Paychex (NASDAQ:PAYX) shares were trading more than 3% lower Thursday afternoon despite the company’s reported Q2 results, with EPS of $1.03 coming in better than the Street estimate of $0.97. Revenue grew 11.4% year-over-year to $1.21 billion, beating the Street estimate of $1.18 billion.

Despite continued investor concern surrounding macro and the health of SMBs, the company raised its fiscal 2023 EPS guidance growth to approximately 11-12% year-over-year (vs. 9-10% prior).

Margins and revenue growth are set to decline sequentially in Q2/23 before recovering in the second half of the year.