Reported results
- Total revenue increased 6% to $1,630.5 million; Management Solutions revenue increased 4% to $1,213.1 million; PEO and Insurance Solutions revenue increased 12% to $367.6 million
- Operating income (GAAP) increased 14% to $619.2 million; adjusted operating income (non-GAAP) increased 9% to $684.7 million
- Operating margin (GAAP) was 38.0% compared to 35.2% in the prior year; adjusted operating margin (non-GAAP) was 42.0% compared to 40.7%
- Diluted earnings per share (GAAP) increased 14% to $1.21; adjusted diluted earnings per share (non-GAAP) increased 10% to $1.34
- Interest on funds held for clients increased 5% to $49.8 million
- Cash flow from operations was $413.5 million; dividends paid were $424.1 million ($1.19 per share)
Guidance
- Fiscal 2027 total revenue growth: 5% to 6% (no change)
- Fiscal 2027 Management Solutions revenue growth: 5% to 6% (no change)
- Fiscal 2027 PEO and Insurance Solutions revenue growth: 7% to 8% (increased from previous guidance of 6% to 7%)
- Fiscal 2027 interest on funds held for clients: $200 million to $210 million (increased from previous guidance of $195 million to $205 million)
- Fiscal 2027 adjusted operating margin (non-GAAP): ~44% (no change)
- Fiscal 2027 effective income tax rate: ~24% (no change)
- Fiscal 2027 adjusted diluted earnings per share (non-GAAP) growth: 7% to 9% (no change)
Notes
Adjusted operating income, adjusted operating margin, and adjusted diluted earnings per share are non-GAAP measures that exclude acquisition-related costs. The company notes that forward-looking adjusted operating margin and adjusted diluted earnings per share exclude acquisition-related costs and that changes in macroeconomic environment could alter guidance.
Price and volatility reaction
The stock moved -9.2% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -0.5 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 115.01 | 2026-09-21 |
| Close after release | 104.49 | 2026-09-23 |
| Realised move | -9.2% | close to close |
| 30d ATM IV change | -0.5 vol pts | constant-maturity series, not the front expiry |
Source
The figures above come from the earnings release the company filed with the SEC on 2026-09-23 (8-K, Item 2.02). Read the original filing on sec.gov.