Slide 1: First Quarter Highlights and Financial Results
First Quarter Highlights and Financial Results Fiscal 2027 Copyright 2026, 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
Overview • Trusted HCM provider serving ~840,000 customers and paying 1 in 11 U.S. private-sector employees(1) Paychex • Leading provider of AI-enabled HR technology and An industry-leading human advisory solutions powered by unrivaled data capital management (“HCM”) company delivering a full suite
Slide 4: First Quarter Highlights
First Quarter Highlights Copyright 2026, Paychex, Inc. All rights reserved. Confidential and proprietary. 4
Slide 5: First Quarter Highlights
First Quarter Highlights Sustained growth in revenue and earnings with strong operational performance o Delivered double-digit growth in PEO & Insurance revenue, operating income and diluted earnings per share o Continued strong demand for our advisory and benefits solutions across ASO, PEO and Reti
Slide 6: First Quarter Financial Highlights
First Quarter Financial Highlights Total Revenue Operating Income Adjusted Diluted EPS(1) 6% 14% 10% $619M $1.34 $1,630M $1,540M $542M $1.22 Q1 FY26 Q1 FY27 Q1 FY26 Q1 FY27 Q1 FY26 Q1 FY27 (1) Adjusted diluted earnings per share (“EPS”) is not a U.S. generally accepted accounting principles (“GAAP”)
Slide 7: First Quarter Revenue Key Drivers
First Quarter Revenue Key Drivers Total Revenue 6% $1,630 Management Solutions $1,540 $48 +5% $50 • Higher product penetration • Price realization and higher revenue per client +12% $368 $329 PEO(1) & Insurance Solutions • Growth in the number of average PEO worksite employees • Increase in PEO insu
Slide 8: WISE: A Highly Differentiated, AI-Powered Intelligence Engine
WISE: A Highly Differentiated, AI-Powered Intelligence Engine Workforce Intelligence Strengthened by Expertise Designed to Enhance Productivity, Decision-making and Results Better experiences. Smarter decisions. Stronger outcomes. Embedded across Paychex Flex | Paycor | SurePayroll WISE Intelligence
Slide 9: Recent Awards and Recognition
Recent Awards and Recognition Paychex continues to be recognized for its innovative technology, market leadership, and corporate culture Newsweek America’s Greatest Companies HR Tech Top HR Products (WISE) Paychex was named one of the Greatest Companies Paychex’s agentic AI engine, WISE, was named a
Slide 10: Sustained Financial Performance
Sustained Financial Performance (In Millions, Except Per Share Amounts) Total Revenue Adjusted Diluted EPS(1) $5.51 $6,512 $4.98 $4.72 $5,572 $4.27 $5,278 $5,007 $3.77 $4,612 FY22 FY23 FY24 FY25 FY26 FY22 FY23 FY24 FY25 FY26 * 5-Year CAGR (1) Adjusted diluted earnings per share (“EPS”) is not a U.S.
Slide 11: Fiscal 2027 Outlook
Fiscal 2027 Outlook Copyright 2026, Paychex, Inc. All rights reserved. Confidential and proprietary. 11
Slide 12: Fiscal Year 2027 Outlook
Fiscal Year 2027 Outlook September 23, 2026 June 24, 2026 Year-over-Year Growth Year-over-Year Growth Management Solutions Revenue 5% - 6% 5% - 6% PEO & Insurance Solutions Revenue 7% - 8% 6% - 7% Total Revenue 5% - 6% 5% - 6% (1) Adjusted Diluted EPS 7% - 9% 7% - 9% Anticipated Result Anticipated R
Slide 13: Financial Results
Financial Results Copyright 2026, Paychex, Inc. All rights reserved. Confidential and proprietary. 13
Slide 14: Financial Results
Financial Results For the Three Months ended August 31, 2026 Three Months Ended % (In millions, except per share amounts) Aug 31, 2026 Change Management Solutions $ 1,213.1 4% PEO and Insurance Solutions $ 367.6 12% Total Service Revenue $ 1,580.7 6% Interest on Funds Held for Clients $ 49.8 5% Tota
Slide 15: Financial Highlights
Financial (In millions) Aug 31, 2026 May 31, 2026 Highlights Cash, Restricted Cash, & Total Corporate Investments $ 989.2 $ 1,177.3 ($ in Millions) Total Debt, Net of Debt Issuance Costs(1) $ 4,558.0 $ 4,556.1 • Strong liquidity position with Gross Leverage Ratio (2) 1.5x 1.5x $1.0B in cash and corp
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three Months ended August 31, 2026 Three Months Ended Aug 31, Aug 31, % 2026 2025 Change Operating Income $ 619.2 $ 541.9 14% Non-GAAP Adjustments: Acquisition-related costs (1) 65.5 84.8 (2) Adjusted Operating Income $ 684.7 $ 626.7 9% (2) Adjusted Operating Marg
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three Months ended August 31, 2026 Three Months Ended Aug 31, Aug 31, % 2026 2025 Change (1) Diluted EPS $ 1.21 $ 1.06 14% Non-GAAP Adjustments: Acquisition-related costs (2) 0.18 0.23 Income tax benefit for acquisition-related costs (0.04) (0.06) Discrete tax sho
Slide 18: Investment Portfolio Results
Investment Portfolio Results Three Months Ended Aug 31, % ($ in millions) 2026 2025 Change Average Investment Balances: Funds Held For Clients $ 5,401.6 $ 5,400.0 –% Corporate Cash Equivalents and Investments $ 1,240.9 $ 1,776.9 (30%) Total $ 6,642.5 $ 7,176.9 (7%) Average Rate of Return Earned: Fun
Slide 19: Thank you
Thank you Copyright 2026, Paychex, Inc. All rights reserved. Confidential and proprietary. 19