10:58 AM EDT, 09/30/2025 (MT Newswires) -- Paychex ( PAYX ) on Tuesday maintained its full-year revenue outlook as its fiscal first-quarter sales matched Wall Street's expectations, while the company raised its earnings guidance as quarterly profit came in stronger than projected.
For fiscal 2026, the human resources software provider continues to expect revenue growth of 16.5% to 18.5%. Analysts polled by FactSet are looking for full-year sales of $6.53 billion, compared with the prior year's $5.57 billion.
Paychex ( PAYX ) now anticipates adjusted per-share earnings to rise by 9% to 11%, compared with its prior estimate of an 8.5% to 10.5% increase. Analysts expect full-year non-GAAP EPS of $5.45, which would mark an increase from the previous year's $4.98.
For the quarter ended Aug. 31, revenue grew 17% year over year to $1.54 billion, in line with the consensus estimate. Adjusted EPS improved to $1.22 from $1.16, surpassing analysts' forecast of $1.20.
Management solutions revenue surged 21% to $1.16 billion, driven by the recently-acquired Paycor HCM. Sales in the professional employer organization and insurance solutions division rose 3% to $329.1 million.
"We are off to a strong start in fiscal year 2026," Chief Executive John Gibson told analysts on a call, according to a FactSet transcript. "This performance reflects continued progress, integrating Paycor and sustained demand for our (human capital management) solutions amid a resilient small business environment."
The stock was down 4.1% in Tuesday trading, and has lost about 12% in value so far this year.
Price: 122.86, Change: -5.67, Percent Change: -4.41