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Paychex (PAYX) Reports Q2 Earnings: What Key Metrics Have to Say

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For the quarter ended November 2025, Paychex (PAYX - Free Report) reported revenue of $1.56 billion, up 18.3% over the same period last year. EPS came in at $1.26, compared to $1.14 in the year-ago quarter.

The reported revenue represents a surprise of +0.22% over the Zacks Consensus Estimate of $1.55 billion. With the consensus EPS estimate being $1.24, the EPS surprise was +1.61%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Paychex performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
  • Average investment Balance - Funds held for clients: $5.35 billion versus the three-analyst average estimate of $5.22 billion.
  • Average interest rates earned (exclusive of net realized gains) - Funds held for clients: 3.5% versus the three-analyst average estimate of 3.4%.
  • Average investment Balance - Corporate cash equivalents and investments: $1.68 billion compared to the $1.55 billion average estimate based on two analysts.
  • Average interest rates earned (exclusive of net realized gains) - Corporate cash equivalents and investments: 3.9% versus the two-analyst average estimate of 4.1%.
  • Revenue- Management Solutions: $1.17 billion compared to the $1.18 billion average estimate based on five analysts. The reported number represents a change of +21.1% year over year.
  • Revenue- Interest on funds held for clients: $54.3 million versus $45.65 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +50.4% change.
  • Revenue- Total service revenue: $1.5 billion versus $1.51 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +17.4% change.
  • Revenue- PEO and Insurance Solutions: $336.9 million versus the five-analyst average estimate of $330.83 million. The reported number represents a year-over-year change of +6%.

View all Key Company Metrics for Paychex here>>>

Shares of Paychex have returned +0.7% over the past month versus the Zacks S&P 500 composite's +3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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