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Paychex PAYX Free cash flow margin

Free cash flow margin at other companies

Automatic Data Processing, Inc. logo
Automatic Data Processing, Inc.ADP
23.9%+0.7pp
Asure Software logo
Asure SoftwareASUR
7.9%
Barrett Business Services logo
Barrett Business ServicesBBSI
1.5%
Trinet Group logo
Trinet GroupTNET
5.6%+1.5pp
Insperity logo
InsperityNSP
0.8%+0.5pp
Workday, Inc. logo
Workday, Inc.WDAY
30.2%+3.5pp

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

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 free cash flow margin?
Paychex (PAYX) reported free cash flow margin of 35.7% in Q1 2026.
How has Paychex's free cash flow margin changed year-over-year?
Paychex's free cash flow margin increased by 16.2% year-over-year, from 30.7% to 35.7%.
What is the long-term trend for Paychex's free cash flow margin?
Over 5 years (2021 to 2026), Paychex's free cash flow margin has grown at a 4.8% compound annual growth rate (CAGR), from 28.1% to 35.7%.
What does free cash flow margin mean?
Free cash flow (operating cash flow minus capital expenditures) as a percentage of revenue, trailing twelve months. Measures how efficiently revenue converts into discretionary cash.

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