Slide 1: First Quarter Highlights and Financial Results Fiscal 2026
First Quarter Highlights and Financial Results Fiscal 2026 Copyright 2025, Paychex, Inc. All rights reserved. Confidential and proprietary. 1
Slide 2: Forward Looking Statements
Forward Looking Statements Certain written statements in this presentation may contain, and members of management may from time to time make or discuss statements which constitute, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation
Slide 3: Paychex Overview
• Digitally-driven HCM solutions company Overview • Leading-edge technology platform backed by decades of HR and compliance expertise Paychex An industry-leading human • Industry leader in comprehensive HR outsourcing capital management (“HCM”) solutions with approximately 2.5M worksite company deli
Slide 4: First Quarter Highlights
PAYCHEX First Quarter Highlights
Slide 5: First Quarter Financial Highlights
First Quarter Financial Highlights Total Revenue Adjusted Operating Income(1) Adjusted Diluted EPS(1) 17% 15% 5% $1,540M $627M $1.22 $1,319M $547M $1.16 Q1 FY25 Q1 FY26 Q1 FY25 Q1 FY26 Q1 FY25 Q1 FY26 (1) Adjusted operating income and adjusted diluted earnings per share (“EPS”) are not U.S. generall
Slide 6: First Quarter Revenue
First Quarter Revenue Key Drivers Total Revenue Total Revenue: +17% 17% Management Solutions • Growth in the number of clients served, primarily $1,540 driven by the acquisition of Paycor • Growth in the number of client worksite $1,319 $48 employees for Human Resources (HR) Solutions +27% • Higher
Slide 7: First Quarter Business Highlights
First Quarter Business Highlights Sustained growth in revenue and earnings o Robust revenue growth of 17% and adjusted operating income(1) growth of 15% o Industry-leading operating margins while integrating Paycor and continuing to invest in service experience and product innovation o Continued to
Slide 8: Recent Awards and Recognition
Recent Awards and Recognition Paychex was recognized for its innovative technology, market leadership, and corporate culture Fortune® 2025 America’s World’s Most Newsweek’s America’s Most Innovative Companies Ethical Companies Greatest Workplaces Paychex has been recognized as one Paychex was named
Slide 9: Sustained Financial Performance
Sustained Financial Performance (In Millions, Except Per Share Amounts) Total Revenue Adjusted Diluted EPS(1) $4.98 $4.72 $5,572 $5,278 $4.27 $5,007 $4,612 $3.77 $4,057 $3.04 FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 * 5-Year CAGR (1) Adjusted diluted earnings per share (“EPS”) is not a U.S.
Slide 10: Fiscal 2026 Outlook
PAYCHEX Fiscal 2026 Outlook
Slide 11: Fiscal Year 2026 Outlook
Fiscal Year 2026 Outlook September 30, 2025 June 25, 2025 Year-over-Year Growth Year-over-Year Growth Total Revenue 16.5% - 18.5% 16.5% - 18.5% (1) Adjusted Diluted EPS 9% - 11% 8.5% - 10.5% Management Solutions Revenue 20% - 22% 20% - 22% PEO & Insurance Solutions Revenue 6% - 8% 6% - 8% Anticipate
Slide 12: Financial Results
PAYCHEX Financial Results
Slide 13: Financial Results
Financial Results For the Three Months ended August 31, 2025 Three Months Ended % (In millions, except per share amounts) Aug 31, 2025 Change Management Solutions $ 1,163.3 21% PEO and Insurance Solutions $ 329.1 3% Total Service Revenue $ 1,492.4 17% Interest on Funds Held for Clients $ 47.6 27% To
Slide 14: Financial Highlights
Financial Highlights ($ in Millions) • Strong liquidity position with $1.7B in cash and corporate investments • Net leverage ratio of <1.5x • Return on equity of 40% • Consistent free cash flow generation supports industry- leading dividend payout ratio (1) Excludes operating lease liabilities of $7
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three Months ended August 31, 2025 (In millions, except per share amounts) Three Months Ended Aug 31, Aug 31, % 2025 2024 Change Operating Income $ 541.9 $ 546.7 (1%) Non-GAAP Adjustments: Acquisition-related costs (1) 84.8 - (2) Adjusted Operating Income $ 626.7
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three Months ended August 31, 2025 (In millions, except per share amounts) Three Months Ended Aug 31, Aug 31, % 2025 2024 Change Diluted EPS (1) $ 1.06 $ 1.18 (10%) Non-GAAP Adjustments: Acquisition-related costs (2) 0.23 - Income tax benefit for acquisition-relat
Slide 17: Investment Portfolio Results
Investment Portfolio Results Copyright 2025, Paychex, Inc. All rights reserved. Confidential and proprietary. 17
Slide 18: Thank you
Thank you Copyright 2025, Paychex, Inc. All rights reserved. Confidential and proprietary. 18