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Nov 30, 2024

Paychex Q2 2025 Earnings Report

Reported strong financial results with revenue and earnings growth, driven by solid demand for solutions and strategic use of technology.

Key Takeaways

Paychex reported a 5% increase in total revenue for the second quarter of fiscal year 2025. Diluted earnings per share grew by 6%, and operating margins expanded by approximately 60 basis points. The company returned $810 million to stockholders in the first half of fiscal 2025.

Total revenue increased by 5% to $1.3 billion.

Management Solutions revenue increased 3% to $962.9 million.

PEO and Insurance Solutions revenue increased 7% to $317.9 million.

Interest on funds held for clients increased 15% to $36.1 million.

Total Revenue
$1.32B
Previous year: $1.26B
+4.7%
EPS
$1.14
Previous year: $1.08
+5.6%
Gross Profit
$938M
Previous year: $894M
+4.9%
Cash and Equivalents
$1.3B
Previous year: $1.45B
-9.8%
Free Cash Flow
$248M
Previous year: $308M
-19.4%
Total Assets
$10.6B
Previous year: $12.1B
-12.4%

Paychex

Paychex

Paychex Revenue by Segment

Forward Guidance

The business outlook for fiscal year 2025 remains unchanged from what was previously provided in the first quarter, incorporating current assumptions and market conditions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income