Paychex Posts 12% Q4 Revenue Growth and 43% EPS Surge
PAYX•Paychex delivered 12% revenue growth to $1.605B and 40% operating income increase to $604.7M in Q4, driving diluted EPS up 43% to $1.17. The company launched its WISE AI engine, integrated Paycor to boost upmarket expansion and returned $2.2B to shareholders in fiscal 2026.
1. Fourth Quarter Financial Results
Fourth quarter revenue rose 12% to $1.605 billion, with operating income up 40% to $604.7 million and adjusted operating income climbing 17% to $675.8 million. Diluted EPS increased 43% to $1.17 and adjusted EPS grew 11% to $1.32, while operating margin expanded to 37.7%.
2. Fiscal Year 2026 Highlights
For fiscal 2026, total revenue reached $6.512 billion, a 17% increase, and operating income rose 14% to $2.511 billion. Adjusted operating income grew 19% to $2.815 billion, with diluted EPS up 7% to $4.89 and adjusted EPS up 11% to $5.51, sustaining a 43.2% adjusted operating margin.
3. AI Innovation and Paycor Integration
The company launched WISE, its AI-powered intelligence engine, across HCM platforms and internal operations to unlock insights from unstructured data and enhance client outcomes. Integration of the April 2025 Paycor acquisition contributed approximately 8% to Management Solutions revenue growth and supported upmarket expansion.
4. Shareholder Returns and Investments
Strong cash generation enabled $2.2 billion returned to shareholders in fiscal 2026 through dividends and share repurchases. The company maintained investments in technology, selling and marketing, and AI innovation to support future growth and strategic priorities.
