Paychex (NASDAQ:PAYX) shares dropped 7% intra-day today after the HR solutions provider reported fourth-quarter results.

Adjusted diluted EPS for the quarter came in at $1.19, matching consensus estimates, while revenue rose 10% year-over-year to $1.43 billion, also in line with forecasts. Management Solutions revenue jumped 12% to $1.0 billion, driven by the acquisition of Paycor and improved pricing and product uptake. However, excluding the Paycor contribution, organic growth in the segment was a more modest 3%, raising some concern among investors about underlying momentum.

Looking ahead, Paychex issued fiscal 2026 guidance that includes total revenue growth of 16.5% to 18.5%, largely reflecting the full-year impact of the Paycor acquisition. Adjusted EPS is expected to grow by 8.5% to 10.5%. Management Solutions revenue is projected to rise 20% to 22%, while the PEO and Insurance Solutions segment is seen growing 6% to 8%.

While the long-term growth outlook remains solid, especially with expanded product penetration and cross-sell opportunities, the modest organic growth and lack of a clear earnings beat may have contributed to the market’s muted reaction.