Overview

• 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.