PAYCHEX Q2 REVENUE UP 18%

By Chris Stiles • Friday, December 19 15:30 • Permanent Link

Paychex, Inc. (NASDAQ: PAYX) has reported its second-quarter results for the fiscal quarter ended November 30, 2025. The company's total revenue for the second quarter increased to $1.6 billion, marking an 18% growth compared to the same period last year. Furthermore, the operating income rose by 6% to $571.9 million, while the adjusted operating income increased by 21% to $649.0 million.

The diluted earnings per share decreased by 4% to $1.10, but the adjusted diluted earnings per share saw an 11% increase to $1.26. For the six months ended November 30, 2025, the total revenue increased by 18% to $3.1 billion, while the operating income increased by 3% to $1.1 billion. The adjusted operating income for the same period increased by 18% to $1.3 billion.

When looking at the financial position and liquidity, Paychex reported having cash, restricted cash, and total corporate investments of $1.6 billion as of November 30, 2025. The company also generated $1.2 billion in cash flow from operations during the first six months of fiscal 2026.

On the non-GAAP financial measures front, the adjusted net income increased by 11% to $454.6 million, and the adjusted diluted earnings per share rose by 11% to $1.26. Additionally, the adjusted EBITDA increased by 21% to $698.4 million, for the three months ended November 30, 2025.

Looking ahead, Paychex has adjusted its business outlook for fiscal 2026, anticipating its adjusted diluted earnings per share to grow in the range of 10% to 11%.

The company will host an earnings conference call on December 19, 2025, at 9:30 a.m. Eastern Time to discuss these results.

In terms of its business operations, Paychex reported that the acquisition of Paycor HCM, Inc. ("Paycor") contributed approximately 17% to management solutions revenue growth year-over-year, and interest on funds held for clients increased by 51% to $54.3 million for the second quarter.

Today the company's shares have moved -1.32% to a price of $112.73. For the full picture, make sure to review PAYCHEX INC's 8-K report.

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