Paychex's third quarter 2026 revenue grew 20%, with adjusted EPS beating estimates, driven by the Paycor acquisition.

Paychex reported third quarter revenue of $1.81 billion, a 20% increase year-over-year, and adjusted diluted earnings per share of $1.71, up 15%. The results were primarily driven by the inclusion of the recently acquired Paycor, which significantly boosted the Management Solutions segment.

Key Highlights

• Management Solutions revenue, a key investor focus, grew 23% to $1.4 billion, meeting analyst expectations. The acquisition of Paycor contributed approximately 19 percentage points to this growth.
• PEO and Insurance Solutions revenue increased 9% to $397.5 million, supported by growth in the number of average worksite employees.
• The company updated its full-year 2026 outlook for interest on funds held for clients, now expecting it to be in the range of $200 million to $210 million, while all other guidance remains unchanged.