EPS beats, strong margins, Paycol transactions are nearing completion

Stocks Paychex Inc (Nasdaq:Payx) It’s a stock More expensive Wednesday After third quarter revenue.

The company reported a 5% year-on-year revenue growth of $15.09 billion, with a slight lack of revenue. The analyst consensus estimate is $1.515 billion.

Adjusted EPS for $1.49 Beat the consensus estimate of $1.48.

Management Solutions revenues rose 5% to $1.1 billion, while Professional Employer Organizations (PEOs) and Insurance Solutions revenues rose 6% to $365.4 million.

Read again: Tilray’s Hi*Ball Energy returns to Whole Foods Market

Pending payroll, increased direct PEO insurance costs, and acquisition-related costs associated with investments in products, technology, data and AI have increased total costs by 4% to $817.2 million.

Quarterly operating profit rose 6% to $691.8 million, with operating profit margin expanding from 70 basis points to 45.8%.

Adjusted EBITDA rose 8% to $751.6 million. Paychex had $23.9 billion in cash equivalents as of February 28, 2025.

Operating cash flow totaled $1.6 billion over the nine months. It repurchased 828,855 shares for $140 million, paying a cumulative dividend of $2.94 per share, totaling $1.1 billion over nine months.

The PayCor acquisition is scheduled to close in April 2025 subject to other customary closure conditions.

“The third quarter of this fiscal year was a transformational period at Patekex. As we position ourselves in the digital and AI-driven future of human capital management (“HCM”), we believe in the combination of continuous positive momentum and acquisition of paycore positions for the continued growth of paycole positions. John Gibson.

Outlook: PEO and insurance solutions revenue is expected to grow in the range of 6.0% to 6.5%. The adjusted operating margin is expected to be approximately 43%.

Price Action: PayX shares rose 6.06% at $152.87 in their final check on Wednesday.

Please read the following:

Image via ShutterStock.

Unlock: 5 new deals every week. Click now to get top trading ideas dailyand unlimited access to cutting-edge tools and strategies to gain a market advantage.

Get the latest inventory analysis from Benzinga?

This article Paychex Q3 revenue: EPS beat, strong margin, Paycol transactions near completion, etc. It originally appeared Benzinga.com

©2025 Benzinga.com. Benzinga does not provide investment advice. Unauthorized reproduction is prohibited.