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Paychex (PAYX) Q3 FY25 earnings results (third quarter fiscal 2025)
10-Q filed Mar 26, 2025
Paychex (PAYX) reported revenue of $1.5B for the third quarter fiscal 2025 (Q3 FY25), +5% from a year earlier and +15% from the quarter before. Operating margin was 45.8%, net earnings $519M (34.4% of revenue).
Paychex, Q3 FY25: revenue $1.5B (+5% year over year), operating margin 45.8%, net earnings $519M, operating cash flow $716M. The chart follows the revenue to costs, profit and cash.
| Q3 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.5B | +15% | +5% |
| Operating profit | $692M | +29% | +6% |
| Net earnings | $519M | +26% | +4% |
| Operating cash flow | $716M | +143% | +7% |
| Free cash flow | $667M | +169% | +6% |
What changed
Revenue was $1.5B in Q3 FY25, up 5% year over year and up 15% from the previous quarter.
Operating profit was $0.69B, a 45.8% margin (up 0.7 points year over year). Of the extra revenue versus a year earlier, 60% reached operating profit, above the 45% margin then. Total costs grew 4% against revenue growth of 5%. Net earnings were $0.52B, up 4% year over year. The effective tax rate was 24.3%.
Operating cash flow was $0.72B (up 7% year over year), 138% of net earnings. Non-cash charges added back $0.04B of depreciation and amortization and $0.02B of share-based compensation. Working capital and other items added $0.14B. Capital expenditures of $0.05B left free cash flow of $0.67B.
Questions
What was Paychex's revenue in the third quarter fiscal 2025?
Paychex (PAYX) reported revenue of $1.5B for the third quarter fiscal 2025 (Q3 FY25), +5% from a year earlier and +15% from the quarter before.
Was Paychex profitable in the third quarter fiscal 2025?
Operating profit was $692M (45.8% of revenue) and net earnings $519M.
Source: Paychex 10-Q on SEC EDGAR.