What is the 13F Pro Quality Score for PAYX?

13F Pro ranks PAYCHEX INC (PAYX) on the 13F Pro Quality Score, a 0–100 composite of 32 fundamental signals including return on invested capital, free cash flow consistency, balance-sheet strength, earnings quality, growth durability, and valuation discipline. The score refreshes after each 10-K and 10-Q filing on SEC EDGAR. View PAYX's current score at https://13fpro.ai/company/PAYX (free sign-up required for the full ranking).

Where does 13F Pro source PAYX data?

All PAYCHEX INC fundamentals and ownership data come directly from SEC EDGAR. PAYCHEX INC files with the SEC under CIK 723531. 13F Pro ingests XBRL financial facts from 10-K and 10-Q filings, Form 13F-HR institutional holdings, and Form 4 insider transactions, with no third-party rewrites or estimates.

What sector is PAYX in?

PAYCHEX INC (PAYX) is classified in the Technology sector. 13F Pro publishes sector-level fund flow analysis and quality leaders at https://13fpro.ai/research/sector/technology.

What drives PAYX's revenue?

Per PAYCHEX INC's latest 10-K filed with the SEC on 2026-07-17, the biggest revenue drivers are: Management Solutions ($4,867.9M, +20% YoY); PEO and Insurance Solutions ($1,433.2M, +7% YoY); Interest on funds held for clients ($210.9M, +30% YoY). Figures are extracted from the filing text and machine-verified against the document. Full breakdown at https://13fpro.ai/company/PAYX.

What are PAYX's largest expenses?

PAYCHEX INC's latest 10-K reports these as the largest expense items: Compensation-related expenses ($2,091.9M, +13% YoY); Other expenses ($841.6M, +28% YoY); PEO direct insurance costs ($563.2M, +8% YoY). Sourced directly from SEC EDGAR filing text for FY2026 (fiscal year ended May 31, 2026).

How often is PAYX research updated on 13F Pro?

PAYX's fundamentals refresh within hours of each new 10-K or 10-Q filing on SEC EDGAR. Institutional ownership updates after each quarterly 13F filing window. Insider transactions update after each Form 4 filing. The 13F Pro Quality Score recalculates after every fundamentals refresh.

PAYCHEX INC(PAYX)Stock Analysis

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13F Pro Quality Score

74.6/100

Rank #109 of 2,961 stocksTOP 5%

View Technology peers →

Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Nov 14, 2026.

Revenue Growth

62.8/100

Profitability

83.2/100

Balance Sheet

89.3/100

Earnings Quality

56.3/100

Free Cash Flow

88.5/100

Institutional Flow

99.3/100

Revenue Scale

81.5/100

Dilution Risk

46.7/100

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Why PAYX Scores 75/100

exact factor attribution · 2026-09-11

PAYX's composite is driven by free cash flow and profitability. Bars show each factor's exact push vs. a median company, using the same weights the ranking engine applies.

Free cash flow

+5.8 pts

89th pct

Profitability

+5.0 pts

83th pct

Scale

+4.7 pts

82th pct

Capital efficiency

+3.9 pts

89th pct

Revenue growth

+2.6 pts

63th pct

Institutional flow

+2.5 pts

99th pct

Earnings quality

+0.6 pts

56th pct

Shareholder dilution

-0.2 pts

47th pct

Earnings growth

-0.3 pts

44th pct

Factor percentiles are cross-sectional ranks across the ~2,800-stock scored universe, computed from SEC EDGAR filings. Not investment advice.

PAYX Stock Analysis & AI Quality Score

Data updated 2026-09-11

AI stock analysis and institutional research for PAYCHEX INC (PAYX), a Technology sector company. 13F Pro's AI-powered ranking engine scores PAYX at 74.6/100 on a 32-signal composite quality model, placing it at rank #109 of 2,961 stocks — the top 5% of the AI-ranked universe. PAYX scores in the top quartile across institutional flow (99.3), balance sheet strength (89.3), free cash flow (88.5). Shareholder dilution risk is elevated at 46.7/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), PAYCHEX INC reports quarterly revenue of $1.6B, net income of $420.6M, an operating margin of 37.7%. 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. PAYCHEX INC's 13F Pro composite quality score has ranged between 47 and 77 since 2021, currently 74.6 — an improving long-term trajectory across 68 quarterly and live scoring snapshots.

✦

Fun facts about PAYCHEX INC

Quirks, history, and lore behind PAYX — the kind of stuff that makes a stock memorable.

1
The Basics
U.S. business services company · large-cap · listed on Nasdaq · headquartered in upstate New York.
2
The Numbers
Serves roughly 700,000 small and mid-sized businesses across the U.S., generating annual revenue of around $5 billion — built almost entirely on recurring, subscription-style contracts.
3
The History
Founded in 1971, it grew during an era when most small businesses were still cutting paychecks by hand — and it convinced them there was a much better way.
4
The Secret
It makes serious money by holding client payroll funds in float between collection and disbursement — meaning interest rates rising is basically a gift to its bottom line.
5
The Lore
It competes toe-to-toe with the much larger ADP but has carved out a loyal niche by focusing almost exclusively on smaller employers who don't want enterprise complexity.
6
The Giveaway
If your small business runs payroll, HR, and benefits through one tidy Rochester-born platform, there's a good chance you're a customer of this PAYX-tickered stalwart.

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What's Driving PAYX's Business? Latest 10-K Breakdown

✓ 35/35 datapoints verified

AI-extracted from PAYCHEX INC's 10-K filed 2026-07-17 — FY2026 (fiscal year ended May 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.

Total revenue rose 17% to $6,512.0M, with acquired Paycor contributing approximately 12 percentage points, but net income grew only 6% as interest expense climbed to $269.5M.

Biggest Revenue Drivers

Management Solutions$4,867.9M+20% YoY

Growth in average clients served, primarily driven by the Paycor acquisition, plus higher revenue per client from upmarket mix, price realization and product penetration

PEO and Insurance Solutions$1,433.2M+7% YoY

Continued growth in average PEO worksite employees and an increase in PEO insurance revenues

Biggest Revenue Drivers

Total revenue: $6,512.0M+17% YoY

Management Solutions$4,867.9M+20% YoY

Growth in average clients served, primarily driven by the Paycor acquisition, plus higher revenue per client from upmarket mix, price realization and product penetration

Within Management Solutions

Paycor contribution to Management Solutions growthapproximately 15% of Management Solution

Filing states Paycor contributed approximately 15% to Management Solutions revenue growth for fiscal 2026

PEO and Insurance Solutions$1,433.2M+7% YoY

Continued growth in average PEO worksite employees and an increase in PEO insurance revenues

Interest on funds held for clients$210.9M+30% YoY

Higher average investment balances from the Paycor acquisition and higher realized gains from repositioning the investment portfolio

Largest Expense Items

Compensation-related expenses$2,091.9M+13% YoY

Increase in average headcount, driven by the acquisition of Paycor

Other expenses$841.6M+28% YoY

Continued technology, selling and marketing investment driven by Paycor and strategic priorities, plus general cost increases supporting growth

PEO direct insurance costs$563.2M+8% YoY

Growth in average worksite employees and PEO insurance revenues

Acquisition-related costs$304.2M+87% YoY

Paycor intangible amortization of $242.0M, replacement awards, severance and retention, and professional service fees

Margins: GAAP operating margin fell to 38.6% from 39.6% on Paycor acquisition-related costs, while adjusted operating margin, which excludes those costs, rose to 43.2% from 42.5%.

Watch Items from the Filing

Interest expense rose $164.1 million to $269.5 million on $4.6 billion of long-term borrowings, which carry $1.4 billion of future interest payments.
Payroll client retention was 82% to 83% of the beginning client base in both fiscal 2026 and fiscal 2025.
Dividends paid of $1,589.6 million represented approximately 90% of net income, up from about 87% in fiscal 2025.
AFS securities carried $59.8 million of gross unrealized losses on $3.0 billion of fair value; portfolio unrealized loss was $69.9 million at July 15, 2026.
PEO workers' compensation reserves of $237.7 million were a critical audit matter; the company self-insures deductibles and retains health insurance risk.

AI-extracted and verified against SEC EDGAR filing text. Not investment advice.

Read the full 10-K on SEC EDGAR →Share on X

Revenue

Q2 2026

$1.6B

Net Income

Q2 2026

$420.6M

Free Cash Flow

Q2 2026

$515.0M

Operating Margin

Q2 2026

37.7%

ROIC

Q2 2026

29.2%

D/E Ratio

Q2 2026

1.22

Period

Revenue & Net Income

Earnings Per Share

Key Financials Over Time

Export Financial Table · Pro

Revenue

+16.9% YoY

$6.51BFY 2026

FY23 $5.01BFY24 $5.28BFY25 $5.57BFY26 $6.51B

Net Income

+6.2% YoY

$1.76BFY 2026

FY23 —FY24 $1.69BFY25 $1.66BFY26 $1.76B

Operating Income

+13.7% YoY

$2.51BFY 2026

FY23 $2.03BFY24 $2.17BFY25 $2.21BFY26 $2.51B

EPS (Diluted)

+6.8% YoY

$4.89FY 2026

FY23 $4.30FY24 $4.67FY25 $4.58FY26 $4.89

Total Assets

-2.4% YoY

$16.17BFY 2026

FY23 $10.55BFY24 $10.38BFY25 $16.56BFY26 $16.17B

Total Debt

-15.1% YoY

$4.56BFY 2026

FY23 $808.4MFY24 $817.3MFY25 $5.37BFY26 $4.56B

Op. Cash Flow

+34.5% YoY

$2.56BFY 2026

FY23 $1.71BFY24 $1.90BFY25 $1.90BFY26 $2.56B

Free Cash Flow

+35.8% YoY

$2.32BFY 2026

FY23 $1.56BFY24 $1.74BFY25 $1.71BFY26 $2.32B

Metric	FY 2026	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021
Revenue	$6.51B +16.9%	$5.57B +5.6%	$5.28B +5.4%	$5.01B +8.6%	$4.61B +13.7%	$4.06B
Net Income	$1.76B +6.2%	$1.66B -2.0%	$1.69B	—	—	—
Operating Income	$2.51B +13.7%	$2.21B +1.5%	$2.17B +6.9%	$2.03B +10.5%	$1.84B +26.0%	$1.46B
EPS (Diluted)	$4.89 +6.8%	$4.58 -1.9%	$4.67 +8.6%	$4.30 +12.0%	$3.84 +26.7%	$3.03
Total Assets	$16.17B -2.4%	$16.56B +59.5%	$10.38B -1.5%	$10.55B +9.5%	$9.64B +4.4%	$9.23B
Total Debt	$4.56B -15.1%	$5.37B +556.6%	$817.3M +1.1%	$808.4M +0.2%	$806.4M +0.2%	$804.7M
Operating Cash Flow	$2.56B +34.5%	$1.90B +0.2%	$1.90B +11.2%	$1.71B +7.3%	$1.59B +26.1%	$1.26B
Free Cash Flow	$2.32B +35.8%	$1.71B -1.6%	$1.74B +11.1%	$1.56B +7.4%	$1.46B +27.5%	$1.14B

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Available Research

13F Pro tracks comprehensive data for PAYCHEX INC including:

SEC EDGAR filings (10-K, 10-Q, 8-K)

XBRL financial facts (revenue, EPS, margins)

Insider transactions (Form 4)

Institutional 13F holdings

Quality rankings (32 signals)

AI analyst debates & daily meetings

Historical financial trends

Peer comparison & sector analysis

Top Institutional Holders of PAYX

Capital International Investors
$2.8B28,840,445 sh
BlackRock, Inc.
$2.7B27,753,178 sh
VANGUARD CAPITAL MANAGEMENT LLC
$2.1B21,040,690 sh
VANGUARD PORTFOLIO MANAGEMENT LLC
$1.5B15,277,715 sh
STATE STREET CORP
$1.4B14,411,341 sh
Invesco Ltd.
$1.3B13,040,655 sh
CHARLES SCHWAB INVESTMENT MANAGEMENT INC
$1.0B10,402,177 sh
GEODE CAPITAL MANAGEMENT, LLC
$1.0B10,250,030 sh
MORGAN STANLEY
$643.2M6,540,823 sh
FEDERATED HERMES, INC.
$578.4M5,881,768 sh

Fund	Value	Shares
Capital International Investors	$2.8B	28,840,445
BlackRock, Inc.	$2.7B	27,753,178
VANGUARD CAPITAL MANAGEMENT LLC	$2.1B	21,040,690
VANGUARD PORTFOLIO MANAGEMENT LLC	$1.5B	15,277,715
STATE STREET CORP	$1.4B	14,411,341
Invesco Ltd.	$1.3B	13,040,655
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	$1.0B	10,402,177
GEODE CAPITAL MANAGEMENT, LLC	$1.0B	10,250,030
MORGAN STANLEY	$643.2M	6,540,823
FEDERATED HERMES, INC.	$578.4M	5,881,768

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Is PAYX a good stock to buy?

13F Pro's AI-powered analysis of PAYCHEX INC (PAYX) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for PAYX are available on the PAYX stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing. PAYX is classified as a large company.

Which hedge funds own PAYX?

Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling PAYX. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of PAYCHEX INC's investment landscape.