Paychex, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Segment Reporting (Tables)

Segment Reporting (Tables)

9 Months Ended

Feb. 28, 2026

Schedule of Total Revenue, Net Income and Significant Expenses Used by the Chief Operating Decision Maker

Total revenue, net income, and significant expenses used by the chief operating decision maker for the purpose of allocating resources and evaluating the Company's financial performance were as follows:


	For the three months ended						For the nine months ended
	February 28,						February 28,
In millions	2026			2025			2026			2025
Total revenue	$	1,808.9		$	1,509.0		$	4,906.5		$	4,144.4

Core business operations:
Compensation-related expenses		530.9			455.7			1,586.4			1,361.4
PEO direct insurance costs		139.7			127.7			415.3			388.8
Depreciation and amortization		50.6			43.1			147.9			123.8
Other segment items(1)		224.5			174.0			618.0			477.1
Non-core business operations:
Acquisition-related costs(2)		71.2			16.7			233.1			16.7
Total expenses		1,016.9			817.2			3,000.7			2,367.8
Interest expense, excluding Paycor acquisition-related costs		(68.1	)		(9.4	)		(204.8	)		(28.5	)
Acquisition-related costs(2)		—			(13.2	)		—			(13.2	)
Other income, net		15.1			16.6			55.7			51.7
Income before income taxes		739.0			685.8			1,756.7			1,786.6
Income tax expense		178.7			166.5			417.2			426.5
Net income	$	560.3		$	519.3		$	1,339.5		$	1,360.1

(1)

Other segment items include professional service expense, marketing and advertising expenses, and other overhead expenses.

(2)

Acquisition-related costs included in total expenses include the amortization of intangibles acquired in the acquisition of Paycor, compensation costs related to the acquisition and integration of Paycor, including replacement awards, severance, and retention bonuses, and other acquisition-related costs, primarily reflecting third-party professional service fees. In addition, acquisition-related costs included in interest expense for fiscal 2025 include the amortization of financing fees related to debt instruments associated with the financing of the Paycor acquisition and the excluded components of the initial fair value of the interest rate swaption contracts. Refer to Note H Supplemental Information for additional information regarding the Company's financing arrangements related to the acquisition of Paycor.