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

Quarterly report [Sections 13 or 15(d)]

Segment Reporting (Tables)

Segment Reporting (Tables)

6 Months Ended

Nov. 30, 2025

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 six months ended
	November 30,						November 30,
In millions	2025			2024			2025			2024
Total revenue	$	1,557.6		$	1,316.9		$	3,097.6		$	2,635.4

Core business operations:
Compensation-related expenses		525.5			454.4			1,055.5			905.7
PEO direct insurance costs		137.0			130.8			275.6			261.1
Depreciation and amortization		49.1			41.7			97.3			80.7
Other segment items(1)		197.0			151.9			393.5			303.1
Non-core business operations:
Acquisition-related costs(2)		77.1			—			161.9			—
Total expenses		985.7			778.8			1,983.8			1,550.6
Interest expense		(68.5	)		(9.5	)		(136.7	)		(19.1	)
Other income, net		16.8			15.1			40.6			35.1
Income before income taxes		520.2			543.7			1,017.7			1,100.8
Income tax expense		124.8			130.3			238.5			260.0
Net income	$	395.4		$	413.4		$	779.2		$	840.8

(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.