Paychex Posts Strong Q3 Results, Moves Toward Paycor Acquisition

Paychex reported a 5% year-over-year increase in third-quarter revenue, reaching $1.51 billion. Adjusted operating income grew 9% to $708.5 million, while adjusted diluted earnings per share rose 8% to $1.49. The company credited its momentum to strength in its HCM solutions and continued investment in automation and AI.

Operating margin improved to 45.8%, and adjusted operating margin rose to 46.9%, up 180 basis points from the prior year. Year-to-date, Paychex generated $1.6 billion in operating cash flow and returned $1.2 billion to shareholders through dividends and stock buybacks.

The company also reaffirmed that it expects to close its acquisition of Paycor in April 2025. The deal is aimed at expanding Paychex’s upmarket reach and offering broader HR technology solutions to a combined customer base of nearly 800,000 businesses.