0KGE.L
Paychex Inc
Q1 2026 Report
Paychex Inc (0KGE.L) QQ1 2026 Results: Revenue Growth, Robust Free Cash Flow and Margin Stability...
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Executive Summary
In the third quarter of 2025, Paychex Inc demonstrated solid financial performance with a revenue of $1.51 billion, marking a 4.84% year-over-year increase and a notable 14.59% quarter-over-quarter rise. The company's net income reached $519.3 million, representing a 4.15% growth compared to the same period last year, driven by improved operational efficiencies and strategic investments in technology. Management highlighted their commitment to enhancing service delivery for small to medium-sized businesses while navigating competitive pressures in the technology sector. Overall, the results affirm the robust demand for Paychex's integrated human capital management solutions, which remain pivotal in the increasingly digital business landscape.
Key Performance Indicators
Revenue
1.51B
QoQ: 14.59% | YoY:4.84%
Gross Profit
1.12B
74.33% margin
QoQ: 19.60% | YoY:5.86%
Operating Income
691.80M
QoQ: 28.56% | YoY:6.46%
Net Income
519.30M
QoQ: 25.62% | YoY:4.15%
EPS
1.44
QoQ: 25.22% | YoY:3.60%
Revenue Trend
Margin Analysis
Key Insights
1. **Revenue**: $1.51 billion (YoY: +4.84%, QoQ: +14.59%) 2. **Net Income**: $519.3 million (YoY: +4.15%, QoQ: +25.62%) 3. **EPS**: $1.44 (YoY: +3.60%, QoQ: +25.22%) 4. **Operating Margin**: 45.84%, up from previous quarters due to controlled operational expenditures. 5. **Gross Profit Margin**: 74.33%, indicating strong pricing power and cost management efficiencies. The significant quarter-over-quarter growth in revenue and net income highlights both seasonal demand and effective cost ...