On this page of StockholderLetter.com we present the latest annual shareholder letter from PAYCHEX INC — ticker symbol PAYX. Reading current and past PAYX letters to shareholders can bring important insights into the investment thesis.
2026 |
$4,612 FY22 $5,007 $5,278 $5,572 $6,512 $1,840 FY23 FY24 10% $4.27 FY25 FY26 17% 5-Year CAGR FY26 Growth $4.72 $4.98 FY23 13% 5-Year CAGR FY24 FY25 FY22 $2,033 FY23 $2,214 $2,370 FY24 FY25 14% FY26 11% FY26 Growth FY26 19% 5-Year CAGR FY26 Growth $5.51 $3.77 FY22 $2,815 $2,201 $1,145 $1,175 FY22 FY23 16% 5-Year CAGR $1,485 $1,553 FY24 FY25 FY26 42% FY26 Growth
A Letter from our President and CEO Fellow Shareholders, Fiscal 2026 was a transformative year for Paychex. We delivered strong financial results, advanced our strategic priorities, and strengthened our position as a leading provider of AI-driven human capital management (HCM) solutions. We did so while staying focused on helping customers succeed, investing in our people and culture, and creating long-term shareholder value. Our fiscal 2026 results demonstrate the strength of our business model and the discipline of our execution. We delivered double-digit revenue and earnings growth and exceeded the Rule of 50, reinforcing our ability to balance growth and profitability at scale. As best operators, we maintained industry-leading profitability while continuing to invest in future growth. A key priority this year was strengthening our leadership at the forefront of data and AI innovation. We believe Paychex is uniquely positioned to harness the power of AI through rich proprietary data, deep domain expertise, and trusted customer relationships. Across the business, we accelerated investments in practical, client-centered AI-driven capabilities. During the year, we introduced Workforce Intelligence Strengthened by Expertise (WISE), our agentic AI engine, further strengthening our ability to deliver smarter insights, greater efficiency, and better outcomes for customers. We also advanced our strategy of moving upmarket while successfully integrating Paycor. This acquisition expands our addressable market, sharpens our competitive advantage, and strengthens our ability to serve a broader range of organizations. We are building on the strength of three award-winning HCM platforms SurePayroll , Paychex Flex and Paycor each purpose-built to serve distinct market segments, supported by a modern, highly efficient infrastructure. We are encouraged by our progress and remain confident in the long-term value this combination can create for customers and shareholders alike. Another important differentiator is our advisory strength. In a dynamic and increasingly complex environment, customers want more than technology alone. They want a trusted partner with the service, expertise, and insight to help them navigate workforce challenges, manage regulatory complexity, and achieve better outcomes. That combination continues to set Paychex apart and remains an important driver of client loyalty and long-term growth. Underpinning our strategy is a clear and consistent commitment to strong client outcomes, a high-performance culture, and sustainable shareholder value. In fiscal 2026, we returned $2.2 billion to shareholders through dividends and share repurchases. As we look ahead, we enter fiscal 2027 with momentum, a more differentiated portfolio, and a clear strategy for growth. We believe Paychex is well-positioned to build on this momentum and continue delivering sustainable growth and long-term value. Thank you for your continued support and confidence in Paychex. John B. Gibson, President and Chief Executive Officer Paychex Annual Report 2026 | 1
Driving Business Success with Expert-enabled Technology Solutions At Paychex, our mission is simple: helping businesses succeed. That mission shapes our strategy, guides our investments, and defines how we support customers every day. In a dynamic environment shaped by regulatory change, cost pressures, and intensifying competition for talent, businesses increasingly need a trusted partner to help them navigate these challenges with confidence. Paychex helps clients succeed by bringing together expert-enabled solutions that enhance decisionmaking, increase efficiency, and deliver better outcomes so they can focus on what matters most: their business and their people. What sets us apart is the combination of our comprehensive HCM solutions, deep HR expertise, and unrivaled intelligence. Together, these strengths enable us to serve as a strategic partner to clients seeking more than transactional software. 2
Empowering Businesses Across the Workforce Lifecycle Paychex offers a broad range of solutions spanning the full HCM lifecycle from hire to retire. Our offerings include payroll, HR, benefits, workforce and talent management, retirement, insurance, and advisory solutions that help clients address critical workforce needs through a single trusted partner. This breadth enables us to serve customers more holistically, deepen engagement, and deliver value across a wide range of business needs and customer segments. Our flexible approach enables us to meet clients where they are and scale with them as their needs evolve. Trusted Guidance in a Complex Environment Our HR expertise is a key differentiator in how we support businesses through an increasingly complex operating environment. While technology can automate and streamline processes, clients also need knowledgeable professionals who can provide practical guidance on compliance, workforce management, and day-today HR decisions. Through advisory solutions such as Administrative Services Organization (ASO), Professional Employer Organization (PEO), and retirement, we help businesses many facing these decisions for the first time navigate workforce complexity with greater efficiency and confidence. That ability to pair innovative technology with deep HR expertise remains central to the value we provide and to why customers choose Paychex. WISE Missed Punch Email Notification Delivering Unrivaled Intelligence Another important advantage is our ability to harness data, technology, and scale to create what we believe is unrivaled intelligence in HCM. In today s AI-driven era of HCM, data is a powerful asset that helps businesses make better decisions and achieve stronger outcomes. For more than 50 years, Paychex has been at the center of HR, payroll, and benefits, building proprietary data sets and operational scale that we believe are unmatched in the market. These data assets are developed and managed with disciplined governance, compliance, and quality controls, helping ensure the insights and AI-powered experiences we deliver are accurate and responsibly applied. This scale supports the continued development of our WISE AI intelligence engine and enhances our ability to deliver practical insights in the flow of work across our solutions and operations, enabling more timely, relevant, and personalized support. Our large and diverse customer base, extensive data assets, and broad market presence provide a powerful foundation for innovation. In an increasingly data- and AI-driven environment, scale improves insight quality, strengthens model performance, and enables more relevant, proactive, and personalized experiences. Together, we believe our comprehensive solutions, deep expertise, and unrivaled intelligence position Paychex to help businesses succeed while supporting sustainable growth and long-term shareholder value. WISE Missed Pay Rate Email Notification Paychex Annual Report 2026 | 3
 • shareholder letter icon 9/4/2026 Letter Continued (Full PDF)
 • stockholder letter icon 9/1/2023 PAYX Stockholder Letter
 • stockholder letter icon 8/30/2024 PAYX Stockholder Letter
 • stockholder letter icon 8/29/2025 PAYX Stockholder Letter
 • stockholder letter icon More "Business Services & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon PAYX Benford's Law Stock Score = 63


PAYX Shareholder/Stockholder Letter Transcript:

2026 |

$4,612
FY22
$5,007
$5,278
$5,572
$6,512
$1,840
FY23
FY24
10%
$4.27
FY25
FY26
17%
5-Year CAGR
FY26 Growth
$4.72
$4.98
FY23
13%
5-Year CAGR
FY24
FY25
FY22
$2,033
FY23
$2,214
$2,370
FY24
FY25
14%
FY26
11%
FY26 Growth
FY26
19%
5-Year CAGR
FY26 Growth
$5.51
$3.77
FY22
$2,815
$2,201
$1,145
$1,175
FY22
FY23
16%
5-Year CAGR
$1,485
$1,553
FY24
FY25
FY26
42%
FY26 Growth

A Letter from our President and CEO
Fellow Shareholders,
Fiscal 2026 was a transformative year for Paychex. We delivered strong financial results, advanced our strategic
priorities, and strengthened our position as a leading provider of AI-driven human capital management (HCM)
solutions. We did so while staying focused on helping customers succeed, investing in our people and culture,
and creating long-term shareholder value.
Our fiscal 2026 results demonstrate the strength of our business model and the discipline of our execution. We
delivered double-digit revenue and earnings growth and exceeded the Rule of 50, reinforcing our ability to balance
growth and profitability at scale. As best operators, we maintained industry-leading profitability while continuing to
invest in future growth.
A key priority this year was strengthening our leadership at the forefront of data and AI innovation. We believe
Paychex is uniquely positioned to harness the power of AI through rich proprietary data, deep domain expertise,
and trusted customer relationships. Across the business, we accelerated investments in practical, client-centered
AI-driven capabilities. During the year, we introduced Workforce Intelligence Strengthened by Expertise (WISE),
our agentic AI engine, further strengthening our ability to deliver smarter insights, greater efficiency, and better
outcomes for customers.
We also advanced our strategy of moving upmarket while successfully integrating Paycor. This acquisition expands
our addressable market, sharpens our competitive advantage, and strengthens our ability to serve a broader range
of organizations. We are building on the strength of three award-winning HCM platforms     SurePayroll  , Paychex
Flex   and Paycor       each purpose-built to serve distinct market segments, supported by a modern, highly efficient
infrastructure. We are encouraged by our progress and remain confident in the long-term value this combination
can create for customers and shareholders alike.
Another important differentiator is our advisory strength. In a dynamic and increasingly complex environment,
customers want more than technology alone. They want a trusted partner with the service, expertise, and insight
to help them navigate workforce challenges, manage regulatory complexity, and achieve better outcomes. That
combination continues to set Paychex apart and remains an important driver of client loyalty and long-term growth.
Underpinning our strategy is a clear and consistent commitment to strong client outcomes, a high-performance
culture, and sustainable shareholder value. In fiscal 2026, we returned $2.2 billion to shareholders through dividends
and share repurchases.
As we look ahead, we enter fiscal 2027 with momentum, a more
differentiated portfolio, and a clear strategy for growth. We believe Paychex
is well-positioned to build on this momentum and continue delivering
sustainable growth and long-term value.
Thank you for your continued support and confidence in Paychex.
John B. Gibson,
President and Chief Executive Officer
Paychex Annual Report 2026 | 1

Driving Business Success
with Expert-enabled Technology Solutions
At Paychex, our mission is simple: helping businesses succeed. That mission shapes our strategy, guides
our investments, and defines how we support customers every day. In a dynamic environment shaped by
regulatory change, cost pressures, and intensifying competition for talent, businesses increasingly need a
trusted partner to help them navigate these challenges with confidence.
Paychex helps clients succeed by bringing together expert-enabled solutions that enhance decisionmaking, increase efficiency, and deliver better outcomes so they can focus on what matters most: their
business and their people. What sets us apart is the combination of our comprehensive HCM solutions,
deep HR expertise, and unrivaled intelligence. Together, these strengths enable us to serve as a strategic
partner to clients seeking more than transactional software.
2

Empowering Businesses Across
the Workforce Lifecycle
Paychex offers a broad range of solutions spanning the full
HCM lifecycle     from hire to retire. Our offerings include
payroll, HR, benefits, workforce and talent management,
retirement, insurance, and advisory solutions that help
clients address critical workforce needs through a single
trusted partner. This breadth enables us to serve customers
more holistically, deepen engagement, and deliver value
across a wide range of business needs and customer
segments. Our flexible approach enables us to meet clients
where they are and scale with them as their needs evolve.
Trusted Guidance in a Complex Environment
Our HR expertise is a key differentiator in how we support
businesses through an increasingly complex operating
environment. While technology can automate and
streamline processes, clients also need knowledgeable
professionals who can provide practical guidance on
compliance, workforce management, and day-today HR decisions. Through advisory solutions such as
Administrative Services Organization (ASO), Professional
Employer Organization (PEO), and retirement, we help
businesses     many facing these decisions for the first time
    navigate workforce complexity with greater efficiency
and confidence. That ability to pair innovative technology
with deep HR expertise remains central to the value we
provide and to why customers choose Paychex.
WISE Missed Punch Email Notification
Delivering Unrivaled Intelligence
Another important advantage is our ability to harness data,
technology, and scale to create what we believe is unrivaled
intelligence in HCM. In today   s AI-driven era of HCM, data is a
powerful asset that helps businesses make better decisions
and achieve stronger outcomes. For more than 50 years,
Paychex has been at the center of HR, payroll, and benefits,
building proprietary data sets and operational scale that
we believe are unmatched in the market. These data assets
are developed and managed with disciplined governance,
compliance, and quality controls, helping ensure the insights
and AI-powered experiences we deliver are accurate and
responsibly applied. This scale supports the continued
development of our WISE AI intelligence engine and
enhances our ability to deliver practical insights in the flow
of work across our solutions and operations, enabling more
timely, relevant, and personalized support.
Our large and diverse customer base, extensive data assets,
and broad market presence provide a powerful foundation
for innovation. In an increasingly data- and AI-driven
environment, scale improves insight quality, strengthens
model performance, and enables more relevant, proactive,
and personalized experiences. Together, we believe our
comprehensive solutions, deep expertise, and unrivaled
intelligence position Paychex to help businesses succeed
while supporting sustainable growth and long-term
shareholder value.
WISE Missed Pay Rate Email Notification
Paychex Annual Report 2026 | 3


shareholder letter icon 9/4/2026 Letter Continued (Full PDF)
 

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