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Paychex (PAYX) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed Dec 22, 2025
Paychex (PAYX) reported revenue of $1.6B for the second quarter fiscal 2026 (Q2 FY26), +18% from a year earlier and +1% from the quarter before. Operating margin was 36.7%, net earnings $395M (25.4% of revenue).
Paychex, Q2 FY26: revenue $1.6B (+18% year over year), operating margin 36.7%, net earnings $395M, operating cash flow $445M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.6B | +1% | +18% |
| Operating profit | $572M | +6% | +6% |
| Net earnings | $395M | +3% | -4% |
| Operating cash flow | $445M | -38% | +51% |
| Free cash flow | $383M | -42% | +54% |
What changed
Revenue was $1.6B in Q2 FY26, up 18% year over year and up 1% from the previous quarter.
Operating profit was $0.57B, a 36.7% margin (down 4.1 points year over year). Of the extra revenue versus a year earlier, 14% reached operating profit, below the 41% margin then. Total costs grew 27% against revenue growth of 18%. The fastest-growing cost line was SG&A (+43%). Net earnings were $0.40B, down 4% year over year. The effective tax rate was 24.0%.
Operating cash flow was $0.44B (up 51% year over year), 113% 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 used $0.09B. Capital expenditures of $0.06B left free cash flow of $0.38B.
Questions
What was Paychex's revenue in the second quarter fiscal 2026?
Paychex (PAYX) reported revenue of $1.6B for the second quarter fiscal 2026 (Q2 FY26), +18% from a year earlier and +1% from the quarter before.
Was Paychex profitable in the second quarter fiscal 2026?
Operating profit was $572M (36.7% of revenue) and net earnings $395M.
Source: Paychex 10-Q on SEC EDGAR.