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Paychex PAYX EBITDA margin

EBITDA margin at other companies

Automatic Data Processing, Inc. logo
Automatic Data Processing, Inc.ADP
31%+0.2pp
Asure Software logo
Asure SoftwareASUR
7.9%-8.2pp
Barrett Business Services logo
Barrett Business ServicesBBSI
5.4%-0.4pp
Trinet Group logo
Trinet GroupTNET
5.9%
Insperity logo
InsperityNSP
0.4%
Workday, Inc. logo
Workday, Inc.WDAY
16.4%+5.4pp

Other financials

Income statement

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Revenue$1.6B+12.5%
Gross profit$1.2B+15.0%
Operating income$604.7M+40.3%
Net income$420.6M+41.5%
EPS (diluted)$1.18+43.9%

Balance sheet

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Cash & equivalents$1.1B-33.2%
Total debt$4.6B-0.3%
Total equity$3.7B-9.5%
Total assets$16.2B-2.4%

Cash flow

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Operating cash flow$580.9M+69.0%
CapEx$65.9M+8.9%
Free cash flow$515.0M+81.8%

Valuation

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Market cap$41.56B-17.3%
Enterprise value$45.1B-15.3%
P/E23.6×-6.7×
P/S6.4×-2.6×

Profitability

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Gross margin74.3%+1.9pp
Operating margin38.6%-1.1pp
Net margin27%-2.7pp
FCF margin35.7%+5.0pp

Returns & leverage

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Return on equity44.8%+3.0pp
Debt / equity1.2×+0.1×
Current ratio1.3×0.0×

Where this comes from

Calculated from Paychex’s reported figures.

Based on trailing twelve months.

The source filing: Paychex’s 10-K, filed July 17, 2026. Open the filing →

Filed
Jul 17, 2026, 4:05 PM EDT
Fiscal year
FY2026
Accession
0001193125-26-307785

FAQ

What is Paychex's EBITDA margin?
Paychex (PAYX) reported EBITDA margin of 45.3% in Q1 2026.
How has Paychex's EBITDA margin changed year-over-year?
Paychex's EBITDA margin increased by 4.5% year-over-year, from 43.4% to 45.3%.
What is the long-term trend for Paychex's EBITDA margin?
Over 5 years (2021 to 2026), Paychex's EBITDA margin has grown at a 2.2% compound annual growth rate (CAGR), from 40.7% to 45.3%.
What does EBITDA margin mean?
EBITDA (earnings before interest, taxes, depreciation, and amortization) as a percentage of revenue, trailing twelve months. A proxy for cash operating profitability that strips out capital-structure and non-cash charges.

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