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What is Paychex's latest dividend and current dividend yield?

What guidance did Paychex's management provide for the next earnings period?

- **Revenue Beat**: 18% YoY growth driven by Management Solutions (21%) and PEO. Paycor integration on track for $100M+ cost synergies.
- **AI Breakthroughs**: 100% accurate Agentic AI payroll processing; Gen AI sales platform boosting efficiency. Fixed fee model mitigates AI risk.
- **PEO Strength**: Mid-single-digit worksite growth, near-record retention. FY26 PEO guidance 6-8% despite agency headwinds.
- **Financial Update**: Raised EPS growth to 10-11%. Q3 margin guidance 47-48%. Buybacks/dividends returned $54M in Q2.
- **Market Resilience**: Small businesses cautious but demand for HR solutions steady. PEO bookings accelerating post-integration.

**【CEO Summary Section】**
- **Revenue Growth**: 18% year-over-year, driven by Management Solutions (21% growth) and PEO performance. Paycor contributed ~17% to Management Solutions growth.
- **AI Advancements**: Launched AI-powered platforms for compliance, payroll processing, and sales efficiency. Agentic AI pilots achieved 100% accuracy in payroll handling.
- **Paycor Integration**: On track for $100M+ cost synergies vs. original $80M target. Cross-selling efforts exceed expectations, with larger-than-anticipated client deals.
- **PEO Performance**: Mid-single-digit worksite employee growth, near-record retention, and solid demand despite macro challenges.
- **Market Positioning**: Less AI risk exposure due to blue-collar client base; fixed fee revenue model provides stability.

**【CFO Financial Commentary】**
- **Q2 Results**: Total revenue $1.6B (18% YoY), Adjusted EPS $1.26 (11% YoY). Management Solutions revenue $1.2B (21% YoY), PEO-owned Insurance $337M (6% YoY).
- **Margins**: Adjusted operating margin 41.7% (80bps YoY expansion). Q3 guidance: 18% revenue growth, 47-48% adjusted margin.
- **Guidance Update**: Raised FY26 EPS growth to 10-11% (from 9-11%). Management Solutions and PEO growth expected at low end of ranges due to softer-than-expected revenue per client.
- **Balance Sheet**: $1.6B cash, $5B borrowings. 12-month ROE 40%. Q2 buybacks/dividends returned $54M to shareholders.

**【Q&A Highlights】**
- **Paycor Growth**: Pro forma revenue growth 8-9% Q2, in line with expectations. Smaller deal sizes and lower upfront attachments impacting revenue per client.
- **AI Impact**: Agentic AI reducing payroll processing time; sales AI platform boosting efficiency. Long-term potential to reduce headcount growth rate.
- **Market Trends**: Small businesses cautious on costs, but demand for HR solutions remains steady. PEO bookings accelerating post-integration.
- **PEO Outlook**: Lapping enrollment headwinds; expect 6-8% FY26 growth. Agency segment challenges (workers' comp rates) offset by PEO growth.
- **AI Monetization**: AI-powered insights (e.g., compensation benchmarking) creating new revenue opportunities. Gen AI platforms enhancing client value proposition.

Paychex, Inc.(PAYX)-20251219-2026 Q2 Earnings call transcript

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