Paychex (PAYX) Q2 FY2026 earnings: revenue $1.6 billion, up 18.3% on the year

Paychex Inc. (PAYX) reported revenue of $1.6 billion for Q2 FY2026, the quarter ended 30 November 2025, up 18.3% on the same quarter a year earlier. Net income was $395 million, down 4.4% on the year, and diluted earnings per share $1.10. The figures are the company's own, from the 10-Q it filed with the SEC on 22 December 2025.

Revenue

$1.6 billion

+18.3% on the year · +1.1% on the quarter

Q3 FY2024Q2 FY2026

Operating margin

36.7%

40.9% a year earlier

Q3 FY2024Q2 FY2026

Net income

$395 million

-4.4% on the year · +3.0% on the quarter

Q3 FY2024Q2 FY2026

Diluted EPS

$1.10

-3.5% on the year · +3.8% on the quarter

Q3 FY2024Q2 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 1 narrowed.

Revenue up 18% on quarter: Total revenue rose 18% to $1,557.6 million in the quarter, compared with $1,316.9 million a year earlier.
Adjusted operating income up 21%: Adjusted operating income excluded Paycor acquisition-related costs and rose 21% to $649.0 million. Reported operating income rose 6% to $571.9 million.
Management Solutions up 21%: Management Solutions revenue rose 21% to $1.2 billion. Paycor contributed approximately 17% to that growth.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Revenue	1,558	1,540	1,317	+1.1%	+18.3%
Cost of revenue	412	414	379	-0.4%	+8.7%
Gross profit	1,145	1,126	938	+1.7%	+22.1%
Gross margin	73.5%	73.1%	71.2%
Selling, general and administrative	574	584	400	-1.8%	+43.5%
Operating income	572	542	538	+5.5%	+6.3%
Operating margin	36.7%	35.2%	40.9%
Interest expense	68.5	68.2	9.5	+0.4%	+621.1%
Pre-tax income	520	498	544	+4.6%	-4.3%
Income tax	125	114	130	+9.8%	-4.2%
Effective tax rate	24.0%	22.9%	24.0%
Net income	395	384	413	+3.0%	-4.4%
Net margin	25.4%	24.9%	31.4%
Diluted EPS	$1.10	$1.06	$1.14	+3.8%	-3.5%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Operating cash flow	445	718	295	-38.1%	+50.8%
Capital expenditure	62.1	55.9	47.0	+11.1%	+32.1%
Free cash flow	383	662	248	-42.2%	+54.4%
Free cash flow margin	24.6%	43.0%	18.8%
Cash from investing	376	-1,303	-193
Cash from financing	-582	-515	-291
Depreciation and amortisation	109	109	41.7	-0.2%	+161.6%
Share-based compensation	25.5	26.8	16.4	-4.9%	+55.5%
Buybacks	126	160	0.5	-21.0%	+25,200.0%
Dividends paid	388	389	353	-0.3%	+9.9%
Dividend per share	$1.08	$1.08	$0.98	0.0%	+10.2%
Diluted shares, weighted	360m	362m	362m	-0.4%	-0.4%
Shares outstanding at period end	359m	360m	360m	-0.3%	-0.3%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Shareholders' equity	3,880	3,971	3,926	-2.3%	-1.2%
Short-term borrowings	18.2	18.5	n/a	-1.6%
Debt	4,952	4,950	817	+0.0%	+506.1%
Operating lease liabilities	66.6	52.9	45.7	+25.9%	+45.7%
Other liabilities	7,602	7,671	5,766	-0.9%	+31.8%
Total liabilities and equity	16,519	16,663	10,555	-0.9%	+56.5%
Fixed assets	551	525	432	+4.9%	+27.6%
Goodwill	4,527	4,524	1,880	+0.1%	+140.8%
Intangible assets	1,812	1,887	180	-3.9%	+908.0%
Investments	37.6	862	38.0	-95.6%	-1.1%
Cash and equivalents	1,486	809	1,202	+83.6%	+23.6%
Other assets	8,105	8,056	6,823	+0.6%	+18.8%
Total assets	16,519	16,663	10,555	-0.9%	+56.5%

Questions

What was Paychex's revenue in Q2 FY2026?

Paychex (PAYX) reported revenue of $1.6 billion for Q2 FY2026, the quarter ended 30 November 2025, up 18.3% on the same quarter a year earlier.

How much did Paychex earn in Q2 FY2026?

Net income for Q2 FY2026 was $395 million, down 4.4% on the year, and diluted earnings per share $1.10.

When did Paychex report Q2 FY2026 results?

Paychex filed its 10-Q for the quarter ended 30 November 2025 with the SEC on 22 December 2025.

Quarterly results, the last 20 quarters

	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024 †	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *	Q1 FY2027
Revenue	1,108	1,276	1,144	1,206	1,190	1,381	1,230	1,286	1,258	1,439	1,295	1,318	1,317	1,509	1,427	1,540	1,558	1,809	1,606	1,630
Cost of revenue	332	352	360	351	359	373	370	360	364	380	375	380	379	387	394	414	412	431	417	430
Gross profit	777	924	784	855	831	1,008	860	926	894	1,060	920	938	938	1,122	1,033	1,126	1,145	1,378	1,188	1,200
Gross margin	70%	72%	69%	71%	70%	73%	70%	72%	71%	74%	71%	71%	71%	74%	72%	73%	74%	76%	74%	74%
SG&A	337	361	390	360	359	396	406	390	388	410	438	392	400	430	602	584	574	586	584	581
Operating income	440	563	394	496	472	612	453	536	506	650	482	547	538	692	431	542	572	792	605	619
Operating margin	40%	44%	34%	41%	40%	44%	37%	42%	40%	45%	37%	41%	41%	46%	30%	35%	37%	44%	38%	38%
Interest expense	9.3	9.0	9.1	9.1	9.2	9.0	9.4	9.4	8.5	9.9	9.5	9.6	9.5	22.6	63.7	68.2	68.5	68.1	64.7	65.1
Pre-tax income	438	554	389	492	475	617	464	549	518	659	492	557	544	686	389	498	520	739	554	565
Tax rate	24%	22%	24%	23%	24%	24%	24%	24%	24%	24%	23%	23%	24%	24%	24%	23%	24%	24%	24%	24%
Net income	332	431	296	379	360	467	350	419	393	499	380	427	413	519	297	384	395	560	421	430
Net margin	30%	34%	26%	31%	30%	34%	28%	33%	31%	35%	29%	32%	31%	34%	21%	25%	25%	31%	26%	26%
Diluted EPS	$0.91	$1.19	$0.82	$1.05	$0.99	$1.29	$0.97	$1.16	$1.08	$1.38	$1.05	$1.18	$1.14	$1.43	$0.82	$1.06	$1.10	$1.56	$1.17	$1.21
Operating cash flow	170	613	337	364	322	604	409	693	348	672	222	546	295	716	344	718	445	812	581	414
Capital expenditure	34.2	34.7	33.3	30.6	35.3	31.1	46.0	38.7	40.7	40.7	41.3	35.6	47.0	48.7	60.5	55.9	62.1	51.0	65.9	56.1
Free cash flow	136	578	304	334	286	573	363	654	308	631	180	510	248	667	283	662	383	762	515	357
Buybacks	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	0.0	n/a	104	0.5	0.0	0.0	160	126	75.0	249	0.0
Dividends paid	238	238	285	285	285	285	321	322	320	320	353	353	353	353	389	389	388	388	425	424
Shares outstanding	361m	361m	360m	360m	360m	360m	360m	361m	360m	360m	360m	360m	360m	360m	360m	360m	359m	358m	356m	356m
Filing	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 30 November 2025, filed 22 December 2025: the filing.