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PAYX

Paychex, Inc.

PAYX

Paychex, Inc. • NASDAQ
$111.69 ▲ 0.25% (+0.28)
Market Cap $40.23 B
52w High $161.24
52w Low $108.00
Dividend Yield 4.22%
P/E 25.04
Volume 1.24M
Outstanding Shares 360.21M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q1-2026 $1.54B ▲ $584.3M ▼ $383.8M ▲ 24.922% ▲ $1.07 ▲ $675M ▲
Q4-2025 $1.427B ▼ $602.3M ▲ $297.2M ▼ 20.823% ▼ $0.82 ▼ $538.7M ▼
Q3-2025 $1.509B ▲ $429.8M ▲ $519.3M ▲ 34.414% ▲ $1.44 ▲ $751.5M ▲
Q2-2025 $1.317B ▼ $399.7M ▲ $413.4M ▼ 31.392% ▼ $1.15 ▼ $594.9M ▼
Q1-2025 $1.319B $391.8M $427.4M 32.416% $1.19 $605.7M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q1-2026 $1.671B ▲ $16.663B ▲ $12.692B ▲ $3.971B ▼
Q4-2025 $1.663B ▲ $16.564B ▲ $12.436B ▲ $4.128B ▲
Q3-2025 $1.601B ▲ $11.222B ▲ $7.105B ▲ $4.117B ▲
Q2-2025 $1.24B ▼ $10.555B ▲ $6.629B ▼ $3.926B ▲
Q1-2025 $1.498B $10.489B $6.639B $3.85B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q1-2026 $383.8M ▲ $718.4M ▲ $-1.303B ▲ $-515.4M ▼ $-1.1B ▼ $662.5M ▲
Q4-2025 $297.2M ▼ $405.4M ▼ $-3.395B ▼ $3.331B ▲ $63.6M ▼ $344.9M ▼
Q3-2025 $519.3M ▲ $716M ▲ $21M ▲ $-2.7M ▲ $734.3M ▲ $667.3M ▲
Q2-2025 $413.4M ▼ $295M ▼ $-192.7M ▼ $-291.4M ▲ $-189.1M ▼ $248M ▼
Q1-2025 $427.4M $546.1M $-110M $-485M $-48.9M $510.5M

Revenue by Products

Product Q2-2025Q3-2025Q4-2025Q1-2026
Management Solutions
Management Solutions
 $960.00M ▲$1.10Bn ▲$1.04Bn ▼$1.16Bn ▲
Peo And Insurance Solutions
Peo And Insurance Solutions
 $320.00M ▲$370.00M ▲$340.00M ▼$330.00M ▼

Five-Year Company Overview

Income Statement

Income Statement Revenue has risen steadily over the past five years, showing a consistent ability to win and keep business. Profitability is strong: gross and operating margins have generally improved, reflecting good pricing power and cost control. Operating profit has climbed each year, which suggests the core business is scaling efficiently. Net income and earnings per share have also trended higher over time, though the most recent year shows a small step back, likely tied to higher costs, interest, or taxes rather than a breakdown in the business model. Overall, the income statement points to a mature, stable, and very profitable company with modest but reliable growth.

Balance Sheet

Balance Sheet The balance sheet has grown, with total assets expanding meaningfully in the most recent year. At the same time, debt has increased sharply from very low levels, which changes the company’s capital structure and introduces more financial leverage to monitor. Cash on hand has improved versus earlier years and, together with rising shareholders’ equity, provides a cushion against that higher debt load. Equity has been building steadily, indicating that profits are largely being retained in the business after shareholder payouts. In short, the company still looks financially solid, but the recent jump in debt is a notable shift that deserves ongoing attention.

Cash Flow

Cash Flow Cash generation is a major strength. Operating cash flow has marched upward in line with earnings, signaling that reported profits are backed by actual cash. Capital spending needs are relatively light, so most of that cash converts into free cash flow that the company can use for dividends, buybacks, debt service, or acquisitions. The pattern over several years shows a dependable, recurring cash engine with no obvious signs of strain. This strong cash profile gives management flexibility even as leverage has increased.

Competitive Edge

Competitive Edge Paychex holds a strong position in payroll and human capital management, especially for small and mid-sized businesses. Its long history, trusted brand, and deep expertise in tax and compliance make it a go‑to provider for employers who cannot afford mistakes. The all‑in‑one Paychex Flex platform creates high switching costs, since moving payroll, HR, and benefits to another provider is disruptive and risky for clients. Scale advantages allow the company to invest heavily in technology and support while spreading costs across a large customer base. Combining software with human advisors further differentiates Paychex from purely self‑service competitors and reinforces client “stickiness.”

Innovation and R&D

Innovation and R&D Innovation is a clear strategic focus. Paychex Flex has evolved into a unified, cloud-based platform that integrates payroll, HR, benefits, and related services, making it central to customers’ daily operations. The company is layering AI into this ecosystem, with tools such as Recruiting Copilot and AI‑driven HR analytics that help clients find talent, analyze workforce data, and automate routine HR tasks. Recognition on innovation rankings and its agile development approach suggest ongoing, structured investment rather than one‑off launches. Paychex is also pushing into better employee self‑service, engagement tools, and new interfaces like voice assistance, using its large data set as a competitive asset.

Summary

Overall, Paychex looks like a mature, high‑quality service business: steady revenue growth, strong and durable margins, and robust free cash flow. Its balance sheet has historically been conservative, but the recent increase in debt marks an important change that investors may want to track against future growth and cash generation. The company enjoys a durable competitive moat built on scale, regulatory trust, integrated products, and high switching costs. At the same time, it is actively modernizing its offering through AI, analytics, and an expanded digital ecosystem. The key questions going forward revolve around how effectively Paychex leverages these innovations to sustain growth and margins, while managing its higher leverage in a changing economic and regulatory environment.

NEWS

November 19, 2025 · 10:00 AM UTC

Paychex Introduces AI-Driven Participant Event Notifications for Financial Advisors

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November 12, 2025 · 9:00 AM UTC

Paychex Honored as an HCM Technology and GenAI Leader

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November 4, 2025 · 8:30 AM UTC

U.S. Small Business Employment Growth Remains Consistent as Weekly Hours Worked Reach Near-Decade High

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October 9, 2025 · 8:30 AM UTC

Paychex Declares Quarterly Dividend

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September 30, 2025 · 1:00 PM UTC

Minimal Shifts in U.S. Small Business Employment in September

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