PAYX - Slight Beat on F4Q Driven by PEO/Float; FY27 Guidance Largely In-Line

Research evidence excerpt

PAYX - Slight Beat on F4Q Driven by PEO/Float; FY27 Guidance Largely In-Line

Business and Information Services

FLASH

FLASH: PAYCHEX, INC. (PAYX) June 24, 2026

PAYX - Slight Beat on F4Q Driven by PEO/Float; FY27 Rating:

Guidance Largely In-Line Underperform

Price:

●PAYX's F4Q26 results were slightly above the Street on revenue and $97.99

adjusted EPS, with MS revenue coming in slightly below the Street and Price Target:

$95 PEO/client funds interest income above. FY27 guidance was about in-line % Upside:

with the Street and the company's preliminary revenue guide, though we (3.1)%

note upside to margin guidance. We believe investors will be most focused

Source: FactSet, Wolfe Research

on the softer MS revenue relative to expectations, and will look for color on Priced as of 06/23/26

the call on how to think about the cadence of MS revenue growth for the year.

PEO results were constructive as FY26 revenue growth in the segment came

in close to the midpoint, vs. prior expectations for the low-end of the guide.

We also note that the adjusted operating margin guide implies ~80bps of Y/

Y expansion, compared to prior expectations of 25-50bps. Shares are trading

down 4-5% pre-market, which we attribute to the softer MS revenue results Scott Wurtzel swurtzel@wolferesearch.com

and in-line guide. We note positioning, while still skewing bearish, was slightly (646) 582-9313

more constructive heading into the print. View PAYX Model

Darrin Peller

●Summary: Adjusted EPS of $1.32 was above our $1.29 and the Street's $1.31. dpeller@wolferesearch.com (646) 582-9310

GAAP EPS was $1.17, which included $71mn of charges related to the Paycor View Darrin’s Research

acquisition. Revenues of $1.606bn was above our $1.588bn and the Street's

$1.602bn. Total revenue was up 12.5% Y/Y reported.