Paychex Inc. Sees $399 Million Trading Volume Despite 40.15% Decline

On March 27, 2025, Paychex Inc. (PAYX) saw a trading volume of $399 million, marking a 40.15% decrease from the previous day. The stock price rose by 1.09%, marking two consecutive days of gains and a total increase of 5.34% over the past two days.

Paychex Inc. reported a 5% increase in total revenue for the third quarter of 2025, with a 6% growth excluding the impact of the discontinued ERTC program. The company achieved a total revenue of $1.51 billion, driven by continued growth in the number of clients served across its suite of HCM solutions and client worksite employees for HR Solutions. Higher revenue per client resulted from price realization and product penetration, including HR Solutions and Retirement. However, lower revenue from ancillary services was primarily due to the expiration of the ERTC program.

The company's adjusted operating income grew by 9%, and adjusted diluted EPS increased by 8%. The adjusted operating margin expanded by 180 basis points year-over-year, driven by investments in automation and technology. Paychex also reported strong performance in HR Solutions, Retirement, and Funding Solutions. Client retention improved from the previous year and remained near record levels, with higher client retention observed across all employee size segments. Revenue retention also improved and remained near record levels, with product penetration continuing to increase across the suite of HCM solutions.

Paychex announced the acquisition of Paycor, unifying two leading SaaS HCM platforms that are highly complementary. The acquisition is expected to provide significant cross-sell opportunities and new distribution channels for sustained long-term growth. It will also expand the salesforce and accelerate investments in go-to-market, product innovation, and technology to drive sustainable growth. The transaction is expected to close in April 2025, subject to customary closing conditions.