FirmAtlas
Company handbook · PAYX · Prepared by FirmAtlas · firmatlas.app · printed 2026-10-16
PAYX · CIK 723531 · LATEST FILING: 10-Q AUG '26 · FILED SEP 24, 2026
Paychex, Inc.
$111.63
+0.85 (+0.77%)
Close, Oct 16, 2026 · 52-week $85–129
Last fiscal year
Paychex, Inc. reported revenue of $6.3B for the year ended May 31, 2026 (FY25), up 16.5% from FY24. Net income was $1.8B, operating cash flow $2.6B and free cash flow $2.3B. Source: 10-K filed Jul 17, 2026.
Market cap
$39.7B
P/E
22.0
EV/EBITDA
14.5x
P/B
10.7
Div yield
4.07%
ROIC
29.2%
Revenue 1Y
16.5%/yr
EPS 1Y
6.8%/yr
Shares 1Y
−1%
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Median
Daily closes, split-adjusted · ratios at each fiscal year end
Company
CEOJohn B. Gibson
HQRochester, NY
AuditorPricewaterhouseCoopers LLP
Employees17,600
Year endsMay
Revenue by segment · FY25
Management Solutions77%
Peo And Insurance Solutions23%
Compounded growth & averages
10Y
5Y
3Y
TTM
Share price
7.1%
−1.3%
−2.0%
−11.7%
Upgrade to see 10 years
Share price: yearly compound rate of the traded close; the last column is the past year.
Where the cash went · FY24–FY25
$7.1B deployed
Capex
$427M
6.0%
Acquisitions
$3.0B
41.5%
Dividends
$3.0B
42.5%
Buybacks
$716M
10.0%
Operating cash flow over the period: $4.5B. Total debt changed by −$411M.
Growth engines
How much of the profit growth came from new investment, and how much from running the business better.
Upgrade to see 10 years
Financials
Last 2 years · Upgrade to see 10 years · USD millions · each year opens its 10-K · FY25 = year ended May 31, 2026 · change vs previous year
Last 4 quarters · USD millions · quarter-end month shown · change vs same quarter a year earlier
TTM = the last four quarters, to Aug '26. Balance-sheet rows show that latest quarter. “—” where the quarters do not add up to the annual figures. No TTM for cash: our quarterly rows do not hold short-term investments yet, and annual cash includes them.
Income
Revenue
5,410
6,301+16.5%
6,389
YoY
+16.5%
Gross profit
3,870
4,627+19.6%
4,699
Gross margin
71.5%
73.4%+1.9 pp
—
Operating income
2,208
2,510+13.7%
2,588
Operating margin
40.8%
39.8%−1.0 pp
—
EBITDA
2,417
2,953+22.2%
—
EBITDA margin
44.7%
46.9%+2.2 pp
—
Interest expense
105
270+155.7%
—
Interest coverage
22.93x
10.96x−11.98x
—
Net income
1,657
1,760+6.2%
1,806
YoY
+6.2%
Net margin
30.6%
27.9%−2.7 pp
—
EPS (diluted, $)
4.58
4.89+6.8%
5.05
YoY
+6.8%
Balance sheet
Total assets
16,564
16,174−2.4%
15,661
Cash & short-term investments
2,769
1,521−45.1%
—
Net PP&E
512
589+15.1%
—
Other assets
13,284
14,064+5.9%
—
Total liabilities
12,436
12,439+0.0%
11,955
Accounts payable
130
155+19.3%
—
Total debt
4,967
4,556−8.3%
4,558
Other liabilities
7,339
7,728+5.3%
—
Shareholders’ equity
4,128
3,735−9.5%
3,706
Total liabilities = total assets − shareholders’ equity, so it includes minority interest where a company has one.
Cash flow statement · as filed
Cash from operations
1,901
2,557+34.5%
2,252
Net income
1,657
1,760+6.2%
—
Depreciation & amortization
210
443+111.3%
—
Stock-based compensation
112
96−14.0%
—
Working capital & other
(78)
258n/m
—
Cash from investing
(3,357)
(1,152)n/m
—
Capex
(192)
(235)n/m
—
PP&E sold
0
—
—
Acquisitions
(2,968)
(0.4)n/m
—
Investments bought
(14,303)
(12,226)n/m
—
Investments sold / matured
14,292
11,518−19.4%
—
Other investing
(187)
(208)n/m
—
Cash from financing
2,293
(2,654)−215.7%
—
Debt raised
4,181
0−100.0%
—
Debt repaid
0
(400)n/m
—
Dividends
(1,448)
(1,590)n/m
—
Buybacks
(104)
(611)n/m
—
Other financing
(335)
(53)n/m
—
Net change in cash
837
(1,250)−249.2%
—
Free cash flow (OCF − capex)
1,709
2,322+35.8%
2,017
Where the cash went
Operating cash flow
1,901
2,557+34.5%
2,252
Reinvested in the business
3,159
235−92.6%
—
% of operating cash flow
166.2%
9.2%
Capex
192
235+22.5%
235
Acquisitions
2,968
0.4−100.0%
—
Free cash flow
1,709
2,322+35.8%
2,017
YoY
+35.8%
Returned to shareholders
1,553
2,201+41.7%
—
% of free cash flow
90.9%
94.8%
Dividends
1,448
1,590+9.7%
—
Buybacks
104
611+484.7%
—
Change in total debt
—
(411)
—
Cash left over
—
(290)
—
FCF conversion (FCF ÷ net income)
103.1%
131.9%+28.8 pp
—
Owner earnings
—
1,993
—
Owner earnings margin
—
31.6%
—
Buyback yield
0.2%
1.8%+1.6 pp
—
Returns & ratios
ROIC (all capital)
26.6%
29.2%+2.6 pp
—
ROIC (operating)
440.5%
468.8%+28.2 pp
—
Net debt / EBITDA
0.91x
1.03x+0.12x
—
Debt / equity
1.20x
1.22x+0.02x
—
ROE
40.1%
47.1%+7.0 pp
—
ROA
10.0%
10.9%+0.9 pp
—
ROCE
23.0%
26.9%+3.9 pp
—
NOPAT
1,682
1,912+13.7%
—
Invested capital (operating)
382
434+13.7%
—
Invested capital (all)
6,326
6,770+7.0%
—
Reinvestment rate
—
2.7%
—
Income
Nov '25
Feb '26
May '26
Aug '26
Revenue
1,503
1,752
1,553
1,581
vs year-ago quarter
Gross profit
1,091
1,321
1,136
1,151
Gross margin
72.6%
75.4%
73.1%
72.8%
Operating income
572
792
605
619
Net income
395
560
421
430
vs year-ago quarter
Net margin
26.3%
32.0%
27.1%
27.2%
EPS (diluted, $)
1.10
1.56
1.18
1.21
vs year-ago quarter
Balance sheet
Nov '25
Feb '26
May '26
Aug '26
Total assets
16,519
17,511
16,174
15,661
Cash & equivalents
1,873
2,923
1,521
656
Total debt
4,970
4,954
4,556
4,558
Shareholders’ equity
3,880
4,014
3,735
3,706
Cash flow
Nov '25
Feb '26
May '26
Aug '26
Operating cash flow
445
813
581
414
Capex
62
51
66
56
Free cash flow
383
762
515
357
vs year-ago quarter