PAYCHEX INC (PAYX)

Paychex, Inc. is a human capital management (HCM) company that provides technology and advisory solutions in human resources, payroll processing, employee benefits, and insurance. It was incorporated in Delaware in 1979 and has a fiscal year ending May 31. Its stated strategy is to be the digitally driven HR leader and an essential partner to customers. It plans to do this by growing its customer base, expanding its share of wallet, investing in technology and AI, and pursuing strategic acquisitions. On April 14, 2025, it acquired Paycor HCM, Inc., a provider of HCM, payroll and talent software, which expanded its presence upmarket and added to its cross-sell opportunities.

The company offers integrated HCM solutions from hire to retire through three cloud-based platforms: SurePayroll for self-service small businesses, Paychex Flex for small and medium-sized businesses, and Paycor for larger businesses with more complex needs. Modules include payroll, HR management, talent acquisition, talent management, workforce management (time, attendance and scheduling), benefits administration, and partner marketplaces such as Perks. Payroll solutions cover payroll calculation, delivery and payment by several methods, tax return preparation, and collection and remittance of payroll obligations. For about 800,000 payroll clients, the company says it pays 1 in 11 U.S. private sector workers and moved roughly $1.3 trillion last fiscal year. HR outsourcing is provided through administrative services organization (ASO) and professional employer organization (PEO) solutions, supporting about 2.6 million worksite employees. Retirement services include 401(k), SIMPLE and SEP IRA, and Pooled Employer Plans, serving over 130,000 customers and about $66 billion of assets. The company also offers insurance and funding solutions. Its AI engine, WISE, powers about 600 AI features and agents and draws on more than 26 trillion data points. Over 60% of revenue comes from solutions other than payroll processing.

As of May 31, 2026, Paychex served approximately 840,000 customers across a broad range of industries in the U.S. and parts of Europe. Customer agreements generally have no specified contract period and can be terminated by either party on 30 days' notice. Payroll client retention in fiscal 2026 was 82% to 83% of the beginning client base. The company markets through direct and virtual sales forces, referrals from channel partners and existing customers, digital lead generation, and multi-channel marketing.

Operationally, Paychex supports customers with about 250 compliance professionals, who monitor tax agencies and regulators, and over 650 HR business professionals who advise ASO and PEO clients. Its solutions integrate with popular HR, accounting, ERP, and point-of-sale applications. The company maintains dual corporate headquarters in Rochester, New York and Cincinnati, Ohio.