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Paychex Inc. (NASDAQ:PAYX) is one of the 9 Best QQQ Stocks to Buy Now. ​On March 25, Paychex reported its financial results for FQ3 2026, highlighting a 20% increase in total revenue to $1.8 billion. This growth was driven by the Management Solutions segment, which rose 23% to $1.4 billion, aided by the April 2025 acquisition of Paycor. Operating income for the quarter increased 14% to $792.0 million, while adjusted operating income grew 22% to $863.2 million. Diluted EPS reached $1.56, representing a 9% increase.

Total expenses rose 24% during the quarter to $1 billion, primarily due to compensation-related costs and the amortization of intangible assets following the Paycor acquisition. Despite these costs, the adjusted operating margin improved to 47.7% from 46.9% in the prior year. Fiscal year-to-date, Paychex has returned over $1.5 billion to shareholders through $1.2 billion in dividends and $361.6 million in share repurchases.

The company’s financial position remains robust, with $1.8 billion in cash and corporate investments against $5 billion in total borrowings as of February 28. Paychex Inc. (NASDAQ:PAYX) updated its full FY2026 outlook, specifically raising the anticipated interest on funds held for clients to a range of $200 to $210 million. All other guidance remains unchanged, though the company noted that its projections assume current market conditions and exclude ongoing acquisition-related costs.

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Paychex Inc. (NASDAQ:PAYX) provides integrated human capital management/HCM solutions focused on payroll, HR, benefits, and insurance for small- to medium-sized businesses mainly in the US and Europe. It uses its SaaS platforms like Paychex Flex and SurePayroll to offer services.

While we acknowledge the potential of PAYX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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