Paychex, Inc. PAYX

101.37 (0.22) (0.22%) as of 25 Sep
Market cap
$36.0B
P/E
20.1×
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Paychex, Inc. (PAYX) Gross margin

Paychex, Inc.'s gross margin over the twelve months to 31 August 2026 was 74.4%, up 0.1 percentage points from fiscal 2026 (74.3%). Over the past ten years it has ranged from 68.3% (fiscal 2020) to 74.3% (fiscal 2026) — the current reading is the highest in ten years. That is above the Software Application industry median of 67.0% and above the Technology sector median of 47.2%.

Gross margin, annual

Annual

Period Gross margin Change (points)
FY2026 74.3% 1.94
FY2025 72.4% 0.38
FY2024 72.0% 0.99
FY2023 71.0% 0.39
FY2022 70.6% 1.93
FY2021 68.7% 0.36
FY2020 68.3% (0.48)
FY2019 68.8% (1.08)
FY2018 69.9% (0.98)
FY2017 70.8% (0.12)

Quarterly

Period Gross margin Change (points)
Aug 2026 73.6% (0.39)
May 2026 74.0% (2.15)
Feb 2026 76.2% 2.62
Nov 2025 73.5% 0.41
43 more quarters

Against its own ten years

Low 68.3% High 74.3%
Ten-year median 70.7%
Current reading's percentile 100

Gross margin against peers

Company Gross margin
ADSK Autodesk, Inc. compare 91.3%
FICO Fair Isaac Corporation compare 85.1%
TEAM Atlassian Corporation PLC compare 84.8%
ZM Zoom Communications, Inc. compare 77.3%
WDAY Workday, Inc. compare 75.8%
PAYX Paychex, Inc. 74.4%
ROP Roper Technologies, Inc. compare 69.5%
MSTR Strategy Inc compare 67.6%
SSNC SS&C Technologies Holdings, Inc. compare 48.1%
Software Application industry median 67.0%
Technology sector median 47.2%
Market median 46.3%

What Gross margin is

Gross Margin tells an investor how much of each sale a company keeps after paying the direct costs of making or buying what it sells.

Gross Profit ÷ Revenue

The full definition of Gross margin →

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