Paychex reported slightly better-than-expected quarterly profit on Tuesday and raised its full-year earnings growth forecast, but its shares fell 5% in premarket trading.
The payroll and HR software maker posted earnings of $1.22 per share for the first quarter ended Aug. 31, beating analysts’ estimates of $1.20.
Revenue was $1.54 billion, in line with expectations.
The company said it expects adjusted diluted earnings per share to grow 9% to 11% in fiscal 2026.
Chief Executive John Gibson said the results showed “continued progress integrating Paycor” following its recent acquisition and highlighted early cost and revenue synergies.
He added that investments in artificial intelligence and other technology were improving efficiency and strengthening Paychex’s position with clients.
“Our ongoing strategic investments in AI and technology are driving meaningful innovation, elevating the client experience and delivering operational efficiency. We believe these continued advancements uniquely position us to help our clients navigate today’s complex labor and regulatory landscape while delivering long-term value to our shareholders," said CEO Gibson.
Source :
https://www.investing.com/news/earnings/paychex-edges-past-profit-estimate-revenue-inline-4263701
