Paychex Inc

Company facts

Industry

Services-Engineering, Accounting, Research, Management

Headquarters

Rochester, New York

Most recent report

8-K, filed Jul 21, 2026

Incorporated

Delaware

Filings on record

1,001+ filings

On EDGAR

CIK 723531

Fiscal year ends

May

Filer status

Large accelerated filer

What to read: FY2026 10-K

SECSift found 4 of 27 sections worth reading, with 0 positive, 17 notable, and 0 negative flags.

• Risk Factors (Item 1A)

  New $4.2B debt covenants, AI risk additions, removal of Paycor risk factor.
  Notable

  • Expanded AI risk factor includes risks from AI tech, now referencing WISE platform.
  • $4.2B in fixed-rate corporate bonds issued April 2025 to fund the Paycor acquisition.
  • Debt covenants: max leverage ratio 3.5:1.0, min interest coverage 2.0:1.0, debt limit 20% of equity.

• Market for the Stock (Item 5)

  New $1B buyback; FY2026 repurchases $611M vs $104M; stock return lagged S&P.
  Notable

  • Holders of record fell to 7,075 from 7,599 (down 7%), with fewer ESPP and ESOP participants.
  • New $1.0B buyback with no expiration, replacing $400M program that expired with $9.4M unused.

• Management's Discussion (Item 7)

  Core MD&A with Paycor-driven results, debt jump, and liquidity details.
  Notable

  • Paycor acquisition contributed 12% to total revenue growth in FY2026.
  • Net unrealized loss on AFS securities was $52.5M at May 31, 2026, rose to $69.9M by July 15, 2026.
  • Interest expense more than doubled to $269.5M from $105.4M due to debt.
  • Credit facility increased to $1.0B and extended to 2031; PNC facility terminated.
  • Purchase obligations jumped to $660.7M from $384.1M, likely from Paycor.
  • Uncertain tax positions liability rose to $120.6M from $108.6M.
  • Share repurchases of 5.6M shares at $108.81, up from 0.8M at $125.50.

• Market Risk (Item 7A)

  Portfolio up 17%, rate sensitivity down, yield up, duration lengthened. Not boilerplate.
  Notable

  • AFS securities duration increased to 3.1 years (May 31, 2026) from 2.2 years (May 31, 2025).
  • Earnings sensitivity to 25bp rate change fell to $4.5-$5.0M (FY2026) from $6.0-$6.5M (FY2025).
  • Portfolio averaged $7.4B (FY2026), up from $6.3B (FY2025).
  • AFS securities yield-to-maturity rose to 3.7% (May 31, 2026) from 3.3% (May 31, 2025).
  • $3.0B of AFS securities had fair value below amortized cost (up from $2.0B), but gross unrealized losses decreased to $59.8M (from $68.0M).

What changed: FY2026 vs. FY2025

About 8% of PAYX's FY2026 10-K is new information. 61 paragraphs were added, 350 changed, and 91 removed. Below are the most important lines SECSift identified.

• Financial Statements (Item 8) 109
• Management's Discussion (Item 7) 104
• Business (Item 1) 54
• Risk Factors (Item 1A) 35
• Market Risk (Item 7A) 13
• Part I (Part I) 10
• Cybersecurity (Item 1C) 6
• Market for the Stock (Item 5) 5
• Properties (Item 2) 3
• Directors and Officers (Item 10) 3