[PAYX] Paychex: Can Revenue Per Client Carry Growth After the Paycor Lift Fades

Paychex is a human capital management company founded in 1971 and headquartered in Rochester, New York, that bundles payroll processing, tax filing, HR administration, employee benefits and business insurance for small and mid-sized employers; it serves roughly 800,000 payroll clients, pays 1 in 11 U.S. private sector workers and moved about $1.3 trillion last fiscal year[1]. In a notice dated 2026-09-09 the company said it will release results for its fiscal 2027 first quarter ended August 31, 2026 on 2026-09-23, while the earnings calendar carries the event on 2026-09-29[2]. Ahead of that disclosure, the most recent official financial position is still the fiscal 2026 annual report filed 2026-07-17: total revenue of $6,512.0 million, up 17%, and operating income of $2,510.5 million, up 14%[3], with diluted earnings per share of $4.89, up 7%[4]. In its 2026-06-24 fiscal 2026 results release, the company guided fiscal 2027 to total revenue growth of 5% to 6%, PEO and Insurance Solutions revenue growth of 6% to 7%, interest on funds held for clients of $195 million to $205 million, an adjusted operating margin of approximately 44% and adjusted diluted earnings per share growth of 7% to 9%[5]; AAII, citing the I/B/E/S compilation on 2026-09-09, reported that 17 brokers put the quarter's earnings estimate at $1.32 per share[6].

Three things in this disclosure deserve the most attention. The first is the growth rate of Management Solutions, which supplied 74.8% of fiscal 2026 total revenue at $4,867.9 million and grew 20%, although the company itself attributes roughly 15 percentage points of that growth to Paycor, consolidated from April 2025[7], while payroll client count stood at approximately 800,000 in both fiscal 2026 and fiscal 2025 with no change[8]; once the acquisition base is fully comparable, this business can only keep growing on revenue per client. The second is the PEO business, the one place where the company carries insurance risk itself: fiscal 2026 segment revenue was $1,433.2 million, up 7%[9], while PEO direct insurance costs rose from $520.1 million to $563.2 million, up 8% and faster than revenue[10], lifting the cost share of segment revenue from 38.7% to 39.3%, and the direction of that gap decides the segment's net contribution. The third is client-fund interest, a line that carries almost no matching cost and reached $210.9 million in fiscal 2026, up 30%[11], but included $7.6 million of realized gains from a second-quarter portfolio repositioning[12], and the company's own fiscal 2027 guidance range sits below that actual figure.

Company Background and Business Structure

What Paychex sells is the back-office employment work that small employers least want to carry themselves. The company was founded in 1971, is headquartered in Rochester, New York, operates across the U.S. and parts of Europe with additional operations in Canada, India and Israel, and employed approximately 17,600 people as of 2026-05-31[13]. Its scale is not limited to payroll: it is also one of the leading 401(k) recordkeepers in the U.S., serving over 130,000 customers and managing $66 billion of retirement assets[1].

The company's present shape is largely the result of one acquisition. On 2025-04-14 Paychex completed its purchase of Paycor HCM and summarized the deal as expanding its presence upmarket, increasing cross-sale opportunities and enhancing its suite of AI-driven HCM solutions[14]; by the company's own description, Paycor is its primary SaaS-based HCM platform for larger businesses with more complex needs[15]. Fiscal 2026, which ran from 2025-06-01 to 2026-05-31, was therefore the first full year with Paycor consolidated, and it is the starting point for reading the company's current state.

Revenue comes in three pieces, but profit does not. The company is managed as a single operating segment at the consolidated level and discloses only a revenue split, not segment profit. The first piece, Management Solutions, produced $4,867.9 million of fiscal 2026 revenue, or 74.8% of the total, and carries three tiered HCM platforms — SurePayroll, Paychex Flex and Paycor — spanning payroll calculation and payment, tax filing, HR administration, recruiting, performance, time and attendance, benefits administration, 401(k) recordkeeping and accounts-receivable financing[3]. The second, PEO and Insurance Solutions, produced $1,433.2 million, or 22.0%, and is where the company acts as a co-employer carrying workers' compensation and part of the health insurance risk for worksite employees while selling property and health benefit insurance through its own agency[16]. The third, interest on funds held for clients, produced $210.9 million, or 3.2%, from investing money collected from clients but not yet remitted to tax authorities or employees[11].

The company's official growth story puts the weight on existing customers. Its stated strategy is to grow the customer base and expand share of wallet by increasing penetration of HCM software, HR outsourcing, retirement and insurance offerings while broadening the range of solutions[17]. On the technology side the vehicle is WISE, the AI engine launched in fiscal 2026: as of 2026-05-31 it powered approximately 600 AI features and agents, and the company also fields over 650 dedicated HR business professionals for advisory support[18]. Together these two lines explain why the company frames growth around revenue per client rather than client count.

Financial History and Current Position

The five-year revenue line steps up sharply in fiscal 2026. Total revenue moved from $4,611.7 million in fiscal 2022 to $5,007.1 million in fiscal 2023[19], then to $5,278.3 million in fiscal 2024 and $5,571.7 million in fiscal 2025[20], and finally to $6,512.0 million in fiscal 2026[3], a four-year compound growth rate of about 9.0%. The curve is not smooth: growth ran 9%, 5% and 6% across fiscal 2023 through fiscal 2025 before jumping to 17% in fiscal 2026, and the direct cause of the jump is the Paycor consolidation.

As revenue jumped, the two margin measures diverged. Operating income rose from $2,207.7 million in fiscal 2025 to $2,510.5 million in fiscal 2026, up 14%[3], yet GAAP operating margin fell from 39.6% to 38.6% while adjusted operating margin, which excludes acquisition-related costs, rose from 42.5% to 43.2%[21]. Earnings per share were reshaped by the same deal: diluted earnings per share was $4.58 in fiscal 2025 and $4.89 in fiscal 2026, up 7%[4], while adjusted diluted earnings per share of $5.51 grew 11%.

Volume barely moved. In fiscal 2026 the company served approximately 840,000 total customers, of which approximately 800,000 were payroll clients, against approximately 800,000 payroll clients in fiscal 2025[8], and payroll client retention sat in the 82% to 83% range in both years[22]. Growth showed up in outsourcing and retirement instead: worksite employees covered by ASO and PEO rose from 2,460,000 to 2,600,000, up 6%[23], retirement plans rose from 124,000 to 130,000, and participant assets rose from $55.7 billion to $66.0 billion, up 19%[24]. On the disclosed figures, Management Solutions revenue per payroll client rose from about $5,084 to about $6,085, a combined effect of consolidation and pricing that the company does not break out.

Costs grew faster than revenue. Fiscal 2026 total expenses of $4,001.5 million rose 19%, ahead of the 17% revenue increase[3]. The largest single line, compensation-related expenses, was $2,091.9 million and rose 13% to 32.1% of total revenue, while depreciation and amortization of $200.6 million and other expenses of $841.6 million rose 19% and 28%[25]; PEO direct insurance costs were $563.2 million, up 8%[10]; and separately disclosed acquisition-related costs were $304.2 million, up 87%[26], which is exactly the 4.6 percentage point gap between the GAAP and adjusted margins. Below operating income, interest expense increased $164.1 million to $269.5 million[27], other income net fell 5% to $69.9 million, and the effective tax rate was 23.8%[21].

Cash generation looks considerably better than reported profit. Fiscal 2026 operating cash flow was $2,556.7 million, far above net income of roughly $1.8 billion, because clients prepay for services and withheld tax money sits with the company before remittance[28]; as of 2026-05-31 cash, restricted cash and corporate investments totaled $1.2 billion, long-term borrowings were $4.6 billion, and unused capacity under unsecured credit facilities was $2.0 billion[29]. Within the float portfolio itself, average funds held for clients rose from $4,699.5 million to $5,768.2 million[30], the average interest rate earned edged from 3.4% to 3.5%, and net realized gains swung from -$0.4 million to +$7.6 million[31]. One more point belongs here: since the fiscal 2026 annual report was filed on 2026-07-17 the company has not published a new quarterly report or held a new earnings call, so those annual figures are the latest official financial position available.

Operating Model

Revenue comes from three parallel volume-times-price relationships. Roughly 800,000 payroll clients multiplied by revenue per client produces Management Solutions; roughly 2.6 million ASO and PEO worksite employees multiplied by service and insurance fees per person produces PEO and Insurance Solutions[32]; and an average $5,768.2 million of client money held in trust multiplied by a 3.5% average yield, plus realized gains, produces interest on funds held for clients[30]. All three put volume ahead of price, but their sensitivity to operating income differs sharply.

Management Solutions growth in fiscal 2026 came mainly from consolidation and price, not client count. The company disclosed 20% segment revenue growth of which approximately 15 percentage points came from Paycor[7], and attributed the increase to growth in the average number of clients served, primarily driven by the Paycor acquisition, and to higher revenue per client driven by Paycor's upmarket customer base, price realization and product penetration[33]. The transmission is direct: client count times revenue per client flows into total service revenue and total revenue, and with service and sales headcount relatively fixed, incremental revenue reaches operating income at a higher-than-average incremental margin with a lag of zero to one quarter.

On the profit side, the key is separating core costs from acquisition costs. Fiscal 2026 total expenses of $4,001.5 million grew 19%, faster than revenue, so GAAP operating margin fell to 38.6%; but excluding acquisition-related costs of $304.2 million, adjusted operating income was $2.8 billion and adjusted operating margin rose to 43.2%[21]. That means the entire 4.6 percentage point difference between the two measures comes from this one line, which contains acquired intangible amortization, replacement equity awards, severance and retention bonuses, and professional service fees[26]. WISE should in principle lower unit service labor by automating service interactions, acting on compensation-related expenses, but the company has disclosed no matching savings amount, and effects of this kind would take roughly three quarters to become readable in expenses[18].

Cash arrives before profit is recognized. Clients prepay for services on a cycle while withheld tax money creates float between collection and remittance, and together these keep operating cash flow persistently above net income[28]. The float does not belong to the company and may only be invested in highly liquid, investment-grade fixed income securities, with the yield recorded in interest on funds held for clients[34] and the balance itself carried as a funds-held-for-clients asset against an equal client fund obligation. Because that revenue line carries almost no matching cost, it passes through to operating income at close to one for one: each 10 basis point change in the average yield is worth about $5.8 million on an average balance of $5,768.2 million[31], with balance changes visible in the same period while market rate changes take two to six quarters to arrive through portfolio duration.

Industry and Competitive Position

The company describes its own market as highly competitive and fragmented. It competes with one primary national competitor as well as other national, international, regional, local and online payroll providers; beyond traditional payroll and HR providers, customers building payroll and HR systems in house are also a substitute, and retirement solutions companies, insurance companies, HR and benefits consulting firms, and national and regional PEOs compete in their own niches. By the company's disclosure, competition turns on six dimensions: breadth of offerings, technology, ease of use, integration with third-party applications, service model and price[35].

Client count is not the binding constraint today. The company cites census data showing over 6 million employer firms in its U.S. target markets[36] against the approximately 800,000 payroll clients it serves[8], a penetration rate of roughly 13% on the disclosed figures. The real change in position came from Paycor: the deal extended coverage from very small businesses up to larger, more complex mid-market employers[14], supported by over 650 dedicated HR business professionals providing advisory service[18], a layer that pure software competitors do not replicate easily.

That stickiness, however, is not contractually locked. The company's service agreements generally contain no specified contract period and may be terminated by either party with 30 days' notice[37], so the 82% to 83% payroll client retention rate is held by service quality rather than by contract[22]. This matters more as the customer mix moves upmarket, because upmarket clients bring both higher revenue per client and higher service expectations. Comparable data has a hard boundary here: the company discloses only a revenue split and no segment profit, so outsiders cannot verify the margin of either segment[3].

Core Debates

Once the Paycor consolidation benefit lapses in fiscal 2027, can Management Solutions keep growing on revenue per client rather than on client count?

This debate decides the growth rate of three quarters of the company's revenue. Management Solutions was 74.8% of fiscal 2026 total revenue at $4,867.9 million and grew 20%, but the company states that approximately 15 percentage points of that came from Paycor, consolidated in April 2025[7], leaving roughly 5 percentage points of organic growth. Over the same period payroll client count stayed at approximately 800,000 in both fiscal years[8], and retention stayed in the 82% to 83% range[22]. The company's fiscal 2027 revenue guidance is precisely 5% to 6%[5], almost exactly matching the organic rate once consolidation is stripped out.

The only checkable pricing evidence today is a single blended number. On the disclosed figures, Management Solutions revenue per payroll client rose from about $5,084 in fiscal 2025 to about $6,085 in fiscal 2026, but that is the joint result of consolidation and price increases; the company attributes higher revenue per client to Paycor's upmarket customer base, price realization and product penetration without separating their contributions[33]. The financial transmission itself is clear: client count times revenue per client enters total revenue, and with headcount relatively fixed the increment reaches operating income at a higher-than-average incremental margin with a lag of zero to one quarter. On execution, the company disclosed that WISE already powers approximately 600 AI features and agents but has tied it to no revenue or cost figure[18].

What remains unresolved is whether price can keep rising independently of the consolidation effect. There are four observable confirmation points: whether fiscal 2027 first-quarter Management Solutions revenue growth lands inside the 5% to 6% guidance range, the first reading with a fully comparable base; whether the next annual report still puts payroll clients at approximately 800,000, keeping total customers and payroll clients as separate lines; whether retention stays in the 82% to 83% range, especially as upmarket clients grow as a share of the mix; and whether the company for the first time ties WISE to a checkable dollar amount. The falsifiers are equally explicit: if the company discloses a clear increase in payroll client count, the premise that volume is flat and price is doing the work no longer holds; and if Management Solutions revenue growth falls below 5% with the company attributing it to slower price realization, the revenue-per-client path is falsified directly.

Can the revenue from PEO worksite-employee growth keep outrunning the insurance cost that the same employees bring?

This is the only business where the company carries insurance risk itself. PEO and Insurance Solutions was 22.0% of fiscal 2026 total revenue at $1,433.2 million and grew 7%, which the company attributes to continued growth in average PEO worksite employees and to higher PEO insurance revenue[16]. On the volume side, worksite employees covered by ASO and PEO together rose from 2,460,000 to 2,600,000, up 6%[23], meaning roughly 6 of the 7 percentage points of revenue growth came from headcount and only about 1 point from unit rates. The segment's net contribution therefore does not depend on its revenue growth rate but on the gap between revenue growth and insurance cost growth.

In fiscal 2026 that gap was already negative. PEO direct insurance costs rose from $520.1 million to $563.2 million, up 8% and faster than the 7% revenue increase[10]; on the disclosed figures the cost share of segment revenue rose from 38.7% in fiscal 2025 to 39.3% in fiscal 2026[9]. In its risk factors the company states plainly that insurance costs depend on claims experience, are a significant component of PEO costs, and can be pushed higher by a sudden increase in claims activity or inadequate reserves[38]. The chain runs through the same people: their service and insurance fees enter revenue, their health and workers' compensation claims enter total expenses, and the difference determines the segment's net contribution to operating income, with changes in claims trends showing up after a lag of zero to one quarter.

Before the monitoring points, the measurement limits have to be stated. Worksite employee counts are disclosed for ASO and PEO combined while only the PEO portion carries insurance risk, so headcount and cost do not map one to one; and PEO direct insurance costs capture only direct insurance, excluding the labor and technology the segment absorbs[10]. On that basis, what to watch is whether the cost share of segment revenue keeps climbing above 39.3%; whether quarterly fiscal 2027 segment revenue growth lands inside the company's 6% to 7% guidance range[5]; how worksite employee headcount moves relative to 2,600,000 and whether the company begins splitting ASO from PEO; and whether the company discloses any strengthening or release of workers' compensation reserves. If insurance cost growth runs below segment revenue growth for two consecutive quarters, rate increases have covered claims and the direction of this debate is falsified; if headcount keeps growing while segment revenue growth drops below 6%, the problem lies in unit rates rather than in claims cost.

How much of the 30% jump in client-fund interest income in fiscal 2026 reverses in fiscal 2027?

This line is only 3.2% of total revenue but its leverage on profit far exceeds that share. Interest on funds held for clients was $210.9 million in fiscal 2026, up 30%[11], and because it carries almost no matching direct cost it falls to operating income nearly in full. The company attributes the 30% increase to two sources: higher average investment balances resulting from the Paycor acquisition, and higher realized gains from the strategic repositioning of the investment portfolio during the second quarter of fiscal 2026[34] — neither of which repeats.

Once decomposed, the sustainable portion of this line can be calculated. Average funds held for clients rose from $4,699.5 million to $5,768.2 million, up 22.7%[30], while the average rate earned edged only from 3.4% to 3.5% and net realized gains swung from -$0.4 million to +$7.6 million[31]. On the disclosed figures, client-fund interest excluding realized gains was roughly $203.3 million, which sits inside the company's fiscal 2027 guidance range of $195 million to $205 million[5], implying that the guidance assumes balances and yields hold roughly flat and that the one-time gain does not recur.

One exposure unrelated to interest rates also remains open. The company's risk factors note that changes in tax remittance rules that reduce withholding amounts or shorten remittance timelines would directly reduce the investable client fund balance and therefore this revenue[39]. Four things are worth watching: whether annualized quarterly client-fund interest lands inside the $195 million to $205 million range and whether comparable realized gains appear again; how the average balance moves relative to $5,768.2 million, the first clean reading once the consolidation effect has passed; the direction of the average rate earned relative to 3.5%, which reflects two to six quarters of market rate changes arriving through portfolio duration; and whether the company updates its fiscal 2027 client-fund interest guidance. If the company raises that guidance, balances or yields are running better than the assumptions made at the close of the acquisition; if comparable repositioning gains appear again, the comparability problem in this revenue line is not a one-time event and the exclusion basis has to be rebuilt.

Risks and Falsifiers

The first risk is that the Paycor integration fails to deliver the expected synergies. The company states in its risk factors that if integration and systems conversion do not achieve anticipated synergies, operating costs rise, management attention is diverted and customers may be lost[40]. The exposed line is acquisition-related costs: $304.2 million in fiscal 2026, up 87%[26], which is the entire source of the 4.6 percentage point gap between GAAP operating margin of 38.6% and adjusted operating margin of 43.2%[21]; if integration spending does not recede as expected, the fiscal 2027 guidance of an approximately 44% adjusted operating margin loses its room[5]. The falsifier is quarterly fiscal 2027 acquisition-related costs falling 20% or more against the prior-year quarter while payroll client retention stays in the 82% to 83% range[22].

The second risk is that PEO health and workers' compensation claims exceed reserve assumptions. The company carries insurance risk for worksite employees, so a sudden deterioration in claims experience or inadequate reserves raises costs directly, and existing insurance contracts that expire or are cancelled may not be renewable on the same terms[38]. The exposed line is PEO direct insurance costs of $563.2 million, or 39.3% of the segment's $1,433.2 million of revenue, up 0.6 percentage points from 38.7% in fiscal 2025[10]; each additional percentage point on that ratio is worth roughly $14 million of segment net contribution. The falsifier is that ratio falling back below 39.3% for two consecutive quarters without a disclosed reserve release.

The third risk is that client-fund interest declines under the combined influence of market rates and tax remittance rules. Yields arrive with a lag through portfolio duration, while lower withholding amounts or shorter remittance timelines would directly cut the investable client fund balance, an exposure that has nothing to do with rates[39]. The exposed line is the $210.9 million recorded in fiscal 2026, which includes $7.6 million of one-time realized gains[12]; because the line carries almost no matching cost, each 10 basis point move in the average yield is worth about $5.8 million of operating income on an average balance of $5,768.2 million[30]. The falsifier is annualized quarterly client-fund interest landing inside the $195 million to $205 million guidance range with the average balance moving no more than 5% from $5,768.2 million.

The fourth risk comes from slower small-business hiring and business formation, which presses on both client count and worksite employees at once. The company discloses that it and its clients are jointly exposed to inflation, interest rates, tariffs and the stability of the banking system[41], while service agreements generally have no fixed term and can be terminated by either party on 30 days' notice[37], so deteriorating demand reaches revenue quickly. The exposed volume base is approximately 800,000 payroll clients and approximately 2.6 million worksite employees[32]: each one percentage point decline in payroll client retention is worth roughly 8,000 clients on that base. The falsifier is fiscal 2027 payroll client and worksite employee counts holding at or above 800,000 and 2,600,000 with retention staying in the 82% to 83% range.

The fifth risk is that the debt raised to buy Paycor has moved interest expense onto a new level. Fiscal 2026 interest expense increased $164.1 million to $269.5 million[27], while long-term borrowings stood at $4.6 billion as of 2026-05-31 against cash, restricted cash and corporate investments of only $1.2 billion, with dividends already absorbing roughly 90% of net income[29]. What this compresses is the room between net income and shareholder returns: operating cash flow of $2,556.7 million is ample[28], but a large part of it is client money moving through the company rather than its own.

The sixth risk is competition itself. The HCM market is highly competitive and fragmented, and the company faces one primary national competitor, other national, regional and online payroll providers, and the option for customers to run payroll and HR in house, with competition turning on breadth of offerings, technology, ease of use, third-party integration, service model and price[35]. The exposure sits exactly where current growth is most concentrated: Management Solutions revenue of $4,867.9 million is 74.8% of total revenue[3], and that business now depends entirely on rising revenue per client, with price and product penetration being precisely where competition bites[33]. The falsifier is Management Solutions revenue growth holding inside the company's 5% to 6% guidance range with payroll client retention not falling out of the 82% to 83% band.

What to Watch Next

• Management Solutions revenue growth against the fiscal 2026 base of $4,867.9 million and 20% growth, of which roughly 15 percentage points came from Paycor. Landing inside the 5% to 6% guidance range confirms the revenue-per-client path; falling below 5% with slower price realization cited falsifies it.
• Payroll client count and retention against approximately 800,000 clients and 82% to 83% retention, keeping total customers and payroll clients as separate lines. A clear increase in client count would break the premise that volume is flat and price is doing the work.
• PEO direct insurance costs as a share of segment revenue against 39.3% in fiscal 2026 and 38.7% in fiscal 2025. Two consecutive quarters back below 39.3% without a disclosed reserve release would falsify the deteriorating direction.
• Worksite employee headcount and segment revenue growth against 2,600,000 employees, 7% growth and 6% to 7% guidance. Headcount growing while revenue growth drops below 6% would point at unit rates rather than claims.
• Annualized client-fund interest, average balance and average yield against $210.9 million including $7.6 million of realized gains, an average balance of $5,768.2 million and a 3.5% yield. Landing inside $195 million to $205 million with the balance moving no more than 5% confirms the guided step-down; raised guidance would require revising the view.

Conclusion

The economics of this company reduce to three volume-times-price relationships: roughly 800,000 payroll clients times revenue per client, roughly 2.6 million worksite employees times service and insurance fees per person, and an average $5,768.2 million of client money times a 3.5% yield. The fiscal 2026 financial position is revenue of $6,512.0 million, up 17%, operating income of $2,510.5 million, up 14%, and operating cash flow of $2,556.7 million, carried alongside $4.6 billion of long-term borrowings and $269.5 million of annual interest expense. Only one relationship is genuinely unresolved: client count has now been flat for two years while the revenue step-up came almost entirely from consolidating Paycor, so once the acquisition base is comparable, three quarters of the company's revenue has to walk on revenue per client alone.

Since the last annual report, only two independent published assessments are available, and both land on the same debate. Zacks Equity Research, writing on 2026-08-20, treated the expansion of the HCM offering and the Paycor contribution as the main sources of fiscal 2026 growth and independently restated the disclosed consolidation contribution — approximately 12 percentage points of total revenue growth from Paycor, leaving an organic step visibly below the reported rate[42]. Simply Wall St, writing on 2026-09-07, takes the more reserved side: it argues that extending the Paychex Perks benefits marketplace to Paycor clients strengthens the cross-platform product story but that the direct impact on near-term results is modest, with integration and execution risk remaining the key risk for this company[43]. The two do not contradict each other; one confirms the size of the consolidation benefit while the other points out that product-level integration has not yet turned into checkable revenue-per-client evidence. The search boundary should be stated as well: within the window, no qualifying independent assessment addressing PEO insurance costs or the step-down in client-fund interest was found, and both publishers included are quantitative research platforms rather than traditional financial media.

What would materially change the current understanding is a combination of observations rather than any single number. If fiscal 2027 first-quarter Management Solutions revenue growth lands inside the 5% to 6% guidance range, payroll client count and retention both hold, and acquisition-related costs fall clearly against the prior-year quarter, then the reading that revenue per client takes the baton from the consolidation benefit is materially strengthened. Conversely, if revenue growth slips below the low end of guidance and is attributed to slower price realization, PEO direct insurance costs keep climbing past 39.3% of segment revenue, and annualized client-fund interest falls out of the $195 million to $205 million range, then all three debates move unfavorably at once and the 43.2% adjusted operating margin no longer has support. All of these are observations that can be checked directly in the next disclosure rather than judgments that take a long time to verify.

Sources

[1] PAYX 10-K filed 2026-07-17 - payroll scale · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[2] PAYX earning_call_calendar entry for 2026-09-29 (calendar last updated 2026-09-09); the company's own notice dated 2026-09-09 states results for its fiscal 2027 first quarter ended August 31, 2026 will be released on Wednesday, September 23, 2026 · 2026-09-09 · earnings calendar

[3] PAYX 10-K filed 2026-07-17 - Summary of Results of Operations · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[4] PAYX 10-K filed 2026-07-17 - net income and diluted earnings per share · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[5] Paychex fourth quarter and full-year fiscal 2026 results news release, 2026-06-24 · 2026-06-24 · Paychex, Inc. · https://www.globenewswire.com/news-release/2026/06/24/3316844/0/en/paychex-reports-fourth-quarter-and-full-year-2026-results.html

[6] AAII, What You Need to Know About Paychex, Inc.'s Q1 Earnings, 2026-09-09 · 2026-09-09 · AAII · https://www.aaii.com/investingideas/article/504077-what-you-need-to-know-about-paychex-incs-q1-earnings

[7] PAYX 10-K filed 2026-07-17 - Paycor contribution to revenue growth · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[8] PAYX 10-K filed 2026-07-17 - Business Outlook customer base · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[9] PAYX 10-K filed 2026-07-17 - Summary of Results of Operations PEO line · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[10] PAYX 10-K filed 2026-07-17 - Total expenses PEO direct insurance line · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[11] PAYX 10-K filed 2026-07-17 - Summary of Results of Operations interest line · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[12] PAYX 10-K filed 2026-07-17 - net realized gains on investments · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[13] PAYX 10-K filed 2026-07-17 - employees · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[14] PAYX 10-K filed 2026-07-17 - Paycor acquisition · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[15] PAYX 10-K filed 2026-07-17 - HCM platforms · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[16] PAYX 10-K filed 2026-07-17 - PEO and Insurance Solutions revenue drivers · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[17] PAYX 10-K filed 2026-07-17 - Company Strategy share of wallet · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[18] PAYX 10-K filed 2026-07-17 - WISE AI engine · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[19] PAYX 10-K filed 2023-07-14 - Summary of Results of Operations · 2023-07-14 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000095017023032988/payx-20230531.htm

[20] PAYX 10-K filed 2025-07-11 - Summary of Results of Operations · 2025-07-11 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000095017025095300/payx-20250531.htm

[21] PAYX 10-K filed 2026-07-17 - operating margin and adjusted operating margin · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[22] PAYX 10-K filed 2026-07-17 - Business Outlook payroll client retention · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[23] PAYX 10-K filed 2026-07-17 - Business Outlook worksite employee metrics · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[24] PAYX 10-K filed 2026-07-17 - Business Outlook retirement solutions metrics · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[25] PAYX 10-K filed 2026-07-17 - Total expenses compensation line · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[26] PAYX 10-K filed 2026-07-17 - Total expenses acquisition-related costs line · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[27] PAYX 10-K filed 2026-07-17 - interest expense · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[28] PAYX 10-K filed 2026-07-17 - operating cash flow · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[29] PAYX 10-K filed 2026-07-17 - Liquidity and Capital Resources · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[30] PAYX 10-K filed 2026-07-17 - average investment balances · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[31] PAYX 10-K filed 2026-07-17 - average interest rates earned · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[32] PAYX 10-K filed 2026-07-17 - HR outsourcing worksite employees · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[33] PAYX 10-K filed 2026-07-17 - Management Solutions revenue drivers · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[34] PAYX 10-K filed 2026-07-17 - interest on funds held for clients drivers · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[35] PAYX 10-K filed 2026-07-17 - Markets and Competition · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[36] PAYX 10-K filed 2026-07-17 - target market size · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[37] PAYX 10-K filed 2026-07-17 - Our Customers contract terms · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[38] PAYX 10-K filed 2026-07-17 - Risk Factors PEO insurance claims · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[39] PAYX 10-K filed 2026-07-17 - Risk Factors client fund interest · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[40] PAYX 10-K filed 2026-07-17 - Risk Factors acquisitions · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[41] PAYX 10-K filed 2026-07-17 - Risk Factors macroeconomic · 2026-07-17 · 10-K · https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm

[42] Zacks Equity Research, Here's Why You Should Hold PAYX Stock in Your Portfolio Now, 2026-08-20 · 2026-08-20 · Zacks Equity Research · https://finance.yahoo.com/markets/stocks/articles/heres-why-hold-payx-stock-153300226.html

[43] Simply Wall St, Does Expanding Paycor Perks Reshape Paychex's Employee Wellness Edge And Investment Story (PAYX), 2026-09-07 · 2026-09-07 · Simply Wall St · https://simplywall.st/stocks/us/commercial-services/nasdaq-payx/paychex/news/does-expanding-paycor-perks-reshape-paychexs-employee-wellne