On Thursday, Paychex (NASDAQ: PAYX) reported its fourth-quarter results before market open.
The firm delivered adjusted earnings of $1.32 per share, surpassing analyst expectations of $1.30 per share. This compares with earnings of $1.19 per share reported during the same quarter last year.
Quarterly revenue was recorded at $1.61 billion, exceeding analyst estimates of $1.60 billion. This marks an increase from the $1.43 billion reported in the same period last year.
Adjusted operating margin for the fourth quarter was 42.1 percent, up from 40.4 percent in the prior year period. Management Solutions revenue increased 14 percent to $1.2 billion, while PEO and Insurance Solutions revenue rose 9 percent to $369.7 million.
For fiscal 2027, Paychex anticipates earnings per share to range between $5.90 and $6.01, with revenue estimates between $6.84 billion and $6.90 billion.
Total revenue is expected to grow between 5 percent and 6 percent, with Management Solutions revenue projected to increase by 5 percent to 6 percent and PEO and Insurance Solutions revenue by 6 percent to 7 percent.
Adjusted operating margin is anticipated to be approximately 44 percent. Adjusted diluted earnings per share is expected to grow between 7 percent and 9 percent.
John Gibson, President and Chief Executive Officer, commented, “We finished fiscal 2026 with strong momentum, delivering double-digit revenue and earnings growth while accelerating organic revenue growth throughout the year.”
In pre-market trading, shares of Paychex are down 16.08 percent to $93.50, with the company’s shares currently trading within a 52-week range of $85.45 to $152.57.
