PAYCHEX INC SEC 10-Q Report
Paychex Inc., a leading provider of integrated human capital management solutions for payroll, benefits, human resources, and insurance services, has released its latest Form 10-Q report. The report highlights significant financial and operational performance metrics for the recent quarter, showcasing the company's robust growth and strategic initiatives.
Financial Highlights
Total Revenue: $1,540.0 million, reflecting a 17% increase over the prior year period, driven by growth in Management Solutions and PEO and Insurance Solutions.
Operating Income: $541.9 million, a slight decrease of 1% compared to the prior year period, impacted by acquisition-related costs.
Net Income: $383.8 million, a decrease of 10% from the prior year period, primarily due to increased interest expense from financing the Paycor acquisition.
Diluted Earnings Per Share: $1.06, down 10% from the prior year period, reflecting the impact of acquisition-related costs and increased interest expenses.
Business Highlights
Management Solutions Revenue: The Management Solutions segment saw a 21% increase in revenue, driven by the acquisition of Paycor, which contributed approximately 17% to the growth. This was due to an increase in the number of clients served and higher revenue per client, particularly from Paycor's upmarket client base.
PEO and Insurance Solutions Revenue: Revenue from PEO and Insurance Solutions increased by 3%, attributed to growth in the number of average PEO worksite employees and an increase in PEO insurance revenues.
Interest on Funds Held for Clients: There was a 27% increase in interest on funds held for clients, primarily due to higher average investment balances following the acquisition of Paycor.
Acquisition of Paycor: The acquisition of Paycor, completed in April 2025, is expected to enhance the company's capabilities in the upmarket segment and expand its suite of AI-driven HCM solutions.
Future Outlook: The company plans to continue investing in its solutions, people, and digital capabilities to capitalize on opportunities for long-term growth. The integration of Paycor is expected to extend the company's upmarket position and expand its HR technology and advisory solutions.
Operational Strategy: The company's strategy focuses on growing its client base, increasing product penetration, driving technology innovation, and pursuing strategic acquisitions to maintain strong, long-term financial performance.
Client Support and Satisfaction: Paychex continues to monitor the evolving challenges and needs of its clients, providing support through innovative technology solutions and extensive compliance and HR expertise, resulting in high levels of client satisfaction and retention.
SEC Filing: PAYCHEX INC [ PAYX ] - 10-Q - Sep. 30, 2025