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Paychex cash flow, quarter by quarter

Latest: Q1 FY27 · from the cash-flow statements filed with the SEC

Free cash flow$357M in Q1 FY27 · $2.0B over twelve months

Operating cash flow$414M
Capital spending−$56.1M
Free cash flow+$357M
Cash / net income1.0×

Analysis

In Q1 FY27, Paychex generated $414M of operating cash flow and spent $56.1M on capital projects, leaving free cash flow of $357M. That is $305M less than in Q1 FY26 ($662M).

Over the twelve months to Aug 31, 2026, operating cash flow was $2.3B; the largest uses were dividends ($1.6B), other financing ($970M), buybacks ($451M); besides operations, cash came from other investing ($67.9M); the cash balance fell by $979M.

Operating cash flow was $414M against net income of $430M — 1.0× profit, roughly in line with earnings. The largest differences: depreciation & amortization +$110M, receivables −$73.3M, payables −$56.7M.

Free cash flow

Paychex: free cash flow by quarterPaychex: free cash flow by quarter$248MQ2 FY25$667MQ3 FY25$283MQ4 FY25$662MQ1 FY26$383MQ2 FY26$762MQ3 FY26$515MQ4 FY26$357MQ1 FY27
Operating cash flow less capital spending.
Paychex: operating cash flow against capital spendingPaychex: operating cash flow against capital spendingOperating cash flowCapital spending$295M$47.0MQ2 FY25$716M$48.7MQ3 FY25$344M$60.5MQ4 FY25$718M$55.9MQ1 FY26$445M$62.1MQ2 FY26$812M$51.0MQ3 FY26$581M$65.9MQ4 FY26$414M$56.1MQ1 FY27
Latest (Q1 FY27): Operating cash flow $414M, Capital spending $56.1M.

Capital allocation, year by year

Paychex: where the cash came from (up) and went (down), by fiscal yearPaychex: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingAsset salesCapital spendingAcquisitionsBuybacksDividendsFY22: Operating cash flow $1.6BFY22: Net borrowing $1.3MFY22: Asset sales $1.2MFY22: Capital spending −$134MFY22: Acquisitions −$24.9MFY22: Buybacks −$145MFY22: Dividends −$1.0B$1.6BFY22FY23: Operating cash flow $1.7BFY23: Net borrowing $2.0MFY23: Asset sales $16.7MFY23: Capital spending −$143MFY23: Acquisitions −$2.7MFY23: Dividends −$1.2B$1.7BFY23FY24: Operating cash flow $1.9BFY24: Net borrowing $9.0MFY24: Capital spending −$161MFY24: Acquisitions −$208MFY24: Buybacks −$169MFY24: Dividends −$1.3B$1.9BFY24FY25: Operating cash flow $1.9BFY25: Net borrowing $4.2BFY25: Capital spending −$192MFY25: Acquisitions −$3.0BFY25: Buybacks −$104MFY25: Dividends −$1.4B$6.1BFY25FY26: Operating cash flow $2.6BFY26: Net borrowing −$419MFY26: Capital spending −$235MFY26: Acquisitions −$400KFY26: Buybacks −$611MFY26: Dividends −$1.6B$2.6BFY26
Over these 5 years operating cash flow totalled $9.7B; the largest uses were dividends ($6.5B) and acquisitions ($3.2B). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$934M
Debt$4.6B
Net debt$3.6B

Paychex funds itself: free cash flow was $2.0B over the last twelve months, and $934M of cash and investments stands against $4.6B of debt.

Where the cash came from and went

Paychex: sources (+) and uses (−) of cash, Q1 FY27Paychex: sources (+) and uses (−) of cash, Q1 FY27Cash drawn (+) / kept (−)$829MOther financing−$482MDividends−$424MOperating cash flow$414MOther investing−$262MCapital spending−$56.1MAcquisitions−$18.1M
Paychex: sources (+) and uses (−) of cash, TTM to Q1 FY27Paychex: sources (+) and uses (−) of cash, TTM to Q1 FY27Operating cash flow$2.3BDividends−$1.6BCash drawn (+) / kept (−)$979MOther financing−$970MBuybacks−$451MCapital spending−$235MOther investing$67.9MAcquisitions−$18.3M

From profit to cash

Paychex: net income to operating cash flow, Q1 FY27Paychex: net income to operating cash flow, Q1 FY27Net income$430MDepreciation & amortization$110MStock-based pay$19.3MDeferred taxes$9.3MReceivables−$73.3MPayables−$56.7MPrepaid and other assets−$19.8MOperating cash flow$414M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.

Every quarter

QuarterOperating cash flowCapital spendingAcquisitionsBuybacksDividendsCash drawn (+) / kept (−)Free cash flow
Q1 FY27$414M−$56.1M−$18.1M—−$424M$829M$357M
Q4 FY26$581M−$65.9M—−$249M−$425M$1.4B$515M
Q3 FY26$812M−$51.0M−$100K−$75.0M−$388M−$1.0B$762M
Q2 FY26$445M−$62.1M−$100K−$126M−$388M−$239M$383M
Q1 FY26$718M−$55.9M−$200K−$160M−$389M$1.1B$662M
Q4 FY25$344M−$60.5M−$3.0B—−$389M−$341M$283M
Q3 FY25$716M−$48.7M——−$353M−$734M$667M
Q2 FY25$295M−$47.0M—−$500K−$353M$189M$248M

Paychex: income statement and cash flow

Paychex, Q1 FY27: revenue $1.6B (+6% year over year), operating margin 38.0%. The chart follows the revenue to costs, profit and cash.

Paychex: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.