Filing Flows › Paychex (PAYX) › How it makes money
How Paychex (PAYX) makes money
Paychex (PAYX) made $1.6B of revenue in the first quarter fiscal 2027 (Q1 FY27), +6% from a year earlier. Of every dollar of revenue, 38¢ was left as operating profit, 26¢ was left as net earnings.
Drawing the Sankey…
Where each dollar of revenue goes
| Line | Q1 FY27 | % of revenue |
|---|---|---|
| Revenue | $1.6B | 100.0% |
| Operating profit | $619M | 38.0% |
| Income tax | $135M | 8.3% |
| Net earnings | $430M | 26.4% |
| Operating cash flow | $414M | 25.4% |
| Free cash flow | $357M | 21.9% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q1 FY27 | $1.6B | +6% |
| Q4 FY26 | $1.6B | +12% |
| Q3 FY26 | $1.8B | +20% |
| Q2 FY26 | $1.6B | +18% |
| Q1 FY26 | $1.5B | +17% |
| Q4 FY25 | $1.4B | +10% |
| Q3 FY25 | $1.5B | +5% |
From Paychex's 10-Q filed Sep 24, 2026 (on EDGAR).
Questions
How does Paychex make money?
Paychex (PAYX) made $1.6B of revenue in the first quarter fiscal 2027 (Q1 FY27), +6% from a year earlier. Of every dollar of revenue, 38¢ was left as operating profit, 26¢ was left as net earnings.
What is Paychex's profit margin?
Net earnings were $430M, 26.4% of revenue, in the first quarter fiscal 2027; the operating margin was 38.0%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.