$PAYX · PAYCHEX INC

Paychex reported Q1 FY2027 results for the period ended August 31, 2026. Total revenue increased 6% YoY to $1.63 billion, with Management Solutions up 4% to $1.21 billion and PEO/Insurance Solutions up 12% to $367.6 million. Diluted EPS rose 14% to $1.21 (adjusted $1.34, +10%). Operating margin expanded to 38.0% from 35.2%. The company raised its FY2027 PEO and Insurance Solutions revenue growth outlook to 7%-8% from 6%-7% and lifted interest-on-funds guidance to $200M-$210M.

Markets closed at filing; regular session shows PAYX down 0.42% to $114.53 on a $40.74B market cap — minimal reaction to a solid quarter with raised PEO guidance.

Paychex posted broad-based strength with double-digit EPS growth, margin expansion, and a rare mid-quarter guidance raise on its highest-growth PEO segment.

Paychex's 6% total revenue growth and 280bp operating margin expansion reflect the durable demand for outsourced HR/payroll among SMBs, with PEO solutions outperforming as businesses seek bundled benefits and compliance support.

Macroeconomic pressure on small- and medium-sized business clients remains the primary risk; interest on funds held for clients is sensitive to rate changes, and the PEO business carries co-employment liability exposure.