Company: PAYX
Filing Date: 2025-03-26
Form Type: 10-Q
Source: 0000950170-25-045216
Chunk: 50

Company: PAYCHEX INC
Filing Date: 2025-03-26
Form: 10-Q
Item: Part I, Item 8
Chunk 50
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 %

    Other (expense)/income, net

    (6.0
    )

    9.4

    n/m

    10.0

    33.9

    n/m

    Income before income taxes

    685.8

    659.2

    4
     
    %

    1,786.6

    1,726.2

    4
     
    %

    Income taxes

    166.5

    160.6

    4
     
    %

    426.5

    415.7

    3
     
    %

    Effective income tax rate

    24.3
     
    %

    24.4
     
    %

    23.9
     
    %

    24.1
     
    %

    Net income
     
    $
     
    519.3

    $
     
    498.6

    4
     
    %
     
    $
     
    1,360.1

    $
     
    1,310.5

    4
     
    %

    Diluted earnings per share
     
    $
     
    1.43

    $
     
    1.38

    4
     
    %
     
    $
     
    3.76

    $
     
    3.62

    4
     
    %

(1)  Percentage changes are calculated based on unrounded numbers.

n/m — not meaningful

22 

Total revenue increased to $1.5 billion for the third quarter and $4.1 billion for the nine months, reflecting increases of 5% and 4% respectively, compared to the prior year periods. Excluding the impact of the expiration of the Employee Retention Tax Credit ("ERTC") program, revenue growth for both the third quarter and the nine months was 6%. The changes in revenue as compared to the prior year periods were primarily driven by the following factors: 

•Management Solutions revenue: $1.1 billion for the third quarter and $3.0 billion for the nine months, reflecting increases of 5% and 3%, respectively:

oContinued growth in the number of clients served across our suite of HCM solutions and client worksite employees for HR solutions; 

oHigher revenue per client resulting from price