Paychex’s Board of Directors approved a new $1 billion stock‑repurchase authorization on January 16, 2026, replacing a prior $400 million program that began in 2024. The authorization allows the company to buy back shares at market price, a move that can support earnings per share and signal confidence in the firm’s valuation.
The company also declared a regular quarterly cash dividend of $1.08 per share, payable on February 27, 2026 to shareholders of record as of January 28, 2026. Paychex has paid dividends for 38 consecutive years and increased the payout for 12 straight years, giving the current dividend a yield of roughly 3.91%.
In its most recent earnings release, Paychex reported second‑quarter fiscal 2026 revenue of $1.56 billion, up $10 million (0.6%) from the $1.55 billion forecast, and an adjusted earnings per share of $1.26 versus the $1.23 consensus. The beat reflects strong cash generation, disciplined cost control, and the momentum from recent AI‑driven product enhancements and the Paycor acquisition, which broadened the company’s service mix.
John Gibson, Paychex’s President and CEO, said the new buyback and dividend “demonstrate our confidence in the strength of the business, consistent cash flow generation, and disciplined approach to long‑term value creation.” He added that the company’s AI integration and partnership with PayPal to expand its Flex Perks platform are expected to drive future growth and reinforce the firm’s competitive position.
The $1 billion authorization, combined with the dividend, underscores Paychex’s robust liquidity—$1.7 billion in cash and $2 billion of unused credit facility capacity—providing a solid foundation for capital returns while supporting ongoing investments in technology and customer expansion.
Overall, the announcement signals that Paychex is leveraging its strong cash flow and market position to reward shareholders, while continuing to invest in AI and strategic partnerships that are expected to sustain growth and enhance shareholder value.
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