Paychex Inc (0KGE.L) Q4 2025 Earnings Report

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.