Paychex, Inc. (NASDAQ: PAYX) reported second-quarter fiscal 2026 results that exceeded Wall Street expectations, prompting the company to raise its full-year earnings outlook.

The human capital management firm posted adjusted earnings per share of $1.26 for the quarter ended November 30, 2025, above the analyst consensus of $1.23. Revenue increased 18% year over year to $1.56 billion, slightly exceeding expectations of $1.55 billion.

Management Solutions revenue, Paychex's largest segment, rose 21% to $1.2 billion. The company raised its full-year adjusted earnings per share growth forecast to 10%-11%, reflecting confidence in its operating momentum despite macroeconomic uncertainty.

Performance benefited from the April 2025 acquisition of Paycor, which contributed approximately 17% to Management Solutions revenue growth. Additional drivers included higher client counts, increased revenue per client, and a 51% increase in interest income on funds held for clients to $54.3 million.

PEO and Insurance Solutions revenue increased 6% to $336.9 million, driven by growth in average PEO worksite employees and higher PEO insurance revenues.