Paychex, Inc. (NASDAQ:PAYX) reported upbeat fiscal third-quarter results on Wednesday, highlighted by an 20% year-over-year increase in total revenue to $1.81 billion. The Street expected a quarterly revenue of $1.79 billion.

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Adjusted diluted earnings per share were $1.71, up from 1.49 a year ago, which topped the analyst consensus estimate of $1.67.

Operating income rose 14% to $792 million. Adjusted operating income jumped 22% to $863.2 million.

The quarterly operating margin fell to 43.8% from 45.8% a year earlier, while adjusted operating margin improved to 47.7%, up from 46.9% in the prior-year period.

Segment Performance

Management Solutions revenue climbed 23% to $1.35 billion, driven by client growth, product adoption, and the Paycor HCM acquisition.

Professional Employer Organization and Insurance Solutions revenue increased 9% to $397.5 million, primarily due to growth in the ...