Paychex (PAYX) risk factors: FY2026 10-K

1. We may not be able to keep pace with changes in technology or provide timely enhancements to our solutions and support.
2. Our use of AI technology and the incorporation of AI technology into our solutions carries risks and challenges that could adversely affect our business, financial condition, results of operations, and prospects.newAI
3. We may experience software defects, undetected errors, and development delays, which could damage our relationship with customers, decrease our potential profitability and expose us to liability.reworded
4. We could be subject to reduced revenues, increased costs, liability claims, or harm to our competitive position as a result of cyberattacks, security vulnerabilities or Internet disruptions.Cybersecurity
5. In the event of a catastrophe, our business continuity plan may fail, which could result in the loss of customer data and adversely interrupt operations.reworded
6. We may be adversely impacted by any failure of third-party service providers to perform their functions.
7. We may be exposed to additional risks related to our co-employment relationship within our PEO business.
8. We may be adversely impacted by changes in health insurance and workers’ compensation rates and underlying claims trends.
9. We made and may continue to make acquisitions that involve numerous risks and uncertainties.

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1. Our clients could have insufficient funds to cover payments we made on their behalf, resulting in financial loss to us.
2. Our interest earned on funds held for clients may be impacted by changes in government regulations mandating the amount of tax withheld or timing of remittance.
3. Our debt obligations may expose us to risks affecting the operation of our business, and our failure to address these risks could have a material adverse effect on our results of operations and financial condition.
4. Change in our credit ratings could adversely impact our results of operations and lower our profitability.

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1. Our business, services, and financial condition may be adversely impacted by changes in government laws and regulations.
2. Our business and reputation may be adversely impacted if we fail to comply with U.S. and foreign laws and regulations.
3. Our reputation, results of operations, or financial condition may be adversely impacted if we fail to comply with data privacy and AI laws and regulations.AI
4. Failure to protect our intellectual property rights may harm our competitive position and litigation to protect our intellectual property rights or defend against third-party allegations of infringement may be costly.
5. We are involved in litigation from time to time arising from the operation of our business and acquisitions and, as such, we could incur substantial judgments, fines, legal fees, or other costs.reworded

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1. Our business, results of operations, and financial condition may be impacted by macroeconomic and/or political factors of the U.S. and global economy and such impact could be materially adverse.
2. We may be adversely impacted by volatility and uncertainty in the political and economic environment.reworded
3. We may not be able to attract and retain qualified people, which could impact the quality of our solutions and customer satisfaction.
4. In the event we receive negative publicity, our reputation and the value of our brand could be harmed, and customers may not use our solutions and support, which may have a material adverse effect on our business.reworded

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Headings in the FY2025 10-K with no match this year.

1. We may not realize the expected financial or business benefits from the Paycor acquisition.