Overview

* Paychex ( PAYX ) fiscal Q1 revenue rises 17% yr/yr, and came in-line with analyst expectations

* Adjusted EPS for fiscal Q1 beats consensus, reflecting successful Paycor integration

* Co raises full-year earnings outlook, indicating confidence in continued growth

Outlook

* Company anticipates fiscal 2026 adjusted EPS growth of 9% to 11%

* Paychex ( PAYX ) raises full-year earnings outlook

* Company's fiscal 2026 guidance excludes acquisition-related costs

Result Drivers

* PAYCOR INTEGRATION - Successful integration of Paycor contributed significantly to revenue growth, with Management Solutions revenue increasing by 21%

* CLIENT GROWTH - Increase in the number of clients served and higher revenue per client drove revenue growth in Management Solutions

* TECHNOLOGY INVESTMENTS - Strategic investments in AI and technology enhanced client experience and operational efficiency, supporting revenue growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Met $1.54 $1.54

Revenue bln bln (11

Analysts

)

Q1 Beat $1.22 $1.21

Adjusted (13

EPS Analysts

)

Q1 EPS $1.06

Q1 Beat $440.80 $439 mln

Adjusted mln (10

Net Analysts

Income )

Q1 Beat $626.70 $616.10

Adjusted mln mln (10

Operatin Analysts

g Income )

Q1 40.7%

Adjusted

Operatin

g Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 13 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the employment services peer group is "buy."

* Wall Street's median 12-month price target for Paychex Inc ( PAYX ) is $142.00, about 9.5% above its September 29 closing price of $128.53

* The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 30 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)