Paychex Reports Q3 Earnings Beat and Stock Surge as Paycor Deal Nears Completion
The human capital management leader posted strong adjusted EPS, improved margins, and significant progress on its transformative acquisition of Paycor.
- Paychex reported Q3 revenue of $1.509 billion, up 5% year-on-year but slightly below analyst expectations of $1.516 billion.
- Adjusted EPS of $1.49 exceeded the consensus estimate of $1.48, reflecting strong operational performance.
- Operating income rose 6% to $691.8 million, with margins expanding by 70 basis points to 45.8%.
- The pending acquisition of Paycor, expected to close in April 2025, aligns with Paychex's strategy to enhance its digital and AI-driven human capital management capabilities.
- Following the earnings announcement, Paychex's stock price increased by 6.06%, reaching $152.87, signaling positive market sentiment.
Benzinga 