Overview
- Fiscal Q2 revenue rose 18% year over year to $1.557 billion, with adjusted diluted EPS of $1.26 that topped estimates by three cents as sales missed consensus by about $10 million.
- Total expenses increased 27% to $985.7 million, reflecting higher technology investment and Paycor integration, including $77 million in acquisition-related costs.
- Adjusted operating income climbed 21% to $649 million with an adjusted operating margin of 41.7%, while GAAP operating margin declined to 36.7% and GAAP EPS was $1.10.
- Management lifted fiscal 2026 adjusted EPS growth guidance to 10%–11%, or $5.48–$5.53, citing scale benefits, product adoption, and contributions from the Paycor deal.
- Shares fell in Friday trading as executives noted smaller deal sizes and heightened price sensitivity, even as the company emphasized AI-driven productivity and ongoing client adoption.