Paychex Reports Increased Revenues, Earnings Growth

Paychex Inc. reported a strong first quarter for 2025, with revenues increasing by 3% to $1.32 billion, matching analyst expectations. Adjusted earnings per share reached $1.16, slightly above forecasts of $1.14, reflecting higher client spending and the resilience of small and medium-sized businesses in the recovering U.S. labor market. CEO John Gibson highlighted ongoing investments in their market capabilities to adapt to post-pandemic realities. Despite a gradual slowdown in private sector job creation, Paychex has maintained its annual revenue growth forecast of 4.0% to 5.5%. Shares of Paychex have risen 12% year-to-date, indicating positive market sentiment towards its business model. Overall, the results underscore the importance of SMBs in the economic landscape as they continue to seek payroll and HR services amid changing market conditions.