Q4 2025 Paychex Inc Earnings Call Transcript
Key Points
- Paychex Inc (PAYX) achieved 10% revenue growth in the fourth quarter, driven by the successful integration of Paycor.
- The company reported a 6% growth in adjusted diluted earnings per share for the full fiscal year 2025.
- Client retention rates increased year-over-year, highlighting the value Paychex Inc (PAYX) provides to its clients.
- The Paycor acquisition surpassed expectations, leading to increased cost synergy expectations of approximately $90 million in fiscal year 2026.
- Paychex Inc (PAYX) expanded its client base to approximately 800,000 and increased HR outsourcing worksite employees to 2.5 million.
- There was some internal disruption due to changes in sales territories and training, impacting sales resources in the fourth quarter.
- The macro environment showed signs of uncertainty, with increased bankruptcies and financial distress in the micro end of the market.
- Checks per client trended softer in the fourth quarter, impacting organic growth rates.
- The PEO and Insurance Solutions segment faced headwinds due to decreased enrollment in the Florida at-risk medical plan.
- Diluted earnings per share decreased by 22% to $0.82 per share in the fourth quarter.
To all sides on hold, we appreciate your patience, and we ask that you please continue to stand by. To all sides on hold. We appreciate your patience, and we ask that you please continue to stand by.
Good morning, and welcome to Paychex fourth-quarter fiscal 2025 earnings call. Participating on the call today are John Gibson and Bob Schrader. (Operator Instructions) As a reminder, this conference is recorded, and your participation implies consent to our recording of this call. I would now like to turn the call over to Bob Schrader, Paychex' Chief Financial Officer.
Thank you for joining us to discuss Paychex fourth quarter and fiscal year 2025 performance. This morning, we released our financial results for the quarter ended May 31, 2025. You can access our earnings release and presentation on our Investor Relations website. We anticipate our Form 10-K will be filed with the SEC before the end of July. This teleconference is being webcast and will be archived on our website
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