Paychex, Inc. (NASDAQ: PAYX) is a leading provider of human capital management (HCM) solutions for small to medium-sized businesses. The company offers comprehensive HR services, payroll processing, and employee benefits, catering to approximately 800,000 clients across the U.S. and Europe.

For the fourth quarter of fiscal year 2025, Paychex reported total revenue of $1.427 billion, a 10% increase compared to $1.295 billion in the prior-year quarter. Management Solutions revenue grew by 12%, reaching $1 billion, driven by the recent acquisition of Paycor, while excluding Paycor, this segment saw a 3% increase.

Revenue from Professional Employer Organization (PEO) and Insurance Solutions rose 4% to $340 million, attributable to the growth in the average number of PEO worksite employees. Interest on funds held for clients surged 18% to $45 million, primarily due to the Paycor acquisition, with a 3% increase when excluding that contribution.

Adjusted operating income for the fourth quarter was $576.7 million, marking an 11% increase from the previous year’s $521.3 million. The adjusted operating margin remained stable at 40.4%, compared to 40.2% in the prior year’s quarter. However, diluted earnings per share (EPS) decreased 22% to $0.82, while adjusted diluted EPS increased by 6% to $1.19.

For the full fiscal year 2025, total revenue rose 6% to $5.572 billion. Management Solutions revenue experienced a 5% increase to $4.067 billion, and PEO and Insurance Solutions revenue also grew by 6% to $1.343 billion. Adjusted diluted EPS for the year climbed by 6% to $4.98.

Looking forward, Paychex issued guidance for fiscal year 2026, projecting total revenue growth between 16.5% to 18.5%, with Management Solutions expected to grow by 20% to 22%. PEO and Insurance Solutions revenue growth is anticipated to be in the range of 6% to 8%. Interest on funds held for clients is estimated to be between $190 million to $200 million, with adjusted operating margin expected around 43%.

Paychex’s strong financial position includes $1.7 billion in cash and corporate investments, with total borrowings of approximately $5 billion as of May 31, 2025. Cash flow from operations for the year was reported at $2 billion. The company returned over $1.5 billion to shareholders during FY 2025 through dividends and share repurchases.