PAYX

Industrial

Paychex is on track to achieve its targeted $90 million cost synergy from the Paycor acquisition, with ongoing efforts to pursue additional synergies.
The integration of Paycor has been faster than expected, enabling full revenue and cost synergy opportunities for fiscal year 2026.
Early revenue synergies include cross-selling Paychex Retirement ASO and PEO solutions to Paycor's approximately 50,000 clients, with promising initial wins such as a large ASO sale.
Management reports that employee attrition related to the integration is better than historical levels, indicating smooth cultural integration.
The combined entity is leveraging a broader set of technology solutions and service models, strengthening client retention and growth prospects.
Progress in integration has led to a pipeline of revenue opportunities, with client receptivity and engagement increasing month over month.

CTAS

Industrial

Cintas continues to invest heavily in technology to improve customer experience and employee productivity, including AI and analytics tools.
The company has built a strong SAP foundation to leverage for future technological advancements.
Investments focus on making it easier for customers to manage their accounts and for employees to serve customers more effectively.
Ongoing technology initiatives aim to eliminate administrative tasks and optimize sales and service processes.

KFY

Industrial

Adjusted diluted earnings per share rose 11% year-over-year to $1.31.
Adjusted EBITDA increased by $9 million or 8% year-over-year to $120 million, with margin expansion of 50 basis points to 17%.
Average bill rates increased 9% in Consulting and 4% in Interim year-over-year.
Consolidated fee revenue grew 5% year-over-year to $709 million, marking the second consecutive quarter of positive growth.
Digital subscription and licensed new business grew 10% year-over-year, contributing 39% of total digital new business.
Executive Search fee revenue grew 8% year-over-year, marking the fifth consecutive quarter of growth.
Marquee & Diamond accounts generated nearly 40% of consolidated fee revenue, growing over 7% year-over-year.
Professional search and interim fee revenue increased 10% year-over-year, with interim up 14%.

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