PAYXPaychex
Unless we state otherwise or the context otherwise requires, the terms “Paychex,” the “Company,” “we,” “our,” and “us” refer to Paychex, Inc., a Delaware corporation, and its consolidated subsidiaries. 10-K, Item 1
- Employees
- 17,600
- Headquarters
- Rochester, NY
- CEO
- John B. Gibson
- Next results
- around Dec 18, 2026
5 paragraphs in Risk Factors of the 10-K filed Jul 17, 2026 with nothing like them in the 10-K filed Jul 11, 2025. Quoted exactly. Paragraphs that were only edited are under 10-K change.
Compared with the Risk Factors in the latest 10-K of the other 81 Industrials companies: a paragraph with at least half its words the same at another company is called similar, and the companies are listed under it. A paragraph most of them have is marked boilerplate. No line means no other company has one like it. This counts text; it does not say how serious a risk is.
Our use of AI technology and the incorporation of AI technology into our solutions carries risks and challenges that could adversely affect our business, financial condition, results of operations, and prospects.
We have and are increasingly incorporating AI capabilities into many of our solutions, enabled by WISE, and internal processes to enable our customers and our employees to improve efficiency, scalability, and productivity. The integration of AI into our solutions presents risks and challenges, including that we may be unable to integrate AI technologies into our solutions when or as we expect, that our customers do not welcome or realize the anticipated benefits of such technologies or may use AI technologies from other providers instead of using our services, that new AI technologies may disrupt our industry adding market pressure, that our AI-based solutions could produce inaccurate results or have other unintended consequences, or that our AI-based solutions may expose us to lawsuits, regulatory investigations, or other proceedings, and subject us to legal liability as well as brand and reputational harm, all of which could negatively affect our business, financial condition, results of operations, and prospects.
While AI technologies may offer significant benefits, they also create risks and challenges. Although we implement measures to address the accuracy and appropriate use of AI tools, including internal AI policies and training, these efforts may not always be successful. Use of AI tools that introduce bias, errors, hallucinations (false, misleading, or fabricated text purporting to be factual), as well as any failure by our employees, contractors, or partners to adhere to our AI policies, or inappropriate use of AI, could result in violations of confidentiality obligations, ethical considerations, laws, or regulations, jeopardize our intellectual property rights, or expose our solutions or business systems to defects and malware, any of which could adversely affect our business, financial condition, results of operations, and prospects.
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costs. Increases in costs not incorporated into service fees timely or fully could have a material adverse effect on our results of operations. Incorporating cost increases into service fees could also impact our ability to attract and retain customers.
Similar paragraph at 1 of 81 other Industrials companies: DALRead in the 10-K ↗
We and our customers are subject to the impacts related to inflationary pressure, economic instability, changes in interest rates, tariffs, potential instability of the banking environment, climate change-based obligations, and other macroeconomic and/or
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New in the latest 10-Q
12 paragraphs in the 10-Q filed Sep 24, 2026 with nothing like them in the 10-Q filed Mar 26, 2026 (at least half the words must differ; new numbers alone do not count). Quoted exactly, grouped by the item heading above them. This is text that changed, not a judgement of how serious it is.
Financial statements and notes
Activity in the allowance for credit losses related to accounts receivables is as follows:
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• our customers' failure to reimburse us for payments made by us on their behalf;
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(2) The Federal Funds rate was in the range of 3.50% to 3.75% as of August 31, 2026 and 3.50% to 3.75% as of May 31, 2026. Effective September 17, 2026, the Federal Reserve increased the Federal Funds rate to a range of 3.75% to 4.00%.
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Interest expense: Interest expense decreased by $3.1 million to $65.1 million for the first quarter, primarily reflecting lower outstanding debt balances.
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Net income and diluted earnings per share: Net income increased 12% to $429.7 million for the first quarter. Diluted earnings per share increased 14% to $1.21 per share for the first quarter, reflecting the increase in net income and lower weighted-average diluted shares outstanding.
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For the three months ended August 31, $ in millions, except per share amounts 2026 2025 Change ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────── Operating income $ 619.2 $ 541.9 14% Non-GAAP adjustments: Acquisition-related costs(1) 65.5 84.8 Adjusted operating income $ 684.7 $ 626.7 9% Adjusted operating margin 42.0% 40.7% Net income $ 429.7 $ 383.8 12% Non-GAAP adjustments: Acquisition-related costs(1) 65.5 84.8 Income tax benefit for acquisition-related costs (15.7) (20.6) Discrete tax windfall related to employee stock-based compensation payments(2) (0.3) (7.2) Adjusted net income $ 479.2 $ 440.8 9% Diluted earnings per share(3) $ 1.21 $ 1.06 14% Non-GAAP adjustments: Acquisition-related costs(1) 0.18 0.23 Income tax benefit for acquisition-related costs (0.04) (0.06) Discrete tax windfall related to employee stock-based compensation payments(2) (0.00) (0.02) Adjusted diluted earnings per share $ 1.34 $ 1.22 10% Net income $ 429.7 $ 383.8 12% Non-GAAP adjustments: Interest expense 65.1 68.2 Interest income on corporate investments (10.2) (18.7) Income taxes 135.3 113.7 Depreciation and amortization expense 109.8 109.3 EBITDA $ 729.7 $ 656.3 11% Non-GAAP adjustments: Acquisition-related costs(1) 8.6 23.7 Adjusted EBITDA $ 738.3 $ 680.0 9%
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Subsequent to August 31, 2026, we borrowed 13 times on an overnight basis, $523.8 million, on a weighted-average basis, under our JPM credit facilities.
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• An increase in accrued interest related to our corporate bonds, for which our next interest installment is due in October; offset by
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• Net decrease in accrued corporate compensation due to the settlement of fiscal 2026 year-end bonuses.
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• An increase in accrued interest related to our corporate bonds, for which the first interest installment payment was due in October 2025; and
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• Net decrease in prepaid income taxes due to the timing of our first quarter tax installment, which historically is settled during our second fiscal quarter; offset by
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• A net decrease in accrued corporate compensation primarily due to the settlement of fiscal 2025 year-end bonuses.
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The 10-Q's risk factors against the 10-K
Item 1A of the 10-Q filed Sep 24, 2026 against Item 1A of the 10-K filed Jul 17, 2026.
A 10-Q repeats only the risks that changed, so a 10-K paragraph that is missing from it is not counted as removed.
Added is a paragraph with nothing like it in the 10-K, Reworded a sentence that is in both with several words changed,
Quiet changes a sentence in both where one to four words changed and one is a hedge or a modal
(cut words struck through, new words highlighted and underlined).
Text on the page, not a score; each links to the filing at sec.gov.
This 10-Q has no Item 1A (Risk Factors) text of its own, so there is nothing to compare. Many companies leave it out when their risks have not changed.
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