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Paychex (PAYX) Q3 FY26 earnings results (third quarter fiscal 2026)

10-Q filed Mar 26, 2026

Paychex (PAYX) reported revenue of $1.8B for the third quarter fiscal 2026 (Q3 FY26), +20% from a year earlier and +16% from the quarter before. Operating margin was 43.8%, net earnings $560M (31.0% of revenue).

Revenue$1.8B
Year over year+20%
Quarter over quarter+16%
Operating margin43.8%
Net earnings$560M

Paychex, Q3 FY26: revenue $1.8B (+20% year over year), operating margin 43.8%, net earnings $560M, operating cash flow $812M. The chart follows the revenue to costs, profit and cash.

Q3 FY26AmountQ/QY/Y
Revenue$1.8B+16%+20%
Operating profit$792M+38%+14%
Net earnings$560M+42%+8%
Operating cash flow$812M+83%+13%
Free cash flow$762M+99%+14%

What changed

Revenue was $1.8B in Q3 FY26, up 20% year over year and up 16% from the previous quarter.

Operating profit was $0.79B, a 43.8% margin (down 2.1 points year over year). Of the extra revenue versus Q3 FY25, 33% reached operating profit, below the 46% margin then. Total costs grew 24% against revenue growth of 20%. The fastest-growing cost line was SG&A (+36%). Net earnings were $0.56B, up 8% year over year. The effective tax rate was 24.2%.

Operating cash flow was $0.81B (up 13% year over year), 145% of net earnings. Non-cash charges added back $0.11B of depreciation and amortization and $0.02B of share-based compensation. Working capital and other items added $0.12B. Capital expenditures of $0.05B left free cash flow of $0.76B.

Questions

What was Paychex's revenue in the third quarter fiscal 2026?

Paychex (PAYX) reported revenue of $1.8B for the third quarter fiscal 2026 (Q3 FY26), +20% from a year earlier and +16% from the quarter before.

Was Paychex profitable in the third quarter fiscal 2026?

Operating profit was $792M (43.8% of revenue) and net earnings $560M.

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Source: Paychex 10-Q on SEC EDGAR.