NASDAQ$PAYX

Paychex Inc · Q2 2025 earnings

Q2 2025 earnings · · Investor relations

Briefing

Reported strong financial results with revenue and earnings growth, driven by solid demand for solutions and strategic use of technology.

Paychex reported a 5% increase in total revenue for the second quarter of fiscal year 2025. Diluted earnings per share grew by 6%, and operating margins expanded by approximately 60 basis points. The company returned $810 million to stockholders in the first half of fiscal 2025.

  • Total revenue increased by 5% to $1.3 billion.
  • Management Solutions revenue increased 3% to $962.9 million.
  • PEO and Insurance Solutions revenue increased 7% to $317.9 million.
  • Interest on funds held for clients increased 15% to $36.1 million.

Headline financials

Total Revenue

$1.32B

Previous: $1.26B+4.7%
EPS

$1.14

Previous: $1.08+5.6%
Operating Margin

40.9%

Previous: 40.2%+1.7%
Adjusted Operating Margin

40.9%

No prior period
Adjusted Operating Income

$538M

No prior period
Effective Income Tax Rate

24.0%

No prior period
Capital Expenditures

-$82.6M

Previous: -$79.4M-4.0%
Free Cash Flow

$758M

Previous: $313M+142.0%
Net Income

$841M

Previous: $393M+114.1%
Operating Income

$538M

Previous: $506M+6.3%
Gross Profit

$938M

Previous: $894M+4.9%
Cash & Equivalents

$1.2B

Previous: $1.36B-11.8%
Total Assets

$10.6B

Previous: $12.1B-12.4%
Stock-Based Comp

$16.4M

Previous: $14.7M+11.6%

Revenue & EPS history

Paychex · Revenue · Quarterly

$1.32B

Q2 2025+4.7%vs Q2 2024
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Paychex · $1.26B total across 3 segments · Q2 2024

  • Management Solutions
    $931M+4.0%
  • PEO and Insurance Solutions
    $296M+8.2%
  • Interest on Client Funds
    $31.5M+45.2%

Forward guidance

The business outlook for fiscal year 2025 remains unchanged from what was previously provided in the first quarter, incorporating current assumptions and market conditions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

-0.6%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.1%

Avg return

30 days after

36%

26 / 72 earnings

Positive

+10.2%

Q3 2020

Best reaction

-6.3%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-0.5%+2.7%
Q2 2026-1.7%+0.3%-2.7%
Q1 2026-1.3%-3.0%-8.8%
Q4 2025-2.5%-0.6%-4.7%
Q3 2025+4.2%+7.0%-0.6%
Q2 2025+2.7%+4.1%+7.7%
Q1 2025+4.9%+3.3%+3.8%
Q4 2024-5.8%-6.4%+0.6%
Q3 2024-1.1%+0.6%-2.6%
Q2 2024-6.3%-6.0%-4.5%
Q1 2024+3.9%+0.9%-2.8%
Q4 2023+1.0%+0.7%+14.3%
Q3 2023+4.2%+2.2%+0.8%
Q2 2023+1.1%+0.3%+2.8%
Q1 2023+0.1%+1.4%+5.7%
Q4 2022-5.0%-2.9%+7.0%
Q3 2022+3.0%+5.1%-4.4%
Q2 2022+6.2%+7.3%-6.1%
Q1 2022+6.8%+8.3%+14.3%
Q4 2021+2.5%+2.9%+7.6%
Q3 2021-5.5%-4.0%+1.2%
Q2 2021-2.0%-2.4%-10.1%
Q1 2021-1.1%+1.2%+6.3%
Q4 2020-4.2%-5.8%-6.7%
Q3 2020+10.2%+8.2%+14.3%
Q2 2020-0.2%-0.4%+3.6%
Q1 2020+0.8%+1.3%+2.4%
Q4 2019-3.2%-1.5%+2.1%
Q3 2019-1.3%+1.0%+4.6%
Q2 2019+1.0%-4.2%+8.7%
Q1 2019-0.7%-1.1%-11.8%
Q4 2018-1.5%-1.4%+2.8%
Q3 2018-3.1%-0.2%-2.8%
Q2 2018-1.3%-0.5%+0.4%
Q1 2018+4.7%+6.4%+7.9%
Q4 2017-3.3%-3.6%-1.5%
Q3 2017-2.4%-3.5%-2.1%
Q2 2017-0.7%-0.3%-0.7%
Q1 2017-5.2%-4.7%-8.7%
Q4 2016+5.9%+7.0%+5.6%
Q3 2016-0.9%
Q2 2016+2.6%
Q1 2016+4.6%
Q4 2015+1.6%
Q3 2015-4.5%
Q2 2015-1.5%
Q1 2015+3.0%
Q4 2014-1.0%
Q3 2014+0.1%
Q2 2014+4.7%
Q1 2014-0.9%
Q4 2013-2.7%
Q3 2013+0.6%
Q2 2013-2.3%
Q1 2013-3.3%
Q4 2012-2.5%
Q3 2012-2.3%
Q2 2012-0.5%
Q1 2012+1.3%
Q4 2011-3.6%
Q3 2011-3.0%
Q2 2011-1.1%
Q1 2011+2.0%
Q4 2008-1.8%
Q4 2010-1.8%
Q3 2009-5.2%
Q3 2010-5.2%
Q2 2010-3.0%
Q1 2009-5.1%
Q1 2010-5.1%
Q4 2009-5.1%
Q2 2009-5.1%

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