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Nov 30, 2022
Paychex Q2 2023 Earnings Report
Paychex reported solid financial results driven by strong execution and comprehensive suite of solutions.
Key Takeaways
Paychex reported solid financial results for the second quarter, with a 7% increase in total revenue and a 9% increase in diluted earnings per share. The company is well-positioned to help companies find and retain employees, drive operational efficiency, and address complex Human Resource issues.
Service revenue increased 7% to $1.2 billion.
Management Solutions revenue increased 8% to $895.3 million.
PEO and Insurance Solutions revenue increased 4% to $273.3 million.
Diluted earnings per share increased 9% to $0.99.
Paychex
Paychex
Paychex Revenue by Segment
Forward Guidance
Paychex updated its guidance for the fiscal year ending May 31, 2023, incorporating current assumptions and market conditions.
Positive Outlook
- Total revenue is now anticipated to grow approximately 8%.
- Management Solutions revenue is now anticipated to grow in the range of 7% to 8%.
- PEO and Insurance Solutions revenue is now anticipated to grow in the range of 5% to 7%.
- Interest on funds held for clients is now expected to be in the range of $100 million to $110 million.
- Adjusted diluted earnings per share is now anticipated to grow in the range of 12% to 14%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income