Paychex shares fell 6.7% by 12:20 p.m. ET Wednesday after its fiscal Q1 2027 report: revenue met the $1.63 billion forecast and non-GAAP EPS beat estimates at $1.34, but GAAP EPS was $1.21 and free cash flow fell significantly year over year to $357.4 million.
Revenue rose 6% year over year, while operating income and GAAP net income each increased 14%. Paychex largely maintained its fiscal 2027 outlook: revenue growth of 5%-6%, an adjusted operating margin of 44% versus 42% in Q1, and adjusted EPS growth of 7%-9%.
