Paychex, Inc. (PAYX) Income Statement

30Y historyFree accessUpdated daily

Revenue growth has normalized to 5.9% in 2027Q1 from a peak of 19.9%, while operating margin remains volatile at 38.0% due to fluctuations in stock-based compensation and SG&A.

Annual statement

PAYX Income Statement

Paychex, Inc. (PAYX) annual income statement — 30-year revenue, gross profit & net income history

Annual Quarterly

Metric	TTM	May'26	May'25	May'24	May'23	May'22	May'21	May'20	May'19	May'18	May'17	May'16	May'15	May'14	May'13	May'12	May'11	May'10	May'09	May'08	May'07	May'06	May'05	May'04	May'03	May'02	May'01	May'00	May'99	May'98	May'97

Sales/Revenue	6.6B	6.51B	5.57B	5.28B	5.01B	4.61B	4.06B	4.04B	3.77B	3.38B	3.15B	2.95B	2.74B	2.52B	2.33B	2.23B	2.08B	2B	2.08B	2.07B	1.89B	1.67B	1.45B	1.29B	1.05B	954.91M	869.86M	728.12M	1.18B	993.4M	734.7M
Revenue Growth %	13.97%	16.88%	5.56%	5.42%	8.57%	13.68%	0.4%	7.1%	11.58%	7.29%	6.75%	7.75%	8.76%	8.28%	4.32%	6.98%	4.17%	-3.93%	0.8%	9.51%	12.68%	15.88%	11.65%	23.74%	9.54%	9.78%	19.47%	-38.05%	18.32%	35.21%	125.85%
Cost of Goods Sold	1.69B	1.67B	1.54B	1.48B	1.45B	1.36B	1.27B	1.28B	1.18B	1.02B	919.6M	857.1M	808M	732.5M	671.3M	680.8M	653.6M	653.59M	680.52M	660.74M	615.48M	560.25M	329.51M	303.44M	257.65M	220.7M	200.35M	137M	697.2M	604.2M	428.6M
COGS % of Revenue	-	25.71%	27.65%	28.03%	29.02%	29.41%	31.34%	31.7%	31.22%	30.1%	29.18%	29.04%	29.49%	29.08%	28.86%	30.53%	31.36%	32.67%	32.67%	31.98%	32.62%	33.46%	22.8%	23.44%	24.63%	23.11%	23.03%	18.82%	59.32%	60.82%	58.34%
Gross Profit	4.91B	4.84B	4.03B	3.8B	3.55B	3.26B	2.79B	2.76B	2.59B	2.36B	2.23B	2.09B	1.93B	1.79B	1.65B	1.55B	1.43B	1.35B	1.4B	1.41B	1.27B	1.11B	1.12B	990.91M	788.38M	734.21M	669.5M	591.12M	478.2M	389.2M	306.1M
Gross Margin %	74.39%	74.29%	72.35%	71.97%	70.98%	70.59%	68.66%	68.3%	68.78%	69.9%	70.82%	70.96%	70.51%	70.92%	71.14%	69.47%	68.64%	67.33%	67.33%	68.02%	67.38%	66.54%	77.2%	76.56%	75.37%	76.89%	76.97%	81.18%	40.68%	39.18%	41.66%
Gross Profit Growth %	-	20%	6.11%	6.89%	9.18%	16.87%	0.94%	6.36%	9.8%	5.89%	6.54%	8.45%	8.13%	7.95%	6.84%	8.27%	6.2%	-3.92%	-0.24%	10.55%	14.1%	-0.12%	12.59%	25.69%	7.38%	9.67%	13.26%	23.61%	22.87%	27.15%	26.28%
Operating Expenses	2.32B	2.33B	1.82B	1.62B	1.52B	1.42B	1.32B	1.3B	1.22B	1.08B	992.1M	948.2M	878M	803.7M	750.1M	695.1M	644.3M	622.44M	597.04M	577.32M	569.94M	464.59M	581.86M	557.6M	387.34M	370.52M	332.8M	332.23M	290.7M	254.6M	209.5M
OpEx % of Revenue	-	35.73%	32.73%	30.78%	30.38%	30.69%	32.66%	32.15%	32.43%	31.81%	31.48%	32.12%	32.05%	31.91%	32.25%	31.17%	30.91%	31.11%	28.67%	27.94%	30.2%	27.74%	40.26%	43.08%	37.03%	38.8%	38.26%	45.63%	24.73%	25.63%	28.52%
Selling, General & Admin	2.32B	2.33B	1.82B	1.62B	1.52B	1.42B	1.32B	1.3B	1.22B	1.08B	992.1M	948.2M	878M	803.7M	750.1M	695.1M	644.3M	622.44M	597.04M	577.32M	569.94M	464.77M	581.86M	557.6M	440.39M	370.52M	332.8M	295.75M	257.8M	227.3M	188.1M
SG&A % of Revenue	-	35.73%	32.73%	30.78%	30.38%	30.69%	32.66%	32.15%	32.43%	31.81%	31.48%	32.12%	32.05%	31.91%	32.25%	31.17%	30.91%	31.11%	28.67%	27.94%	30.2%	27.75%	40.26%	43.08%	42.1%	38.8%	38.26%	40.62%	21.93%	22.88%	25.6%
Research & Development	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	-180K	0	0	-53.05M	0	0	36.48M	32.9M	27.3M	21.4M
Operating Income	2.59B	2.51B	2.21B	2.17B	2.03B	1.84B	1.46B	1.46B	1.37B	1.29B	1.24B	1.15B	1.05B	982.7M	904.8M	853.9M	786.4M	724.79M	805.2M	828.27M	701.55M	649.75M	533.77M	433.31M	401.04M	363.69M	336.7M	258.89M	187.5M	134.6M	96.6M
Operating Margin %	39.19%	38.55%	39.62%	41.19%	40.6%	39.9%	36.01%	36.15%	36.35%	38.08%	39.34%	38.84%	38.46%	39.01%	38.9%	38.29%	37.73%	36.22%	38.66%	40.08%	37.18%	38.8%	36.94%	33.48%	38.34%	38.09%	38.71%	35.56%	15.95%	13.55%	13.15%
Operating Income Growth %	-	13.72%	1.55%	6.94%	10.49%	25.97%	0.01%	6.5%	6.51%	3.86%	8.11%	8.83%	7.21%	8.61%	5.96%	8.58%	8.5%	-9.99%	-2.79%	18.06%	7.97%	21.73%	23.18%	8.05%	10.27%	8.02%	30.05%	38.08%	39.3%	39.34%	43.11%
EBITDA	3.03B	2.95B	2.42B	2.35B	2.21B	2.03B	1.65B	1.67B	1.55B	1.43B	1.37B	1.26B	1.16B	1.09B	1B	951.7M	875.1M	811.24M	913.93M	927.91M	798.53M	744.16M	625.63M	516.11M	465.6M	411.09M	375.84M	295.38M	220.4M	161.9M	118M
EBITDA Margin %	45.91%	45.35%	43.38%	44.53%	44.13%	44.06%	40.74%	41.34%	41.16%	42.16%	43.36%	42.74%	42.35%	43.18%	43.12%	42.68%	41.99%	40.55%	43.88%	44.91%	42.32%	44.44%	43.29%	39.87%	44.51%	43.05%	43.21%	40.57%	18.75%	16.3%	16.06%
EBITDA Growth %	22.08%	22.17%	2.83%	6.38%	8.76%	22.94%	-1.05%	7.56%	8.93%	4.32%	8.31%	8.75%	6.67%	8.44%	5.39%	8.75%	7.87%	-11.24%	-1.51%	16.2%	7.31%	18.95%	21.22%	10.85%	13.26%	9.38%	27.24%	34.02%	36.13%	37.2%	44.96%
D&A (Non-Cash Add-back)	443.1M	442.6M	209.5M	176.5M	176.6M	191.8M	192M	209.7M	181.5M	138M	126.9M	115.1M	106.6M	105M	98.2M	97.8M	88.7M	86.44M	108.73M	99.65M	96.99M	94.41M	91.86M	82.79M	64.56M	47.39M	39.14M	36.48M	32.9M	27.3M	21.4M
EBIT	2.62B	2.51B	2.28B	2.26B	2.08B	1.86B	1.47B	1.46B	1.38B	1.29B	1.26B	1.15B	1.06B	989.2M	911.5M	860.4M	786.4M	729.31M	729.75M	696.48M	701.55M	649.75M	546.17M	433.31M	401.04M	363.69M	336.7M	258.89M	187.56M	134.7M	96.6M
Net Interest Income	-232.5M	-269.5M	-32.6M	45.4M	12.4M	-33.7M	-33.5M	-26.5M	-4.3M	8M	7.4M	7.3M	7.1M	5.8M	6.6M	6.4M	48.1M	55.03M	75.45M	131.79M	0	0	0	0	0	0	0	0	0	0	0
Interest Income	33.9M	0	72.8M	82.7M	49.1M	2.9M	2.3M	12.3M	13.3M	11.9M	9.9M	8.4M	7.8M	6.9M	6.7M	6.5M	48.1M	55.03M	75.45M	131.79M	0	0	0	0	0	0	0	0	0	0	0
Interest Expense	266.4M	269.5M	105.4M	37.3M	36.7M	36.6M	35.8M	38.8M	17.6M	3.9M	2.5M	1.1M	700K	1.1M	100K	100K	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Other Income/Expense	-209.4M	-199.6M	-31.8M	43.9M	15.1M	-15.4M	-26.5M	-23.4M	-3.3M	8.6M	-9.1M	4.5M	6.4M	5.4M	6.6M	6.4M	5.8M	4.51M	6.88M	26.55M	43.42M	26.09M	12.39M	16.47M	30.5M	31.32M	27.28M	16.48M	12.6M	9.6M	7.1M
Pretax Income	2.38B	2.31B	2.18B	2.22B	2.05B	1.82B	1.43B	1.44B	1.37B	1.3B	1.24B	1.15B	1.06B	988.1M	911.4M	860.3M	792.2M	729.31M	812.08M	854.82M	743.27M	674.77M	546.17M	449.78M	431.54M	395.01M	363.98M	275.37M	200.1M	144.2M	103.7M
Pretax Margin %	36.02%	35.49%	39.05%	42.02%	40.91%	39.56%	35.35%	35.57%	36.26%	38.34%	39.5%	39%	38.69%	39.23%	39.18%	38.58%	38.01%	36.45%	38.99%	41.37%	39.39%	40.29%	37.79%	34.75%	41.26%	41.37%	41.84%	37.82%	17.02%	14.52%	14.11%
Income Tax	572.4M	550.8M	518.6M	527.6M	490.9M	431.8M	336.7M	339M	333.6M	362.4M	427.5M	394.3M	385.1M	360.6M	342.4M	312.3M	276.9M	252.31M	278.53M	278.67M	227.82M	209.85M	177.32M	146.83M	138.09M	120.48M	109.11M	85.36M	61M	42M	28.5M
Effective Tax Rate %	24.07%	23.83%	23.83%	23.79%	23.97%	23.67%	23.48%	23.59%	24.39%	27.96%	34.34%	34.25%	36.33%	36.49%	37.57%	36.3%	34.95%	34.6%	34.3%	32.6%	30.65%	31.1%	32.47%	32.65%	32%	30.5%	29.98%	31%	30.48%	29.13%	27.48%
Net Income	1.81B	1.76B	1.66B	1.69B	1.56B	1.39B	1.1B	1.1B	1.03B	933.7M	817.3M	756.8M	674.9M	627.5M	569M	548M	515.3M	477M	533.54M	576.14M	515.45M	464.91M	368.85M	302.95M	293.45M	274.53M	254.87M	190.01M	139.1M	102.2M	75.2M
Net Margin %	27.35%	27.03%	29.74%	32.03%	31.1%	30.2%	27.05%	27.18%	27.42%	27.62%	25.94%	25.64%	24.64%	24.91%	24.46%	24.58%	24.72%	23.84%	25.62%	27.88%	27.32%	27.76%	25.52%	23.41%	28.05%	28.75%	29.3%	26.1%	11.83%	10.29%	10.24%
Net Income Growth %	11.92%	6.2%	-1.96%	8.55%	11.81%	26.91%	-0.05%	6.16%	10.79%	14.24%	7.99%	12.14%	7.55%	10.28%	3.83%	6.35%	8.03%	-10.6%	-7.39%	11.78%	10.87%	26.04%	21.75%	3.24%	6.89%	7.71%	34.14%	36.6%	36.11%	35.9%	43.79%
Net Income (Continuing)	1.81B	1.76B	1.66B	1.69B	1.56B	1.39B	1.1B	1.1B	1.03B	994.1M	817.3M	756.8M	674.9M	627.5M	569M	548M	515.3M	477M	533.54M	576.14M	515.45M	464.91M	368.85M	302.95M	293.45M	274.53M	254.87M	190.01M	139.1M	102.22M	75.2M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)	5.06	4.89	4.58	4.67	4.30	3.84	3.03	3.04	2.86	2.58	2.25	2.09	1.85	1.71	1.56	1.51	1.42	1.32	1.48	1.56	1.35	1.22	0.97	0.80	0.78	0.73	0.68	0.51	0.38	0.28	0.21
EPS Growth %	13.03%	6.77%	-1.93%	8.6%	11.98%	26.73%	-0.33%	6.29%	10.85%	14.67%	7.66%	12.97%	8.19%	9.62%	3.31%	6.34%	7.58%	-10.81%	-5.13%	15.56%	10.66%	25.77%	21.25%	2.56%	6.85%	7.35%	33.33%	34.21%	35.71%	33.33%	40%
EPS (Basic)	-	4.90	4.60	4.69	4.32	3.86	3.05	3.06	2.88	2.60	2.27	2.10	1.86	1.72	1.56	1.51	1.42	1.32	1.48	1.56	1.35	1.23	0.97	0.80	0.78	0.73	0.68	0.51	0.25	0.28	0.21
Diluted Shares Outstanding	356.6M	360M	362M	362.1M	362.3M	363.1M	362.1M	361M	361.8M	361.5M	362.6M	362.5M	364.6M	366.1M	364.7M	363M	362.4M	361.73M	360.99M	369.53M	382.8M	381.35M	379.76M	378.69M	378.08M	378M	377.51M	375.08M	369.89M	367.31M	366.25M
Basic Shares Outstanding	355.8M	358.9M	360.2M	360.3M	360.4M	360.6M	359.9M	358.5M	359.2M	359M	359.8M	360.7M	362.9M	364.5M	363.8M	362.4M	361.8M	361.36M	360.78M	368.42M	381.15M	379.46M	378.34M	377.22M	376.26M	374.75M	372.78M	370.6M	369.69M	367.09M	366.25M
Dividend Payout Ratio	-	90.31%	87.4%	77.81%	75.45%	71.77%	82.8%	80.99%	79.93%	79.22%	81.04%	80.14%	81.76%	81.37%	83.78%	84.03%	87.09%	94.04%	83.92%	76.74%	58.46%	49.81%	52.32%	58.56%	56.38%	57.36%	48.3%	42.94%	38.86%	35.1%	32.05%

Key Metrics

Growth RegimeDecelerating

ProfitabilityModerate

Balance SheetStrained

Cash FlowStable

Top Statement Risk

Growth Deceleration & Rate Sensitivity

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2027Q1)

Revenue Growth Normalizing Post Surge

Paychex's organic revenue growth decelerated to 5.9% year-over-year in the latest quarter, according to reported financials, down sharply from a peak of 19.9% in Q3 2026, suggesting a return to more sustainable, albeit slower, expansion rates.

This deceleration appears to reflect a combination of tougher year-over-year comparisons and a potential cooling in the small-business hiring environment that drives transactional fees. The durability of the company's growth now hinges more on pricing power and the upsell of HR complexity solutions than on pure employment expansion.

Gross Margin Resilience Amidst SG&A Volatility

Paychex's structural gross margin remains robust at approximately 74%, as seen in the income statement data, while operating margin has swung between 30.2% and 45.8% over the past ten quarters, pointing to SG&A management as the key near-term profit driver.

The stable high gross margin confirms the value of the company's embedded, compliance-driven model and suggests strong pricing power. However, the wide operating margin volatility implies that profitability is highly sensitive to the timing and control of selling and administrative spending, which warrants close monitoring for signs of expense discipline.

Stock-Based Comp Obscures Underlying Earnings

Reported net income was impacted by stock-based compensation charges as high as $52.3 million in a single quarter (Q2 2026), per financial statements, which caused net margin to compress to 25.4% from 31.4% in the prior quarter, highlighting a key non-cash earnings detractor.

The fluctuating impact of SBC suggests that reported EPS may not consistently reflect the cash-generating power of operations. Investors should track the adjusted earnings trend, excluding such charges, to assess the true operational performance and the dilutive effect on shareholders over time.

Operating Leverage Demonstrated in Recent Quarters

From 2025Q4 to 2027Q1, Paychex grew revenue by approximately 14% while increasing operating income by over 43%, based on income statement figures, demonstrating significant operating leverage as fixed costs were spread over a larger revenue base.

This leverage suggests that incremental revenue is flowing through to operating income at a high rate, which is characteristic of a scalable software and service model. The key question is whether this leverage will persist as growth moderates and the company potentially needs to reinvest more heavily to fend off competition.

Personnel-Driven Cost Base Requires Monitoring

Cost of goods sold (COGS) as a percentage of revenue has remained stable at around 26%, according to the provided data, but the absolute dollar growth in SG&A indicates that personnel expenses, the primary cost driver, are rising in tandem with revenue.

The company's 'high-touch' service model inherently ties a large portion of its cost structure to headcount. As wage inflation persists, management's ability to gain efficiency through automation and platform migration will be critical to protecting margins, as noted in the company intelligence.

Interest Rate Tailwind May Be Peaking

Paychex's net margin improvement is partly reliant on higher yields from client funds, but a potential peak in interest rates could remove this tailwind, creating a headwind to earnings growth if organic revenue acceleration does not compensate, as inferred from the financial data.

The analysis suggests that the market may be over-attributing the recent profitability improvement to operational excellence rather than the transient benefit of a higher-rate environment. Any reduction in the yield on funds held for clients would directly pressure net income, testing the resilience of the core business growth.

PAYX — Frequently Asked Questions

Quick answers to the most common questions about buying PAYX stock.

What was Paychex, Inc.'s (PAYX) revenue in 2026?

For fiscal year 2026, Paychex, Inc. (PAYX) reported total revenue of $6.51B. This represents a 786.3% increase compared to $734.7M in 1997.

Is Paychex, Inc. (PAYX) profitable?

Paychex, Inc. (PAYX) is profitable, generating $1.76B in net income for the fiscal year ending 2026 with a net profit margin of 27.0%.

What is Paychex, Inc.'s operating profit margin?

Paychex, Inc. (PAYX) reported an operating income of $2.51B, resulting in an operating profit margin of 38.6%. This margin reflects the operational efficiency of the business before interest and taxes.

What is Paychex, Inc.'s gross profit and gross margin?

Paychex, Inc. (PAYX) generated $4.84B in gross profit for the year, representing a gross profit margin of 74.3%. This demonstrates the company's core pricing power and production efficiency.