{"schemaVersion":1,"research":true,"symbol":"payx","name":"Paychex","topic":"moat","path":"/stock/payx/moat","status":"published","version":3,"updatedAt":"2026-10-18T13:49:46.139Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"narrow","summary":"Paychex has a modest switching-cost advantage from payroll data reused across integrated HR, benefits and compliance workflows. Stable repeat demand and growing adjacent-service adoption support this advantage, while 82%–83% payroll client retention and contracts terminable on 30 days’ notice limit its strength. Disclosed price realization across multiple periods demonstrates some pricing power, although its contribution is not separated from product penetration and customer mix. Compliance expertise supports the offering; a separate durable AI, data or scale moat is unproven.","advantages":[{"mechanism":"switching_costs","claim":"Integrated payroll and HCM workflows reuse customer information across services, creating operational dependence and likely replacement effort. Stable retention and expanding HR outsourcing and retirement adoption support a current, modest advantage; migration costs are inferred rather than directly measured.","durability":"Integration and repeated payroll obligations support continuing customer relationships. Retention remained at 82%–83% across fiscal 2024–2026, and accounting estimates use six- to eight-year customer relationship lives. These support persistence without establishing exceptional durability.","risks":"Customers generally can terminate with 30 days’ notice and select individual services. Reported retention leaves substantial annual attrition whose causes are not disclosed. Technology changes, security failures and regulatory simplification could weaken dependence. Acquisition-driven growth does not itself demonstrate stronger switching costs.","invalidation":"Sustained payroll retention below the disclosed 82%–83% range, declining penetration of adjacent services, or evidence that customers can replace integrated workflows with little disruption would undermine the thesis. Repeated discounting accompanied by customer losses would weaken the pricing support.","competitors":[],"evidenceIds":["e1","e2","e3","e4","e5","e6","e7","e8","e9"],"counterEvidenceIds":["e1","e10","e11","e12","e13","e14"]}],"evidence":[{"id":"e1","sourceId":"filing-1","location":"MD&A / fiscal 2026 and fiscal 2025 payroll client retention","excerpt":"Payroll client retention was in the range of 82% to 83% of our beginning client base for both fiscal 2026 and fiscal 2025 and we have sustained high revenue retention."},{"id":"e2","sourceId":"filing-5","location":"Business / fiscal 2024 client retention","excerpt":"For fiscal 2024, client retention was in the range of 82% to 83% of our beginning client base."},{"id":"e3","sourceId":"filing-2","location":"Revenue recognition / reuse of base payroll information","excerpt":"The Company's offerings often leverage the information gathered in its base payroll processing service, allowing it to provide comprehensive outsourcing services covering the HCM spectrum."},{"id":"e4","sourceId":"filing-1","location":"Business / payroll integration with HCM modules","excerpt":"Payroll is integrated with HCM software modules for customers who have more complex HR needs."},{"id":"e5","sourceId":"filing-1","location":"Business / payroll processing and tax remittance functions","excerpt":"Our payroll processing solutions include the calculation, preparation, and delivery of employee payroll checks; production of internal accounting records and management reports; preparation of federal, state, and local payroll tax returns; and collection and remittance of clients’ payroll obligations."},{"id":"e6","sourceId":"filing-1","location":"MD&A / HR outsourcing and retirement customer metrics","excerpt":"The following table illustrates selected customer metrics: $ in billions As of May 31, 2026 2025 Change(1) Paychex HR solutions (ASO and PEO) customer worksite employees 2,600,000 2,460,000 6 % Retirement solutions plans 130,000 124,000 4 % Asset value of retirement solutions participants’ funds $ 66.0 $ 55.7 19 % Perks unique employee purchases 237,000 133,000 78 % (1) Percentage changes are calculated based on unrounded numbers."},{"id":"e7","sourceId":"filing-1","location":"Accounting policies / estimated customer relationship lives","excerpt":"The assets related to both costs to obtain and costs to fulfill contracts with customers are capitalized and amortized using either an accelerated method over an eight-year life or the straight-line method over a six-year life to closely align with the pattern of customer attrition over the estimated life of the customer relationship."},{"id":"e8","sourceId":"filing-4","location":"MD&A / fiscal 2025 revenue per client and price realization","excerpt":"Higher revenue per client resulting from price realization and product penetration, including HR solutions and retirement;"},{"id":"e9","sourceId":"filing-2","location":"MD&A / quarter ended August 31, 2026 price realization","excerpt":"Higher revenue per client resulting from price realization and product penetration."},{"id":"e10","sourceId":"filing-2","location":"Revenue recognition / contract duration and bilateral termination rights","excerpt":"The Company's contracts generally do not contain specified contract periods and may be terminated by either party with 30 days notice of termination."},{"id":"e11","sourceId":"filing-2","location":"Revenue recognition / individual services and bundles","excerpt":"Customers can select services on an á la carte basis or as part of various solution bundles."},{"id":"e12","sourceId":"filing-1","location":"MD&A / Paycor contribution to fiscal 2026 Management Solutions growth","excerpt":"Paycor contributed approximately 15% to Management Solutions revenue growth for fiscal 2026."},{"id":"e13","sourceId":"filing-2","location":"Forward-looking risk disclosures / technology, cybersecurity and acquisition risks","excerpt":"Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: • our ability to keep pace with changes in technology or provide timely enhancements to our solutions and support; • risks related to our use of artificial intelligence (\"AI\") and new technologies in our business; • software defects, undetected errors, and development delays for our solutions; • the possibility of cyberattacks, security vulnerabilities or Internet disruptions, including data security and privacy leaks and data loss and business interruptions; • the possibility of failure of our business continuity plan during a catastrophic event; • the failure of third-party service providers to perform their functions; • the possibility that we may be exposed to additional risks related to our co-employment relationship with our professional employer organization (\"PEO\") business; • changes in health insurance and workers' compensation insurance rates and underlying claim trends; • risks related to acquisitions and the integration and performance of the businesses we acquire; • our customers' failure to reimburse us for payments made by us on their behalf; • the effect of changes in government regulations mandating the amount of tax withheld or the timing of remittances; • our failure to comply with covenants in our corporate bonds and debt agreements; • changes in our credit ratings; • changes in governmental regulations, laws, and policies; • our ability to comply with U.S., state, and foreign laws and regulations; • our compliance with data privacy and AI laws and regulations; • our failure to protect our intellectual property rights; • potential outcomes related to pending or future litigation matters; • the impact of macroeconomic factors on the U.S."},{"id":"e14","sourceId":"filing-1","location":"Risk factors / potential regulatory reduction in service demand","excerpt":"Such changes could reduce or eliminate the need for some of our services and substantially decrease our revenue."},{"id":"e15","sourceId":"filing-1","location":"Business / compliance professional resources","excerpt":"We have approximately 250 compliance professionals who are in real-time contact with tax agencies and regulators to understand upcoming or newly enacted laws and regulations."},{"id":"e16","sourceId":"filing-1","location":"Business / management description of WISE dataset","excerpt":"WISE now draws on more than 26 trillion data points, helping make our solutions smarter, more relevant, and more proactive."},{"id":"e17","sourceId":"filing-1","location":"MD&A / fiscal 2026 price realization, penetration and acquired customer mix","excerpt":"Higher revenue per client driven by Paycor's upmarket customer base, price realization, and product penetration."},{"id":"e18","sourceId":"filing-1","location":"MD&A / fiscal 2026 and fiscal 2025 GAAP and adjusted operating margins","excerpt":"Operating margin (operating income as a percentage of total revenue) and adjusted operating margin(1) (adjusted operating income(1) as a percentage of total revenue) were as follows: Fiscal Year 2026 2025 Operating margin 38.6 % 39.6 % Adjusted operating margin(1) 43.2 % 42.5 % (1) Adjusted operating income and adjusted operating margin are not U.S."},{"id":"e19","sourceId":"filing-2","location":"MD&A / quarterly GAAP results, adjusted results and acquisition-cost reconciliation","excerpt":"Non-GAAP Financial Measures: Adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, earnings before interest, taxes, depreciation, and amortization (\"EBITDA\"), and adjusted EBITDA are summarized as follows: For the three months ended August 31, $ in millions, except per share amounts 2026 2025 Change Operating income $ 619.2 $ 541.9 14 % Non-GAAP adjustments: Acquisition-related costs(1) 65.5 84.8 Adjusted operating income $ 684.7 $ 626.7 9 % Adjusted operating margin 42.0 % 40.7 % Net income $ 429.7 $ 383.8 12 % Non-GAAP adjustments: Acquisition-related costs(1) 65.5 84.8 Income tax benefit for acquisition-related costs (15.7 ) (20.6 ) Discrete tax windfall related to employee stock-based compensation payments(2) (0.3 ) (7.2 ) Adjusted net income $ 479.2 $ 440.8 9 % Diluted earnings per share(3) $ 1.21 $ 1.06 14 % Non-GAAP adjustments: Acquisition-related costs(1) 0.18 0.23 Income tax benefit for acquisition-related costs (0.04 ) (0.06 ) Discrete tax windfall related to employee stock-based compensation payments(2) (0.00 ) (0.02 ) Adjusted diluted earnings per share $ 1.34 $ 1.22 10 % Net income $ 429.7 $ 383.8 12 % Non-GAAP adjustments: Interest expense 65.1 68.2 Interest income on corporate investments (10.2 ) (18.7 ) Income taxes 135.3 113.7 Depreciation and amortization expense 109.8 109.3 EBITDA $ 729.7 $ 656.3 11 % Non-GAAP adjustments: Acquisition-related costs(1) 8.6 23.7 Adjusted EBITDA $ 738.3 $ 680.0 9 % (1) Acquisition-related costs included in selling, general and administrative expenses include: • $56.9 million for the first quarter compared to $61.1 million for the corresponding prior-year period, in amortization of intangibles acquired in the acquisition of Paycor, • $8.5 million for the first quarter compared to $18.7 million for the corresponding prior-year period, in compensation costs related to the acquisition and integration of Paycor, including replacement awards, severance and retention bonuses, and • $0.1 million for the first quarter compared to $5.0 million for the corresponding prior-year period, in other acquisition-related costs."},{"id":"e20","sourceId":"filing-1","location":"Share repurchases / fiscal 2026 purchases and retirement","excerpt":"All shares repurchased during fiscal 2026 were retired and were as follows: Fiscal 2026 In millions, except per share amount Total number of shares purchased Average price paid per share Total dollars Approximate dollar value of shares that may yet be purchased under the program First quarter 1.1 $ 145.59 $ 160.1 $ 135.9 Second quarter 1.0 $ 122.54 126.5 $ 9.4 Third quarter 0.8 $ 99.05 75.0 $ 925.0 March 1 to March 31, 2026 — $ — — $ 925.0 April 1 to April 30, 2026 — $ — — $ 925.0 May 1 to May 31, 2026 2.7 $ 91.48 249.4 $ 675.6 Fiscal year 5.6 $ 108.81 $ 611.0 18 Table of Contents The following graph shows a five-year comparison of the total cumulative returns of investing $100 on May 31, 2021, in Paychex common stock, the S&P 500 Index, and a Peer Group Index."},{"id":"e21","sourceId":"filing-1","location":"MD&A / acquisition financing and increased interest expense","excerpt":"Interest expense: Interest expense increased $164.1 million to $269.5 million in fiscal 2026, primarily due to the issuance of incremental debt in April 2025 to finance the acquisition of Paycor."},{"id":"e22","sourceId":"filing-2","location":"Liquidity / first-quarter operating cash generation","excerpt":"Our primary source of cash is our ongoing operations, which was $413.5 million during the first quarter."},{"id":"e23","sourceId":"filing-2","location":"Stockholders’ equity / dividends, equity compensation and share issuance","excerpt":"2 Table of Contents PAYCHEX, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) In millions, except per share amounts For the three months ended August 31, 2026 Common stock Accumulated other comprehensive loss Shares Amount Additional paid-in capital Retained earnings Net unrealized (loss)/gain on AFS securities Foreign currency translation Total accumulated comprehensive loss Total Balance as of May 31, 2026 355.6 $ 3.6 $ 1,975.6 $ 1,805.8 $ (37.8 ) $ (12.1 ) $ (49.9 ) $ 3,735.1 Net income — — — 429.7 — — — 429.7 Unrealized losses on securities, net of $9.7 million in tax benefit — — — — (30.3 ) — (30.3 ) (30.3 ) Reclassification adjustment for realized gains on securities, net of $0.0 million in tax expense (1) — — — — (0.0 ) — (0.0 ) (0.0 ) Cash dividends declared ($1.19 per share) — — — (423.6 ) — — — (423.6 ) Repurchases of common shares (2) — — — — — — — — Stock-based compensation costs — — 19.3 — — — — 19.3 Foreign currency translation adjustment — — — — — (1.1 ) (1.1 ) (1.1 ) Activity related to equity-based plans 0.4 0.0 (0.1 ) (23.5 ) — — — (23.6 ) Balance as of August 31, 2026 356.0 $ 3.6 $ 1,994.8 $ 1,788.4 $ (68.1 ) $ (13.2 ) $ (81.3 ) $ 3,705.5 For the three months ended August 31, 2025 Common stock Accumulated other comprehensive loss Shares Amount Additional paid-in capital Retained earnings Net unrealized loss on AFS securities Foreign currency translation Total accumulated comprehensive loss Total Balance as of May 31, 2025 360.5 $ 3.6 $ 1,901.1 $ 2,277.0 $ (38.5 ) $ (15.2 ) $ (53.7 ) $ 4,128.0 Net income — — — 383.8 — — — 383.8 Unrealized gains on securities, net of $8.4 million in tax expense — — — — 24.3 — 24.3 24.3 Reclassification adjustment for realized losses on securities to earnings, net of $0.0 million in tax benefit (1) — — — — 0.0 — 0.0 0.0 Cash dividends declared ($1.08 per share) — — — (389.0 ) — — — (389.0 ) Repurchases of common shares(2) (1.1 ) (0.0 ) (5.3 ) (154.8 ) — — — (160.1 ) Stock-based compensation costs — — 26.8 — — — — 26.8 Foreign currency translation adjustment — — — — — 4.4 4.4 4.4 Activity related to equity-based plans 0.5 0.0 (0.8 ) (46.8 ) — — — (47.6 ) Balance as of August 31, 2025 359.9 $ 3.6 $ 1,921.8 $ 2,070.2 $ (14.2 ) $ (10.8 ) $ (25.0 ) $ 3,970.6 (1) Reclassification adjustments to earnings on the sale of AFS securities are reflected in interest on funds held for clients and other income, net on the Consolidated Statements of Income and Comprehensive Income."},{"id":"e24","sourceId":"filing-3","location":"Proxy compensation summary / actual fiscal 2026 annual incentive payouts","excerpt":"• Variable compensation is comprised of an annual cash incentive program and longer-term equity-based incentives: • For fiscal 2026, the annual cash incentive payouts were 64% of target for the CEO and our other NEOs, based upon the satisfaction of certain quantitative and qualitative components."},{"id":"e25","sourceId":"filing-3","location":"Proxy compensation summary / awarded performance equity mix and duration","excerpt":"• For fiscal 2026, performance-based equity awarded to our NEOs comprised 60% of the total long-term incentive value at target and is subject to a three-year performance period."},{"id":"e26","sourceId":"filing-3","location":"CD&A / granted performance RSU metrics and relative shareholder return adjustment","excerpt":"The performance-based RSUs granted in fiscal 2026 have a three-year performance period, and may be earned based on the sustained year-over-year growth in service revenue and operating income (equally weighted), net of certain items compared to performance targets, subject to a downward or upward adjustment of 25% based on relative TSR."},{"id":"e27","sourceId":"filing-3","location":"Proxy compensation summary / no completed performance-equity periods in fiscal 2026","excerpt":"Paychex, Inc. 2026 Proxy Statement • 3 Table of Contents Proxy Summary • There were no performance periods that concluded for the Company’s performance-based equity awards during fiscal 2026, reflecting the C&L Committee’s decision in fiscal 2025 to extend the performance period of the long-term incentive program from two to three years."},{"id":"e28","sourceId":"filing-3","location":"Corporate governance / voting structure and independent committee leadership","excerpt":"We have established robust governance practices and mechanisms to ensure accountability and responsiveness to stockholders: • We have a declassified Board of Directors, and our director nominees are elected annually; • We have a robust Lead Independent Director role; • Majority voting standard applies to uncontested director elections; • Stockholders can act by written consent with the same number of votes that would be necessary to authorize or take such action at a meeting; • Audit, C&L, Corporate Development Advisory, Investment, and N&G committees led by independent directors; • We do not require supermajority voting standards to amend our governing documents; and • We have a single-class voting structure."},{"id":"e29","sourceId":"filing-3","location":"Shareholder proposal discussion / existing special-meeting ownership threshold","excerpt":"The Company’s existing 50% ownership threshold helps ensure that special meetings are called only where there is meaningful, substantial stockholder support, while preserving an important mechanism for stockholders to hold the Board and management accountable."},{"id":"e30","sourceId":"filing-3","location":"Audit Committee report / fiscal 2026 meetings and access","excerpt":"The Audit Committee held six meetings during fiscal 2026 and had full access to each of the aforementioned parties."},{"id":"e31","sourceId":"filing-2","location":"MD&A / quarterly Management Solutions revenue growth","excerpt":"Management Solutions revenue: $1.2 billion for the first quarter, reflecting an increase of 4%."},{"id":"e32","sourceId":"filing-4","location":"MD&A / realized ancillary-service decline following ERTC program expiration","excerpt":"Lower revenue from ancillary services, primarily due to the expiration of our Employee Retention Tax Credit (\"ERTC\") program."},{"id":"e33","sourceId":"filing-3","location":"CD&A / compensation peer-group industry composition","excerpt":"The Peer Group is comprised of the following industries or segments: a direct competitor in the HCM industry, financial transaction management companies, and business services and outsourcing companies."},{"id":"e34","sourceId":"filing-3","location":"CD&A / compensation peer-group company list","excerpt":"Our Peer Group used for evaluating executive compensation for fiscal 2026 consisted of the following companies: Peer Group Automatic Data Processing, Inc."}],"changes":["Retain the previous narrow-moat verdict and integrated-service switching-cost thesis.","Replace the previous absence of realized-pricing evidence with disclosed price realization in fiscal 2025, fiscal 2026 and the quarter ended August 31, 2026; magnitude remains inseparable from penetration and customer mix.","Add the disclosed 30-day bilateral termination rights, which limit contractual protection and permit a qualified assessment of contractual freedom.","Assess management using actual proxy disclosures on incentive payouts, granted equity and governance rather than leaving those areas unsupported."],"limitations":["Assessment uses only supplied issuer filings. Source dates retain dateKind filed: July 11, 2024; July 11, 2025; March 26, 2026; July 17, 2026; September 4, 2026; and September 24, 2026. No retrieval date is treated as publication evidence.","Migration costs, competitive win rates, relative pricing and reasons for client attrition are absent. Stable retention demonstrates repeat demand but does not quantify customers lost to competitors.","The compensation peer group includes a direct HCM competitor alongside other industries, but the passages do not explicitly map competitor status to an individual company. Competitor arrays remain empty; peer membership and executive employment histories are not treated as established competitive coverage.","Price realization is management’s explanation of observed revenue changes, supported by reported results but not a separately quantified price series. Contracts disclose termination rights without explicit unilateral repricing clauses.","Compliance staffing is a current capability. Proprietary dataset size and AI deployment do not establish superior customer outcomes, network effects, relative costs or a separate durable intangible-asset moat.","Paycor materially contributes to growth, limiting organic execution and acquisition-return conclusions. Margins support resilience assessments but do not independently establish the moat.","The proxy describes actual fiscal 2026 payouts and granted equity, not completed vesting of the ongoing performance awards. Supplied passages do not establish meaningful executive ownership or the outcome of the October 2026 shareholder votes."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":2,"rationale":"Payroll information supports integrated HCM services and recurring tax and payment workflows, creating plausible operational switching friction. Retention and adjacent-service adoption substantiate a modest advantage; replacement effort and differentiation against competitors are unmeasured.","evidenceIds":["e1","e3","e4","e5","e6"]},{"criterion":"durability","grade":2,"rationale":"Retention remained at 82%–83% across fiscal 2024–2026. Estimated six- to eight-year relationship lives provide additional, accounting-based support. Short termination rights and missing competitive comparisons prevent a strong durability assessment.","evidenceIds":["e1","e2","e7","e10"]},{"criterion":"customer_dependency","grade":2,"rationale":"Payroll calculation, tax filings and remittances are important recurring functions, and shared information links additional services. Customers can nevertheless select individual services and exit on short notice; dependence on Paychex specifically is mixed.","evidenceIds":["e3","e5","e10","e11","e6"]},{"criterion":"erosion_resilience","grade":2,"rationale":"Stable retention, adjacent-service growth and continued price realization indicate resilience. Technology and cybersecurity risks remain prospective, while the ERTC-related ancillary decline demonstrates actual exposure to changes in service demand. AI superiority remains unproven.","evidenceIds":["e1","e6","e9","e13","e16","e32"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":2,"rationale":"Management attributes higher revenue per client partly to price realization in fiscal 2025, fiscal 2026 and the latest quarter. This establishes positive observed pricing outcomes, but product penetration and acquired customer mix prevent isolating their magnitude or elasticity.","evidenceIds":["e8","e17","e9"]},{"criterion":"retention","grade":2,"rationale":"Directly disclosed 82%–83% client retention over three fiscal years demonstrates repeat demand despite easy contractual exit. It is not exceptional retention, and unquantified revenue retention and undisclosed attrition causes limit conclusions about response to pricing.","evidenceIds":["e1","e2","e10"]},{"criterion":"margin_resilience","grade":3,"rationale":"Fiscal 2026 GAAP margin declined from 39.6% to 38.6%, while adjusted margin increased. The latest quarter improved both GAAP and adjusted margins alongside revenue growth. This demonstrates strong operating resilience, although lower acquisition costs explain part of the quarterly improvement and pricing’s separate contribution is unknown.","evidenceIds":["e18","e19","e31","e9"]},{"criterion":"contractual_freedom","grade":2,"rationale":"Generally unspecified contract periods and bilateral 30-day termination rights indicate flexibility to end arrangements without long-term lock-in. Customers have equivalent exit freedom, and explicit repricing rights or price-reset restrictions are not supplied.","evidenceIds":["e10","e11"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":2,"rationale":"Actual share retirement and operating cash generation support discipline, but debt-financed Paycor materially increased interest expense and its investment returns remain unestablished. Latest-quarter dividends declared of $423.6 million were close to $413.5 million operating cash flow, with equity-plan issuance continuing. Capital deployment is assessable but mixed.","evidenceIds":["e20","e21","e22","e23","e12"]},{"criterion":"incentive_alignment","grade":3,"rationale":"Actual annual incentives paid at 64% of target demonstrate payout variability. Performance equity represented 60% of target long-term incentive value, with three-year revenue and operating-income metrics and a relative TSR modifier. These are granted arrangements, not proposals; ongoing awards have not demonstrated completed performance vesting, and meaningful executive ownership is unestablished.","evidenceIds":["e24","e25","e26","e27"]},{"criterion":"execution","grade":3,"rationale":"Stable client retention, measured HR outsourcing and retirement expansion, continued price realization and latest-quarter operating-income growth demonstrate strong execution. This assessment uses operating outcomes rather than direct service-quality measures. Acquisition-driven annual growth and incomplete evidence of Paycor returns constrain the conclusion.","evidenceIds":["e1","e6","e9","e19","e31","e12"]},{"criterion":"governance","grade":2,"rationale":"Annual elections, majority voting, a single voting class, independent committee leadership and six actual Audit Committee meetings support oversight. The existing 50% ownership threshold for special meetings limits shareholder access. The supplied disclosures establish mixed governance protections, without proving exceptional oversight effectiveness or subsequent proposal outcomes.","evidenceIds":["e28","e29","e30"]}]}],"financialAssessments":[],"qualityPolicy":"quality-scores-2","sourcePolicy":"issuer-evidence-4","basisHash":"1ba113af18ad75b1e8205b857a7d98b7c8c9b8d85d82e9fb891f55ad420cb678","updatedAt":"2026-10-18T13:49:46.139Z","sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/723531/000119312526307785/payx-20260531.htm","publishedAt":"2026-07-17","sha256":"0f6afedd28909f2227f4f5e0309e6ebf5df736e9e607939b3cc06fd9e7284dc9","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/723531/000072353126000006/payx-20260831.htm","publishedAt":"2026-09-24","sha256":"2fd185e3abdc067aa2760018ca135fa430edd0ce6f0903f92e00cebaa7b85a35","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/723531/000119312526382805/d111983ddef14a.htm","publishedAt":"2026-09-04","sha256":"1ce23052430685449868763baba073aec8fe528fc4a62baa9cd94e44e7008a3a","dateKind":"filed"},{"id":"filing-4","url":"https://www.sec.gov/Archives/edgar/data/723531/000095017025095300/payx-20250531.htm","publishedAt":"2025-07-11","sha256":"4e51636d22dcd2904a8a0788d5384aec97952fce7b8770887e1615cc3563f4bd","dateKind":"filed"},{"id":"filing-5","url":"https://www.sec.gov/Archives/edgar/data/723531/000095017024082958/payx-20240531.htm","publishedAt":"2024-07-11","sha256":"6be1c0c2ae1083740bbf46f4e2694a1638723204c7f188c548482e859a3d9ab3","dateKind":"filed"},{"id":"filing-6","url":"https://www.sec.gov/Archives/edgar/data/723531/000119312526126204/payx-20260228.htm","publishedAt":"2026-03-26","sha256":"9a2f915e2eb1720afc53d630ebd2b0a1641d726d9285e83c3fb7367c525f3b89","dateKind":"filed"}],"model":"gpt-6.1-sol","providerId":"codex:5d42729700c64c007a4198b1fd39900fc0d277e97a6c9b4cedd62802285ef704","usage":{"input_tokens":88902,"cached_input_tokens":21120,"cache_write_input_tokens":0,"output_tokens":3963,"reasoning_output_tokens":148}},"signals":[{"period":"2022","end":"2022-05-31","values":{"gross_margin":70.21739130434781,"operating_margin":40.4040404040404,"roic":44.73747890678176,"fcf_margin":30.147123407992975,"sbc_revenue":1.1594202898550725},"issues":{"software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2023","end":"2023-05-31","values":{"gross_margin":70.39105006826564,"operating_margin":41.430114319483216,"roic":46.83448692012411,"fcf_margin":31.716014916552894,"sbc_revenue":1.2756505614085139},"issues":{"software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roiic":"Invested capital did not increase versus the prior year. ROIIC requires a positive increase.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2024","end":"2024-05-31","values":{"gross_margin":71.17498051441933,"operating_margin":42.36360093530787,"roic":53.200917607959866,"fcf_margin":33.83281371784879,"sbc_revenue":1.190568978955573},"issues":{"software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2025","end":"2025-05-31","values":{"gross_margin":71.52680221811461,"operating_margin":40.80776340110906,"roic":31.68018475726773,"fcf_margin":31.59149722735675,"sbc_revenue":2.066543438077634},"issues":{"peg":"TTM earnings per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","pfcf_growth":"TTM FCF per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2026","end":"2026-05-31","values":{"gross_margin":73.42527495199252,"operating_margin":39.842249765913884,"roic":26.06993701654381,"fcf_margin":36.84753455745822,"sbc_revenue":1.5251305327641205},"issues":{"software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roiic":"Invested capital did not increase versus the prior year. 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