) Percentage changes are calculated based on unrounded numbers.
“We finished fiscal 2026 with strong momentum, delivering double-digit revenue and earnings growth while accelerating organic revenue growth throughout the year,” stated John Gibson, President and Chief Executive Officer. "These results reflect solid execution against two of our strategic priorities, the successful integration of Paycor to advance our upmarket expansion and AI innovation that further differentiates our HCM and advisory solutions. Our durable business model and strong cash generation enabled us to return
Gibson continued, “As businesses look for a trusted partner to help them manage increasing work and complexity, we believe Paychex is well positioned to deliver differentiated value through the combination of our AI-driven technology and deep advisory expertise. This quarter, we launched WISE, our AI-powered intelligence engine, across our HCM platforms and internal operations, enabling more proactive, autonomous execution. It leverages patent-pending technology to unlock insights from unstructured data to increase productivity and enhance client outcomes.”
Fourth Quarter Business Highlights
Fourth quarter results reflect a full quarter of revenue and expenses from Paycor HCM, Inc. (“Paycor”), acquired in April 2025, compared to a partial-quarter in the prior-year period.
Total revenue increased to
Management Solutions revenue increased
- Higher product penetration and growth in client worksite employees for Human Resources ("HR") Solutions; and
- Price realization and higher revenue per client driven by Paycor's upmarket client base.
Professional Employer Organization ("PEO") and Insurance Solutions revenue increased
- Growth in the number of average PEO worksite employees; and
- Increase in PEO insurance revenues.
Interest on funds held for clients increased
Total expenses were relatively flat for the fourth quarter, primarily impacted by the following:
- Increases in compensation-related expenses and amortization of intangible assets, primarily driven by the acquisition of Paycor; and
- Higher technology, selling, and marketing investments driven by the acquisition of Paycor and continued investments in our strategic priorities; offset by
- Lower acquisition-related compensation and other acquisition-related costs, primarily consisting of professional service fees.
Operating income increased
Interest expense increased
Other income, net, decreased
Our effective income tax rate was
Diluted earnings per share increased
Fiscal Year Business Highlights
Highlights for fiscal 2026 as compared to the corresponding prior year period are as follows:
- Total revenue increased
17% to$6.5 billion . - Operating income increased
14% to$2.5 billion and adjusted operating income(1) increased19% to$2.8 billion . - Operating margin was
38.6% for the fiscal year compared to39.6% for the prior year period. Adjusted operating margin(1) was43.2% for the fiscal year compared to42.5% for the prior year period. - Diluted earnings per share increased
7% to$4.89 per share. Adjusted diluted earnings per share(1) increased11% to$5.51 per share.
Financial Position and Liquidity
Our financial position and cash flow generation remained strong during fiscal 2026. As of May 31, 2026, we had:
- Cash, restricted cash, and total corporate investments of
$1.2 billion . - Short-term and long-term borrowings, net of debt issuance costs, of
$4.6 billion . - Cash flow from operations was
$2.6 billion for the fiscal year.
Return to Stockholders During Fiscal 2026
- Paid cumulative dividends of
$4.43 per share totaling$1.6 billion . - Repurchased 5.6 million shares of our common stock for
$611.0 million .
Business Outlook
Our outlook for the fiscal year ending May 31, 2027 ("fiscal 2027") reflects current assumptions and market conditions. Changes in the macroeconomic environment could alter our guidance. Our updated business outlook is as follows:
- Total revenue is anticipated to grow in the range of
5% to6% . - Management Solutions revenue is anticipated to grow in the range of
5% to6% . - PEO and Insurance Solutions revenue is anticipated to grow in the range of
6% to7% . - Interest on funds held for clients is expected to be in the range of
$195 million to$205 million . - Adjusted operating margin(1) is anticipated to be approximately
44% . - The effective income tax rate for fiscal 2027 is anticipated to be approximately
24% . - Adjusted diluted earnings per share(1) is anticipated to grow in the range of
7% to9% .
(1) Adjusted operating income, adjusted operating margin, and adjusted diluted earnings per share are not U.S. GAAP measures. Please refer to the "Non-GAAP Financial Measures" section of this press release for a discussion of non-GAAP measures. Forward-looking adjusted operating margin and adjusted diluted earnings per share exclude acquisition-related costs.
Non-GAAP Financial Measures
| Three months ended | Twelve months ended | |||||||||||||||||||||||
| May 31, | May 31, | |||||||||||||||||||||||
| $ in millions, except per share amounts | 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||||
| Operating income | $ | 604.7 | $ | 431.1 | 40 | % | $ | 2,510.5 | $ | 2,207.7 | 14 | % | ||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||
| Acquisition-related costs(1) | 71.1 | 145.6 | 304.2 | 162.3 | ||||||||||||||||||||
| Adjusted operating income | $ | 675.8 | $ | 576.7 | 17 | % | $ | 2,814.7 | $ | 2,370.0 | 19 | % | ||||||||||||
| Adjusted operating margin | 42.1 | % | 40.4 | % | 43.2 | % | 42.5 | % | ||||||||||||||||
| Net income | $ | 420.6 | $ | 297.2 | 41 | % | $ | 1,760.1 | $ | 1,657.3 | 6 | % | ||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||
| Acquisition-related costs(1) | 71.1 | 166.4 | 304.2 | 196.3 | ||||||||||||||||||||
| Income tax benefit for acquisition-related costs | (17.1 | ) | (33.3 | ) | (73.3 | ) | (40.6 | ) | ||||||||||||||||
| Discrete tax shortfall/(windfall) related to employee stock-based compensation payments(2) | 0.0 | (0.7 | ) | (6.2 | ) | (10.1 | ) | |||||||||||||||||
| Adjusted net income | $ | 474.6 | $ | 429.6 | 10 | % | $ | 1,984.8 | $ | 1,802.9 | 10 | % | ||||||||||||
| Diluted earnings per share(3) | $ | 1.17 | $ | 0.82 | 43 | % | $ | 4.89 | $ | 4.58 | 7 | % | ||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||
| Acquisition-related costs(1) | 0.20 | 0.46 | 0.84 | 0.54 | ||||||||||||||||||||
| Income tax benefit for acquisition-related costs | (0.05 | ) | (0.09 | ) | (0.20 | ) | (0.11 | ) | ||||||||||||||||
| Discrete tax shortfall/(windfall) related to employee stock-based compensation payments(2) | 0.00 | (0.00 | ) | (0.02 | ) | (0.03 | ) | |||||||||||||||||
| Adjusted diluted earnings per share | $ | 1.32 | $ | 1.19 | 11 | % | $ | 5.51 | $ | 4.98 | 11 | % | ||||||||||||
| Net income | $ | 420.6 | $ | 297.2 | 41 | % | $ | 1,760.1 | $ | 1,657.3 | 6 | % | ||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||
| Interest expense | 64.7 | 63.7 | 269.5 | 105.4 | ||||||||||||||||||||
| Interest income on corporate investments | (13.0 | ) | (20.5 | ) | (63.4 | ) | (72.8 | ) | ||||||||||||||||
| Income taxes | 133.6 | 92.1 | 550.8 | 518.6 | ||||||||||||||||||||
| Depreciation and amortization expense | 113.2 | 85.7 | 442.6 | 209.5 | ||||||||||||||||||||
| EBITDA | $ | 719.1 | $ | 518.2 | 39 | % | $ | 2,959.6 | $ | 2,418.0 | 22 | % | ||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||
| Acquisition-related costs(1) | 10.6 | 104.9 | 62.2 | 121.6 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 729.7 | $ | 623.1 | 17 | % | $ | 3,021.8 | $ | 2,539.6 | 19 | % | ||||||||||||
(1) Acquisition-related costs included in selling, general and administrative expenses include:
$60.5 million for the fourth quarter and$242.0 million for the twelve months compared to$40.7 million for both corresponding prior-year periods, in amortization of intangibles acquired in the acquisition of Paycor,$10.4 million for the fourth quarter and$52.1 million for the twelve months compared to$70.8 million for both corresponding prior-year periods, in compensation costs related to the acquisition and integration of Paycor, including replacement awards, severance and retention bonuses, and$0.2 million for the fourth quarter and$10.1 million for the twelve months compared to$34.1 million and$50.8 million for corresponding prior-year periods, respectively, in other acquisition-related costs primarily consisting of professional service fees.
In addition, acquisition-related costs for the three and twelve months ended May 31, 2025 include
(2) Net tax shortfall/(windfall) related to employee stock-based compensation payments recognized in income taxes. This item is subject to volatility and will vary based on employee decisions on exercising employee stock options and fluctuations in our stock price, neither of which is within the control of management.
(3) The calculation of the impact of non-GAAP adjustments on diluted earnings per share is performed on each line independently. The table may not add down by +/-
In addition to reporting operating income, operating margin, net income, and diluted earnings per share, which are U.S. GAAP measures, we present adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, earnings before interest, taxes, depreciation, and amortization ("EBITDA"), and adjusted EBITDA which are non-GAAP measures. We believe these additional measures are indicators of the performance of our core business operations period over period. Adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, EBITDA, and adjusted EBITDA are not calculated through the application of U.S. GAAP and are not required forms of disclosure by the Securities and Exchange Commission ("SEC"). As such, they should not be considered a substitute for the U.S. GAAP measures of operating income, operating margin, net income, and diluted earnings per share, and, therefore, they should not be used in isolation but in conjunction with the U.S. GAAP measures. The use of any non-GAAP measure may produce results that vary from the U.S. GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.
Annual Report on Form 10-K ("Form 10-K")
We anticipate filing our Form 10-K before the end of July 2026. Once filed, the report will be accessible via our Investor Relations portal at https://investor.paychex.com. This press release should be read in conjunction with the Form 10-K and the related Notes to Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in that Form 10-K.
Webcast Details
The Company will host an Earnings Conference Call on June 24, 2026 at 9:30 a.m. Eastern Time, to discuss these results. The live webcast will be available for replay on our Investor Relations portal at https://investor.paychex.com, where news releases, current financial information, and investor presentations are also accessible.
Contacts
| Investor Relations: | Media Relations: |
| Rachel White | Tracy Volkmann |
| Head of Investor Relations | Manager, Public Relations |
| (513) 954-7388 | (585) 387-6705 |
| investors@paychex.com | tvolkmann@paychex.com |
About Paychex
Paychex, Inc. (Nasdaq: PAYX) provides a comprehensive suite of expert-enabled technology and advisory solutions that help businesses manage HR, payroll, and benefits. Serving approximately 800,000 clients and paying 1 in 11 U.S. private sector workers, Paychex combines scale, trusted expertise, and innovation to help businesses succeed. Built on more than 50 years of workforce experience and one of the industry’s largest proprietary HR datasets, Paychex’s WISE agentic AI platform embeds intelligence directly into workflows to improve productivity, enhance decision-making, and deliver better outcomes. Learn more at paychex.com.
Cautionary Note Regarding Forward-Looking Statements
Certain written statements in this press release may contain, and members of management may from time to time make or discuss statements which constitute, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by such words and phrases as "expect," "outlook," "will," "guidance," "projections," "strategy," "anticipate," "believe," "can," "continue," "could," "future," "may," "possible," "potential," "should," "see," and other similar words or phrases. Forward-looking statements include, without limitation, all matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding operating performance, events, or developments that we expect or anticipate will occur in the future, including statements relating to our outlook, revenue growth, earnings, earnings-per-share growth, and similar projections.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to known and unknown uncertainties, risks, changes in circumstances, and other factors that are difficult to predict, many of which are outside our control. Our actual performance and outcomes, including without limitation, our actual results and financial condition, may differ materially from those indicated in or suggested by the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:
- our ability to keep pace with changes in technology or provide timely enhancements to our solutions and support;
- risks related to our use of artificial intelligence ("AI") and new technologies in our business;
- software defects, undetected errors, and development delays for our solutions;
- the possibility of cyberattacks, security vulnerabilities or Internet disruptions, including data security and privacy leaks, and data loss and business interruptions;
- the possibility of failure of our business continuity plan during a catastrophic event;
- the failure of third-party service providers to perform their functions;
- the possibility that we may be exposed to additional risks related to our co-employment relationship with our PEO business;
- changes in health insurance and workers’ compensation insurance rates and underlying claim trends;
- risks related to acquisitions and the integration and performance of the businesses we acquire;
- our clients’ failure to reimburse us for payments made by us on their behalf;
- the effect of changes in government regulations mandating the amount of tax withheld or the timing of remittances;
- our failure to comply with covenants in our corporate bonds and debt agreements;
- changes in our credit ratings;
- changes in governmental regulations, laws, and policies;
- our ability to comply with U.S., state, and foreign laws and regulations;
- our compliance with data privacy and AI laws and regulations;
- our failure to protect our intellectual property rights;
- potential outcomes related to pending or future litigation matters;
- the impact of macroeconomic factors on the U.S. and global economy, and in particular on our small- and medium-sized business clients;
- volatility in the political, market, and economic environment, including inflation and interest rate changes;
- our ability to attract and retain qualified people; and
- the possible effects of negative publicity on our reputation and the value of our brand.
Any of these factors, as well as such other factors as discussed in our SEC filings, could cause our actual results to differ materially from our anticipated results. The information provided in this document is based upon the facts and circumstances known as of the date of this press release, and any forward-looking statements made by us in this document speak only as of the date on which they are made. Except as required by law, we undertake no obligation to update these forward-looking statements after the date of issuance of this press release to reflect events or circumstances after such date, or to reflect the occurrence of unanticipated events.
| PAYCHEX, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In millions, except per share amounts) | ||||||||||||||||||||||||
| Three months ended | Twelve months ended | |||||||||||||||||||||||
| May 31, | May 31, | |||||||||||||||||||||||
| 2026 | 2025 | Change(2) | 2026 | 2025 | Change(2) | |||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||
| Management Solutions | $ | 1,183.6 | $ | 1,041.8 | 14 | % | $ | 4,867.9 | $ | 4,067.1 | 20 | % | ||||||||||||
| PEO and Insurance Solutions | 369.7 | 340.3 | 9 | % | 1,433.2 | 1,342.9 | 7 | % | ||||||||||||||||
| Total service revenue | 1,553.3 | 1,382.1 | 12 | % | 6,301.1 | 5,410.0 | 16 | % | ||||||||||||||||
| Interest on funds held for clients(1) | 52.2 | 45.2 | 15 | % | 210.9 | 161.7 | 30 | % | ||||||||||||||||
| Total revenue | 1,605.5 | 1,427.3 | 12 | % | 6,512.0 | 5,571.7 | 17 | % | ||||||||||||||||
| Expenses: | ||||||||||||||||||||||||
| Cost of service revenue | 417.3 | 393.9 | 6 | % | 1,674.5 | 1,540.4 | 9 | % | ||||||||||||||||
| Selling, general and administrative expenses | 583.5 | 602.3 | (3 | )% | 2,327.0 | 1,823.6 | 28 | % | ||||||||||||||||
| Total expenses | 1,000.8 | 996.2 | 0 | % | 4,001.5 | 3,364.0 | 19 | % | ||||||||||||||||
| Operating income | 604.7 | 431.1 | 40 | % | 2,510.5 | 2,207.7 | 14 | % | ||||||||||||||||
| Interest expense | (64.7 | ) | (63.7 | ) | n/m | (269.5 | ) | (105.4 | ) | n/m | ||||||||||||||
| Other income, net(1) | 14.2 | 21.9 | (35 | )% | 69.9 | 73.6 | (5 | )% | ||||||||||||||||
| Income before income taxes | 554.2 | 389.3 | 42 | % | 2,310.9 | 2,175.9 | 6 | % | ||||||||||||||||
| Income taxes | 133.6 | 92.1 | 45 | % | 550.8 | 518.6 | 6 | % | ||||||||||||||||
| Net income | $ | 420.6 | $ | 297.2 | 41 | % | $ | 1,760.1 | $ | 1,657.3 | 6 | % | ||||||||||||
| Basic earnings per share | $ | 1.18 | $ | 0.82 | 44 | % | $ | 4.90 | $ | 4.60 | 7 | % | ||||||||||||
| Diluted earnings per share | $ | 1.17 | $ | 0.82 | 43 | % | $ | 4.89 | $ | 4.58 | 7 | % | ||||||||||||
| Weighted-average common shares outstanding | 357.6 | 360.3 | 358.9 | 360.2 | ||||||||||||||||||||
| Weighted-average common shares outstanding, assuming dilution | 358.2 | 362.3 | 360.0 | 362.0 | ||||||||||||||||||||
(1) Further information on interest on funds held for clients and other income, net, and the short- and long-term effects of changing interest rates can be found in our filings with the SEC, including our Quarterly Reports on Form 10-Q and our Annual Report on Form 10-K, as applicable, under the caption "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and subheadings "Results of Operations" and "Market Risk Factors." These filings are accessible at https://investor.paychex.com.
(2) Percentage changes are calculated based on unrounded numbers.
n/m – not meaningful
| PAYCHEX, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except per share amounts) | ||||||||
| May 31, | ||||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 1,088.2 | $ | 1,628.6 | ||||
| Restricted cash | 52.8 | 47.9 | ||||||
| Corporate investments | 36.3 | 34.5 | ||||||
| Interest receivable | 36.1 | 27.9 | ||||||
| Accounts receivable, net of allowance for credit losses | 1,507.6 | 1,330.5 | ||||||
| PEO unbilled receivables, net of advance collections | 664.2 | 616.6 | ||||||
| Prepaid income taxes | 11.2 | 38.9 | ||||||
| Prepaid expenses and other current assets | 384.7 | 378.3 | ||||||
| Current assets before funds held for clients | 3,781.1 | 4,103.2 | ||||||
| Funds held for clients | 4,832.2 | 4,813.3 | ||||||
| Total current assets | 8,613.3 | 8,916.5 | ||||||
| Property and equipment, net of accumulated depreciation | 588.9 | 511.5 | ||||||
| Operating lease right-of-use assets, net of accumulated amortization | 63.9 | 63.8 | ||||||
| Intangible assets, net of accumulated amortization | 1,684.0 | 1,947.3 | ||||||
| Goodwill | 4,527.4 | 4,514.1 | ||||||
| Long-term deferred costs | 555.8 | 482.4 | ||||||
| Other long-term assets | 141.2 | 128.5 | ||||||
| Total assets | $ | 16,174.5 | $ | 16,564.1 | ||||
| LIABILITIES | ||||||||
| Accounts payable | $ | 154.8 | $ | 129.8 | ||||
| Accrued corporate compensation and related items | 162.1 | 183.9 | ||||||
| Accrued worksite employee compensation and related items | 844.8 | 735.8 | ||||||
| Short-term debt | — | 18.6 | ||||||
| Long-term debt, net, current portion | — | 399.8 | ||||||
| Accrued income taxes | 87.8 | — | ||||||
| Deferred revenue | 69.4 | 69.4 | ||||||
| Other current liabilities | 637.1 | 552.0 | ||||||
| Current liabilities before client fund obligations | 1,956.0 | 2,089.3 | ||||||
| Client fund obligations | 4,884.6 | 4,867.0 | ||||||
| Total current liabilities | 6,840.6 | 6,956.3 | ||||||
| Accrued income taxes | 140.5 | 119.0 | ||||||
| Deferred income taxes | 543.3 | 444.7 | ||||||
| Long-term debt, net | 4,556.1 | 4,548.4 | ||||||
| Operating lease liabilities | 52.2 | 55.5 | ||||||
| Other long-term liabilities | 306.7 | 312.2 | ||||||
| Total liabilities | 12,439.4 | 12,436.1 | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common stock, Issued and outstanding: 355.6 shares as of May 31, 2026 and 360.5 shares as of May 31, 2025 | 3.6 | 3.6 | ||||||
| Additional paid-in capital | 1,975.6 | 1,901.1 | ||||||
| Retained earnings | 1,805.8 | 2,277.0 | ||||||
| Accumulated other comprehensive loss | (49.9 | ) | (53.7 | ) | ||||
| Total stockholders’ equity | 3,735.1 | 4,128.0 | ||||||
| Total liabilities and stockholders’ equity | $ | 16,174.5 | $ | 16,564.1 | ||||
| PAYCHEX, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) | ||||||||
| Twelve months ended | ||||||||
| May 31, | ||||||||
| 2026 | 2025 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net income | $ | 1,760.1 | $ | 1,657.3 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 442.6 | 209.5 | ||||||
| Amortization of discounts and premiums on available-for-sale securities, net | (7.6 | ) | 23.4 | |||||
| Amortization of deferred contract costs | 249.2 | 236.5 | ||||||
| Stock-based compensation costs | 96.1 | 111.8 | ||||||
| Provision for/(Benefit from) deferred income taxes | 103.7 | (15.8 | ) | |||||
| Provision for allowance for credit losses | 38.1 | 24.2 | ||||||
| Net realized (gains)/losses on sales of available-for-sale securities | (7.6 | ) | 0.4 | |||||
| Net realized losses on disposal of assets | 6.2 | 3.7 | ||||||
| Premiums paid on cash flow hedges | — | (19.2 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Interest receivable | (8.2 | ) | (3.8 | ) | ||||
| Accounts receivable and PEO unbilled receivables, net | (105.8 | ) | (130.7 | ) | ||||
| Prepaid expenses and other current assets | 40.0 | (12.0 | ) | |||||
| Accounts payable and other current liabilities | 291.4 | 42.3 | ||||||
| Deferred costs | (342.5 | ) | (246.5 | ) | ||||
| Net change in other long-term assets and liabilities | 3.9 | 21.9 | ||||||
| Net change in operating lease right-of-use assets and liabilities | (2.9 | ) | (2.1 | ) | ||||
| Net cash provided by operating activities | 2,556.7 | 1,900.9 | ||||||
| INVESTING ACTIVITIES | ||||||||
| Purchases of available-for-sale securities | (12,226.2 | ) | (14,302.9 | ) | ||||
| Proceeds from sales and maturities of available-for-sale securities | 11,517.6 | 14,292.5 | ||||||
| Net change in purchased receivables | (166.1 | ) | (157.3 | ) | ||||
| Purchases of property and equipment | (234.9 | ) | (191.8 | ) | ||||
| Acquisition of businesses, net of cash acquired | (0.4 | ) | (2,967.5 | ) | ||||
| Purchases of other assets | (42.4 | ) | (29.8 | ) | ||||
| Net cash used in investing activities | (1,152.4 | ) | (3,356.8 | ) | ||||
| FINANCING ACTIVITIES | ||||||||
| Net change in client fund obligations | 17.6 | (290.7 | ) | |||||
| Net proceeds from short-term borrowings | (18.8 | ) | — | |||||
| Payments on long-term debt | (400.0 | ) | — | |||||
| Proceeds from the issuance of corporate bonds | — | 4,180.9 | ||||||
| Dividends paid | (1,589.6 | ) | (1,448.5 | ) | ||||
| Repurchases of common shares | (611.0 | ) | (104.5 | ) | ||||
| Debt issuance costs | — | (47.8 | ) | |||||
| Activity related to equity-based plans | (52.0 | ) | 3.8 | |||||
| Net cash (used in)/provided by financing activities | (2,653.8 | ) | 2,293.2 | |||||
| Net change in cash, restricted cash, and equivalents | (1,249.5 | ) | 837.3 | |||||
| Cash, restricted cash, and equivalents, beginning of fiscal year | 2,734.3 | 1,897.0 | ||||||
| Cash, restricted cash, and equivalents, end of fiscal year | $ | 1,484.8 | $ | 2,734.3 | ||||
| Reconciliation of cash, restricted cash and equivalents | ||||||||
| Cash and cash equivalents | $ | 1,088.2 | $ | 1,628.6 | ||||
| Restricted cash | 52.8 | 47.9 | ||||||
| Restricted cash and restricted cash equivalents included in funds held for clients | 343.8 | 1,057.8 | ||||||
| Total cash, restricted cash, and equivalents | $ | 1,484.8 | $ | 2,734.3 | ||||
