Paychex Q4 EPS Exceeds by $0.01, Revenue Up 12% as Guidance Softens
PAYX•Paychex reported adjusted Q4 EPS of $1.32, exceeding estimates by $0.01, while revenue reached $1.61 billion, up 12% year-over-year. For fiscal 2027 the company forecast 5–6% revenue growth and 7–9% adjusted EPS growth to $5.90–$6.01, below the trailing 12% growth rate in Q4.
1. Q4 Financial Results
Paychex reported adjusted EPS of $1.32 for the quarter ended May 31, beating estimates by $0.01, and generated revenue of $1.61 billion, in line with forecasts and up 12% year-over-year.
2. Impact of Paycor HCM Acquisition
Revenue reflected a full quarter of Paycor HCM contribution, which added approximately 8% to Management Solutions growth and supported a 14% increase in that segment to $1.2 billion.
3. Fiscal 2027 Guidance
The company projected fiscal 2027 revenue growth of 5–6% and adjusted EPS growth of 7–9% to a range of $5.90–$6.01, representing a slowdown from the trailing 12% growth rate.
4. Operating Income and Shareholder Returns
Operating income rose 40% to $604.7 million, with adjusted operating income up 17% to $675.8 million, while full-year shareholder returns reached $2.2 billion through dividends and share repurchases.
