Paychex
PAYX · NasdaqServices-Engineering, Accounting, Research, Management · Fiscal year ends May 31
Paychex reported revenue of $6.3B in the fiscal year ended May 2026, up 16.5% from the year before. Operating income was $2.5B, an operating margin of 39.8%, and net income was $1.8B. Operating cash flow of $2.6B less capital expenditure of $235M left free cash flow of $2.3B. Net debt was $3.5B.
Last 5 fiscal years
Revenue and net income
Income statement
| Fiscal year | May 2022 | May 2023 | May 2024 | May 2025 | May 2026 |
|---|---|---|---|---|---|
| Revenue | $4.6B | $4.9B | $5.1B | $5.4B | $6.3B |
| Cost of revenue | $1.4B | $1.5B | $1.5B | $1.5B | $1.7B |
| Gross profit | $3.2B | $3.5B | $3.7B | $3.9B | $4.6B |
| Selling, general & admin | $1.4B | $1.5B | $1.6B | $1.8B | $2.3B |
| Operating income | $1.8B | $2B | $2.2B | $2.2B | $2.5B |
| Interest expense | $37M | $37M | $37M | $105M | $270M |
| Pre-tax income | $1.8B | $2B | $2.2B | $2.2B | $2.3B |
| Income tax | $432M | $491M | $528M | $519M | $551M |
| Net income | $1.4B | $1.6B | $1.7B | $1.7B | $1.8B |
| Diluted EPS | 3.84 | 4.30 | 4.67 | 4.58 | 4.89 |
| Diluted shares | 363M | 362M | 362M | 362M | 360M |
Balance sheet
| Fiscal year | May 2022 | May 2023 | May 2024 | May 2025 | May 2026 |
|---|---|---|---|---|---|
| Cash & equivalents | $370M | $1.2B | $1.5B | $1.6B | $1.1B |
| Current assets | $6.6B | $7.5B | $7.3B | $8.9B | $8.6B |
| Net PP&E | $401M | $396M | $412M | $512M | $589M |
| Goodwill | $1.8B | $1.8B | $1.9B | $4.5B | $4.5B |
| Total assets | $9.6B | $10.5B | $10.4B | $16.6B | $16.2B |
| Payables | $106M | $85M | $104M | $130M | $155M |
| Deferred revenue | $38M | $47M | $50M | $69M | $69M |
| Current liabilities | $5.3B | $5.8B | $5.3B | $7B | $6.8B |
| Short-term debt | $9M | $10M | $0 | $400M | $0 |
| Long-term debt | $798M | $798M | $799M | $4.5B | $4.6B |
| Total liabilities | $6.6B | $7.1B | $6.6B | $12.4B | $12.4B |
| Shareholders' equity | $3.1B | $3.5B | $3.8B | $4.1B | $3.7B |
Cash flow
| Fiscal year | May 2022 | May 2023 | May 2024 | May 2025 | May 2026 |
|---|---|---|---|---|---|
| Operating cash flow | $1.6B | $1.7B | $1.9B | $1.9B | $2.6B |
| Capital expenditure | $134M | $143M | $161M | $192M | $235M |
| Free cash flow | $1.5B | $1.6B | $1.7B | $1.7B | $2.3B |
| Depreciation & amortisation | $192M | $177M | $177M | $210M | $443M |
| Stock-based compensation | $53M | $63M | $61M | $112M | $96M |
| Acquisitions | $25M | $3M | $208M | $3B | $400,000 |
| Share buybacks | $145M | $0 | $169M | $105M | $611M |
| Dividends paid | $1,000M | $1.2B | $1.3B | $1.4B | $1.6B |
| Dividend per share | 2.77 | 3.26 | 3.65 | 4.02 | 4.43 |
Key ratios
| Fiscal year | May 2022 | May 2023 | May 2024 | May 2025 | May 2026 |
|---|---|---|---|---|---|
| Revenue growth (YoY) | – | 7.8% | 4.6% | 5.4% | 16.5% |
| Operating income growth (YoY) | – | 10.5% | 6.9% | 1.5% | 13.7% |
| EPS growth (YoY) | – | 12.0% | 8.6% | −1.9% | 6.8% |
| Gross margin | 70.2% | 70.4% | 71.2% | 71.5% | 73.4% |
| Operating margin | 40.4% | 41.4% | 42.4% | 40.8% | 39.8% |
| Net margin | 30.6% | 31.7% | 32.9% | 30.6% | 27.9% |
| Return on equityBlank when equity is negative | 45.1% | 44.6% | 44.5% | 40.1% | 47.1% |
| ROCEEBIT ÷ (assets − current liabilities) | 42.1% | 42.9% | 42.8% | 23.0% | 26.9% |
| Free cash flow margin | 32.0% | 31.9% | 33.8% | 31.6% | 36.8% |
| Cash conversion (CFO ÷ net income) | 1.14x | 1.10x | 1.12x | 1.15x | 1.45x |
| Payable days | 28 | 21 | 26 | 31 | 34 |
| Interest cover | 50.3x | 55.4x | 58.3x | 20.9x | 9.32x |
| Debt ÷ equity | 0.26x | 0.23x | 0.21x | 1.20x | 1.22x |
| Net debtDebt − cash & equivalents; excludes investments; negative = net cash | $436M | −$414M | −$670M | $3.3B | $3.5B |
| Current ratio | 1.25x | 1.30x | 1.37x | 1.28x | 1.26x |
Recent filings
Standardised figures from the company's XBRL filings with the SEC (10-K, 10-Q). Line items follow US GAAP tags, so a company's own statement layout may differ and some lines show “–” where the company does not report that item. Ratios are calculated from these figures. For education only; not investment advice or a recommendation.