Paychex posts $1.63 billion in first-quarter revenue, lifts PEO outlook

Paychex (NASDAQ: PAYX) reported first-quarter fiscal 2027 total revenue of $1.63 billion and diluted earnings per share of $1.21 for the period ended Aug. 31, according to an earnings release furnished with a Form 8-K on Wednesday. Diluted EPS rose 14% from $1.06 a year earlier, and adjusted diluted EPS rose 10% to $1.34 from $1.22.

Total revenue increased 6% from $1.54 billion. Management Solutions revenue rose 4% to $1.2 billion. Professional Employer Organization and Insurance Solutions revenue increased 12% to $367.6 million, which Paychex tied primarily to growth in average PEO worksite employees and higher PEO insurance volumes. Interest on funds held for clients increased 5% to $49.8 million.

Operating income grew 14% to $619.2 million, and adjusted operating income grew 9% to $684.7 million. Operating margin was 38.0%, up from 35.2%, and adjusted operating margin was 42.0%, up from 40.7%.

During the quarter Paychex paid dividends of $1.19 per share totaling $424.1 million. As of Aug. 31, cash, restricted cash, and total corporate investments were $1.0 billion, and long-term borrowings, net of debt issuance costs, were $4.6 billion.

For full-year fiscal 2027, Paychex kept total revenue growth guidance at 5% to 6% and adjusted diluted EPS growth at 7% to 9%. It raised PEO and Insurance Solutions revenue growth guidance to 7% to 8% from 6% to 7%, and raised the outlook for interest on funds held for clients to $200 million to $210 million from $195 million to $205 million. Adjusted operating margin guidance remained about 44%.

By the numbers

• Total revenue: $1.63 billion (+6%)
• Diluted EPS: $1.21 (+14%); adjusted diluted EPS: $1.34 (+10%)
• PEO and Insurance Solutions revenue: $367.6 million (+12%)
• Operating margin: 38.0%; adjusted operating margin: 42.0%
• Quarterly dividends paid: $1.19 per share ($424.1 million)
• FY2027 total revenue growth outlook: 5%–6% (unchanged)

Sources

1. Paychex, Inc. Form 8-K, filed Sept. 23, 2026, accession 0000723531-26-000004
2. Exhibit 99.1 earnings release

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