By Connor Hart
Paychex logged higher profit and revenue in its fiscal third quarter as businesses turned to the company for help navigating a complex regulatory and economic environment.
The human resources, payroll, and employee‑benefits outsourcing company on Wednesday posted a profit of $560.3 million, or $1.56 a share, for its quarter ended Feb. 28. That is up from $519.3 million, or $1.43 a share, a year earlier.
Stripping out one-time items, earnings were $1.71 a share. Analysts polled by FactSet expected adjusted earnings of $1.67 a share.
Revenue jumped 20% to $1.81 billion, just ahead of the $1.78 billion that Wall Street modeled.
Management solutions revenue increased 23% to $1.35 billion, boosted by growth in the number of clients served as well as higher revenue per client. Professional employer organization and insurance solutions revenue was up 9% to $397.5 million.
Chief Executive John Gibson said clients are increasingly relying on Paychex to navigate compliance-heavy HR and workforce challenges.
"We continue to drive investment and innovation in all areas of our business model to take full advantage of the power of AI to further enhance our leadership position in human capital management," he added.
Looking ahead, Paychex backed its outlook for adjusted earnings per share growth of 10% to 11%. Total revenue is anticipated to grow in the range of 16.5% to 18.5%.
Shares climbed 4.1%, to $94.29, in premarket trading.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
March 25, 2026 09:12 ET (13:12 GMT)
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