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The Markets
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The Markets
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Business & education services

Paychex shares rise as strong demand for its workforce solutions drives 1Q earnings beat

Paychex (NASDAQ:PAYX) stock edged higher in pre-market trade on Wednesday after it reported first-quarter fiscal 2024 sales and earnings that beat Wall Street forecasts.

Shares of Paychex (NASDAQ:PAYX), which provides a range of human resources, payroll and benefits solutions software, added 1.3% to US$114.22 shortly before the opening bell in New York.

For 1Q, it reported a 7% year-over-year jump in revenue from $1.20 billion to $1.29 billion. This narrowly beat the Street estimate of $1.28 billion, per Zacks Consensus Estimate.

Earnings per share also topped expectations of $1.12 at $1.14. They rose 11% from the year-ago quarter’s $1.03.

“Demand for our solutions remains strong as businesses continue to look to us for the technology and expertise to navigate today's rapidly changing business environment,” commented Paychex (NASDAQ:PAYX) CEO John Gibson in a statement.

“In addition, by harnessing the power of artificial intelligence and leveraging our vast data sets, we are delivering more actionable insights to our clients, helping them make informed decisions on how to address today’s growing workforce and compliance challenges.”

Contact the author at emily.jarvie@proactiveinvestors.com

Follow her on Twitter @emilyjjarvie

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