Paychex Raises FY2026 Guidance; Shares Fall

Paychex reported fiscal first-quarter adjusted EPS of $1.22, beating estimates, and revenue of $1.54 billion, roughly in line with expectations and up about 16.8% year‑over‑year. On a GAAP basis, net income fell to $383.8 million, or $1.06 per share, from $427.4 million ($1.18) a year earlier. The company raised its full‑year FY2026 adjusted EPS guidance, narrowing the range to $5.43–$5.53, and now expects adjusted diluted EPS to grow 9%–11% in fiscal 2026. CEO John Gibson said early cost and revenue synergies from the Paycor acquisition and investments in AI and other technology are improving efficiency and client experience. Despite the beat and upgraded outlook, shares traded about 5% lower premarket as investors weighed limited upside amid a stagnant small‑ and midsize‑business macro backdrop.