Paychex Inc. reported second-quarter FY22 revenue growth of 13 percent year-on-year to $1.11 billion, beating the consensus of $1.06 billion. Total service revenue grew 13 percent Y/Y to $1.09 billion.
Management Solutions revenue grew 14 percent Y/Y to $832 million. PEO and Insurance Solutions’ revenue rose 11 percent Y/Y to $262.4 million.
The operating margin expanded 370 bps to 39.7 percent. Adjusted EPS of $0.91 beat the consensus of $0.80.
Paychex held $1.62 billion in cash and equivalents.
Paychex raised the FY22 revenue outlook from $4.38 billion to $4.46 billion–$4.50 billion, above the consensus of $4.40 billion.
It also raised the adjusted EPS guidance from $3.41–$3.47 to $3.59–$3.65, above the consensus of $3.46.
By Anusuya Lahiri
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