Paychex's Operating Income for the
three
months ended in May. 2026 was €518 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in May. 2026 was €2,148 Mil.
Operating Margin % is calculated as Operating Income divided by its Revenue. Paychex's Operating Income for the
three
months ended in May. 2026 was €518 Mil. Paychex's Revenue for the
three
months ended in May. 2026 was €1,374 Mil. Therefore, Paychex's Operating Margin % for the quarter that ended in May. 2026 was 37.66%.
Good Sign:
Paychex Inc operating margin is expanding. Margin expansion is usually a good sign.
Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Paychex's annualizedROC % for the quarter that ended in May. 2026 was 12.17%.
Paychex's annualizedROC (Joel Greenblatt) % for the quarter that ended in May. 2026 was 376.10%.
Paychex (FRA:PCX) Operating Income Explanation
1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Paychex's annualizedROC % for the quarter that ended in May. 2026 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.
Be Aware
Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Paychex Operating Income Related Terms
Paychex Operating Income Historical Data
* Premium members only.
The historical data trend for Paychex's Operating Income can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.
Operating Income for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €2,148 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Paychex (FRA:PCX) has a Operating Income of €2,148 Mil as of May. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Paychex and its competitors.
Is Paychex's Operating Income too high?
Paychex's current Operating Income is €2,148 Mil. Overall, Paychex has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paychex's Operating Income compare to ROP and WDAY?
Paychex's Operating Income of €2,148 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Software company?
A good Operating Income depends on the Software industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Paychex and its competitors. Paychex's current Operating Income is €2,148 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paychex stock overvalued right now?
Based on GuruFocus' analysis, Paychex (FRA:PCX) is currently considered Significantly Undervalued. The stock's GF Value™ is €135.82, compared to a current price of €93.25 — trading 31.3% below its estimated fair value. The current Operating Income is €2,148 Mil. Paychex's overall GF Score™ is 85/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Paychex (FRA:PCX), the current Operating Income is €2,148 Mil as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Paychex (FRA:PCX) Overvalued in 2026?
Based on GuruFocus' analysis, Paychex stock appears to be undervalued.
The current stock price of €93.25 is trading 31.3% below its estimated GF Value™ of €135.82.
GuruFocus considers Paychex to be Significantly Undervalued.
Key valuation signals for FRA:PCX:
Operating Income: €2,148 Mil
GF Value™: €135.82 vs. price of €93.25 (31.3% below fair value)
No single metric tells the full story. See the FRA:PCX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paychex is a cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. The firm also provides HR outsourcing services, including professional employer organization, or PEO, offerings, enabling clients to reduce HR overhead. Paychex primarily targets small and midsize businesses, although its acquisition of Paycor in 2025 signals the firm's aspirations to expand into the midmarket segment, serving firms with more than 100 employees. As of fiscal 2025, Paychex has approximately 800,000 clients and manages payroll for one in 11 workers in the United States.
85GF Score
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