PAYX 8-K

Paychex Inc (PAYX)

8-K 2026-09-23 For: 2026-09-23

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Added on September 23, 2026

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Delaware	0-11330	16-1124166
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

911 Panorama Trail South
Rochester, New York		14625-2396
(Address of Principal Executive Offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	PAYX	Nasdaq Global Select Market


Exhibit No.		Description
99.1		Press Release of Paychex, Inc. dated September 23, 2026
104		Cover Page Interactive File, embedded in Inline XBRL.


			PAYCHEX, INC.

Date:	September 23, 2026	By:	/s/ Robert L. Schrader
			Robert L. Schrader
			Senior Vice President and Chief Financial Officer


	Three months ended
	August 31,
In millions, except per share amounts	2026		2025		Change
Total revenue	$	1,630.5	$	1,540.0	6	%
Operating income	$	619.2	$	541.9	14	%
Adjusted operating income*	$	684.7	$	626.7	9	%
Diluted earnings per share	$	1.21	$	1.06	14	%
Adjusted diluted earnings per share*	$	1.34	$	1.22	10	%

PAYX 8-K

FORM 8-K

Item 2.02 Results of Operations and Financial Condition

Item 9.01 Financial Statements and Exhibits

(d.)


	Fiscal Year 2027 Outlook	Updates
Total revenue growth	5% to 6%	No change
Management Solutions revenue growth	5% to 6%	No change
PEO and Insurance Solutions revenue growth	7% to 8%	Previously 6% to 7%
Interest on funds held for clients	$200 million to $210 million	Previously $195 million to $205 million
Adjusted operating margin	~44%	No change
Effective income tax rate	~24%	No change
Adjusted diluted earnings per share growth	7% to 9%	No change


Investor Relations:	Media Relations:
Rachel White	Tracy Volkmann
Head of Investor Relations	Manager, Public Relations
(513) 954-7388	(585) 387-6705
[email protected]	[email protected]


	August 31,			May 31,
	2026			2026
ASSETS
Cash and cash equivalents	$	600.9		$	1,088.2
Restricted cash		55.0			52.8
Corporate investments		333.3			36.3
Interest receivable		39.2			36.1
Accounts receivable, net of allowance for credit losses		1,615.9			1,507.6
PEO unbilled receivables, net of advance collections		680.2			664.2
Prepaid income taxes		11.5			11.2
Prepaid expenses and other current assets		409.2			384.7
Current assets before funds held for clients		3,745.2			3,781.1
Funds held for clients		4,348.4			4,832.2
Total current assets		8,093.6			8,613.3
Property and equipment, net of accumulated depreciation		614.6			588.9
Operating lease right-of-use assets, net of accumulated amortization		75.8			63.9
Intangible assets, net of accumulated amortization		1,626.2			1,684.0
Goodwill		4,534.1			4,527.4
Long-term deferred costs		571.0			555.8
Other long-term assets		145.4			141.2
Total assets	$	15,660.7		$	16,174.5

LIABILITIES
Accounts payable	$	141.4		$	154.8
Accrued corporate compensation and related items		132.5			162.1
Accrued worksite employee compensation and related items		824.7			844.8
Accrued income taxes		81.1			87.8
Deferred revenue		70.8			69.4
Other current liabilities		648.8			637.1
Current liabilities before client fund obligations		1,899.3			1,956.0
Client fund obligations		4,440.7			4,884.6
Total current liabilities		6,340.0			6,840.6
Accrued income taxes		145.5			140.5
Deferred income taxes		537.6			543.3
Long-term borrowings, net of debt issuance costs		4,558.0			4,556.1
Operating lease liabilities		62.9			52.2
Other long-term liabilities		311.2			306.7
Total liabilities		11,955.2			12,439.4

STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value; Authorized: 600.0 shares; Issued and outstanding: 356.0 shares as of August 31, 2026 and 355.6 shares as of May 31, 2026		3.6			3.6
Additional paid-in capital		1,994.8			1,975.6
Retained earnings		1,788.4			1,805.8
Accumulated other comprehensive loss		(81.3	)		(49.9	)
Total stockholders’ equity		3,705.5			3,735.1
Total liabilities and stockholders’ equity	$	15,660.7		$	16,174.5


	Three months ended
	August 31,
	2026		2025		Change
Revenue:
Management Solutions	$	1,213.1	$	1,163.3	4	%
PEO and Insurance Solutions		367.6		329.1	12	%
Total service revenue		1,580.7		1,492.4	6	%
Interest on funds held for clients(1)		49.8		47.6	5	%
Total revenue		1,630.5		1,540.0	6	%
Expenses:
Cost of service revenue		430.1		413.8	4	%
Selling, general and administrative expenses		581.2		584.3	(1)	%
Total expenses		1,011.3		998.1	1	%
Operating income		619.2		541.9	14	%
Interest expense		(65.1)		(68.2)	(5)	%
Other income, net(1)		10.9		23.8	(54)	%
Income before income taxes		565.0		497.5	14	%
Income taxes		135.3		113.7	19	%
Net income	$	429.7	$	383.8	12	%

Basic earnings per share	$	1.21	$	1.07	13	%
Diluted earnings per share	$	1.21	$	1.06	14	%
Weighted-average common shares outstanding		355.8		360.1
Weighted-average common shares outstanding, assuming dilution		356.6		361.9


	Three months ended
	August 31,
	2026			2025
OPERATING ACTIVITIES
Net income	$	429.7		$	383.8
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		109.8			109.3
Amortization of premiums and discounts on available-for-sale ("AFS") securities and long-term debt, net		(2.2	)		(2.1	)
Amortization of deferred contract costs		66.0			60.4
Stock-based compensation costs		19.3			26.8
Provision on deferred income taxes		9.3			66.0
Provision for credit losses		8.6			7.7
Net realized (gains)/losses on sales of AFS securities		(0.0	)		0.0
Changes in operating assets and liabilities:
Interest receivable		(3.1	)		(6.1	)
Accounts receivable and PEO unbilled receivables, net		(73.3	)		(18.9	)
Prepaid expenses and other current assets		(19.8	)		29.5
Accounts payable and other current liabilities		(56.7	)		124.9
Deferred costs		(86.1	)		(68.5	)
Net change in other long-term assets and liabilities		12.0			6.3
Net change in operating lease right-of-use assets and liabilities		(0.0	)		(0.7	)
Net cash provided by operating activities		413.5			718.4
INVESTING ACTIVITIES
Purchases of AFS securities		(5,072.2	)		(3,731.9	)
Proceeds from sales and maturities of AFS securities		4,880.7			2,547.3
Net purchases of short-term accounts receivable		(63.2	)		(47.0	)
Purchases of property and equipment		(56.1	)		(55.9	)
Acquisition of businesses, net of cash acquired		(18.1	)		(0.2	)
Purchases of other assets, net		(6.9	)		(15.0	)
Net cash used in investing activities		(335.8	)		(1,302.7	)
FINANCING ACTIVITIES
Net change in client fund obligations		(443.9	)		81.4
Dividends paid		(424.1	)		(389.1	)
Repurchases of common shares		—			(160.1	)
Contingent consideration paid for acquisitions		(15.0	)		—
Activity related to equity-based plans		(23.6	)		(47.6	)
Net cash used in financing activities		(906.6	)		(515.4	)
Net change in cash, restricted cash, and equivalents		(828.9	)		(1,099.7	)
Cash, restricted cash, and equivalents, beginning of period		1,484.8			2,734.3


	Three months ended
	August 31,
	2026		2025		Change
Operating income	$	619.2	$	541.9	14	%
Non-GAAP adjustments:
Acquisition-related costs(1)		65.5		84.8
Adjusted operating income	$	684.7	$	626.7	9	%
Adjusted operating margin		42.0%		40.7%

Net income	$	429.7	$	383.8	12	%
Non-GAAP adjustments:
Acquisition-related costs(1)		65.5		84.8
Income tax benefit for acquisition-related costs		(15.7)		(20.6)
Discrete tax windfall related to employee stock-based compensation payments(2)		(0.3)		(7.2)
Adjusted net income	$	479.2	$	440.8	9	%

Diluted earnings per share(3)	$	1.21	$	1.06	14	%
Non-GAAP adjustments:
Acquisition-related costs(1)		0.18		0.23
Income tax benefit for acquisition-related costs		(0.04)		(0.06)
Discrete tax windfall related to employee stock-based compensation payments(2)		(0.00)		(0.02)
Adjusted diluted earnings per share	$	1.34	$	1.22	10	%

Net income	$	429.7	$	383.8	12	%
Non-GAAP adjustments:
Interest expense		65.1		68.2
Interest income on corporate investments		(10.2)		(18.7)
Income taxes		135.3		113.7
Depreciation and amortization expense		109.8		109.3
EBITDA	$	729.7	$	656.3	11	%
Non-GAAP adjustments:
Acquisition-related costs(1)		8.6		23.7
Adjusted EBITDA	$	738.3	$	680.0	9	%