0KGE.L
Paychex Inc
Q1 2026 Report
Paychex Inc (0KGE.L) QQ1 2026 Results: Revenue Growth, Robust Free Cash Flow and Margin Stability...
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Executive Summary
Paychex Inc reported robust revenue growth of $1.43 billion in Q4 2025, up 10.21% year-over-year, while facing a 5.41% decrease from the previous quarter. Despite this revenue growth, the company's profitability faced significant pressure, with net income dropping by 21.77% YoY to $297 million and diluted EPS at $0.82—a decline of 22.64% from the prior year. Management noted that increased operational costs and rising inflationary pressures have adversely impacted margins. Although the revenue performance indicates resilience, the market should closely monitor the declining profit margins as the company navigates a competitive landscape and evolving market conditions.
Key Performance Indicators
Revenue
1.43B
QoQ: -5.41% | YoY:10.21%
Gross Profit
1.03B
72.40% margin
QoQ: -7.86% | YoY:12.34%
Operating Income
431.10M
QoQ: -37.68% | YoY:-10.52%
Net Income
297.20M
QoQ: -42.77% | YoY:-21.77%
EPS
0.82
QoQ: -43.06% | YoY:-22.64%
Revenue Trend
Margin Analysis
Key Insights
**Revenue Growth:** Paychex achieved total revenue of $1.43 billion, reflecting a strong year-over-year growth of 10.21%, albeit a 5.41% quarter-over-quarter decline. <br> **Profitability Metrics:** The net income for the quarter was $297 million, leading to a net income margin of 20.82%, down from previous highs, indicating pressure on profitability. <br> **Earnings Per Share (EPS):** EPS remained at $0.82, down 22.64% YoY, which highlights challenges in maintaining profitability am...