What are Paychex's profit margins?

Paychex (PAYX) runs a 73.9% gross margin and a 36.9% operating margin, with a 25.8% net margin.

Where do Paychex's ratios come from?

Every ratio is computed from Paychex's SEC filings — trailing-twelve-month flows over period-end balances. Valuation multiples combine those fundamentals with market data, recomputed each period. Switch between quarterly, annual, and TTM, or open any ratio for its full history and peer comparisons.

Paychex PAYX Ratios & Valuation

Income Statement Balance Sheet Cash Flow Ratios Segments

Quarterly Annual TTM

YoY QoQ

Simplified Detailed

	Q3 '26	Q2 '26	Q1 '26	Q4 '25	Q3 '25
Profitability
Gross margin	73.9%+1.9pp	73.4%+1.6pp	72.8%+1.1pp	72.4%+0.4pp	72%+0.3pp
Operating margin	36.9%-4.6pp	37.1%-4.2pp	38%-3.1pp	39.6%-1.6pp	41.5%+0.4pp
Net margin	25.8%-6.1pp	26.4%-5.6pp	27.9%-4.1pp	29.7%-2.3pp	32%+0.1pp
EBITDA margin	43.4%-1.2pp	42.8%-1.6pp	42.9%-1.6pp	43.4%-1.1pp	44.6%+0.1pp
Free cash flow margin	33%+3.5pp	33.1%+3.8pp	32.1%+2.1pp	30.7%-2.2pp	29.5%-7.4pp
Returns
Return on equity	40.3%-4.0pp	40.9%-5.3pp	41.3%-4.4pp	41.8%-4.5pp	44.3%-2.2pp
Return on assets	11.4%-3.0pp	11.8%-3.4pp	11.9%-3.1pp	12.3%-3.9pp	14.4%+0.3pp
Return on invested capital	34.6%-19.8pp	32.1%-19.1pp	30.4%-24.5pp	32.5%-19.5pp	54.4%-1.0pp
Efficiency
Asset turnover	0.4×0.0×	0.4×0.0×	0.4×0.0×	0.4×-0.1×	0.4×0.0×
Liquidity
Current ratio	1.3×-0.1×	1.3×-0.1×	1.3×-0.1×	1.3×-0.1×	1.4×+0.2×
Quick ratio	1.3×-0.1×	1.3×-0.1×	1.3×-0.1×	1.3×-0.1×	1.4×+0.2×
Cash ratio	0.2×0.0×	0.2×0.0×	0.1×-0.2×	0.2×0.0×	0.3×+0.1×
Leverage
Debt-to-equity	1.1×+0.9×	1.2×+1.0×	1.2×+0.9×	1.1×+0.9×	0.2×0.0×
Debt-to-assets	0.3×+0.2×	0.3×+0.2×	0.3×+0.2×	0.3×+0.2×	0.1×0.0×
Net debt / EBITDA	1×+1.3×	1.2×+1.4×	1.5×+1.8×	1.2×+1.5×	-0.3×+0.1×
Interest coverage	8.7×-41.4×	10×-59.4×	13.4×-50.6×	20.9×-37.3×	50.1×+17.5×
Per Share
Book value per share	$11.16-1.8%	$10.77-0.8%	$10.97+3.1%	$11.40+8.6%	$11.37+9.8%
Valuation
Market capitalization	$33.62B-38.4%	$40.2B-23.7%	$50.24B+6.4%	$57.26B+32.4%	$54.61B+23.7%
Enterprise value	$36.49B-32.3%	$43.35B-17.2%	$54.05B+15.9%	$60.28B+41.2%	$53.91B+24.5%
Price / earnings	20.5×-10.8×	25.2×-5.4×	31.1×+3.3×	34.5×+9.0×	31.4×+4.8×
Price / sales	5.3×-4.7×	6.7×-3.1×	8.7×-0.2×	10.3×+2.1×	10×+1.6×
Price / book	8.4×-4.9×	10.4×-3.1×	12.7×+0.4×	13.9×+2.5×	13.3×+1.5×
EV / EBITDA	13.3×-8.9×	16.8×-5.1×	21.8×+2.0×	24.9×+6.8×	22.2×+3.5×
EV / sales	5.8×-4.2×	7.2×-2.6×	9.3×+0.5×	10.8×+2.7×	9.9×+1.6×
Free cash flow yield	6.2%+3.3pp	5%+2.0pp	3.7%+0.3pp	3%-1.0pp	2.9%-1.4pp
Earnings yield	4.9%+1.7pp	4%+0.7pp	3.2%-0.4pp	2.9%-1.0pp	3.2%-0.6pp
Dividend yield	4.6%+2.0pp	3.8%+1.2pp	3%+0.1pp	2.5%-0.5pp	2.6%-0.3pp

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Questions, answered.

What are Paychex's profit margins?: Paychex (PAYX) runs a 73.9% gross margin and a 36.9% operating margin, with a 25.8% net margin.
Where do Paychex's ratios come from?: Every ratio is computed from Paychex's SEC filings — trailing-twelve-month flows over period-end balances. Valuation multiples combine those fundamentals with market data, recomputed each period. Switch between quarterly, annual, and TTM, or open any ratio for its full history and peer comparisons.