Paychex, Inc. Reports Second Quarter Fiscal 2026 Financial Results

Paychex, Inc. reported strong financial results for the second quarter of fiscal 2026, ended November 30, 2025. Total revenue increased by 18% year-over-year to $1.6 billion, driven by a 21% increase in Management Solutions revenue, which was bolstered by the acquisition of Paycor HCM, Inc. PEO and Insurance Solutions revenue saw a 6% increase. Interest on funds held for clients surged by 51% due to higher investment balances and strategic portfolio repositioning. Adjusted operating income grew by 21% to $649.0 million. Despite a 4% decrease in diluted earnings per share to $1.10, adjusted diluted earnings per share increased by 11% to $1.26. The company raised its full-year earnings outlook, now anticipating adjusted diluted earnings per share growth in the range of 10% to 11%. Paychex also highlighted advancements in AI-powered workforce management solutions.