Payroll services company Paychex (NASDAQ:PAYX) stock slid after it reported mixed fiscal first-quarter 2026 results on Tuesday.
The company reported sales growth of 17% year-over-year (Y/Y) to $1.540 billion, topping the analyst consensus estimate of $1.538 billion.
Management Solutions’ revenue rose 21% Y/Y to $1.2 billion, primarily driven by an increase in the number of clients served. This growth was led by the acquisition of Paycor and a higher number of client worksite employees for HR Solutions.
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Higher revenue per client also contributed to the growth, driven by Paycor’s upmarket client base, price realization, and increased product penetration, including HR Solutions and Retirement.
Professional Employer Organization (PEO) and Insurance …