Paychex (PAYX) Slashes 9.4% on Dismal Earnings

We recently published Bloodbath on the Street: These 10 Stocks Crashed Hard. Paychex, Inc. (NASDAQ:PAYX) is one of the worst-performing stocks on Wednesday.

Paychex fell by 9.4 percent on Wednesday to close at $137.94 apiece, ending two straight days of gains, following a dismal earnings performance in the fourth quarter of fiscal year 2025.

In its financial statement, Paychex, Inc. (NASDAQ:PAYX) said net income declined by 22 percent during the period to $297.2 million from $379.9 million in the same period last year. Net income for the full year was also down by 2 percent to $1.657 billion from $1.690 billion year-on-year.

Total revenues, on the other hand, were higher by 10 percent at $1.427 billion during the quarter, versus the $1.295 billion in the same period last year, while for the full year, revenues rose by 6 percent to $5.571 billion from $5.278 billion.

Buoyed by its strong performance, Paychex, Inc. (NASDAQ:PAYX) boosted its revenue outlook for fiscal year 2026 to a range of 16.5 percent to $18.5 percent, with management solutions revenue alone anticipated to grow between 20 to 22 percent.

“With the successful completion of the Paycor acquisition and significant progress made on the integration, Paychex is better positioned than ever before for continued success in the digital and AI-driven era of human capital management,” said Paychex, Inc. (NASDAQ:PAYX) President and CEO John Gibson.

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READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.