Filing Flows › Paychex (PAYX) › Q1 FY26
Paychex (PAYX) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed Sep 30, 2025
Paychex (PAYX) reported revenue of $1.5B for the first quarter fiscal 2026 (Q1 FY26), +17% from a year earlier and +8% from the quarter before. Operating margin was 35.2%, net earnings $384M (24.9% of revenue).
Paychex, Q1 FY26: revenue $1.5B (+17% year over year), operating margin 35.2%, net earnings $384M, operating cash flow $718M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.5B | +8% | +17% |
| Operating profit | $542M | +26% | -0.9% |
| Net earnings | $384M | +29% | -10% |
| Operating cash flow | $718M | +109% | +32% |
| Free cash flow | $662M | +134% | +30% |
What changed
Revenue was $1.5B in Q1 FY26, up 17% year over year and up 8% from the previous quarter.
Operating profit was $0.54B, a 35.2% margin (down 6.3 points year over year). Operating profit fell $4.8M even though revenue rose $0.22B versus a year earlier, so costs grew faster than sales. Total costs grew 29% against revenue growth of 17%. The fastest-growing cost line was SG&A (+49%). Net earnings were $0.38B, down 10% year over year. The effective tax rate was 22.9%.
Operating cash flow was $0.72B (up 32% year over year), 187% of net earnings. Non-cash charges added back $0.11B of depreciation and amortization and $0.03B of share-based compensation. Working capital and other items added $0.20B. Capital expenditures of $0.06B left free cash flow of $0.66B.
Questions
What was Paychex's revenue in the first quarter fiscal 2026?
Paychex (PAYX) reported revenue of $1.5B for the first quarter fiscal 2026 (Q1 FY26), +17% from a year earlier and +8% from the quarter before.
Was Paychex profitable in the first quarter fiscal 2026?
Operating profit was $542M (35.2% of revenue) and net earnings $384M.
Source: Paychex 10-Q on SEC EDGAR.