Paychex Inc. (NASDAQ:PAYX) is one of the 9 Best QQQ Stocks to Buy Now. On March 25, Paychex reported its financial results for the third quarter of 2026, highlighting a 20% increase in total revenue to $1.8 billion. This growth was driven by the Management Solutions segment, which increased 23% to $1.4 billion, helped by the acquisition of Paycor in April 2025. Operating income for the quarter increased 14% to $792.0 million, while adjusted operating income grew 22% to $863.2 million. Diluted EPS reached $1.56, representing an increase of 9%.
Total expenses increased 24% during the quarter to $1 billion, primarily due to costs related to compensation and amortization of intangible assets following the Paycor acquisition. Despite these costs, adjusted operating margin improved to 47.7% from 46.9% a year earlier. So far this fiscal year, Paychex has returned more than $1.5 billion to shareholders through $1.2 billion in dividends and $361.6 million in share buybacks.
The company’s financial position remains strong, with $1.8 billion in cash and corporate investments versus $5 billion in total loans as of February 28. Paychex Inc. (NASDAQ:PAYX) updated its full fiscal 2026 outlook, specifically raising expected interest on funds held for clients to a range of $200 million to $210 million. All other forecasts remain unchanged, although the company noted that its projections assume current market conditions and exclude ongoing costs related to acquisitions.
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Paychex Inc. (NASDAQ:PAYX) offers integrated human capital management/HCM solutions focused on payroll, human resources, benefits and insurance for small and medium-sized businesses, primarily in the US and Europe. It uses its SaaS platforms such as Paychex Flex and SurePayroll to offer services.
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