June 24th, 2026

Total revenue increased 12% in Q4 to $1.6 billion and 17% for fiscal 2026 to $6.5 billion, driven by the Paycor acquisition anniversary and accelerating organic growth each quarter.

Management Solutions revenue grew 14% in Q4 to $1.2 billion and 20% for the full year to $4.9 billion, supported by product penetration and price realization (including ~8 percentage points of growth from Paycor).

Underlying PEO/worksite employee business continued strong demand: PEO and Insurance Solutions revenue rose 9% in Q4 to $370 million and 7% for the full year to $1.4 billion, with PEO worksite employee growth outpacing the industry and the PEO business noted as growing double digits in the quarter.

Q4 operating income margin increased approximately 750 basis points to 37.7%; adjusted operating margin improved ~170 basis points to 42.1%. Full-year adjusted operating margin increased ~70 basis points to 43.2%. Diluted EPS rose 43% in Q4 to $1.17 and full-year EPS increased 7% to $4.89; adjusted diluted EPS grew 11% for the year to $5.51.

Operating cash flow increased 35% to $2.6 billion and free cash flow grew 36% to $2.3 billion for fiscal 2026. Returned $2.2 billion to shareholders (approximately $1.6 billion in dividends and $600 million in buybacks) and reduced leverage by half a turn while repaying a $400 million debt tranche.

Exceeded FY26 synergy targets from the Paycor acquisition, contributing more than 50 basis points to revenue growth and generating over $100 million in cost synergies while completing organizational and territory realignments.

Launched WISE (Workforce Intelligence Strengthened by Expertise), an AI engine powering ~600 features/agents and drawing on 26+ trillion data points with patent-pending knowledge mesh. Early benefits include automated handbook updates, schedule generation in minutes, >50% reduction in timesheet approvals, and internal productivity gains (e.g., service/sales 'guru' tooling).

Advisory differentiation showed strong commercial traction: ASO engagements increased more than 60% year-over-year and retirement/benefits cross-sell momentum contributed to stronger bookings and retention.

Perks digital benefits marketplace has over 400,000 employees purchasing transferable benefits and will expand to 2.5 million Paycor employees, supporting broader non-payroll and employee-based revenue opportunities.

External recognition included Time and Newsweek accolades; broker channel traction continued with two new national partnerships in the quarter (including Hub) and an expanded Partner Plus program to sell Paychex offerings holistically.