Strong Revenue Growth
PAYX achieved a 19.9% increase in revenue, reaching $1.81 billion, primarily driven by higher demand for its services.
Source: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
PAYX reported strong revenue growth of 19.9% in Q3 FY2026, driven by increased demand, but faced margin pressure due to rising SG&A expenses.
Revenue
$1.81B
+19.87% YoY
EPS (Diluted)
$1.56
+9.09% YoY
Operating Income
$792M
+14.48% YoY
Source: SEC XBRL
Paychex (PAYX) reported Q3 FY2026 revenue of $1.81B, up 19.9% year over year. Operating margin was 43.8%, down 2.0 points from 45.8% a year earlier. PAYX's fiscal Q3 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.32 | 1.33 | Miss -0.8% |
| Mar 2026This filing | 1.71 | 1.71 | Beat +0.3% |
| Dec 2025 | 1.26 | 1.25 | Beat +0.5% |
| Sep 2025 | 1.22 | 1.23 | Miss -0.8% |
Adjusted (non-GAAP) EPS of $1.71 versus the $1.71 analyst consensus — a +0.3% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.56.
Compiled by AI from this SEC filing
PAYX achieved a 19.9% increase in revenue, reaching $1.81 billion, primarily driven by higher demand for its services.
Source: 10-Q Income Statement
SG&A expenses rose by 36.3% to $585.7 million, impacting operating margins.
Source: 10-Q Income Statement
Total assets increased by 56.1% while total liabilities grew by 90%, indicating significant balance sheet expansion.
Source: 10-Q Balance Sheet
Compiled by AI from this SEC filing · 1 high, 2 medium, 0 low
The company's debt to equity ratio is 3.36, indicating a high level of leverage which could pose risks if interest rates rise or cash flows decrease.
Source: 10-Q Balance Sheet
Operating margin decreased by 2.1% due to increased SG&A expenses, which could affect profitability if costs continue to rise.
Source: 10-Q Income Statement
Stockholders' equity declined by 2.5%, which could impact the company's ability to raise capital in the future.
Source: 10-Q Balance Sheet
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.81 $B | 1.51 $B | +19.87% |
Cost of Revenue $M | 431.20 $M | 387.40 $M | +11.31% |
Operating Income $M | 792.00 $M | 691.80 $M | +14.48% |
Net Income $M | 560.30 $M | 519.30 $M | +7.90% |
EPS (Basic) $ | 1.56 $ | 1.44 $ | +8.33% |
EPS (Diluted) $ | 1.56 $ | 1.43 $ | +9.09% |
SG&A Expense $M | 585.70 $M | 429.80 $M | +36.27% |
Answers draw on this SEC filing and the data on this page
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