Paychex forecasts slower fiscal 2027 revenue growth, shares dip

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24/06/2026 15:10

June 24 (Reuters) - HR and payroll services provider Paychex PAYX.O forecast slower revenue growth for fiscal 2027 on Wednesday, overshadowing a quarterly revenue beat and sending its shares down 4% in early trading.
    
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The Rochester, New York-based company forecast fiscal 2027 revenue growth of 5% to 6%, compared with 17% growth reported in fiscal 2026 and largely in line with analysts' average estimate of 5.55%, according to data compiled by LSEG.
Competition remains intense in the payroll and human capital management market, where Paychex competes with larger rivals such as ADP ADP.O for new customers.
Revenue rose 12.5% to $1.61 billion in the fourth quarter ended May 31, beating analysts' average estimate of $1.60 billion, according to data compiled by LSEG.
Quarterly adjusted earnings per share came in at $1.32, compared with analysts' estimates of $1.30.
The company's largest segment, Management Solutions, reported revenue of $1.18 billion, slightly below estimates of $1.19 billion.
Paycor, acquired in April 2025, contributed approximately 8% to Management Solutions revenue growth year-over-year.
While Paychex has benefited from its acquisition of Paycor, investors are closely watching for signs of slowing underlying organic growth as acquisition-related benefits become less pronounced.

 (Reporting by Anzar Mehraj in Bengaluru; Editing by Tasim Zahid)
 ((Anzar.Mehraj@thomsonreuters.com;))