What is the market's earnings forecast for Paychex next quarter?

What does Paychex do and what are its main business segments?

What factors drove the changes in Paychex's revenue and profit?

Did Paychex beat or miss consensus estimates last quarter?

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

What were the key takeaways from Paychex’s earnings call?

What were the key takeaways from Paychex's earnings call?

What is the revenue and EPS growth rate for Paychex year over year?

- **Revenue Growth**: 17% YoY to $1.5B, driven by Paycor integration and Management Solutions expansion.
- **EPS Beat**: Adjusted EPS up 5% to $1.22, with FY2026 guidance raised to 9-11% growth.
- **Paycor Synergies**: $90M cost savings on track, with cross-selling pipeline targeting 50,000 clients.
- **AI Innovation**: Generative AI tools boosting HR insights and operational efficiency by 30%.
- **PEO Momentum**: Mid-single-digit worksite growth, record retention, and double-digit bookings.
- **Small Business Resilience**: Stable employment, moderating wage inflation, and strong PEO demand.

**【CEO Summary Section】**
- Fiscal Q1 2026 revenue grew 17% YoY to $1.5 billion, driven by Paycor integration and Management Solutions growth.
- Paycor integration on track to achieve $90 million cost synergies, with potential for additional reinvestment opportunities.
- Cross-selling success: ASO sale to Paycor client with thousands of employees, targeting 50,000 Paycor clients for Paychex solutions.
- AI advancements: Generative AI tools for HR insights, client interaction automation, and software engineering efficiency.
- PEO worksite employees grew mid-single digits, with record retention and double-digit bookings.
- Small business environment resilient, with stable employment and moderating wage inflation.

**【CFO Financial Commentary】**
- Adjusted diluted EPS increased 5% to $1.22, exceeding expectations.
- Management Solutions revenue up 21% YoY, with Paycor contributing 17% of growth.
- Operating margin 40.7%, with $718 million cash flow from operations.
- Raised FY2026 EPS guidance to 9-11% growth, up from 8.5-10.5%.
- Full-year revenue growth expected 16.5-18.5%, with accelerating back-half performance.

**【Q&A Highlights】**
- Demand environment stable, with PEO bookings up double digits and micro-segment activity improving.
- Paycor recurring revenue growth in line with expectations, targeting double digits for FY2026.
- PEO growth constrained by MPP headwinds in Q1, expected to anniversary in Q4.
- AI pilots reducing routine client tasks by 30%, freeing resources for advisory support.
- Regulatory clarity on tax and trade policies supporting small business confidence.
- Retirement solutions growth near double digits, driven by market recovery and product innovation.

Paychex, Inc. (PAYX) Q1 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PAYX

PAYX fundamentals

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