Slide 1: Second Quarter Highlights and Financial Results Fiscal 2026
Second 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
Overview • Digitally-driven HCM solutions company • Leading-edge technology platform backed by Paychex decades of HR and compliance expertise An industry-leading human capital management (“HCM”) • Industry leader in HR outsourcing solutions with company delivering a full suite of approximately 2.5M
Slide 4: Second Quarter Highlights
PAYCHEX Second Quarter Highlights
Slide 5: Second Quarter Financial Highlights
Second Quarter Financial Highlights Total Revenue Adjusted Operating Income(1) Adjusted Diluted EPS(1) 18% 21% 11% $649M $1,558M $1.26 $1,317M $538M $1.14 Q2 FY25 Q2 FY26 Q2 FY25 Q2 FY26 Q2 FY25 Q2 FY26 (1) Adjusted operating income and adjusted diluted earnings per share (“EPS”) are not U.S. genera
Slide 6: Second Quarter Revenue Key Drivers
Second Quarter Revenue Key Drivers Total Revenue 18% Management Solutions • Growth in the number of clients served, primarily due to the Paycor acquisition $1,558 • Growth in the number of client worksite employees for HR Solutions $1,317 $54 • Higher revenue per client driven by Paycor's upmarket c
Slide 7: Second Quarter Business Highlights
Second Quarter Business Highlights Sustained growth in revenue and earnings o Robust revenue growth of 18%, adjusted operating income(1) growth of 21%, and adjusted diluted EPS(1) growth of 11% o Solid performance in HR Outsourcing (ASO and PEO) and Retirement o Industry-leading operating margins wh
Slide 8: Recent AI-Driven Innovations to Transform HCM
Recent AI-Driven Innovations to Transform HCM Designed to simplify complex HR processes, improve business outcomes, and drive greater efficiency Agentic AI Service Capabilities o Successfully deployed agentic AI to automate payroll processing for thousands of clients via voice and e-mail channels, a
Slide 9: Recent Awards and Recognition
Recent Awards and Recognition Paychex continues to be recognized for its innovative technology, market leadership, and corporate culture NelsonHall Neat Leader 2025 World’s Most Ethical Companies Newsweek’s America’s Paychex Flex® and Paycor ® platforms Paychex was named one of the Most Admired Work
Slide 10: 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 11: Fiscal 2026 Outlook
PAYCHEX Fiscal 2026 Outlook
Slide 12: Fiscal Year 2026 Outlook
Fiscal Year 2026 Outlook December 19, 2025 September 30, 2025 June 25, 2025 Year-over-Year Growth Year-over-Year Growth Year-over-Year Growth Total Revenue 16.5% - 18.5% 16.5% - 18.5% 16.5% - 18.5% (1) Adjusted Diluted EPS 10% - 11% 9% - 11% 8.5% - 10.5% Management Solutions Revenue 20% - 22% 20% -
Slide 13: Financial Results
PAYCHEX Financial Results
Slide 14: Financial Results
Financial Results For the Three and Six Months ended November 30, 2025 Three Months Ended % Six Months Ended % (In millions, except per share amounts) November 30, 2025 Change November 30, 2025 Change Management Solutions $ 1,166.4 21% $ 2,329.7 21% PEO and Insurance Solutions $ 336.9 6% $ 666.0 5%
Slide 15: Financial Highlights
Financial (In millions) November 30, 2025 May 31, 2025 Highlights Cash, Restricted Cash, & Total Corporate Investments $ 1,573.9 $ 1,711.0 ($ in Millions) Total Debt, Net of Debt Issuance Costs (1) $ 4,970.3 $ 4,966.8 • Strong liquidity position with Net Cash/(Debt) Position $ (3,396.4) $ (3,255.8)
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three and Six Months ended November 30, 2025 Three Months Ended Six Months Ended November 30, November 30, % November 30, November 30, % 2025 2024 Change 2025 2024 Change Operating Income $ 571.9 $ 538.1 6% $ 1,113.8 $ 1,084.8 3% Non-GAAP Adjustments: Acquisition-
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three and Six Months ended November 30, 2025 Three Months Ended Six Months Ended November 30, November 30, % November 30, November 30, 2025 2024 Change 2025 2024 (1) Diluted EPS $ 1.10 $ 1.14 (4%) $ 2.16 $ 2.32 Non-GAAP Adjustments: Acquisition-related costs (2) 0
Slide 18: Investment Portfolio Results
Investment Portfolio Results Three Months Ended Six Months Ended November 30, November 30, % November 30, November 30, % ($ in millions) 2025 2024 Change 2025 2024 Change Average Investment Balances: Funds Held For Clients $ 5,353.2 $ 4,252.3 26% $ 5,376.6 $ 4,269.2 26% Corporate Cash Equivalents an
Slide 19: Thank you
Thank you Copyright 2025, Paychex, Inc. All rights reserved. Confidential and proprietary. 19