Paychex reported fiscal first-quarter revenue growth of 6% to $1.6 billion, with adjusted earnings per share up 10% to $1.34 and adjusted operating margin of 42%. Within that total, management solutions revenue rose 4% to $1.2 billion, while PEO and insurance solutions revenue climbed 12% to $368 million on high-single-digit worksite employee growth and record retention. The company raised its full-year PEO and insurance revenue-growth forecast to 7% to 8% while reaffirming its overall fiscal 2027 outlook, and said ASO-to-PEO conversions ran at double expectations with broker referrals up 43% year over year. Chief Financial Officer Bob Schrader said fiscal 2027 AI investment is five times the prior-year level, with more than 2,000 AI agents and features deployed and the new WISE Hire recruiting product entering commercialization. For the fiscal second quarter, Paychex expects revenue growth of about 4% and adjusted operating margin of about 40%.
Paychex IncPaychex posted 6% revenue growth to $1.6B with adjusted EPS up 10% and 42% operating margin, and raised its full-year PEO revenue-growth forecast.
