AI-extracted from the 10-Q filed 2026-09-24 — Q1 FY2027 (quarter ended August 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Paychex Q1 revenue grew 6% to $1.63B, with Management Solutions up 4% and PEO/Insurance Solutions surging 12%, driving operating income up 14% to $619M.
Biggest Revenue Drivers
Management Solutions$1,213.1M+4% YoY
Higher revenue per client from price realization and product penetration.
PEO and Insurance Solutions$367.6M+12% YoY
Growth in average worksite employees and higher PEO insurance volumes.
Biggest Revenue Drivers
Total revenue: $1,630.5M+6% YoY
Management Solutions$1,213.1M+4% YoY
Higher revenue per client from price realization and product penetration.
PEO and Insurance Solutions$367.6M+12% YoY
Growth in average worksite employees and higher PEO insurance volumes.
Interest on funds held for clients$49.8M+5% YoY
Higher average interest rates.
Largest Expense Items
Cost of service revenue$430.1M+4% YoY
PEO direct insurance costs increased 10% due to growth in average worksite employees and higher insurance volumes.
Selling, general and administrative expenses$581.2M-0.2% YoY
Offset by lower acquisition-related costs (down 23%) despite higher technology and selling investments.
Interest expense$65.1M-5% YoY
Lower outstanding debt balances.
Margins: Operating margin expanded to 38.0% from 35.2% YoY, with adjusted operating margin at 42.0% versus 40.7%. Margin improvement driven by revenue growth outpacing modest expense increases, particularly as acquisition-related costs normalized post-Paycor integration.
Watch Items from the Filing
$92.4M in net unrealized losses on AFS securities as of August 31, 2026 (77% of holdings), up from $52.5M May 31, 2026; portfolio yields 3.8% with weighted-average duration 3.1 years.
Acquisition-related costs for Paycor totaled $65.5M in Q1 (down 23% YoY); $56.9M in intangible amortization suggests ongoing integration costs.
No single customer material to accounts receivable, service revenue, or results; diversified customer base reduces concentration risk.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
45 transactions in PAYX reported by 13 members of Congress under the STOCK Act, most recent trade Aug 25, 2026. Reported transactions, not recommendations.
About PAYCHEX INC (PAYX): stock profile, AI score and financials
PAYCHEX INC (PAYX) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores PAYX at 73.8/100 on a composite quality score built from its SEC filings, placing it at rank #120 of 2,925 stocks — the top 5% of the AI-ranked universe. PAYX scores in the top quartile across institutional flow (99.3), balance sheet strength (87.6), profitability (85.4). Shareholder dilution risk is elevated at 45.6/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q1 2027), PAYCHEX INC reports quarterly revenue of $1.6B, net income of $429.7M, an operating margin of 38.0%. Top institutional holders of PAYX by reported 13-F value include Capital International Investors, BlackRock, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. PAYX trades on the Nasdaq exchange and files with the SEC under CIK 723531. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate PAYX daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for PAYCHEX INC directly from SEC EDGAR.