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May 31
Paychex Q4 2025 Earnings Report
Paychex reported solid Q4 results with strong revenue growth driven by the Paycor acquisition and continued investment in technology.
Key Takeaways
Revenue rose 10% year-over-year in Q4, aided by Paycor and increased demand for HCM solutions. Despite a decline in GAAP earnings due to acquisition costs, adjusted metrics showed strength.
Q4 revenue grew 10% to $1.43B, driven by Paycor and core business strength
Net income declined to $297.2M due to acquisition-related expenses
Adjusted EPS increased to $1.19, reflecting underlying operational performance
Adjusted operating margin expanded to 40.4% despite margin compression from Paycor
Paychex
Paychex
Paychex Revenue by Segment
Revenue by Segment
Management Solutions Revenue
CapyFin.comPEO & Insurance Revenue
CapyFin.comClient Funds Interest Revenue
CapyFin.com Forward Guidance
Paychex expects strong FY2026 growth, driven by the integration of Paycor and strategic investments in digital and AI capabilities.
Positive Outlook
- Revenue expected to grow 16.5% to 18.5%
- Management Solutions revenue forecasted to rise 20% to 22%
- Adjusted EPS growth guided between 8.5% and 10.5%
- PEO & Insurance Solutions expected to grow 6% to 8%
- Anticipated adjusted operating margin around 43%
Challenges Ahead
- Acquisition-related costs not included in guidance
- Increased debt load from Paycor financing
- Continued margin pressure from Paycor integration
- Macroeconomic uncertainty could impact small business clients
- Higher effective tax rate expected (24%–25%)