Paychex reports in-line Q4 results with 7% drop in shares over concerns of organic growth

From Financial Modeling Prep: 2025-06-25 15:32:00

Paychex (NASDAQ:PAYX) saw a 7% drop in shares after reporting Q4 results. Adjusted EPS was $1.19, revenue rose 10% to $1.43 billion, with Management Solutions revenue up 12% to $1.0 billion. Fiscal 2026 guidance includes 16.5%-18.5% revenue growth, but concerns arose over modest organic growth in the segment.

Despite a solid long-term growth outlook, Paychex’s muted market reaction may be due to modest organic growth and lack of a clear earnings beat. Fiscal 2026 guidance predicts 8.5%-10.5% EPS growth, with Management Solutions revenue expected to rise 20%-22% and PEO and Insurance Solutions segment growing 6%-8%.



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