Paychex reported first-quarter fiscal 2027 adjusted earnings of $1.34 per share, up 9.8% year over year and beating the Zacks Consensus Estimate of $1.33, while total revenues rose 5.9% to $1.63 billion, topping the consensus mark of $1.62 billion. Within that total, Management Solutions revenues, the company's largest contributor, increased 4% year over year to $1.21 billion, and PEO and Insurance Solutions revenues climbed 12% to $367.6 million, while total service revenues advanced 6% to $1.58 billion and interest on funds held for clients rose 5% to $49.8 million. Operating income increased 14% to $619.2 million, lifting the operating margin to 38% from 35.2%, and adjusted operating income rose 9% to $684.7 million as the adjusted operating margin improved to 42% from 40.7%. Net income advanced 12% to $429.7 million, or $1.21 per share on a GAAP basis, as acquisition-related costs declined to $65.5 million from $84.8 million a year earlier. For fiscal 2027, Paychex maintained total revenue growth guidance of 5-6%, an adjusted operating margin forecast of about 44% and adjusted earnings growth of 7-9%, but raised its PEO and Insurance Solutions revenue growth forecast to 7-8% from 6-7% and lifted its outlook for interest on funds held for clients to $200-$210 million from $195-$205 million.
Paychex IncPaychex beat Q1 estimates on EPS and revenue and raised its PEO and client-funds interest outlook
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