FY4Q26 First Take

Research evidence excerpt

FY4Q26 First Take

June 24, 2026 | 09:45 ET~

Paychex, Inc.

PAYX-NSDQ Rating Price: Jun-23 Target Total Rtn Software

Market Perform $97.99 $103.00 10%

Daniel Jester Analyst

daniel.jester@bmo.com (646) 276-6546

Kyle Aberasturi Senior Associate

FY4Q26 First Take kyle.aberasturi@bmo.com (917) 715-0142

Will S. Hancock Associate

will.hancock@bmo.com (929) 837-9151

Bottom Line: Legal Entity: BMO Capital Markets Corp.

4Q results were slightly softer than expectations, with lower Management Solutions

2YR Price Volume Chart

growth compared to our modeling on both an organic basis and for Paycor, which was 180

partially offset with stronger growth in PEO and good cost management, resulting in 160

in-line adjusted EPS. Initial FY27 revenue guidance was consistent with management’s 140

prior framing, while expected EPS growth of ~8% at the mid-point implies earnings a 120 15

few cents below our estimates. At first glance, we do not think these results will shift 10

100 5the debates on Paychex, consistent with our preview (link).

80 0

Dec Jun Dec Jun

Key Points LHS: Price ($) / RHS: Volume (mm) Source: FactSet

Company Data in $

Top Line: Mixed — Paychex reported okay revenue growth, driven by slightly softer-

Dividend $4.76 Shares O/S (mm) 358.3than-expected growth in Management Solutions (13.6% y/y vs. consensus ~14.5%),

but solid results in the PEO business and higher-than-modeled float income. Paycor Yield 4.9% Market Cap (mm) $35,109

contributed ~8% to growth in Management Solutions in the quarter, less than expected EV (mm) $35,757 AD Vol. (mm) 4.56

given the anticipated re-build of bookings following the deal close. This also implies a BMO Estimates in $

bit softer growth in the organic business compared to our model, and we will look for (FY-May.) 2025A 2026E 2027E