Paychex, Inc. (PAYX) released its first quarter earnings on Tuesday, September 30. Although the payroll provider met analysts’ estimates, its shares fell by 8% following the release of the report.
For the quarter, the company reported total revenue of $1.54 billion. This was up 17% from $1.32 billion in the same quarter last year and was in line with analysts' expectations.
“We are pleased to report a strong start to fiscal 2026, delivering robust double-digit revenue growth,” said Paychex CEO, John Gibson. “As the digitally driven HR leader, our ongoing strategic investments in AI and technology are driving meaningful innovation, elevating the client experience and delivering operational efficiency.”
Paychex posted net income of $383.8 million or $1.06 per adjusted share for the quarter. This was down from net income of $427.4 million or $1.18 per adjusted share this time last year.
The Rochester, New York-based company saw increased revenue in its service segments. Management Solutions revenue rose 21% to $1.16 billion for the first quarter. This growth was attributed to higher client numbers as well as higher revenue per client due to the recent acquisition of Paycor. Professional Employer Organization (PEO) and Insurance Solutions revenue increased 3% to $329.1 million for the quarter. The company reaffirmed its guidance for the full fiscal year 2026 and expects revenue growth of 16.5% to 18.5%.
Paychex, Inc. (PAYX) shares closed at $124.61, up 3% for the week.
Nike, Inc. (NKE) reported its first quarter results on Tuesday, September 30. After the company reported better-than-expected earnings, shares were 3% higher following the release of the report.
Nike posted first quarter net revenue of $11.72 billion. This was up from $11.59 billion reported in the same quarter last year and just over the $11.0 billion in revenue that analysts expected.
"While we are getting wins under our belt, we still have work ahead to get all sports, geographies, and channels on a similar path as we manage a dynamic operating environment," said Nike CEO, Elliott Hill. "I am confident that we have the right focus in Win Now and that our new alignment in the Sport Offense will be the key to maximizing NIKE, Inc.’s complete portfolio over the long-term."
The company reported net income of $727.0 million for the quarter or $0.49 per diluted share. This was down from net income of $1.05 billion or $0.70 per diluted share reported last year.
Nike Direct segment sales reached $4.5 billion, down 4% for the quarter, due in part to a 12% decrease in Nike Brand Digital sales. Nike’s inventories decreased 2% over the same period last year to $8.1 billion, driven by a decrease in units that was partially offset by increased product costs due to tariffs. Wholesale revenues were up 7% to $6.8 billion. In the first quarter, Nike returned approximately $714 million to shareholders through dividends and share repurchases.
Nike, Inc. (NKE) shares ended the week at $71.93, up 3% for the week.
Acuity Inc. (AYI) announced its fourth quarter and full-year earnings on Wednesday, October 1. The technology company’s stock gained almost 4.5% following the release of the report.
The company’s net sales reached $1.21 billion for the fourth quarter, up 17% from $1.03 billion during the same period last year. This was below analysts’ expectations of $1.23 billion for the quarter. Full-year revenue returned $4.35 billion, a 13% increase from $3.84 billion in fiscal 2024.
“Our fiscal 2025 fourth quarter performance was strong,” said Acuity CEO, Neil Ashe. “We grew net sales, expanded our adjusted operating profit and adjusted operating profit margin, and increased our adjusted diluted earnings per share. Throughout fiscal 2025 we have demonstrated our ability to deliver growth and consistent operating performance that created stakeholder value and compounded shareholder wealth.”
Acuity reported quarterly net income of $114.0 million or $3.61 per adjusted share. This was a decrease from $118.9 million in net income or $3.77 per adjusted share during the same period last year. For the full year, the company reported net income of $396.6 million, a decline from net income of $422.6 million reported last year.
The Atlanta, Georgia-based industrial technology manufacturer saw an increase in sales throughout its two main segments. Net sales for the Acuity Brands Lighting (ABL) segment increased by almost 1% to $962.4 million in the fourth quarter. Acuity’s Intelligent Spaces Group (AIS) segment also saw growth in sales with an increase of 204% to $255.2 million. For fiscal 2026, the company expects net sales to be in the range of $4.7 billion to $4.9 billion.
Acuity Inc. (AYI) shares ended the week at $352.95, up 3% for the week.
The Dow started the week of 9/29 at 46,306 and closed at 46,758 on 10/3. The S&P 500 started the week at 6,662 and ended at 6,716. The NASDAQ started the week at 22,605 and finished at 22,781.
U.S. Treasury yields stayed steady early in the week despite a weaker-than-expected consumer confidence report. Yields trended lower later in the week as investors digested an unexpected decline in private payrolls and the impact of the federal government shutdown.
On Tuesday, the Conference Board reported that its Consumer Confidence Index decreased 3.6 points to 94.2 in September. This marked a decline from August’s reading of 97.8 and came in below economists’ forecast of 96.0. The decline reflected concerns over inflation, tariffs and employment uncertainty, which continue to weigh on consumer sentiment.
“Consumer confidence weakened in September, declining to the lowest level since April 2025,” said senior economist of global indicators at the Conference Board, Stephanie Guichard. “Consumers’ assessment of business conditions was much less positive than in recent months, while their appraisal of current job availability fell for the ninth straight month to reach a new multiyear low.”
The benchmark 10-year Treasury note yield opened the week of September 29 at 4.18% and traded as low as 4.09% on Wednesday. The 30-year Treasury bond opened the week at 4.76% and traded as low as 4.67% on Wednesday.
On Wednesday, ADP reported that private sector jobs decreased in September, indicating a weakening labor market. The payroll processing company detailed that private sector businesses lost 32,000 jobs in September, far below Wall Street’s expectations of an increase of 45,000 jobs. ADP also revised the payroll figures for August, indicating a loss of 3,000 jobs, which is considerably less than the initially reported increase of 54,000 jobs.
"We found that once we benchmarked that data, it actually shows a September slowdown that has been consistent with what we have been reporting all year," said chief economist at ADP, Dr. Nela Richardson. "In fact, though the numbers changed, the story and the narrative and the trend remain the same: Hiring momentum has slowed from the beginning of the year through September."
The 10-year Treasury note yield finished the week of 9/29 at 4.12%, while the 30-year Treasury note yield finished the week at 4.71%.
Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, October 2. The survey showed mortgage rates rising for the second week in a row.
This week, the 30-year fixed rate mortgage averaged 6.34%, up from last week’s average of 6.30%. Last year at this time, the 30-year fixed rate mortgage averaged 6.12%.
The 15-year fixed rate mortgage averaged 5.55% this week, up from last week’s 5.49%. During the same week last year, the 15-year fixed rate mortgage averaged 5.25%.
“The 30-year fixed-rate mortgage increased again this week but remains below its 52-week average of 6.71%,” said Freddie Mac’s Chief Economist, Sam Khater. “The last few months have brought lower rates and as indicated by the recently reported increase in pending home sales, homebuyers are feeling more confident to get into the market.”
Based on published national averages, the savings rate was 0.40% as of 9/15. The one-year CD averaged 1.70%.
Editor’s Note: The publicly available financial information is offered as a helpful and informative service to our friends. This article is not an endorsement of any company, product or service.
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