PAYXNasdaqServices-Engineering, Accounting, Research, ManagementFiscal year ends May 31
PAYCHEX INC
Financials through Q1 FY2027, quarter ended Aug 31, 2026Last filing: 10-Q on Sep 24, 2026
$110.75−0.88 (-0.79%)
Close on Oct 19, 2026
- Market cap
- $39.49B
- P/E (TTM)
- 22.0
- Dividend yield
- 4.00%
Margins
Share of revenue, fiscal years 2012 to 2026
Gross margin
74.3%+5.6 pts over 5 years
Operating margin
38.6%+2.5 pts over 5 years
Net margin
27.0%
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +16.9% | +9.2% | +9.9% | +8.2% | |
| Gross profit | +20.0% | +10.8% | +11.7% | – | |
| Operating income | +13.7% | +7.3% | +11.4% | +8.2% | |
| Net income | +6.2% | – | – | – | |
| EPS, diluted | +6.8% | +4.4% | +10.0% | +8.9% | |
| Free cash flow | +35.8% | +14.1% | +15.2% | +9.7% | |
| Dividend per share | +10.2% | +10.8% | +11.9% | +10.2% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | 44.8% | |
| Return on assets | – | – | 10.8% | |
| Current ratio | 1.12 | 1.25 | 1.26 | |
| Debt to equity | – | 0.27 | 1.22 | |
| Net debt to EBITDA | – | -0.62× | 1.17× | |
| Interest coverage | 501.6× | 40.8× | 9.3× | |
| Capex to revenue | 3.0% | 2.9% | 3.6% | |
| Diluted shares | 363M | 362M | 360M |
Where the cash went
Fiscal 2022 to 2026, five years combined
Paychex generated $9.65B from operations and spent $8.42B on capital expenditure, dividends and share buybacks. 10% of that went back into the business.
Generated
$9.65B
Used
$8.42B
Capital expenditure$864.90M10%Dividends$6.53B78%Share buybacks$1.03B12%
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin27.0%
×Asset turnover0.40×
×Equity multiplier4.16×
=Return on equity, FY202644.8%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 27.0% | 0.40× | 4.16× | 44.8% |
| FY2025 | 29.7% | 0.41× | 3.40× | 41.8% |
| FY2024 | 32.0% | 0.50× | 2.87× | 46.3% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
5of 9 tests passed in fiscal 2026. Scores of 7 to 9 are usually read as strong.
- ProfitableNet income above zero$1.76B
- Cash generatingOperating cash flow above zero$2.56B
- Return on assets improvedROA up on the prior year16.0% → 10.6%
- Earnings backed by cashOperating cash flow above net income$2.56B vs $1.76B
- Less leverageLong-term debt to assets fell27.5% → 28.2%
- Better liquidityCurrent ratio rose1.28 → 1.26
- No dilutionShare count did not rise362M → 360M
- Gross margin improvedGross margin up on the prior year72.35% → 74.29%
- More efficientAsset turnover rose0.54 → 0.39