The in-line quarter with maintained guidance suggests limited near-term catalyst. Watch for Management Solutions revenue reacceleration in coming quarters as Paycor integration matures and AI product adoption (WISE) gains traction. The raised PEO guidance signals momentum in that segment.
Price Chart
Executive Summary
Paychex reported Q1 FY2027 results with total revenue of $1.63B (+6% YoY) and GAAP diluted EPS of $1.21 (+14% YoY). Adjusted diluted EPS of $1.34 matched consensus of $1.32 (beat by ~1.5%), while revenue slightly missed the $1.63B estimate. The company raised its PEO and Insurance Solutions revenue growth guidance to 7%-8% (from 6%-7%) and increased its interest income guidance, but maintained overall revenue growth and adjusted EPS growth outlook unchanged.
Key Financial Metrics
Key Facts
- Total revenue of $1.63B, up 6% YoY, slightly below consensus estimate of $1.63B
- GAAP diluted EPS of $1.21, up 14% YoY; adjusted diluted EPS of $1.34, up 10% YoY
- Adjusted diluted EPS of $1.34 matched consensus of $1.32 (beat by ~1.5%)
- PEO and Insurance Solutions revenue grew 12% to $367.6M, guidance raised to 7%-8% growth
- Management Solutions revenue grew 4% to $1.2B, slower than prior quarter's 14%
- Operating margin expanded to 38.0% from 35.2%; adjusted operating margin 42.0% from 40.7%
- FY2027 guidance maintained: total revenue growth 5%-6%, adjusted EPS growth 7%-9%
- Interest on funds held for clients guidance raised to $200M-$210M from $195M-$205M
- Cash flow from operations was $413.5M for the quarter
Financial Impact
Revenue of $1.63B vs $1.63B consensus (in-line); adjusted EPS $1.34 vs $1.32 consensus (small beat); guidance largely maintained with modest PEO/interest outlook upgrades
Risk Factors
- Management Solutions revenue growth decelerated to 4% from 14% in Q4, signaling potential slowdown in core payroll/HR
- Other income, net declined 54% to $10.9M due to lower investment balances and higher share repurchases
- Cash flow from operations dropped to $413.5M from $718.4M in prior-year period, partly due to working capital timing
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000723531-26-000004 |
| Document: payx-20260923.htm | 0000723531-26-000004 |
| Document: 0000723531-26-000004-index-headers.html | 0000723531-26-000004 |
| Document: 0000723531-26-000004-index.html | 0000723531-26-000004 |
| Document: 0000723531-26-000004.txt | 0000723531-26-000004 |
| 8-K Data (Synthetic) | 0000723531-26-000004 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | 144 | $115.00 | awaiting T+1 | — | $109.26 (−4.99%) |
Oct 20, 2026 7d ago | Institutional Cluster | $112.50 $118.81 | ▲ +5.61% | ▲ +6.79% | $109.26 (−2.88%) |
Sep 23, 2026 4w ago | 8-K | $104.50 $101.30 | ▼ −3.06% | ▼ −2.98% | $109.26 (+4.56%) |
Sep 4, 2026 7w ago | DEFA14A | $121.71 $116.93 | ▼ −3.93% | ▼ −3.38% | $109.26 (−10.23%) |
Jul 17, 2026 14w ago | Insider Cluster | $115.20 $111.96 | ▼ −2.81% | ▼ −3.65% | $109.26 (−5.16%) |
Jul 17, 2026 14w ago | Insider Cluster | $115.20 $111.96 | ▼ −2.81% | ▼ −3.65% | $109.26 (−5.16%) |
Jun 10, 2026 19w ago | Press Release | $101.10 | awaiting T+1 | — | $109.26 (+8.07%) |
Feb 28, 2026 34w ago | Institutional Cluster | $94.02 $95.54 | ▲ +1.62% | ▲ +2.53% | $109.26 (+16.21%) |
US Market Status
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