Paychex reported adjusted EPS of $1.32 and revenue of $1.61 billion, exceeding expectations, but shares dipped on softer fiscal 2027 outlook.
Paychex Inc (NASDAQ:PAYX) posted fiscal fourth-quarter adjusted earnings per share of $1.32, above the $1.31 estimate, while revenue grew 12% year over year to $1.61 billion, topping the $1.60 billion consensus. Full-year revenue rose 17% to $6.51 billion, with adjusted EPS up 11% to $5.51.
The company attributed growth to its April 2025 acquisition of Paycor HCM, which contributed eight percentage points to Management Solutions revenue, rising 14% to $1.2 billion. PEO and Insurance Solutions revenue increased 9% to $369.7 million, while interest on funds held for clients climbed 15% to $52.2 million.
Shares fell about 2% in early trading after Paychex guided fiscal 2027 revenue growth of 5% to 6%, below the double-digit gains seen in fiscal 2026.