ROCHESTER, N.Y., Sept. 09, 2026 (GLOBE NEWSWIRE) -- Paychex, Inc. (Nasdaq: PAYX), a leading provider of expert-enabled HR, payroll, and benefits, today announced that it is scheduled to release financial results for its fiscal 2027 first quarter ended August 31, 2026 on Wednesday, September 23, 2026, before the financial markets open.
The company will host a conference call at 9:30 a.m. ET on Wednesday, September 23, 2026 to discuss these results. Participating in this call will be John Gibson, President and Chief Executive Officer, and Bob Schrader, Chief Financial Officer.
The conference call will be webcast live and available for replay on the Paychex Investor Relations portal.
About Paychex
Paychex, Inc. (Nasdaq: PAYX) provides a comprehensive suite of expert-enabled technology and advisory solutions that help businesses manage HR, payroll, and benefits. Serving approximately 840,000 customers and paying 1 in 11 U.S. private sector workers, Paychex combines scale, trusted expertise, and innovation to help businesses succeed. Built on more than 50 years of workforce experience and one of the industry’s largest proprietary HR datasets, Paychex’s WISE agentic AI engine embeds intelligence directly into workflows to improve productivity, enhance decision-making, and deliver better outcomes. Learn more at paychex.com.
Paychex, Inc.’s news releases, current financial information, SEC filings, and investor presentations are accessible on the Paychex Investor Relations portal.
B. Metzler seel. Sohn and Co. AG lessened its holdings in Paychex, Inc. (NASDAQ: PAYX) by 16.5% during the undefined quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 28,328 shares of the business services provider's stock after selling 5,582 shares during the quarter. B. Metzler
BAM Wealth Management LLC bought a new stake in Paychex, Inc. (NASDAQ:PAYX – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 4,252 shares of the business services provider’s stock, valued at approximately $418,000.
A number of other institutional investors and hedge funds have also recently bought and sold shares of PAYX. Hilton Head Capital Partners LLC acquired a new position in shares of Paychex in the 4th quarter valued at $31,000. Kingdom Financial Group LLC. acquired a new stake in shares of Paychex in the 4th quarter valued at $33,000. Leonteq Securities AG raised its position in shares of Paychex by 2,669.2% during the 1st quarter. Leonteq Securities AG now owns 360 shares of the business services provider’s stock worth $33,000 after acquiring an additional 347 shares in the last quarter. Field & Main Bank purchased a new stake in shares of Paychex during the 2nd quarter worth approximately $33,000. Finally, Acumen Wealth Advisors LLC acquired a new stake in shares of Paychex during the fourth quarter worth about $34,000. 83.47% of the stock is currently owned by institutional investors and hedge funds.
Insider Activity In other Paychex news, Director Joseph Tucci sold 3,907 shares of the firm’s stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $98.25, for a total value of $383,862.75. Following the sale, the director owned 67,364 shares in the company, valued at approximately $6,618,513. This trade represents a 5.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Robert Schrader sold 2,600 shares of the firm’s stock in a transaction on Monday, July 20th. The shares were sold at an average price of $115.09, for a total value of $299,234.00. Following the transaction, the chief financial officer directly owned 18,547 shares in the company, valued at $2,134,574.23. This trade represents a 12.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.80% of the stock is currently owned by corporate insiders.
Paychex Trading Down 2.7% NASDAQ PAYX opened at $121.71 on Friday. The company has a market capitalization of $43.29 billion, a price-to-earnings ratio of 24.89, a price-to-earnings-growth ratio of 2.62 and a beta of 0.82. Paychex, Inc. has a 12 month low of $85.45 and a 12 month high of $138.19. The company’s fifty day moving average price is $116.50 and its two-hundred day moving average price is $101.96. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26. Paychex (NASDAQ:PAYX – Get Free Report) last released its earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share for the quarter, beating the consensus estimate of $1.31 by $0.01. The firm had revenue of $1.61 billion during the quarter, compared to analyst estimates of $1.60 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The firm’s revenue for the quarter was up 12.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.19 earnings per share. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, research analysts predict that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.
Paychex Announces Dividend The company also recently declared a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th were given a dividend of $1.19 per share. The ex-dividend date was Tuesday, July 28th. This represents a $4.76 annualized dividend and a dividend yield of 3.9%. Paychex’s dividend payout ratio is currently 97.34%.
Analysts Set New Price Targets A number of research firms recently weighed in on PAYX. TD Cowen lifted their price objective on shares of Paychex from $94.00 to $98.00 and gave the company a “hold” rating in a research report on Monday, June 8th. Cantor Fitzgerald reaffirmed an “underweight” rating and set a $107.00 price target on shares of Paychex in a research note on Monday, July 20th. Jefferies Financial Group increased their price target on shares of Paychex from $105.00 to $120.00 and gave the company a “hold” rating in a report on Wednesday, August 12th. Stephens assumed coverage on shares of Paychex in a research note on Friday. They issued an “equal weight” rating and a $132.00 price objective for the company. Finally, UBS Group boosted their price objective on shares of Paychex from $105.00 to $115.00 and gave the stock a “neutral” rating in a report on Wednesday, July 22nd. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have given a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $111.00.
Get Our Latest Analysis on Paychex
About Paychex (Free Report)
Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.
Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.
Further Reading Five stocks we like better than Paychex Revolution Medicines Got Its Breakthrough—What Moves It Next? Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy FB Financial’s Southern Expansion and Buybacks Drive Analyst Optimism AST SpaceMobile Stock Soared 12%—This Was the Catalyst
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Key Takeaways Paychex beat FY26 Paycor synergy targets, adding 50 bps to revenue growth and above $100M in cost synergies.WISE powers 600 AI features and agents, supporting productivity, upselling, retention and pricing power.PAYX targets an adjusted operating margin of 44% for FY27 after reaching 42.1% in Q4. Paychex (PAYX - Free Report) stock has gained 30.1% in the past six months. Shares outpaced the industry’s 8.1% return and the Zacks S&P 500 Composite's 12.7% rally.
6-Month Share Price Performance Image Source: Zacks Investment Research
Let us delve deeper into the factors that have contributed to the company’s outperformance.
Paycor Integration Creates GrowthPaychex beat its fiscal 2026 synergy targets related to the Paycor buyout, contributing 50 basis points (bps) to revenue growth and generating more than $100 million in cost synergies. The company is winning larger deals as it continues cross-selling advisory offerings such as ASO, retirement and PEO into the Paycor base.
The company completed organizational and sales territory realignments associated with moving the Paycor under 100-employee businesses into its small and medium-sized business, and incorporating Paychex 100-plus businesses into its enterprise segment during fiscal 2026.
John Gibson, the CEO, during the company’s last earnings call mentioned that the company is expanding access to Perks to employees on the Paycor platform, expanding its addressable market by more than 2.5 million employees. The Paycor buyout is solidifying revenue synergies by cross-selling higher-value solutions.
WISE Strengthens PAYX’s OfferingsWorkforce Intelligence Strengthened by Expertise (WISE) is the company’s AI-backed intelligence tool. WISE powers nearly 600 AI features and agents, expanding its reach into agentic AI. This tool is embedded into the workflow and moves toward autonomous execution, moving beyond insights and assistance, scaling expertise, improving productivity, and delivering better client outcomes.
The company visualizes WISE as a vital driver of long-term value creation via direct monetization opportunities and indirect benefits. It also includes stronger upsell, higher revenue per client, enhanced retention and greater pricing power.
Margin Expansion & Efficiency GainsHigher productivity, prudent expense management and tech-fuelled efficiencies improve Paychex’s profitability. During the fourth quarter of fiscal 2026, the adjusted operating margin gained 170 bps year over year to 42.1% despite an upsurge in AI-related investments.
Management recognized modernization of back-office systems and automation as vital efficiency drivers, helping strip away errors and manual work while enhancing productivity. The company anticipates an adjusted operating margin of nearly 44% in fiscal 2027, bolstering investor confidence in the company’s ability to maintain operating leverage and efficiency gains.
Zacks Rank & Stocks to ConsiderPAYX currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Arista Networks (ANET - Free Report) and Amkor Technology (AMKR - Free Report) , each currently carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks has a long-term earnings growth expectation of 22.7%. ANET delivered a trailing four-quarter earnings surprise of 8.9%, on average.
Amkor Technology has a long-term earnings growth expectation of 31.2%. AMKR delivered a trailing four-quarter earnings surprise of 43.6%, on average.
Paychex earns a buy rating, driven by strong revenue growth, high margins, and strategic AI integration targeting SMEs. PAYX leverages its WISE AI platform to streamline payroll and HR processes, enhancing value for cost-sensitive small and medium-sized businesses. Compared to ADP, PAYX boasts superior gross and net margins, and faster revenue and FCF growth, though it trades at higher price-to-sales multiples.
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Stock to Watch: Paychex (PAYX - Free Report) Paychex, Inc. is an industry-leading human capital management (“HCM”) company providing technology and advisory solutions across human resources (“HR”), payroll processing, employee benefits and insurance. Incorporated in Delaware in 1979, the company has a fiscal year ending May 31.
PAYX is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. PAYX has a Growth Style Score of B, forecasting year-over-year earnings growth of 8.2% for the current fiscal year.
One analyst revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.00 to $5.96 per share. PAYX also boasts an average earnings surprise of +1.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, PAYX should be on investors' short list.
ROCHESTER, N.Y., Sept. 01, 2026 (GLOBE NEWSWIRE) -- The pace of job growth (99.13) among small businesses in the U.S. remained consistent in August, according to the Paychex Small Business Employment Watch, which reports on employers with fewer than 50 employees. Weekly hours worked growth (0.07%) for small business personnel was positive for the sixth consecutive month in August – a stretch not seen since October 2020 – as employers continue to rely on their existing workforces to meet demand. Hourly earnings growth for employees remained below three percent (2.89%) for the 24th consecutive month, while weekly earnings growth reached 3.00% in August.
“August’s data underscores the continued resilience of America’s small businesses,” said John Gibson, Paychex president and CEO. “Employment among businesses with fewer than 50 employees remained stable in August, while our broader customer base, including employers with more than 50 employees experiencing slightly stronger job growth. At the same time, six consecutive months of positive weekly hours worked growth, the longest such stretch since 2020, signals that employers are seeing continued demand and, given the tight labor market, are relying on their existing workforces to meet it. Meanwhile, hourly earnings growth has remained below three percent for the last two years, suggesting wage growth has stabilized.”
Jobs Index and Wage Data Highlights
The national jobs index (99.13) moderated 0.10 percentage points in August, remaining in line with its 2026 year-to-date average (99.20).The Midwest led regions for employment growth with a 99.48 jobs index, while the West region reported a notable 0.41 percentage-point gain.Phoenix (100.81) led the largest U.S. metros for job growth in August, marking the seventh time it ranked first during the past year.Education and Health Services, which has ranked among the top two sectors for job growth every month since February 2023, regained its No. 1 ranking with a 99.88 jobs index in August.Hourly earnings growth (2.89%) ticked up slightly in August as one-month annualized growth was at or above three percent (3.00%) for the fifth consecutive month.Weekly earnings growth reached 3.00% in August as one-month annualized growth has been consistently above three percent since February 2026. About the Paychex Small Business Employment Watch
Since 2014, the Paychex Small Business Employment Watch has been a trusted source of employment trends for U.S. small businesses with fewer than 50 employees. The Employment Watch website offers interactive charts and historical data across the report’s two key components – the jobs index and wage data – as well as the methodology for both analyses. Visit the Bloomberg Terminals or subscribe to receive monthly alerts with the latest data.
*Information regarding the professions included in the industry data can be found at the Bureau of Labor Statistics website.
About Paychex
Paychex, Inc. (Nasdaq: PAYX) provides a comprehensive suite of expert-enabled technology and advisory solutions that help businesses manage HR, payroll, and benefits. Serving approximately 840,000 customers and paying 1 in 11 U.S. private sector workers, Paychex combines scale, trusted expertise, and innovation to help businesses succeed. Built on more than 50 years of workforce experience and one of the industry’s largest proprietary HR datasets, Paychex’s WISE agentic AI engine embeds intelligence directly into workflows to improve productivity, enhance decision-making, and deliver better outcomes. Learn more at paychex.com.
Media Contacts
Tracy Volkmann
Paychex, Inc.
Manager, Public Relations
(585) 387-6705 [email protected]
@Paychex
WISE agents proactively help prevent payroll errors, enable more consultative service, and increase efficiency across the Paychex enterprise – enhancing customer experiencesResults from more than 50,000 early adopters reinforce the value of WISE across Paychex’s HCM platformsCompany continues to scale WISE based on early adopter success
ROCHESTER, N.Y., Aug. 31, 2026 (GLOBE NEWSWIRE) -- Paychex, Inc. (Nasdaq: PAYX), a leading provider of expert-enabled HR, payroll, and benefits, today shared early results from more than 50,000 businesses using WISE (Workforce Intelligence, Strengthened by Expertise). Early adopter data shows WISE is helping customers proactively prevent payroll errors, resolve service interactions faster, and improve efficiency across the Paychex enterprise — validating the company’s strategy to bring agentic AI into mission-critical workforce workflows.
Preventing Payroll Errors Before They Happen
Recurring payroll issues waste time, create risk, and can undermine employee trust. Companies average a 1.2% payroll error rate, and employees often begin looking for a new job after just two payroll mistakes. As business leaders are increasingly expected to do more with less, persistent demands and expanding priorities leave limited time for manual correction.
With WISE intelligence, Intelligent Pay Cycle continuously monitors the pay cycle for anomalies and proactively flags missing pay data, incomplete time records, and unresolved approvals before they become payroll problems, including:
Enabled proactive payroll management, with nearly 90% of identified time and pay rate errors corrected before payroll run day.Average time to review and resolve direct deposit changes fell from approximately three days to less than two days.
“WISE is not a set of AI features. It’s a shared intelligence engine embedded across our platforms to help customers complete work more efficiently and effectively,” said Ryan Bergstrom, Paychex Chief Product and Technology Officer. “From proactively identifying payroll issues to automating service interactions, WISE is already delivering measurable value at scale for customers and across our operations.”
Based on strong early adoption and validation, payroll intelligence and direct deposit approval capabilities reached general availability across Paychex Flex® users in late July, with missing punch and missing pay rate capabilities rolling out through September.
Driving Efficiency and Increasing Client Satisfaction
Delivered through both email and phone agents, WISE agentic intelligence runs through a customer lifecycle, from payroll pre-flight through post-cycle service. Thoughtfully developed to drive personalization and user confidence, WISE is delivering a faster, more positive client experience:
Across voice and email, WISE agents have handled more than 350,000 workforce conversations, with more than 20% resolved without human involvement.The WISE payroll voice agent operates at nearly 100% accuracy — with more than 40,000 users regularly choosing AI over a live representative.The WISE email agent has handled nearly 300,000 interactions with an average processing time of three minutes – more than 80% faster than human handling. “By automating routine interactions and surfacing issues earlier, WISE enables our service professionals to spend less time on repetitive tasks and more time helping clients solve broader workforce challenges,” Bergstrom added. “That shift from transaction handling to higher-value guidance is one of the most important benefits of our AI strategy.”
Unlocking Insights to Drive Organizational Effectiveness
Paychex continues to expand WISE across its operations to increase efficiency, accelerate service delivery, and enhance the customer experience. Over the past year, the company has equipped sales and service professionals with AI-powered tools that deliver real-time answers to customer questions and help teams respond more quickly and effectively. Paychex is also leveraging AI to modernize implementation workflows, helping new clients onboard faster and more efficiently.
To learn more about WISE and AI at Paychex, visit paychex.com/ai.
About WISE
WISE (Workforce Intelligence Strengthened by Expertise) is the AI-powered intelligence engine transforming business operations with embedded context-aware intelligence, expert-enabled guidance, and autonomous execution. With Paychex’s five decades of trusted data and human expertise at its core, WISE transforms AI from a passive tool to expert-designed agentic workflows with the ability to complete tasks autonomously, making work faster, smarter, and more efficient.
About Paychex
Paychex, Inc. (Nasdaq: PAYX) provides a comprehensive suite of expert-enabled technology and advisory solutions that help businesses manage HR, payroll, and benefits. Serving approximately 840,000 customers and paying 1 in 11 U.S. private sector workers, Paychex combines scale, trusted expertise, and innovation to help businesses succeed. Built on more than 50 years of workforce experience and one of the industry’s largest proprietary HR datasets, Paychex’s WISE agentic AI engine embeds intelligence directly into workflows to improve productivity, enhance decision-making, and deliver better outcomes. Learn more at paychex.com.
Media Contact
Chelsea Wernick
Public Relations Program Manager
Paychex, Inc.
(585) 216-2974 [email protected]
Archer Investment Corp purchased a new stake in shares of Paychex, Inc. (NASDAQ:PAYX – Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm purchased 6,675 shares of the business services provider’s stock, valued at approximately $656,000.
Other institutional investors and hedge funds have also modified their holdings of the company. Brighton Jones LLC raised its position in shares of Paychex by 26.3% during the fourth quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider’s stock valued at $801,000 after buying an additional 1,190 shares during the last quarter. Bison Wealth LLC grew its position in Paychex by 3.0% during the fourth quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider’s stock worth $566,000 after buying an additional 117 shares in the last quarter. Woodline Partners LP bought a new position in Paychex during the first quarter valued at about $3,333,000. NewEdge Advisors LLC increased its stake in Paychex by 3.2% during the second quarter. NewEdge Advisors LLC now owns 41,081 shares of the business services provider’s stock valued at $5,976,000 after acquiring an additional 1,290 shares during the period. Finally, Sei Investments Co. raised its holdings in Paychex by 47.1% in the 2nd quarter. Sei Investments Co. now owns 156,680 shares of the business services provider’s stock valued at $22,790,000 after acquiring an additional 50,169 shares in the last quarter. Institutional investors and hedge funds own 83.47% of the company’s stock.
Insider Activity at Paychex In other news, Director Joseph M. Tucci sold 3,907 shares of the business’s stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $98.25, for a total value of $383,862.75. Following the transaction, the director directly owned 67,364 shares of the company’s stock, valued at $6,618,513. The trade was a 5.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Robert L. Schrader sold 2,600 shares of the firm’s stock in a transaction on Monday, July 20th. The stock was sold at an average price of $115.09, for a total transaction of $299,234.00. Following the completion of the sale, the chief financial officer owned 18,547 shares of the company’s stock, valued at $2,134,574.23. The trade was a 12.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.80% of the company’s stock.
Analysts Set New Price Targets A number of equities analysts have commented on the company. Weiss Ratings raised Paychex from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, July 20th. Jefferies Financial Group increased their price objective on shares of Paychex from $105.00 to $120.00 and gave the stock a “hold” rating in a report on Wednesday, August 12th. Citigroup raised their price objective on shares of Paychex from $140.00 to $150.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. Stifel Nicolaus boosted their target price on Paychex from $105.00 to $110.00 and gave the stock a “hold” rating in a research report on Wednesday, June 17th. Finally, TD Cowen upped their price objective on Paychex from $94.00 to $98.00 and gave the company a “hold” rating in a report on Monday, June 8th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, Paychex presently has a consensus rating of “Hold” and an average target price of $109.20. View Our Latest Stock Analysis on Paychex
Paychex Trading Up 0.4% Shares of Paychex stock opened at $127.04 on Friday. The company has a market capitalization of $45.19 billion, a price-to-earnings ratio of 25.98 and a beta of 0.81. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26. Paychex, Inc. has a 1 year low of $85.45 and a 1 year high of $139.53. The business has a fifty day simple moving average of $113.76 and a two-hundred day simple moving average of $100.95.
Paychex (NASDAQ:PAYX – Get Free Report) last announced its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.31 by $0.01. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The business had revenue of $1.61 billion for the quarter, compared to analysts’ expectations of $1.60 billion. During the same period last year, the firm posted $1.19 earnings per share. The firm’s quarterly revenue was up 12.5% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Research analysts forecast that Paychex, Inc. will post 5.96 EPS for the current year.
Paychex Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th were given a dividend of $1.19 per share. This represents a $4.76 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date was Tuesday, July 28th. Paychex’s dividend payout ratio (DPR) is 97.34%.
Paychex Company Profile (Free Report)
Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.
Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.
Further Reading Five stocks we like better than Paychex 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop? Want to see what other hedge funds are holding PAYX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Paychex, Inc. (NASDAQ:PAYX – Free Report).
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Paychex extends its trusted benefits platform, used by more than 400,000 employees, to help Paycor clients attract and retain talent | Source: Paychex, Inc.
New to Paycor clients, Paycor Perks brings employees more than 20 voluntary benefit options at no cost to the employerPaychex scales its successful benefits platform through Paycor Perks to help employers attract and retain talentReinforces Paychex’s commitment to advancing employee financial wellness and overall well-being across its client base
ROCHESTER, N.Y., Aug. 24, 2026 (GLOBE NEWSWIRE) -- Paychex (Nasdaq: PAYX), a leading provider of expert-enabled HR, payroll, and benefits, today announced that the company is expanding its comprehensive lifestyle benefits to Paycor clients and their employees with the launch of Paycor Perks. Now fully integrated within the Paycor HCM platform, Paycor Perks enables employees to easily explore and enroll in a variety of voluntary benefits. There is no cost to the employer to offer the program, and eligible offerings appear directly in each employee’s personalized dashboard.
With Paycor Perks, businesses can offer employee benefits that either augment an existing package or enable businesses to offer employee benefits for the first time. The employee benefits are curated to address the needs of today’s diverse, multi-generational workforce. Launching with more than 20 unique products, Paycor Perks includes financial wellness programs, supplemental insurance, entertainment discounts and more for the employees of Paycor customers.
Employees increasingly view benefits as a signal of whether an employer values them. Nearly half of U.S. job seekers (49%) say better benefits are what they are looking for in a new job, second only to higher pay. At the same time, the cost of providing benefits is rising faster than most employers can absorb. Total health benefit cost per employee reached $17,496 in 2025, a 6.0% increase that outpaced both inflation and wage growth and is projected to exceed $18,500 this year.
“Paycor Perks is designed to break that trade-off. In today’s competitive labor market, employees expect more than traditional compensation for their work,” said Tom Hammond, managing director, emerging and ancillary services, Paychex. “Employers of all sizes are being asked to do more for their people at exactly the moment the cost of doing it is climbing the fastest. Benefits have become a critical differentiator in the talent market, and too often the first line item under pressure. Paycor Perks helps level the playing field by delivering access to meaningful benefits that support employees’ financial wellness, health, and everyday lives. This is the latest example of our ongoing commitment to democratizing access to high-value benefits and making curated, enterprise-grade solutions available at scale to our customers and their employees.”
Delivering Value to Employers
Paycor Perks is designed to help organizations strengthen their total rewards strategy without increasing administrative burden or costs. Key employer benefits include:
Zero-cost implementation, with no additional fees for employers to offer the programMost benefits are payable through employee payroll or seamlessly through the selected partnerEnhanced employee satisfaction and engagement through meaningful, everyday benefitsImproved talent attraction and retention in a competitive workforceMinimal administrative burden with turnkey setup and management
Lifestyle Benefits Built for Today’s Workforce
Solutions available in Paycor Perks today include:
OnDemand Pay, Powered by Payactiv® Flexible payment option that gives employees access to earned but unpaid wages as they accrue. Earned wages are deducted from an employee’s next paycheck, providing greater financial flexibility and helping employees avoid late fees, overdraft charges, and costly payday loans. Extra. Special. Benefits, Powered by Corestream An online benefits marketplace that gives employees access to voluntary benefits including dental, vision, home, auto, life and pet insurance, disability coverage and more. Buy Now, Pay Later with BenefitsMe Access to over 70,000 products and services with interest-free repayments over time through payroll deductions, helping employees reduce upfront financial strain without relying on high-interest credit. Tax Prep Software Service, Powered by TurboTax® and H&R Block® Access to leading tax preparation software at a discounted rate through the Paycor Perks platform, enabling employees to file taxes online with W-2 uploads to streamline the process and reduce errors from manual data entry. “If there’s one constant we’re hearing from clients right now, it’s that HR teams are being asked to deliver more with less, said Brett Ungashick, founder and CEO of HR software advisory and broker firm OutSail. “Paycor Perks gives them an easy way to strengthen their total rewards strategy, support retention, and deliver more value to employees - without adding another line item to the budget.”
Since the launch of the Paychex Perks platform to Paychex Flex® users in 2024, more than 400,000 unique employees have purchased at least one benefit. Paychex will continue to expand offerings based on evolving trends and customer feedback. To learn more about Paycor Perks, visit paycor.com/paycor-perks/.
About Paychex
Paychex, Inc. (Nasdaq: PAYX) provides a comprehensive suite of expert-enabled technology and advisory solutions that help businesses manage HR, payroll, and benefits. Serving approximately 840,000 clients and paying 1 in 11 U.S. private sector workers, Paychex combines scale, trusted expertise, and innovation to help businesses succeed. Built on more than 50 years of workforce experience and one of the industry’s largest proprietary HR datasets, Paychex’s WISE agentic AI engine embeds intelligence directly into workflows to improve productivity, enhance decision-making, and deliver better outcomes. Learn more at paychex.com.
Media Contact
Chelsea Wernick
Public Relations Program Manager
Paychex, Inc.
(585) 216-2974 [email protected]
Ally Financial Inc. bought a new position in shares of Paychex, Inc. (NASDAQ:PAYX – Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 30,000 shares of the business services provider’s stock, valued at approximately $2,950,000.
Other institutional investors also recently modified their holdings of the company. Vanguard Group Inc. lifted its holdings in shares of Paychex by 12.1% in the fourth quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider’s stock worth $4,750,669,000 after acquiring an additional 4,583,157 shares during the last quarter. Danske Bank A S lifted its stake in Paychex by 14.0% in the 4th quarter. Danske Bank A S now owns 205,341 shares of the business services provider’s stock valued at $23,035,000 after purchasing an additional 25,184 shares during the last quarter. Comerica Bank lifted its stake in Paychex by 10.4% in the 4th quarter. Comerica Bank now owns 121,705 shares of the business services provider’s stock valued at $13,653,000 after purchasing an additional 11,497 shares during the last quarter. Truist Financial Corp boosted its position in Paychex by 33.3% in the fourth quarter. Truist Financial Corp now owns 208,150 shares of the business services provider’s stock valued at $23,350,000 after buying an additional 51,982 shares in the last quarter. Finally, Oppenheimer Asset Management Inc. acquired a new stake in Paychex in the second quarter valued at approximately $7,296,000. Institutional investors own 83.47% of the company’s stock.
Insider Activity In other news, Director Joseph M. Tucci sold 3,907 shares of the business’s stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $98.25, for a total value of $383,862.75. Following the transaction, the director directly owned 67,364 shares of the company’s stock, valued at $6,618,513. The trade was a 5.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Robert L. Schrader sold 2,600 shares of the business’s stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $115.09, for a total value of $299,234.00. Following the completion of the transaction, the chief financial officer directly owned 18,547 shares in the company, valued at $2,134,574.23. This represents a 12.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.80% of the company’s stock.
Analysts Set New Price Targets A number of equities research analysts recently weighed in on PAYX shares. Citigroup boosted their price objective on Paychex from $140.00 to $150.00 and gave the stock a “buy” rating in a research report on Thursday, July 30th. UBS Group increased their target price on Paychex from $105.00 to $115.00 and gave the company a “neutral” rating in a research report on Wednesday, July 22nd. Morgan Stanley lifted their price target on Paychex from $107.00 to $109.00 and gave the company an “equal weight” rating in a research note on Tuesday, June 30th. JPMorgan Chase & Co. boosted their price target on Paychex from $100.00 to $105.00 and gave the stock an “underweight” rating in a report on Thursday, June 25th. Finally, Weiss Ratings raised shares of Paychex from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, July 20th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, Paychex currently has an average rating of “Hold” and a consensus price target of $109.20. Read Our Latest Stock Report on Paychex
Paychex Stock Performance Shares of PAYX stock opened at $124.47 on Monday. The stock has a market capitalization of $44.27 billion, a PE ratio of 25.45 and a beta of 0.81. The business’s 50 day simple moving average is $111.08 and its 200 day simple moving average is $99.99. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26. Paychex, Inc. has a one year low of $85.45 and a one year high of $141.19.
Paychex (NASDAQ:PAYX – Get Free Report) last released its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.31 by $0.01. The firm had revenue of $1.61 billion during the quarter, compared to analyst estimates of $1.60 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The company’s revenue was up 12.5% compared to the same quarter last year. During the same quarter last year, the business earned $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, research analysts forecast that Paychex, Inc. will post 5.96 earnings per share for the current year.
Paychex Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th will be given a $1.19 dividend. The ex-dividend date of this dividend is Tuesday, July 28th. This represents a $4.76 annualized dividend and a dividend yield of 3.8%. Paychex’s dividend payout ratio (DPR) is 97.34%.
Paychex Company Profile (Free Report)
Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.
Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.
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Callan Family Office LLC acquired a new stake in Paychex, Inc. (NASDAQ:PAYX – Free Report) in the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 29,775 shares of the business services provider’s stock, valued at approximately $2,928,000.
Other large investors have also recently made changes to their positions in the company. Vanguard Group Inc. raised its position in Paychex by 12.1% in the fourth quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider’s stock worth $4,750,669,000 after acquiring an additional 4,583,157 shares during the period. Capital International Investors increased its stake in shares of Paychex by 59.1% during the 4th quarter. Capital International Investors now owns 30,265,174 shares of the business services provider’s stock worth $3,395,583,000 after purchasing an additional 11,243,295 shares during the last quarter. BlackRock Inc. purchased a new stake in shares of Paychex during the 2nd quarter worth approximately $2,728,970,000. State Street Corp raised its holdings in shares of Paychex by 1.6% in the 4th quarter. State Street Corp now owns 13,988,393 shares of the business services provider’s stock worth $1,569,218,000 after purchasing an additional 216,045 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its holdings in shares of Paychex by 2.3% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 11,550,173 shares of the business services provider’s stock worth $1,295,698,000 after purchasing an additional 263,152 shares during the period. 83.47% of the stock is owned by hedge funds and other institutional investors.
Paychex Stock Performance Shares of PAYX stock opened at $124.47 on Friday. The firm’s 50 day moving average is $111.08 and its 200 day moving average is $100.01. The stock has a market capitalization of $44.27 billion, a P/E ratio of 25.45 and a beta of 0.81. Paychex, Inc. has a 12 month low of $85.45 and a 12 month high of $141.19. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.22.
Paychex (NASDAQ:PAYX – Get Free Report) last released its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 earnings per share for the quarter, beating analysts’ consensus estimates of $1.31 by $0.01. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The business had revenue of $1.61 billion during the quarter, compared to analyst estimates of $1.60 billion. During the same period in the previous year, the business earned $1.19 EPS. Paychex’s revenue was up 12.5% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, sell-side analysts anticipate that Paychex, Inc. will post 5.96 earnings per share for the current year. Paychex Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th will be issued a $1.19 dividend. This represents a $4.76 dividend on an annualized basis and a dividend yield of 3.8%. The ex-dividend date of this dividend is Tuesday, July 28th. Paychex’s dividend payout ratio (DPR) is presently 97.34%.
Insiders Place Their Bets In other news, Director Joseph M. Tucci sold 3,907 shares of Paychex stock in a transaction on Friday, June 26th. The stock was sold at an average price of $98.25, for a total value of $383,862.75. Following the completion of the transaction, the director directly owned 67,364 shares in the company, valued at approximately $6,618,513. The trade was a 5.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Robert L. Schrader sold 2,600 shares of the business’s stock in a transaction on Monday, July 20th. The shares were sold at an average price of $115.09, for a total value of $299,234.00. Following the sale, the chief financial officer owned 18,547 shares in the company, valued at approximately $2,134,574.23. The trade was a 12.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.80% of the stock is owned by company insiders.
Wall Street Analysts Forecast Growth Several equities analysts have weighed in on PAYX shares. JPMorgan Chase & Co. increased their price objective on Paychex from $100.00 to $105.00 and gave the company an “underweight” rating in a report on Thursday, June 25th. Royal Bank Of Canada restated a “sector perform” rating on shares of Paychex in a research note on Thursday, May 28th. Stifel Nicolaus upped their price target on Paychex from $105.00 to $110.00 and gave the company a “hold” rating in a research report on Wednesday, June 17th. TD Cowen upped their price target on Paychex from $94.00 to $98.00 and gave the company a “hold” rating in a research report on Monday, June 8th. Finally, Morgan Stanley increased their price target on Paychex from $107.00 to $109.00 and gave the stock an “equal weight” rating in a research note on Tuesday, June 30th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, Paychex currently has an average rating of “Hold” and an average price target of $109.20.
Read Our Latest Stock Report on PAYX
Paychex Company Profile (Free Report)
Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.
Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.
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Allworth Financial LP purchased a new stake in Paychex, Inc. (NASDAQ:PAYX – Free Report) in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm purchased 19,999 shares of the business services provider’s stock, valued at approximately $1,967,000.
Other hedge funds and other institutional investors also recently modified their holdings of the company. BlackRock Inc. bought a new position in shares of Paychex during the 2nd quarter worth approximately $2,728,970,000. Capital International Investors lifted its stake in shares of Paychex by 59.1% in the 4th quarter. Capital International Investors now owns 30,265,174 shares of the business services provider’s stock valued at $3,395,583,000 after acquiring an additional 11,243,295 shares during the last quarter. Vanguard Group Inc. raised its holdings in Paychex by 12.1% in the 4th quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider’s stock worth $4,750,669,000 after purchasing an additional 4,583,157 shares in the last quarter. Federated Hermes Inc. increased its stake in shares of Paychex by 4,141.2% during the fourth quarter. Federated Hermes Inc. now owns 2,409,229 shares of the business services provider’s stock valued at $270,267,000 after purchasing an additional 2,352,423 shares in the last quarter. Finally, Norges Bank purchased a new position in shares of Paychex during the fourth quarter valued at approximately $257,699,000. Institutional investors and hedge funds own 83.47% of the company’s stock.
Analyst Ratings Changes A number of analysts have recently weighed in on PAYX shares. Weiss Ratings upgraded shares of Paychex from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, July 20th. Cantor Fitzgerald restated an “underweight” rating and issued a $107.00 target price on shares of Paychex in a research note on Monday, July 20th. Citigroup boosted their price target on shares of Paychex from $140.00 to $150.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. Jefferies Financial Group upped their price target on Paychex from $105.00 to $120.00 and gave the stock a “hold” rating in a research note on Wednesday, August 12th. Finally, JPMorgan Chase & Co. raised their price target on Paychex from $100.00 to $105.00 and gave the stock an “underweight” rating in a research report on Thursday, June 25th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have assigned a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $109.20.
Read Our Latest Research Report on Paychex Paychex Stock Up 1.3% Shares of Paychex stock opened at $124.47 on Friday. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. The business has a 50-day moving average price of $111.08 and a 200 day moving average price of $100.01. Paychex, Inc. has a fifty-two week low of $85.45 and a fifty-two week high of $141.19. The firm has a market cap of $44.27 billion, a P/E ratio of 25.45 and a beta of 0.81.
Paychex (NASDAQ:PAYX – Get Free Report) last announced its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 earnings per share for the quarter, beating the consensus estimate of $1.31 by $0.01. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The business had revenue of $1.61 billion during the quarter, compared to analyst estimates of $1.60 billion. During the same quarter in the prior year, the firm posted $1.19 earnings per share. The company’s revenue was up 12.5% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, sell-side analysts forecast that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year.
Paychex Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Tuesday, July 28th will be given a $1.19 dividend. The ex-dividend date is Tuesday, July 28th. This represents a $4.76 dividend on an annualized basis and a yield of 3.8%. Paychex’s payout ratio is 97.34%.
Insider Buying and Selling at Paychex In other Paychex news, CFO Robert L. Schrader sold 2,600 shares of the business’s stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $115.09, for a total value of $299,234.00. Following the completion of the transaction, the chief financial officer directly owned 18,547 shares of the company’s stock, valued at approximately $2,134,574.23. The trade was a 12.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Joseph M. Tucci sold 3,907 shares of the business’s stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $98.25, for a total value of $383,862.75. Following the completion of the transaction, the director owned 67,364 shares of the company’s stock, valued at $6,618,513. This represents a 5.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.80% of the stock is currently owned by corporate insiders.
Paychex Company Profile (Free Report)
Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.
Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.
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Key Takeaways Paychex shares rose 40.2% in six months, while fiscal 2027 earnings are projected to increase 8.17%. Paycor contributed about 12% of fiscal 2026 revenue growth and expanded Paychex's upmarket reach. PAYX expanded WISE AI across HR workflows while returning cash through higher dividends & buybacks Shares of Paychex, Inc. (PAYX - Free Report) have had a decent run over the past six months. The stock has risen 40.2% compared with the industry's 12.6% growth. The Zacks S&P 500 composite has gained 12.2% during the said time frame.
Image Source: Zacks Investment Research
The company’s first-quarter fiscal 2027 earnings are expected to increase 9.02% year over year. PAYX’s fiscal 2027 and 2028 earnings are projected to rise 8.17% and 6.3%, respectively. Revenues are expected to grow 5.3% in fiscal 2027 and 5.6% in fiscal 2028.
Factors That Bode Well for PAYXThe expansion of Paychex's HCM offerings and the contribution from the Paycor acquisition are boosting PAYX's growth prospects. In fiscal 2026, total revenues increased 17% to $6.51 billion, while operating income rose 14% to $2.51 billion. Adjusted operating income and adjusted EPS increased 19% and 11%, respectively. Paycor strengthened Paychex's presence in the upmarket segment and created additional cross-selling opportunities, contributing approximately 12% to total revenue growth in fiscal 2026.
The increasing adoption of HR outsourcing, retirement solutions and AI-powered technology supports PAYX's long-term prospects. Payroll client retention remained at 82-83% in fiscal 2026, while retirement plans increased 4% to 130,000 and retirement solution participants' assets rose 19% to $66 billion as of May 31, 2026. Paychex also expanded its WISE AI engine, which powered approximately 600 AI features and agents during fiscal 2026. Strong operating cash flow of $2.56 billion and $2 billion of unused credit capacity further provide financial flexibility to support these growth initiatives.
PAYX’s launch of the WISE AI platform represents a significant step in enhancing its human capital management capabilities through agentic AI. By integrating context-aware intelligence, autonomous AI agents, personalized assistants and expert advisory services across its Paychex Flex, Paycor and SurePayroll platforms, the company seeks to automate routine HR tasks, enhance workforce productivity and provide more proactive, data-driven support to businesses of all sizes.
The company now offers more than 500 AI-powered capabilities and agents across its workflows, helping improve productivity and more informed outcomes. These generative AI tools enable clients and HR professionals to navigate wage laws and compliance requirements, streamline payroll processing and make more informed employee benefits decisions, thereby improving efficiency across key HR functions.
Moreover, PAYX's commitment to its shareholders is commendable, as the company continues to enhance shareholder returns through higher dividends and share repurchases. In May 2026, Paychex raised its quarterly dividend by 10% to $1.19 per share and maintained the payout in July 2026. The company paid $1.59 billion in dividends in fiscal 2026, up from $1.45 billion in fiscal 2025, while repurchasing 5.6 million shares during fiscal 2026. This reflects strong cash generation and a disciplined capital-allocation approach.
PAYX: Risks to WatchPaychex operates in a highly competitive human capital management industry, where it competes with both large, established firms and specialized providers, requiring continuous innovation while balancing cost efficiency, growth and profitability. At the same time, the company manages significant volumes of sensitive employee, customer and client personal and financial data, making it vulnerable to cybersecurity threats. The March 2024 data breach, which led to the unauthorized disclosure of personal information, highlights these risks. Similar incidents could undermine customer trust and weigh on investor sentiment.
Zacks Rank & Stocks to ConsiderA couple of better-ranked stocks in the broader Business Services sector are Healthcare Services Group (HCSG - Free Report) and Thomson Reuters (TRI - Free Report) .
Healthcare Services sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
HCSG has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 57.25%.
Thomson Reuters also carries a Zacks Rank #2 (Buy) at present. It has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 2.67%.
BlackRock Inc. acquired a new stake in shares of Paychex, Inc. (NASDAQ:PAYX – Free Report) during the 2nd quarter, according to its most recent disclosure with the SEC. The fund acquired 27,753,178 shares of the business services provider’s stock, valued at approximately $2,728,970,000. BlackRock Inc. owned approximately 7.80% of Paychex as of its most recent filing with the SEC.
Other large investors also recently bought and sold shares of the company. Brighton Jones LLC boosted its holdings in Paychex by 26.3% in the fourth quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider’s stock worth $801,000 after acquiring an additional 1,190 shares in the last quarter. Bison Wealth LLC lifted its holdings in shares of Paychex by 3.0% during the 4th quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider’s stock valued at $566,000 after buying an additional 117 shares during the period. Woodline Partners LP purchased a new position in Paychex in the first quarter worth about $3,333,000. NewEdge Advisors LLC boosted its holdings in shares of Paychex by 3.2% in the second quarter. NewEdge Advisors LLC now owns 41,081 shares of the business services provider’s stock worth $5,976,000 after buying an additional 1,290 shares during the last quarter. Finally, Sei Investments Co. raised its position in Paychex by 47.1% in the second quarter. Sei Investments Co. now owns 156,680 shares of the business services provider’s stock worth $22,790,000 after acquiring an additional 50,169 shares during the period. 83.47% of the stock is owned by hedge funds and other institutional investors.
Paychex Stock Performance PAYX opened at $122.50 on Thursday. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.26 and a current ratio of 1.26. The stock has a market capitalization of $43.57 billion, a price-to-earnings ratio of 25.05 and a beta of 0.81. Paychex, Inc. has a fifty-two week low of $85.45 and a fifty-two week high of $141.19. The company has a fifty day moving average of $110.13 and a 200 day moving average of $99.70.
Paychex (NASDAQ:PAYX – Get Free Report) last announced its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, beating analysts’ consensus estimates of $1.31 by $0.01. The company had revenue of $1.61 billion during the quarter, compared to analyst estimates of $1.60 billion. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The firm’s revenue was up 12.5% on a year-over-year basis. During the same period in the prior year, the company earned $1.19 earnings per share. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, sell-side analysts forecast that Paychex, Inc. will post 5.96 earnings per share for the current fiscal year. Paychex Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Tuesday, July 28th will be issued a $1.19 dividend. The ex-dividend date of this dividend is Tuesday, July 28th. This represents a $4.76 dividend on an annualized basis and a dividend yield of 3.9%. Paychex’s dividend payout ratio (DPR) is presently 97.34%.
Analyst Upgrades and Downgrades A number of equities analysts recently commented on PAYX shares. Cantor Fitzgerald reaffirmed an “underweight” rating and issued a $107.00 target price on shares of Paychex in a report on Monday, July 20th. JPMorgan Chase & Co. boosted their price target on Paychex from $100.00 to $105.00 and gave the company an “underweight” rating in a report on Thursday, June 25th. Jefferies Financial Group lifted their price objective on Paychex from $105.00 to $120.00 and gave the company a “hold” rating in a research report on Wednesday, August 12th. Royal Bank Of Canada reiterated a “sector perform” rating on shares of Paychex in a research note on Thursday, May 28th. Finally, TD Cowen increased their target price on shares of Paychex from $94.00 to $98.00 and gave the stock a “hold” rating in a report on Monday, June 8th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have given a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $109.20.
Check Out Our Latest Stock Report on Paychex
Insider Buying and Selling In other news, CFO Robert L. Schrader sold 2,600 shares of Paychex stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $115.09, for a total value of $299,234.00. Following the completion of the transaction, the chief financial officer owned 18,547 shares in the company, valued at approximately $2,134,574.23. The trade was a 12.29% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Joseph M. Tucci sold 3,907 shares of the business’s stock in a transaction on Friday, June 26th. The shares were sold at an average price of $98.25, for a total transaction of $383,862.75. Following the transaction, the director owned 67,364 shares in the company, valued at $6,618,513. This trade represents a 5.48% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.80% of the stock is currently owned by insiders.
About Paychex (Free Report)
Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.
Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.
Further Reading Five stocks we like better than Paychex Bloom Energy’s AI Surge Meets a Valuation Reality Check Target Is Winning Shoppers Back—Can the Rally Reach $180? IonQ’s Space Contract Points to a New Frontier for Quantum Investors Is Apple’s AI Strategy Smarter Than Skeptics Think? Want to see what other hedge funds are holding PAYX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Paychex, Inc. (NASDAQ:PAYX – Free Report).
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AssuredPartners Investment Advisors LLC bought a new position in Paychex, Inc. (NASDAQ:PAYX – Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 6,237 shares of the business services provider’s stock, valued at approximately $613,000.
A number of other large investors have also modified their holdings of PAYX. Johnson Financial Group Inc. acquired a new position in shares of Paychex in the 2nd quarter valued at $1,021,000. Tocqueville Asset Management L.P. acquired a new stake in Paychex during the 2nd quarter valued at approximately $30,544,000. West Family Investments Inc. acquired a new stake in Paychex during the second quarter worth about $228,000. NewEdge Wealth LLC purchased a new position in shares of Paychex during the 2nd quarter valued at approximately $2,269,000. Finally, Danica Pension Livsforsikringsaktieselskab purchased a new position in Paychex during the second quarter worth approximately $9,157,000. Hedge funds and other institutional investors own 83.47% of the company’s stock.
Analyst Ratings Changes PAYX has been the topic of several research analyst reports. Citigroup raised their price objective on Paychex from $140.00 to $150.00 and gave the company a “buy” rating in a report on Thursday, July 30th. UBS Group increased their target price on Paychex from $105.00 to $115.00 and gave the company a “neutral” rating in a research report on Wednesday, July 22nd. Morgan Stanley lifted their price target on shares of Paychex from $107.00 to $109.00 and gave the company an “equal weight” rating in a research note on Tuesday, June 30th. Stifel Nicolaus boosted their price target on shares of Paychex from $105.00 to $110.00 and gave the stock a “hold” rating in a report on Wednesday, June 17th. Finally, Cantor Fitzgerald restated an “underweight” rating and set a $107.00 price objective on shares of Paychex in a research report on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have issued a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $109.20.
Read Our Latest Analysis on Paychex Insider Transactions at Paychex In other Paychex news, CFO Robert L. Schrader sold 2,600 shares of the firm’s stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $115.09, for a total transaction of $299,234.00. Following the sale, the chief financial officer owned 18,547 shares of the company’s stock, valued at approximately $2,134,574.23. This trade represents a 12.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Joseph M. Tucci sold 3,907 shares of the firm’s stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $98.25, for a total value of $383,862.75. Following the transaction, the director owned 67,364 shares in the company, valued at $6,618,513. This represents a 5.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.80% of the company’s stock.
Paychex Stock Up 2.1% Shares of NASDAQ:PAYX opened at $122.50 on Thursday. The business has a fifty day moving average of $110.13 and a two-hundred day moving average of $99.70. The stock has a market cap of $43.57 billion, a P/E ratio of 25.05 and a beta of 0.81. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. Paychex, Inc. has a 52-week low of $85.45 and a 52-week high of $141.19.
Paychex (NASDAQ:PAYX – Get Free Report) last released its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, beating the consensus estimate of $1.31 by $0.01. The firm had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.60 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The business’s revenue for the quarter was up 12.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.19 EPS. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, research analysts expect that Paychex, Inc. will post 5.96 earnings per share for the current year.
Paychex Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Tuesday, July 28th will be issued a dividend of $1.19 per share. The ex-dividend date is Tuesday, July 28th. This represents a $4.76 dividend on an annualized basis and a yield of 3.9%. Paychex’s dividend payout ratio is 97.34%.
Paychex Profile (Free Report)
Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.
Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.
See Also Five stocks we like better than Paychex Bloom Energy’s AI Surge Meets a Valuation Reality Check Target Is Winning Shoppers Back—Can the Rally Reach $180? IonQ’s Space Contract Points to a New Frontier for Quantum Investors Is Apple’s AI Strategy Smarter Than Skeptics Think? Want to see what other hedge funds are holding PAYX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Paychex, Inc. (NASDAQ:PAYX – Free Report).
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Aurora Investment Counsel acquired a new stake in shares of Paychex, Inc. (NASDAQ: PAYX) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 23,257 shares of the business services provider's stock, valued at approximately $2,287,000. Paychex comprises about
Shares of Paychex, Inc. (NASDAQ:PAYX – Get Free Report) have been given a consensus rating of “Hold” by the seventeen analysts that are currently covering the firm, Marketbeat.com reports. Four investment analysts have rated the stock with a sell recommendation, ten have issued a hold recommendation, two have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $108.20.
Several equities research analysts recently commented on PAYX shares. Weiss Ratings raised Paychex from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, July 20th. Stifel Nicolaus lifted their target price on shares of Paychex from $105.00 to $110.00 and gave the company a “hold” rating in a research note on Wednesday, June 17th. Morgan Stanley lifted their target price on shares of Paychex from $107.00 to $109.00 and gave the company an “equal weight” rating in a research note on Tuesday, June 30th. Royal Bank Of Canada reissued a “sector perform” rating on shares of Paychex in a research report on Thursday, May 28th. Finally, Citigroup increased their price target on shares of Paychex from $140.00 to $150.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th.
View Our Latest Report on PAYX
Paychex Price Performance Shares of NASDAQ:PAYX opened at $121.30 on Wednesday. The firm has a market cap of $43.14 billion, a price-to-earnings ratio of 24.81 and a beta of 0.81. Paychex has a 1 year low of $85.45 and a 1 year high of $141.19. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.22. The business has a fifty day simple moving average of $107.53 and a 200 day simple moving average of $99.00.
Paychex (NASDAQ:PAYX – Get Free Report) last issued its earnings results on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, beating analysts’ consensus estimates of $1.31 by $0.01. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The firm had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. During the same quarter in the previous year, the company posted $1.19 earnings per share. The business’s quarterly revenue was up 12.5% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, sell-side analysts predict that Paychex will post 5.96 earnings per share for the current fiscal year.
Paychex Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Tuesday, July 28th will be issued a $1.19 dividend. The ex-dividend date is Tuesday, July 28th. This represents a $4.76 dividend on an annualized basis and a yield of 3.9%. Paychex’s dividend payout ratio is currently 97.34%.
Insider Activity In other Paychex news, Director Joseph M. Tucci sold 3,907 shares of the firm’s stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $98.25, for a total transaction of $383,862.75. Following the transaction, the director directly owned 67,364 shares in the company, valued at $6,618,513. This trade represents a 5.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Robert L. Schrader sold 2,600 shares of the business’s stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $115.09, for a total value of $299,234.00. Following the completion of the sale, the chief financial officer directly owned 18,547 shares of the company’s stock, valued at $2,134,574.23. This represents a 12.29% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.80% of the stock is owned by company insiders.
Institutional Investors Weigh In On Paychex A number of large investors have recently added to or reduced their stakes in the stock. Cornerstone Planning Group LLC raised its position in shares of Paychex by 957.1% in the fourth quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider’s stock valued at $30,000 after purchasing an additional 268 shares during the period. Hilton Head Capital Partners LLC bought a new stake in shares of Paychex during the 4th quarter worth $31,000. Kingdom Financial Group LLC. acquired a new position in Paychex in the 4th quarter valued at $33,000. Leonteq Securities AG grew its stake in Paychex by 2,669.2% in the 1st quarter. Leonteq Securities AG now owns 360 shares of the business services provider’s stock valued at $33,000 after buying an additional 347 shares during the last quarter. Finally, Acumen Wealth Advisors LLC bought a new position in Paychex in the 4th quarter worth $34,000. Institutional investors own 83.47% of the company’s stock.
Paychex Company Profile (Get Free Report)
Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.
Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.
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ROCHESTER, N.Y., Aug. 04, 2026 (GLOBE NEWSWIRE) -- According to the Paychex Small Business Employment Watch, the pace of U.S. small business job growth (99.23) in July remained steady and was slightly above average jobs index (99.20) for the first half of the year, signaling a steady employment environment among businesses with fewer than 50 employees. Although hourly earnings growth for small business workers remained below three percent at 2.86% in July, growth in weekly hours worked reached 0.40% — its highest level in more than five years. As a result, weekly earnings growth rose to 3.14%, its strongest level since December 2023.
“Small businesses continue to demonstrate remarkable resilience heading into the back half of the year – and overall employment across our client base continues to be stable, with slightly stronger growth among customers with more than 50 employees,” said John Gibson, Paychex president and CEO. “While the employment landscape remains steady, the more notable trend is the increase in hours worked, which reached its highest level in more than five years in July. Business owners are finding creative opportunities to grow and are currently relying on their existing workforce to meet demand. Combined with stronger weekly earnings growth, these indicators point to a small business community that remains stable, productive, and focused on building momentum in the second half of the year.”
Jobs Index and Wage Data Highlights
Following gains in four of the last five months, the national Small Business Jobs Index is up slightly (0.07 percentage points) during the past quarter.Weekly earnings growth increased to 3.14% in July, the highest level since December 2023 (3.25%).Weekly hours worked growth (0.40%) was positive for the fifth consecutive month in July and is at its highest level since April 2021 (0.44%).Among industries for job growth, Manufacturing (99.34) recorded the strongest one-month change (0.35 percentage points), three-month change (1.14 percentage points), and 12-month change (0.72 percentage points) among sectors in July. About the Paychex Small Business Employment Watch
Since 2014, the Paychex Small Business Employment Watch has been a trusted source of employment trends for U.S. small businesses with fewer than 50 employees. The Employment Watch website offers interactive charts and historical data across the report’s two key components – the jobs index and wage data – as well as the methodology for both analyses. Visit the Bloomberg Terminals or subscribe to receive monthly alerts with the latest data.
*Information regarding the professions included in the industry data can be found at the Bureau of Labor Statistics website.
About Paychex
Paychex, Inc. (Nasdaq: PAYX) provides a comprehensive suite of expert-enabled technology and advisory solutions that help businesses manage HR, payroll, and benefits. Serving approximately 840,000 customers clients and paying 1 in 11 U.S. private sector workers, Paychex combines scale, trusted expertise, and innovation to help businesses succeed. Built on more than 50 years of workforce experience and one of the industry’s largest proprietary HR datasets, Paychex’s WISE agentic AI platform embeds intelligence directly into workflows to improve productivity, enhance decision-making, and deliver better outcomes. Learn more at paychex.com.
Media Contacts
Tracy Volkmann
Paychex, Inc.
Manager, Public Relations
(585) 387-6705 [email protected]
@Paychex
Farmers National Bank purchased a new position in shares of Paychex, Inc. (NASDAQ: PAYX) in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 5,441 shares of the business services provider's stock, valued at approximately $501,000. Other hedge funds and other institutional investors
Cozad Asset Management Inc. cut its holdings in shares of Paychex, Inc. (NASDAQ:PAYX – Free Report) by 57.9% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 8,899 shares of the business services provider’s stock after selling 12,221 shares during the quarter. Cozad Asset Management Inc.’s holdings in Paychex were worth $820,000 at the end of the most recent reporting period.
Several other institutional investors and hedge funds have also bought and sold shares of PAYX. Brighton Jones LLC lifted its position in Paychex by 26.3% during the fourth quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider’s stock valued at $801,000 after purchasing an additional 1,190 shares during the period. Bison Wealth LLC grew its position in Paychex by 3.0% during the 4th quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider’s stock worth $566,000 after purchasing an additional 117 shares during the period. Woodline Partners LP purchased a new position in shares of Paychex during the 1st quarter valued at about $3,333,000. NewEdge Advisors LLC raised its stake in shares of Paychex by 3.2% during the 2nd quarter. NewEdge Advisors LLC now owns 41,081 shares of the business services provider’s stock valued at $5,976,000 after buying an additional 1,290 shares during the last quarter. Finally, Sei Investments Co. raised its stake in shares of Paychex by 47.1% during the 2nd quarter. Sei Investments Co. now owns 156,680 shares of the business services provider’s stock valued at $22,790,000 after buying an additional 50,169 shares during the last quarter. 83.47% of the stock is currently owned by institutional investors and hedge funds.
Paychex Stock Performance PAYX stock opened at $116.84 on Monday. The company’s 50-day simple moving average is $104.42 and its 200-day simple moving average is $98.51. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. Paychex, Inc. has a 52-week low of $85.45 and a 52-week high of $146.83. The firm has a market cap of $41.56 billion, a P/E ratio of 23.89 and a beta of 0.81.
Paychex (NASDAQ:PAYX – Get Free Report) last posted its earnings results on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, beating analysts’ consensus estimates of $1.31 by $0.01. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The firm had revenue of $1.61 billion for the quarter, compared to analysts’ expectations of $1.60 billion. During the same period last year, the firm earned $1.19 EPS. The company’s quarterly revenue was up 12.5% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, equities analysts forecast that Paychex, Inc. will post 5.96 EPS for the current fiscal year.
Paychex Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Tuesday, July 28th will be issued a $1.19 dividend. This represents a $4.76 annualized dividend and a yield of 4.1%. The ex-dividend date of this dividend is Tuesday, July 28th. Paychex’s dividend payout ratio (DPR) is presently 97.34%.
Wall Street Analyst Weigh In A number of analysts have recently commented on the company. Stifel Nicolaus upped their target price on Paychex from $105.00 to $110.00 and gave the stock a “hold” rating in a research note on Wednesday, June 17th. Morgan Stanley lifted their price target on Paychex from $107.00 to $109.00 and gave the company an “equal weight” rating in a research report on Tuesday, June 30th. Cantor Fitzgerald reissued an “underweight” rating and issued a $107.00 price target on shares of Paychex in a report on Monday, July 20th. UBS Group boosted their price target on Paychex from $105.00 to $115.00 and gave the company a “neutral” rating in a report on Wednesday, July 22nd. Finally, Citigroup upped their price objective on Paychex from $140.00 to $150.00 and gave the stock a “buy” rating in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, Paychex presently has a consensus rating of “Hold” and a consensus target price of $108.20.
View Our Latest Stock Analysis on PAYX
Insider Activity at Paychex In other news, CFO Robert L. Schrader sold 2,600 shares of the company’s stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $115.09, for a total transaction of $299,234.00. Following the completion of the transaction, the chief financial officer directly owned 18,547 shares of the company’s stock, valued at $2,134,574.23. This represents a 12.29% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Joseph M. Tucci sold 3,907 shares of the stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $98.25, for a total value of $383,862.75. Following the transaction, the director owned 67,364 shares in the company, valued at $6,618,513. This trade represents a 5.48% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.80% of the stock is currently owned by company insiders.
Paychex Profile (Free Report)
Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.
Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.
See Also Five stocks we like better than Paychex 3 Fixed-Income ETFs Show Why Yield Is Only Part of the Income Story AbbVie Quietly Solved Its Biggest Problem—Now What? Rio Tinto’s Results Make the Case for Looking Beyond Tech in the AI Trade Strategy’s Structural Strength: Hidden in a $8 Billion Illusion Want to see what other hedge funds are holding PAYX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Paychex, Inc. (NASDAQ:PAYX – Free Report).
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With Microsoft 365 as its first ecosystem, WISE brings insights, guidance, and actions into the tools businesses already use
WISE extends Paychex’s workforce intelligence beyond HCM software into collaboration and productivity toolsMicrosoft 365 is the first ecosystem in Paychex’s broader channel expansion strategy, with WISE now available in Microsoft 365 Copilot and TeamsThe platform is designed to help Paychex and its partners expand HCM capabilities across digital workflows
ROCHESTER, N.Y., Aug. 03, 2026 (GLOBE NEWSWIRE) -- Paychex (Nasdaq: PAYX), a leading provider of expert-enabled HR, payroll, and benefits, today announced that WISE (Workforce Intelligence Strengthened by Expertise), the company’s AI-powered intelligence engine, is now available within Microsoft 365 Copilot and Teams, expanding the company’s broader channel-agnostic ecosystem strategy.
WISE is designed to bring trusted workforce insights, guidance, and actions directly into the tools businesses and employees already use every day. Built to operate across Paychex’s HCM platforms — including SurePayroll, Paychex Flex®, and Paycor — WISE helps customers get answers, manage tasks, and take action without switching systems.
“WISE was built on the belief that workforce intelligence belongs in the flow of work—not as a standalone product,” said Ryan Bergstrom, Chief Product Officer at Paychex. “Our integration with Microsoft is a clear expression of that vision, delivering trusted insights, expert-backed guidance and autonomous actions directly into the tools our clients already use every day. This is an important step in making HCM a more seamless part of business operations.”
Within Microsoft 365 Copilot today, Paychex customers* can:
Access real-time workforce insights, such as headcount, turnover, or benefits utilizationReceive proactive guidance on compliance deadlines, open enrollment, and policy changesTake action within the workflow, including approving time-off requests and routing benefits questions to the appropriate resource
“Microsoft is committed to helping organizations apply AI in practical and meaningful ways,” said Michelle Simmons, VP, SME&C US Industry, Microsoft. “The alignment between Microsoft and Paychex to deliver on a shared vision that AI should be practical, accessible, and valuable for small and medium enterprises, is what makes this integration a powerful and impactful solution, embedding intelligence when and where businesses need it most.”
Paychex Expands WISE Integration Program to Additional Technology Partners
Paychex is continuing to expand integration opportunities for technology partners to embed workforce intelligence and HCM capabilities directly into experiences their customers already use every day. This approach is designed to help partners bring Paychex insights and actions into their own workflows, enabling faster decision-making and reducing friction.
To learn more about WISE or how to partner with Paychex, visit paychex.com/ai.
* Applicable product subscription required.
About WISE
WISE (Workforce Intelligence Strengthened by Expertise) is the AI-powered intelligence engine transforming business operations with embedded context-aware intelligence, expert-enabled guidance, and autonomous execution. With Paychex’s five decades of trusted data and human expertise at its core, WISE transforms AI from a passive tool to expert-designed agentic workflows with the ability to complete tasks autonomously, making work faster, smarter, and more efficient.
About Paychex
Paychex, Inc. (Nasdaq: PAYX) provides a comprehensive suite of expert-enabled technology and advisory solutions that help businesses manage HR, payroll, and benefits. Serving approximately 840,000 clients and paying 1 in 11 U.S. private sector workers, Paychex combines scale, trusted expertise, and innovation to help businesses succeed. Built on more than 50 years of workforce experience and one of the industry’s largest proprietary HR datasets, Paychex’s WISE agentic AI platform embeds intelligence directly into workflows to improve productivity, enhance decision-making, and deliver better outcomes. Learn more at paychex.com.
Media Contacts
Chelsea Wernick
Public Relations Program Manager
Paychex, Inc.
(585) 216-2974 [email protected]
Microsoft Media Relations
We. Communications for Microsoft
(425) 638-7777 [email protected]
Note to editors: For more information, news and perspectives from Microsoft, please visit Microsoft Source at https://news.microsoft.com/source. Web links, telephone numbers and titles were correct at time of publication but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at https://news.microsoft.com/microsoft-public-relations-contacts.
Bradley Foster & Sargent Inc. CT boosted its stake in Paychex, Inc. (NASDAQ:PAYX – Free Report) by 77.3% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 14,594 shares of the business services provider’s stock after purchasing an additional 6,361 shares during the period. Bradley Foster & Sargent Inc. CT’s holdings in Paychex were worth $1,344,000 at the end of the most recent reporting period.
Other institutional investors have also recently made changes to their positions in the company. Lombard Odier Asset Management USA Corp purchased a new position in shares of Paychex in the first quarter worth $241,000. Waverly Advisors LLC boosted its position in Paychex by 11.9% during the 1st quarter. Waverly Advisors LLC now owns 11,208 shares of the business services provider’s stock valued at $1,032,000 after buying an additional 1,189 shares during the period. Asset Management Group Inc. grew its holdings in Paychex by 4.4% in the 1st quarter. Asset Management Group Inc. now owns 8,544 shares of the business services provider’s stock worth $787,000 after acquiring an additional 363 shares during the last quarter. Wealth Alliance LLC grew its holdings in Paychex by 56.3% in the 1st quarter. Wealth Alliance LLC now owns 18,021 shares of the business services provider’s stock worth $1,660,000 after acquiring an additional 6,490 shares during the last quarter. Finally, Epoch Investment Partners Inc. increased its position in shares of Paychex by 33.7% in the first quarter. Epoch Investment Partners Inc. now owns 516,948 shares of the business services provider’s stock valued at $47,621,000 after acquiring an additional 130,269 shares during the period. Hedge funds and other institutional investors own 83.47% of the company’s stock.
Insiders Place Their Bets In other news, Director Joseph M. Tucci sold 3,907 shares of the business’s stock in a transaction on Friday, June 26th. The shares were sold at an average price of $98.25, for a total transaction of $383,862.75. Following the sale, the director owned 67,364 shares in the company, valued at approximately $6,618,513. The trade was a 5.48% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 0.80% of the stock is currently owned by insiders.
Paychex Price Performance PAYX stock opened at $115.48 on Tuesday. Paychex, Inc. has a 1 year low of $85.45 and a 1 year high of $148.11. The company has a market cap of $41.07 billion, a P/E ratio of 23.62 and a beta of 0.84. The firm has a 50-day moving average of $102.55 and a 200 day moving average of $98.35. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26.
Paychex (NASDAQ:PAYX – Get Free Report) last posted its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 earnings per share for the quarter, beating the consensus estimate of $1.31 by $0.01. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The business had revenue of $1.61 billion for the quarter, compared to analysts’ expectations of $1.60 billion. During the same period in the previous year, the firm posted $1.19 EPS. The business’s revenue was up 12.5% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, sell-side analysts forecast that Paychex, Inc. will post 5.96 EPS for the current year.
Paychex Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Tuesday, July 28th will be given a dividend of $1.19 per share. The ex-dividend date is Tuesday, July 28th. This represents a $4.76 annualized dividend and a dividend yield of 4.1%. Paychex’s payout ratio is currently 97.34%.
Wall Street Analyst Weigh In Several brokerages have recently commented on PAYX. UBS Group upped their price objective on shares of Paychex from $105.00 to $115.00 and gave the company a “neutral” rating in a research note on Wednesday, July 22nd. Weiss Ratings upgraded Paychex from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, July 20th. Royal Bank Of Canada reaffirmed a “sector perform” rating on shares of Paychex in a research report on Thursday, May 28th. Morgan Stanley increased their price objective on Paychex from $107.00 to $109.00 and gave the stock an “equal weight” rating in a report on Tuesday, June 30th. Finally, Stifel Nicolaus boosted their target price on Paychex from $105.00 to $110.00 and gave the company a “hold” rating in a research note on Wednesday, June 17th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $107.53.
Check Out Our Latest Stock Report on Paychex
Paychex Company Profile (Free Report)
Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.
Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.
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Cetera Investment Advisers increased its stake in Paychex, Inc. (NASDAQ:PAYX – Free Report) by 38.4% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 269,833 shares of the business services provider’s stock after purchasing an additional 74,805 shares during the quarter. Cetera Investment Advisers owned about 0.08% of Paychex worth $24,857,000 at the end of the most recent quarter.
Other institutional investors and hedge funds have also recently bought and sold shares of the company. Cornerstone Planning Group LLC boosted its holdings in shares of Paychex by 957.1% in the fourth quarter. Cornerstone Planning Group LLC now owns 296 shares of the business services provider’s stock valued at $30,000 after acquiring an additional 268 shares in the last quarter. Hilton Head Capital Partners LLC bought a new stake in Paychex during the fourth quarter worth approximately $31,000. Kingdom Financial Group LLC. bought a new stake in Paychex during the fourth quarter worth approximately $33,000. Leonteq Securities AG lifted its position in Paychex by 2,669.2% in the first quarter. Leonteq Securities AG now owns 360 shares of the business services provider’s stock worth $33,000 after purchasing an additional 347 shares during the period. Finally, Acumen Wealth Advisors LLC acquired a new stake in Paychex in the fourth quarter worth approximately $34,000. Institutional investors own 83.47% of the company’s stock.
Paychex Stock Performance Shares of NASDAQ:PAYX opened at $113.55 on Monday. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.26 and a current ratio of 1.26. The stock has a market capitalization of $40.39 billion, a price-to-earnings ratio of 23.22 and a beta of 0.84. Paychex, Inc. has a 1-year low of $85.45 and a 1-year high of $148.11. The company has a 50 day moving average price of $102.13 and a 200 day moving average price of $98.32.
Paychex (NASDAQ:PAYX – Get Free Report) last posted its quarterly earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.31 by $0.01. The company had revenue of $1.61 billion for the quarter, compared to analysts’ expectations of $1.60 billion. Paychex had a return on equity of 50.90% and a net margin of 27.03%.The firm’s revenue was up 12.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.19 earnings per share. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, research analysts anticipate that Paychex, Inc. will post 5.96 EPS for the current fiscal year.
Paychex Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th will be given a dividend of $1.19 per share. The ex-dividend date of this dividend is Tuesday, July 28th. This represents a $4.76 dividend on an annualized basis and a dividend yield of 4.2%. Paychex’s payout ratio is 97.34%.
Insider Activity at Paychex In other news, Director Joseph M. Tucci sold 3,907 shares of the company’s stock in a transaction on Friday, June 26th. The stock was sold at an average price of $98.25, for a total transaction of $383,862.75. Following the completion of the sale, the director directly owned 67,364 shares of the company’s stock, valued at $6,618,513. This represents a 5.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 0.80% of the stock is currently owned by corporate insiders.
Analysts Set New Price Targets PAYX has been the topic of several research analyst reports. Morgan Stanley lifted their price target on Paychex from $107.00 to $109.00 and gave the company an “equal weight” rating in a research report on Tuesday, June 30th. Stifel Nicolaus upped their price objective on Paychex from $105.00 to $110.00 and gave the company a “hold” rating in a report on Wednesday, June 17th. Weiss Ratings raised Paychex from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, July 20th. JPMorgan Chase & Co. lifted their target price on Paychex from $100.00 to $105.00 and gave the stock an “underweight” rating in a report on Thursday, June 25th. Finally, Cantor Fitzgerald reaffirmed an “underweight” rating and set a $107.00 target price on shares of Paychex in a report on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $107.53.
Read Our Latest Analysis on Paychex
Paychex Profile (Free Report)
Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.
Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.
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A month has gone by since the last earnings report for Paychex (PAYX - Free Report) . Shares have added about 14.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Paychex due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Paychex's Q4 Earnings:Paychex, Inc. reported solid fourth-quarter fiscal 2026 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues coming in line. Adjusted earnings of $1.32 per share surpassed the consensus estimate of $1.31 by a slight margin and increased 10.9% from the year-ago quarter. Total revenues of $1.61 billion rose 12.5% year over year and beat the consensus estimate by a slight margin.
The earnings upside was backed by segment growth, Paycor contributions and disciplined expense performance. Management Solutions led the quarter, while PEO and Insurance Solutions, and client fund interest added further support.
PAYX's Management Solutions Powers GrowthManagement Solutions’ revenues increased 14% year over year to $1.18 billion in the fiscal fourth quarter. The segment benefited from higher product penetration and growth in client worksite employees within Human Resources Solutions.
Paycor, acquired in April 2025, contributed about 8 percentage points to Management Solutions revenue growth. The acquisition also supported price realization and higher revenues per client, reflecting Paycor’s upmarket client base.
Management noted that the quarter included a full period of Paycor revenues and expenses compared with a partial period in the prior-year quarter. That comparison helped drive the sharper contribution from the acquired business in the latest quarter.
Paychex's PEO & Client Funds Add SupportProfessional Employer Organization and Insurance Solutions revenues were $369.7 million, up 9% from the year-ago quarter. Growth in the number of average PEO worksite employees supported the segment’s performance.
PEO insurance revenues also increased during the quarter. Interest on funds held for clients rose 15% to $52.2 million, driven by higher average investment balances resulting from the Paycor acquisition.
Total service revenues came in at $1.55 billion, up 12% from the year-ago period. The broad advance across core services showed that growth was not confined to one operating line.
PAYX's Margin Profile Expands in Q4Total expenses were relatively flat year over year at $1 billion. Increases in compensation-related expenses, amortization of intangible assets, technology investments, selling initiatives and marketing spending were offset by lower acquisition-related compensation and professional service costs.
Operating income rose 40% to $604.7 million. The operating margin expanded to 37.7% from 30.2% a year earlier, while the adjusted operating margin improved to 42.1% from 40.4%.
Adjusted operating income increased 17% to $675.8 million. The adjusted figure excludes acquisition-related costs, which were lower than in the prior-year quarter.
Paychex's Profitability Shows Earnings LeverageNet income increased 41% year over year to $420.6 million in the fiscal fourth quarter. Diluted earnings were $1.17 per share, up 43% from the prior-year period.
Adjusted net income rose 10% to $474.6 million. EBITDA increased 39% to $719.1 million, while adjusted EBITDA advanced 17% to $729.7 million, reflecting revenue gains and reduced acquisition-related drag.
Interest expenses increased to $64.7 million from $63.7 million. Other income, net, declined to $14.2 million from $21.9 million due to lower average balances on corporate investments and higher share repurchases in fiscal 2026.
PAYX's Balance Sheet Remains SolidPaychex ended fiscal 2026 with cash, restricted cash and total corporate investments of $1.2 billion. Short-term and long-term borrowings, net of debt issuance costs, totaled $4.6 billion as of May 31, 2026.
Cash flow from operations was $2.6 billion for the fiscal year. The company paid out cumulative dividends of $4.43 per share, totaling $1.6 billion, and repurchased 5.6 million shares for $611 million.
Fiscal 2026 total revenues increased 17% to $6.51 billion. Adjusted diluted earnings advanced 11% to $5.51 per share, whereas adjusted operating income grew 19% to $2.81 billion.
Paychex's FY27 View Points to GrowthFor fiscal 2027, Paychex expects total revenues to grow 5-6%. Management Solutions’ revenues are also projected to rise 5-6%, while PEO and Insurance Solutions revenues are expected to increase 6-7%.
Interest on funds held for clients is expected to be $195-$205 million. The company anticipates an adjusted operating margin of 44%, an effective income tax rate of 24% and adjusted diluted earnings growth of 7-9%.
Paychex also highlighted the launch of WISE, its AI-powered intelligence engine, across HCM platforms and internal operations. Management said that the platform is designed to unlock insights from unstructured data, increase productivity and enhance client outcomes.
Adjusted earnings of 99 cents per share beat the Zacks Consensus Estimate by 4.2% and increased 8.8% on a year-over-year basis. Total revenues of $1.2 billion also beat the Zacks Consensus Estimate by 0.5% and increased 7.4% year over year.
Revenues in Detail
Revenues from Management Solutions segment increased 8% year over year to $895.3 million. The segment benefited from growth in the number of client employees served for human capital management (HCM) and additional worksite employees for HR Solutions. Also, improved revenue per client on price realization and higher product penetration, strong demand for HR Solutions, retirement, time and attendance solutions and expansion of HCM ancillary services acted as tailwinds.
Professional employer organization (“PEO”) and Insurance Solutions’ revenues were $273.3 million, up 4% from the year-ago quarter’s level. The uptick was owing to growth in the number of average worksite employees. Interest on funds held for clients increased 54% year over year to $21.7 million.
Operating Performance
Operating income increased 7% year over year to $472.3 million. EBITDA of $518.6 million increased 4.7% year over year.
Balance Sheet & Cash Flow
Paychex exited second-quarter fiscal 2022 with cash and cash equivalents of $1.1 billion compared with $1.18 billion reported at the end of the prior quarter. Long-term debt was $797.9 million compared with $797.8 million in the prior quarter. Cash provided by operating activities was $321.6 million in the reported quarter. During the reported quarter, PAYX paid out $284.7 million as dividends.
Fiscal 2023 View Tweaked
Paychex upped its adjusted earnings per share view with respect to year-over-year growth for fiscal 2023. Adjusted EPS is now expected to register 12-14% growth compared with the prior expectation of 11-12% growth. PAYX continues to expect total revenues to register 8% (prior view: 7-8%) growth. Management Solutions’ revenues are expected to grow 7-8% (prior view: 5-7%). PEO and Insurance Solutions’ revenues are expected to grow 5-7% (prior view: 8-10%).
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.
VGM ScoresAt this time, Paychex has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Paychex has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Chairman Martin Mucci reported a disposition of 9,309 shares of Paychex, Inc. (PAYX -1.09%) on July 17, 2026, according to an SEC Form 4 filing.
Transaction summaryMetricValueShare value$1.1 millionShares gifted9,309Post-transaction shares (directly held)434,891Post-transaction value$49.75 millionKey questionsWhat was the nature of this transaction?
The transaction was a philanthropic gift of 9,309 shares to The Mucci Family Foundation, rather than an open-market sale for personal liquidity.What is the insider's remaining exposure to the company?
Mucci continues to hold about 435,000 shares directly, valued at $49.75 million as of the transaction date, and maintains a substantial number of derivative securities directly.How does this move align with recent share performance?
The transfer occurred following a roughly 20% decline in the company's share price over the previous 12 months as of July 17, 2026.What are the core business operations of the company?
Founded in 1971 and based in Rochester, New York, Paychex provides human capital management solutions, including payroll processing, HR services, and employee benefits administration, primarily for small to medium-sized enterprises.Company OverviewMetricValueShare Price (as of market close 2026-07-20)$115.20Market Capitalization$41.0 billionRevenue (TTM)$6.5 billionNet Income (TTM)$1.8 billionCompany SnapshotPaychex delivers comprehensive human capital management (HCM) solutions, including payroll processing, payroll tax administration, employee benefits administration, and insurance services to its customer base.The software-as-a-service company generates revenue through recurring subscription-based services for payroll and HCM solutions, supplemented by ancillary services such as employee benefits administration and insurance offerings.Paychex primarily serves small to medium-sized enterprises (SMEs) across the United States, Europe, and India, addressing their core human resources and payroll administration requirements.Paychex, Inc. is a market-leading provider of human capital management solutions with a market capitalization of $41.0 billion and TTM revenues of $6.5 billion. The company maintains a diversified service portfolio serving multiple geographies and positioning itself as a critical infrastructure provider for SME payroll and HR operations. Paychex's recurring revenue model and established customer relationships provide a stable financial foundation within the staffing and employment services sector.
What this transaction means for investorsMucci leads the eponymous Mucci Family Foundation, which supports higher education initiatives as well as regional community programs, and gifts like this are often driven by estate and philanthropic planning. It’s also worth noting Mucci still holds about 435,000 shares directly, so the former CEO turned chairman remains one of Paychex's most invested insiders.
The company under him spent the past year growing faster than its stock. Paychex wrapped fiscal 2026 in June with revenue up 17% to $6.51 billion and adjusted earnings per share up 11% to $5.51, absorbing the Paycor acquisition. Then it guided fiscal 2027 to just 5% to 6% revenue growth. CEO John Gibson credited "the successful integration of Paycor to advance our upmarket expansion." For long-term investors, that guidance explains the roughly 20% slide in the shares, but the gift itself says nothing bearish. The decelerating outlook is the thing that actually deserves the scrutiny.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
For the 13th time, Paychex named one of Selling Power’s 60 Best Companies to SellRecognition highlights Paychex’s high-performance, growth-oriented sales culture, and strong career development opportunitiesSales professionals supported by advanced enablement tools, AI-powered insights, and award-winning training programsCompany invests in continuous coaching, mentorship, and leadership pathways for long-term career growth ROCHESTER, N.Y., July 22, 2026 (GLOBE NEWSWIRE) -- Paychex (Nasdaq: PAYX), a leading provider of expert-enabled HR, payroll, and benefits, has been honored by Selling Power as one of the 60 Best Companies to Sell For. This is the 13th time the company has been included on the annual list, demonstrating Paychex’s longstanding commitment to developing talent, investing in innovative solutions, and driving consistent sales excellence.
“At Paychex, we believe in building a strong culture where great salespeople can thrive and do work that genuinely makes a difference,” said Chad Parodi, senior vice president of HR and benefits services at Paychex. “That’s why we’re proud to be named among the best companies to sell for over the last 13 years. We offer a high-growth environment where sales professionals can build long-term careers, expand their skills, and pursue leadership opportunities. Supported by strong marketing enablement, coaching, and collaboration, our team is focused on delivering purpose-driven solutions that help businesses succeed.”
The Paychex sales organization works cross-functionally with teams across the company to stay agile in a rapidly evolving market. Supported by advanced enablement tools, AI-powered insights, and rich data resources, Paychex equips its sales professionals to work more efficiently, reduce administrative burden, and focus on high-value interactions. This integrated approach enhances the buying experience for customers and enables Paychex to deliver tailored HR, benefits, insurance, and payroll solutions that help businesses succeed.
“The 60 Best Companies to Sell For have demonstrated remarkable success and growth by elevating their sales teams to new heights,” said Selling Power publisher and founder Gerhard Gschwandtner. “These companies have invested in comprehensive training programs, cutting-edge tools, and supportive work environments that empower their sales professionals to excel. By fostering a culture of continuous improvement and collaboration, they have set a high standard in the competitive world of sales."
To learn more about Paychex’s awards and honors, please see the awards page on the Paychex website.
About Paychex
Paychex, Inc. (Nasdaq: PAYX) provides a comprehensive suite of expert-enabled technology and advisory solutions that help businesses manage HR, payroll, and benefits. Serving approximately 840,000 customers and paying 1 in 11 U.S. private sector workers, Paychex combines scale, trusted expertise, and innovation to help businesses succeed. Built on more than 50 years of workforce experience and one of the industry’s largest proprietary HR datasets, Paychex’s WISE agentic AI platform embeds intelligence directly into workflows to improve productivity, enhance decision-making, and deliver better outcomes. Learn more at paychex.com.
Media Contact
Tracy Volkmann
Manager, Public Relations
Paychex, Inc.
(585) 387-6705 [email protected]
Robert L. Schrader, senior VP and CFO of Paychex, Inc. (PAYX +0.71%), reported a non-discretionary disposition of 2,382 shares of common stock on July 15, 2026, according to an SEC Form 4 filing.
Transaction summaryMetricValueShares sold2,382Transaction value$262,020Post-transaction shares21,486Post-transaction shares (directly held)21,147Post-transaction shares (indirectly held)339Post-transaction value$2.36 millionTransaction value based on SEC Form 4 weighted average sale price ($110.00); post-transaction value based on July 15, 2026 market close ($110.00).
Key questionsWhat was the primary driver of this transaction?
The disposition was an automatic, non-discretionary transaction to cover tax liabilities associated with the vesting of restricted stock units and does not reflect a change in the executive's investment outlook.How does this disposition relate to the underlying vesting event?
The same filing reported an award of 4,364 shares on July 15, 2026; the 2,382 shares withheld for taxes represent approximately 55% of that specific award.What is the nature of the insider's remaining indirect interest?
Schrader maintains an indirect interest in 339 shares held through a 401(k) plan, providing additional long-term exposure alongside the larger direct equity position.Company OverviewMetricValueShare Price (as of market close 2026-07-16)$114.70Market Capitalization$40.8 billionRevenue (TTM)$6.5 billionNet Income (TTM)$1.8 billionCompany SnapshotPaychex delivers comprehensive human capital management (HCM) solutions including payroll processing, payroll tax administration, employee benefits administration, and insurance services, generating revenue through subscription-based and transaction-based service models.The company operates a recurring revenue business model serving small to medium-sized enterprises (SMEs), generating revenue through subscription fees for payroll and HCM services, tax compliance processing, and ancillary benefit administration services.Paychex primarily serves small to medium-sized businesses across the United States, Europe, and India, with a focus on organizations seeking outsourced human resources, payroll, and benefits administration capabilities.Founded in 1971 and headquartered in Rochester, New York, Paychex operates as a leading provider of human capital management solutions with a market capitalization of $40.8 billion and TTM revenue of $6.5 billion. The company maintains a diversified service portfolio addressing the comprehensive HR and payroll needs of SMEs, positioning itself as a mission-critical service provider with strong recurring revenue characteristics and operational scale across North America and international markets.
What this transaction means for investorsNothing here reflects a discretionary judgment call from Schrader that should raise red flags for investors. Shares were withheld at exactly $110.00, the day's closing price, to cover taxes on stock that vested, which is a payroll mechanic rather than a market view. The more useful question, however, is what Schrader is actually steering.
Paychex just closed a fiscal year that looked great on paper. Revenue rose 17% to $6.51 billion, adjusted earnings per share climbed 11% to $5.51, and the Paycor acquisition beat its own synergy targets, delivering more than $100 million in cost savings. The company returned $2.2 billion to shareholders along the way. CEO John Gibson said Paychex "finished fiscal 2026 with strong momentum." Then came the guidance, with management guiding for fiscal 2027 revenue growth of 5% to 6%, short of what investors were hoping for and fueling a small (albeit short-lived) stock decline. For long-term investors, the setup is a good business against a competitive backdrop. After a punishing stretch for many fintech and fintech-adjacent stocks, the year ahead should reveal what prospects look like longer-term.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Elizabeth Roaldsen, Sr. Vice President of Paychex, Inc. (PAYX +0.71%), reported a disposition of 2,383 shares of common stock on July 15, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueShares sold (direct)2,383Transaction value$262,130Post-transaction shares (directly held)6,952Post-transaction value$764,720.00Transaction value based on SEC Form 4 weighted average sale price ($110.00); post-transaction value based on July 15, 2026 market close ($110.00).
Key questionsHow should investors interpret the signal from this disposition?
The transaction was a non-discretionary event executed solely to satisfy tax withholding requirements arising from the lapse of restrictions on equity awards. Because the sale was part of an automated tax management process rather than a discretionary market trade, it provides no signal regarding management's internal valuation of the company or future performance expectations.What is the extent of the insider's remaining equity exposure?
Following this transaction, Elizabeth Roaldsen maintains a direct position of 6,952 shares of common stock. Furthermore, the executive has significant exposure through direct derivative securities, ensuring that a meaningful portion of their total compensation remains aligned with the long-term performance of the company.What is the current market context for the company?
Paychex was priced at $114.70 as of the July 16, 2026 market close, reflecting a market capitalization of $40.8 billion. The company, which operates in the staffing and employment services industry, reported trailing twelve-month revenue of $6.5 billion and net income of $1.8 billion.Company OverviewMetricValueShare Price (as of market close 2026-07-16)$114.70Market Capitalization$40.8 billionRevenue (TTM)$6.5 billionNet Income (TTM)$1.8 billionCompany SnapshotPaychex delivers comprehensive human capital management (HCM) solutions including payroll processing, payroll tax administration, employee benefits administration, and insurance services, generating revenue through subscription-based and transaction-based service models.The company operates a recurring-revenue business model serving small- to medium-sized enterprises (SMEs), generating revenue through subscription fees for payroll and HCM services, tax compliance processing, and ancillary benefit administration.Paychex primarily serves small to medium-sized businesses across the United States, Europe, and India, with a focus on organizations seeking outsourced human resources, payroll, and benefits administration capabilities.Founded in 1971 and headquartered in Rochester, New York, Paychex operates as a leading provider of human capital management solutions with a market capitalization of $40.8 billion and TTM revenue of $6.5 billion. The company maintains a diversified service portfolio addressing the comprehensive HR and payroll needs of SMEs, positioning itself as a mission-critical service provider with strong recurring revenue characteristics and operational scale across North America and international markets.
What this transaction means for investorsRoaldsen and two other executives had similar withholdings last week, which suggests that this was a scheduled vesting date hitting multiple executives at once, rather than anything specific to her or her outlook on the firm. What stands out is what's left: 6,952 shares directly, a modest number that says most of her stake still sits in unvested awards. That's a compensation structure pointed at future years, not a position being wound down.
Those future years are the live question at Paychex. The company wrapped fiscal 2026 on May 31 having pushed organic growth higher each quarter while folding in Paycor, which extended its reach into larger employers. It also rolled out an AI engine it calls WISE, packing in more than 600 AI features. CEO John Gibson credited "the successful integration of Paycor to advance our upmarket expansion." For long-term investors, moving upmarket is the strategic bet worth watching, particularly since Paychex built its business on small employers, and larger clients mean tougher competition and different economics. With shares still largely depressed this past year, moves like this could be key to determining whether a lasting turnaround is in play.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Christopher C. Simmons, VP, Controller & Treasurer of Paychex, Inc. (PAYX +0.71%), disposed of 3,787 shares of common stock on July 15, 2026 and July 17, 2026, according to an SEC Form 4 filing.
Transaction summaryMetricValueShares disposed of3,787Transaction value~$432,059Post-transaction shares (directly held)3,420Post-transaction value$391,213.80Transaction value based on SEC Form 4 weighted average sale price ($114.09); post-transaction value based on July 17, 2026 market close ($114.39).
Key questionsWhat drove the liquidity event for the VP, Controller & Treasurer?
The transaction was executed to manage equity compensation vesting, with 1,172 shares withheld to satisfy tax liabilities arising from restricted stock units.What is the remaining equity exposure for Christopher C. Simmons?
After this disposition, the insider maintains a direct position of 3,420 shares and continues to hold a number of derivative securities.How does the execution price align with the company's recent market performance?
The weighted average sale price of $114.09 per share occurred during a period in which the stock has realized a one-year total return of -20% as of the July 17, 2026 transaction date.What are the fundamental metrics of the company at the time of this filing?
Paychex currently maintains a market capitalization of $40.8 billion and reported trailing-twelve-month revenue of $6.5 billion and net income of $1.8 billion as of the July 16, 2026 market close.Company OverviewMetricValueShare Price (as of market close 2026-07-16)$114.70Market Capitalization$40.8 billionRevenue (TTM)$6.5 billionNet Income (TTM)$1.8 billionCompany SnapshotPaychex delivers comprehensive human capital management (HCM) solutions, including payroll processing, payroll tax administration, employee benefits administration, and insurance services, generating revenue primarily from subscription-based HCM platforms and ancillary service offerings.The company operates a recurring revenue model centered on subscription-based HCM software and services, complemented by transaction-based revenue from payroll processing, tax administration, and employee benefits services, which provides predictable cash flows and customer stickiness.Paychex primarily serves small to medium-sized enterprises (SMEs) across the United States, Europe, and India, targeting businesses seeking integrated human resources and payroll administration solutions.Founded in 1971 and headquartered in Rochester, New York, Paychex is a leading provider of HCM solutions with a market capitalization of $40.8 billion and TTM revenue of $6.5 billion. The company maintains a competitive advantage through its integrated platform approach, extensive service portfolio, and deep customer relationships with over 16,500 employees supporting millions of SMEs globally.
What this transaction means for investorsOnly 1,172 of these shares went to taxes, which means Simmons sold roughly 2,600 on the open market, and he did it after the stock rallied toward $114. That's a real decision, unlike the pure withholding transactions two of his colleagues filed for last week. Still, treasurers and controllers are among the most tightly constrained insiders at any public company, and selling into strength as shares climbed from recent lows is ordinary financial planning. It leaves him with 3,420 shares plus a substantial number of unvested awards.
Meanwhile, the strength he sold into is worth understanding. Paychex reported fiscal 2026 results in late June, showing revenue up 17% to $6.51 billion, with organic growth accelerating in every quarter of the year and record client retention. Shares initially fell on cautious forward guidance, but have since surged some 20% toward 2026 highs (though shares are still down 20% from one year ago). CEO John Gibson pointed to "AI innovation that further differentiates our HCM and advisory solutions." For long-term investors, the ongoing recovery is important. The market has been brutal for Paychex and its peers, but the recent leg up is worth watching. Whether the market is ultimately right depends on whether accelerating organic growth continues once the acquisition-driven comparisons fade.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Decker Wealth Management LLC acquired a new stake in shares of Paychex, Inc. (NASDAQ:PAYX – Free Report) during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 4,421 shares of the business services provider’s stock, valued at approximately $407,000.
Several other institutional investors have also modified their holdings of PAYX. Capital International Investors increased its stake in shares of Paychex by 59.1% during the fourth quarter. Capital International Investors now owns 30,265,174 shares of the business services provider’s stock worth $3,395,583,000 after purchasing an additional 11,243,295 shares in the last quarter. Vanguard Group Inc. lifted its stake in Paychex by 12.1% in the 4th quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider’s stock valued at $4,750,669,000 after buying an additional 4,583,157 shares in the last quarter. Federated Hermes Inc. lifted its stake in Paychex by 4,141.2% in the 4th quarter. Federated Hermes Inc. now owns 2,409,229 shares of the business services provider’s stock valued at $270,267,000 after buying an additional 2,352,423 shares in the last quarter. Norges Bank acquired a new stake in Paychex in the 4th quarter worth about $257,699,000. Finally, Voloridge Investment Management LLC acquired a new stake in Paychex in the 3rd quarter worth about $117,809,000. Institutional investors and hedge funds own 83.47% of the company’s stock.
Paychex Stock Performance PAYX opened at $114.39 on Monday. Paychex, Inc. has a twelve month low of $85.45 and a twelve month high of $148.11. The firm has a market capitalization of $40.98 billion, a PE ratio of 23.39 and a beta of 0.84. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.22. The firm’s 50-day moving average price is $100.05 and its 200 day moving average price is $98.28.
Paychex (NASDAQ:PAYX – Get Free Report) last released its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, beating analysts’ consensus estimates of $1.31 by $0.01. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The company had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.60 billion. During the same quarter in the prior year, the firm earned $1.19 EPS. Paychex’s quarterly revenue was up 12.5% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, sell-side analysts expect that Paychex, Inc. will post 5.96 EPS for the current fiscal year.
Paychex Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Tuesday, July 28th will be issued a $1.19 dividend. This represents a $4.76 annualized dividend and a dividend yield of 4.2%. The ex-dividend date of this dividend is Tuesday, July 28th. Paychex’s dividend payout ratio (DPR) is currently 97.34%.
Wall Street Analyst Weigh In Several research firms have commented on PAYX. UBS Group cut their price objective on Paychex from $100.00 to $98.00 and set a “neutral” rating for the company in a research note on Thursday, June 25th. Royal Bank Of Canada restated a “sector perform” rating on shares of Paychex in a research report on Thursday, May 28th. Jefferies Financial Group lowered their price target on Paychex from $110.00 to $105.00 and set a “hold” rating on the stock in a research note on Thursday, March 26th. Robert W. Baird dropped their price target on Paychex from $148.00 to $125.00 and set a “neutral” rating for the company in a research report on Thursday, March 26th. Finally, TD Cowen increased their price objective on Paychex from $94.00 to $98.00 and gave the company a “hold” rating in a research note on Monday, June 8th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $105.80.
Check Out Our Latest Report on Paychex
Insider Activity at Paychex In related news, Director Joseph M. Tucci sold 3,907 shares of Paychex stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $98.25, for a total transaction of $383,862.75. Following the transaction, the director owned 67,364 shares in the company, valued at approximately $6,618,513. This trade represents a 5.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 0.80% of the company’s stock.
Paychex Company Profile (Free Report)
Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.
Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.
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ROCHESTER, N.Y., July 16, 2026 (GLOBE NEWSWIRE) -- The Board of Directors of Paychex, Inc. (Nasdaq: PAYX) declared a regular quarterly cash dividend on Paychex common stock of $1.19 per share, payable on August 28, 2026, to shareholders of record as of July 28, 2026.
About Paychex
Paychex, Inc. (Nasdaq: PAYX) provides a comprehensive suite of expert-enabled technology and advisory solutions that help businesses manage HR, payroll, and benefits. Serving approximately 800,000 clients and paying 1 in 11 U.S. private sector workers, Paychex combines scale, trusted expertise, and innovation to help businesses succeed. Built on more than 50 years of workforce experience and one of the industry’s largest proprietary HR datasets, Paychex’s WISE agentic AI platform embeds intelligence directly into workflows to improve productivity, enhance decision-making, and deliver better outcomes. Visit www.paychex.com to learn more.
Investor Relations
Rachel White
Paychex, Inc.
Head of Investor Relations
585-216-0822 [email protected]
Media Relations
Tracy Volkmann
Paychex, Inc.
Manager, Public Relations
585-387-6705 [email protected]
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Stock to Watch: Paychex (PAYX - Free Report) Paychex, Inc. is one of the leading providers of integrated human capital management (“HCM”) solutions for payroll, human resource (“HR”), retirement and insurance services for small- to medium-sized businesses. The company was incorporated in Delaware in 1979.
PAYX is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. PAYX has a Growth Style Score of B, forecasting year-over-year earnings growth of 8.2% for the current fiscal year.
Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.05 to $5.96 per share. PAYX also boasts an average earnings surprise of +1.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, PAYX should be on investors' short list.
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Kraft Heinz Kraft Heinz (NASDAQ: KHC | KHC Price Prediction) is North America’s third-largest food and beverage company and fifth-largest globally. Even in difficult times, everybody needs to eat, and this company consistently benefits while paying a substantial 6.31% dividend. The company was formed via the merger of H.J. Heinz and Kraft Foods, and it manufactures and markets food and beverage products worldwide through its eight consumer-driven product platforms:
Taste Elevation Easy Ready Meals Hydration Meats Cheeses Substantial Snacking Desserts Coffee and other grocery products The company has two reportable segments defined by geographic region: North America and International Developed Markets. Its other segments, West and East Emerging Markets (WEEM) and Asia Emerging Markets (AEM), are combined and reported as Emerging Markets.
Kraft Heinz brands include:
Kraft Oscar Mayer Heinz Philadelphia Lunchables Velveeta Ore-Ida Capri Sun Maxwell House Kool-Aid Jell-O Golden Circle Wattie’s Plasmon ABC Master Quero Pudliszki The company manufactures its products from a wide variety of raw materials and sells them through its sales organizations and independent brokers, agents, and distributors.
In February 2026, Kraft Heinz scrapped its planned corporate split. New CEO Steve Cahillane cited worsening conditions in the food industry, while emphasizing that the company’s challenges are “fixable and within our control.” Rather than breaking up, the company is intensifying its turnaround efforts. It is committing $600 million to marketing, sales, and research and development to drive the strategy. The decision follows a 3.5% decline in net sales in 2025, with further declines expected in 2026. By canceling the split, Kraft Heinz is now fully focused on stabilizing and rebuilding the business. CEO Greg Abel indicated that Berkshire Hathaway is no longer planning to sell its stake in Kraft Heinz.
The swift reversal is being viewed as a reflection of Abel’s more hands-on management approach, as he reportedly expressed dissatisfaction, prompting the company to change direction quickly. For now, Berkshire appears committed to holding its position, although the registered shares could still be sold if conditions shift. If they don’t, and the transition is successful, this could be a contrarian home run for investors.
DZ Bank has a Strong Buy rating with a $31 target price.
Comcast This top media and entertainment company remains a Wall Street favorite and pays a solid 5.56% dividend. Comcast (NASDAQ: CMCSA) is a global media and technology company that operates through four segments:
Residential Connectivity & Platforms Business Services Connectivity Media, Studios Theme Parks The Residential Connectivity & Platforms segment provides residential broadband and wireless connectivity services, residential and business video services, sky-branded entertainment television networks, and advertising.
The Business Services Connectivity segment offers connectivity services for small business locations, including broadband, wireline voice, and wireless services. It also offers solutions for medium-sized customers, larger enterprises, and small business connectivity services in the United Kingdom.
The Media segment operates NBCUniversal’s television and streaming business, including:
National and regional cable networks The NBC and Telemundo broadcast networks Owned local broadcast television stations Peacock, a direct-to-consumer streaming service It also operates international television networks, including the Sky Sports networks, as well as other digital properties.
The Studios segment operates NBCUniversal and Sky film and television studio production and distribution operations.
The Theme Parks segment operates Universal theme parks in:
Orlando, Florida Hollywood, California Osaka, Japan Beijing, China Citigroup has a Buy rating and a $35.50 target price.
Paychex While off the radar for many investors, this company offers a solid 4.48% dividend and significant upside potential. Paychex (NASDAQ: PAYX) is a human capital management (HCM) company that delivers a full suite of technology and advisory solutions in human resources, employee benefits, insurance, and payroll to clients and their employees in the United States and parts of Europe.
It offers integrated HCM solutions covering the employee life cycle for businesses and their employees. It supports clients through its proprietary Paychex Flex platform, Paycor, and SurePayroll software-as-a-service (SaaS) solution.
The company’s services include:
Payroll services Time and attendance Employee benefits Human resources Professional employer organization Talent management, business insurance, and payment processing Its talent management includes:
Recruiting Hiring and onboarding Performance management Learning and development Compensation management Employee engagement and recognition Employee benefits Argus has a Buy rating with a $110 price target.
PepsiCo This top consumer staples stock reported solid first-quarter earnings and will continue to supply all the goods for summer picnics and parties. PepsiCo (NASDAQ: PEP) is a global food and beverage company with a very solid 3.95% dividend yield and a forward P/E of 16.92. Activist investor Elliott Investment Management took a $4 billion stake in PepsiCo last September, revealing a strategy to unlock value within the company’s iconic brand by focusing on core strengths, such as innovation and brand marketing, rather than its capital-intensive bottling operations. This move caused PepsiCo’s stock to surge, with Elliott believing the company could see over 50% upside if its proposed strategic changes were implemented. However, these changes would involve a very long-term transformation.
Its Frito-Lay North America segment offers:
Lays and Ruffles potato chips Doritos, Tostitos, and Santitas tortilla chips Cheetos cheese-flavored snacks, branded dips Fritos corn chips The company’s Quaker Foods North America segment provides:
Quaker Oatmeal Grits Rice cakes Natural granola and oat squares Pearl Milling mixes and syrups Quaker Chewy granola bars Cap’n Crunch cereal Life cereal Rice-A-Roni side dishes PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:
Pepsi Gatorade Mountain Dew Diet Pepsi Aquafina Diet Mountain Dew Tropicana Pure Premium Sierra Mist Mug Goldman Sachs has a Buy rating with a $183 price objective.
Mondelez This consumer staples giant is always a safe bet when the going gets tough, especially with a 3.33% dividend yield. Mondelez International (NASDAQ: MDLZ) is a snack company. The company’s core business is the manufacture and sale of chocolate, biscuits, and baked snacks. It also has additional businesses in adjacent, locally relevant categories, including
Gum and candy Cheese Grocery Powdered beverages Its portfolio includes global and local brands such as Oreo, Ritz, LU, Clif Bar, and Tate’s Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka, and Toblerone chocolate.
Mondelez segments include Latin America, AMEA, Europe, and North America. It sells its products in over 150 countries and operates in approximately 80 of them, with 147 principal manufacturing and processing facilities. The company sells its products to:
Supermarket chains Wholesalers Supercenters Club stores Mass merchandisers Distributors Convenience stores Gasoline stations Drug stores Value stores Retail food outlets J.P. Morgan has an Overweight rating and a $70 price target.
Key Takeaways PAYX has outperformed its industry as fiscal 2027 earnings and revenue are projected to grow y/y. Paychex is expanding AI across its platforms to automate HR tasks and improve productivity. PAYX faces competition and cybersecurity risks, including lessons from the March 2024 data breach. Shares of Paychex, Inc. (PAYX - Free Report) had a decent run over the past three months. The stock has risen 17.2% compared with the industry's 5.7% growth. The Zacks S&P 500 composite has gained 10.6% during the said time frame.
Image Source: Zacks Investment Research
The company’s first-quarter fiscal 2027 earnings are expected to increase 9.02% year over year. PAYX’s fiscal 2027 and 2028 earnings are projected to rise 8.17% and 6.6%, respectively. Revenues are expected to grow 5.4% in fiscal 2027 and 5.6% in fiscal 2028.
Factors That Bode Well for PAYXPaychex Small Business Employment Watch highlights improving hiring momentum among U.S. businesses with fewer than 50 employees, as its jobs index rises for the fourth consecutive month in June 2026 to reach its highest level since August 2025. Broad-based job gains, led by the West region and the leisure and hospitality sector, signal strengthening labor demand, while hourly earnings growth below 3% suggests that wage pressures remain relatively contained.
The company’s recognition by Newsweek as one of America’s Most Trustworthy Companies and one of America’s Greatest Workplaces underscores its strong reputation among customers, investors and employees. These honors, combined with the improving hiring momentum highlighted in the June Paychex Small Business Employment Watch, reinforce Paychex’s position as a leading human capital management provider. The company’s continued focus on ethical business practices, workplace culture and employee engagement further strengthens its standing as a trusted partner for U.S. businesses.
PAYX’s launch of the WISE AI platform marks a significant step in expanding its human capital management capabilities through agentic artificial intelligence (AI). By embedding context-aware intelligence, autonomous AI agents, personalized assistants and expert advisory services across its Paychex Flex, Paycor and SurePayroll platforms, the company aims to automate routine HR tasks, improve workforce productivity and deliver more proactive, data-driven support for businesses of all sizes.
The company currently has more than 500 AI-powered capabilities and agents across its workflows, driving higher productivity and smarter outcomes. These generative AI tools help clients and HR professionals manage wage laws, compliance obligations, payroll processing and employee benefits decisions more efficiently.
PAYX: Risks to WatchPaychex operates in a highly competitive human capital management industry, where it competes with both large, established firms and specialized providers, requiring continuous innovation while balancing cost efficiency, growth and profitability. At the same time, the company manages significant volumes of sensitive employee, customer and client personal and financial data, making it vulnerable to cybersecurity threats. The March 2024 data breach, which resulted in the unauthorized disclosure of personal information, highlights these risks. Similar incidents could undermine customer trust and weigh on investor sentiment.
Zacks Rank & Stocks to ConsiderPAYX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks for investors’ consideration are Dave Inc. (DAVE - Free Report) and Coherent Corp. (COHR - Free Report) .
Dave currently sports a Zacks Rank of #1. The company has an expected earnings growth rate of 26.02% and 26% for 2026 and 2027, respectively.
DAVE has an encouraging earnings surprise history as it has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 45.78%.
Coherent sports a Zacks Rank of #1. COHR has an expected earnings growth rate of 55% and 51.04% for fiscal 2026 and fiscal 2027, respectively.
The company has an encouraging earnings surprise history as it has topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 6.20%.
SummaryPaychex remains a 'Buy,' offering both growth and a 32% discount to intrinsic value despite recent outperformance versus the S&P 500.Cross-selling with Paycor and the launch of AI-powered WISE drive high single-digit EPS growth and improved revenue per client, especially in upmarket segments.PAYX delivers robust financial stability with a 1.1x net leverage ratio, a 4.9% forward dividend yield, and strong dividend safety metrics.Risks include macro headwinds for small business clients and potential payroll service commoditization, but these appear priced in, supporting an attractive long-term entry.Looking for a portfolio of ideas like this one? Members of The Dividend Kings get exclusive access to our subscriber-only portfolios. Learn More » AndreyPopov/iStock via Getty Images
Co-authored by Kody's Dividend
In an equity market where high-quality compounding machines are often bid up to unappealing valuations, finding a company that offers both growth and a significant margin of safety is a rare feat. Market sentiment is usually a fickle
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of PAYX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Kody's Dividends, Justin Law, and Rachel Kaufman are part of The Dividend Kings team.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Paychex (PAYX - Free Report) Paychex, Inc. is one of the leading providers of integrated human capital management (“HCM”) solutions for payroll, human resource (“HR”), retirement and insurance services for small- to medium-sized businesses. The company was incorporated in Delaware in 1979.
PAYX is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. PAYX has a Momentum Style Score of B, and shares are up 6.9% over the past four weeks.
Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.05 to $5.96 per share. PAYX also boasts an average earnings surprise of +1.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PAYX should be on investors' short list.
Job gains were broad based while hourly earnings growth remains below three percent
ROCHESTER, N.Y., June 30, 2026 (GLOBE NEWSWIRE) -- The Paychex Small Business Jobs Index—a primary component of the monthly Paychex Small Business Employment Watch report—shows the pace of job growth among U.S. small businesses with fewer than 50 employees improved for the fourth consecutive month in June, matching its highest index level since August 2025 (99.83) and marking the first four-month consecutive increase since November 2020. While gains were broad based, increases across the West region (1.22 percentage points) and the Leisure & Hospitality sector (1.68 percentage points) helped drive the jobs index gains in June.
Meanwhile, hourly earnings growth for U.S. workers remains below three percent (2.80%). Weekly hours worked (0.14%) continued to trend positively for the fourth consecutive month, as weekly earnings growth in June reported 2.80%.
“The pace of small business job growth improved for a fourth consecutive month in June, matching its highest level since August 2025 and once again reinforcing the resilience of small businesses,” said John Gibson, Paychex president and CEO. “Broad-based momentum across most regions and many states, coupled with continued increases in weekly hours worked and earnings, signals steady demand for workers among small businesses as we move through summer.”
“The pace of employment growth across our overall client base improved again in June, with slightly stronger growth among those with 50 or more employees,” Gibson added.
Jobs Index and Wage Data Highlights
All regions increased their small business employment growth rate during the past quarter, with the largest three-month gain in the West (1.95 percentage points).All sectors improved their pace of small business employment growth during the past quarter, led by Leisure and Hospitality (1.69 percentage points). Education and Health Services topped sectors for small business job growth in June, while Leisure and Hospitality’s one-month surge from ranking sixth also helped lift industry’s jobs index level (99.55) to a two-year high.Indiana (101.46) reclaimed its role as the top state for small business employment growth, a position it has held for nine of the last 24 months.California’s jobs index (100.01) gained more than two percentage points during the past quarter to land above 100 in June – a first since March 2024.
About the Paychex Small Business Employment Watch
Since 2014, the Paychex Small Business Employment Watch has been a trusted source of employment trends for U.S. small businesses with fewer than 50 employees. The Employment Watch website offers interactive charts and historical data across the report’s two key components – the jobs index and wage data – as well as the methodology for both analyses. Visit the Bloomberg Terminals or subscribe to receive monthly alerts with the latest data.
*Information regarding the professions included in the industry data can be found at the Bureau of Labor Statistics website.
About Paychex
Paychex, Inc. (Nasdaq: PAYX) provides a comprehensive suite of expert-enabled technology and advisory solutions that help businesses manage HR, payroll, and benefits. Serving approximately 800,000 clients and paying 1 in 11 U.S. private sector workers, Paychex combines scale, trusted expertise, and innovation to help businesses succeed. Built on more than 50 years of workforce experience and one of the industry’s largest proprietary HR datasets, Paychex’s WISE agentic AI platform embeds intelligence directly into workflows to improve productivity, enhance decision-making, and deliver better outcomes. Learn more at paychex.com.
Media Contacts
Tracy Volkmann
Paychex, Inc.
Manager, Public Relations
(585) 387-6705 [email protected]
@Paychex
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Paychex (PAYX - Free Report) Paychex, Inc. is one of the leading providers of integrated human capital management (“HCM”) solutions for payroll, human resource (“HR”), retirement and insurance services for small- to medium-sized businesses. The company was incorporated in Delaware in 1979.
PAYX is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. PAYX has a Growth Style Score of B, forecasting year-over-year earnings growth of 7.8% for the current fiscal year.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.03 to $5.94 per share. PAYX also boasts an average earnings surprise of +1.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, PAYX should be on investors' short list.
Key Takeaways PAYX framed fiscal 2027 around organic growth, Paycor progress and the WISE AI engine. Paychex said WISE supports about 600 AI features and is already generating some revenues. PAYX guided fiscal 2027 revenue growth of 5%-6% and adjusted EPS growth of 7%-9%. Paychex, Inc. (PAYX - Free Report) used its fourth-quarter fiscal 2026 earnings call to frame the year less around the quarter’s modest estimate beat and more around what management sees as a cleaner setup for fiscal 2027.
Executives pointed to accelerating organic growth, Paycor integration progress and the launch of the WISE AI engine as the main reasons they believe the company is entering the new year with stronger momentum.
PAYX Leans on Organic Growth MomentumChief executive officer John Gibson said Paychex exited fiscal 2026 with improving sales momentum in every quarter, supported by execution in upmarket expansion and advisory offerings. He said fourth-quarter bookings topped the third quarter, which he had already described as unusually strong.
Chief financial officer Robert Schrader said organic growth nearly doubled from about 3% a year earlier and that the fourth-quarter exit rate broadly aligns with the company’s fiscal 2027 revenue outlook. That framing mattered because management did not present next year as requiring a sharp second-half acceleration.
For the quarter, adjusted EPS of $1.32 topped the Zacks Consensus Estimate of $1.31, delivering a 0.8% surprise. Revenues of $1.61 billion beat the consensus estimate of $1.6 billion by 0.2%. Total revenues rose 12% year over year.
Paychex Ties WISE to New Revenue PathsGibson devoted much of his prepared remarks to WISE, the company’s AI-powered intelligence engine, saying it now supports roughly 600 AI features and agents across workflows and internal operations. He positioned the offering as both a productivity tool and a longer-term monetization opportunity.
Management said WISE is already helping automate handbook updates, schedule generation, payroll service tasks, and time-sheet approvals. In Q&A, Gibson added that some revenues are already being generated through reporting enhancements and intelligent timekeeping tools now in soft launch.
The broader message was that Paychex sees AI differentiation coming from compliance knowledge, proprietary data, and advisory expertise rather than from automation alone. Gibson repeatedly tied that point to the company’s 50-plus years of payroll and HR data.
PAYX Says Paycor Is Adding More Than ScaleManagement’s tone around Paycor was notably confident. Gibson said the company exceeded its fiscal 2026 synergy targets, while Schrader said the deal contributed more than 50 basis points to revenue growth and delivered more than $100 million in cost synergies.
In response to TD Cowen and BMO questions, executives argued that investor focus should be less on legacy Paycor growth math and more on the combined enterprise business. Gibson said Paychex now treats Paycor as the brand for clients with 100 or more employees and said retention in that cohort is the highest he has seen in 13 years.
Schrader also said cross-selling into the Paycor base should contribute even more to growth next year, especially in ASO, retirement and PEO. That suggests the acquisition story is shifting from integration execution to revenue synergy delivery.
Paychex Guides to Steady Fiscal 2027 GrowthSchrader guided fiscal 2027 revenue growth of 5% to 6%, with Management Solutions also expected to grow 5% to 6% and PEO and Insurance Solutions 6% to 7%. Adjusted EPS is projected to rise 7% to 9%, with adjusted operating margin near 44%.
He said the outlook assumes a stable macro backdrop, flat employment levels, and no further Federal Reserve rate changes. Interest on funds held for clients is expected to decline year over year because of prior rate cuts and the absence of one-time portfolio gains.
Asked about quarterly cadence, management resisted overexplaining seasonality and instead emphasized relatively even growth through the year. That response reinforced the view that the company sees the setup as more balanced than fiscal 2026.
PAYX Highlights PEO Strength and Client MixAnother important theme was the durability of PEO demand. Schrader said PEO worksite employee growth continued to outpace the industry, supported by double-digit demand and record retention, while the insurance agency drag has begun to ease.
Executives also described healthcare inflation as both a tailwind and a client pain point. Management argued that the company’s multiple insurance and benefits delivery models, including Perks and health reimbursement tools, help small businesses stay competitive in hiring.
On client growth, Gibson was direct that Paychex is not chasing low-value additions. He said losses remain concentrated in smaller, out-of-business customers and that the company remains focused on larger, higher-lifetime-value accounts that support margin discipline.
Paychex Pushes Beyond the Payroll BundleSeveral Q&A exchanges showed management widening the strategic lens beyond core payroll. Gibson said the company has now completed the back-office modernization needed to sell more products on a stand-alone basis, even when clients are not on a Paychex payroll platform.
He said that capability can help retain pieces of client relationships, broaden market reach, and eventually support payroll-agnostic compliance and advisory tools. Management described this as early-stage, but the comments suggested a meaningful expansion of the addressable market.
Coming out of the call, the company’s posture was clear: Paychex wants investors to see fiscal 2027 as a year of cleaner execution, steadier growth, and increasing monetization of assets built over the last year.
Zacks Signals Stay MixedPAYX carries a Zacks Rank #3 (Hold), which indicates more balanced near-term expectations than the stronger revision trends associated with a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy). The stock’s Style Scores are uneven, with a Value Score of C, Growth Score of B, Momentum Score of F, and VGM Score of D.
You can see the complete list of today’s Zacks #1 Rank stocks here.
That combination points to some support from growth characteristics, but weaker momentum and a middling overall profile. Under Zacks’ framework, stronger return potential is usually associated with Rank #1 or #2 stocks paired with A or B Style Scores, and the Zacks Rank can still change as estimate revisions adjust after the quarter.
Paychex's NASDAQ: PAYX stock price declined following its fiscal Q4 earnings report, as macroeconomic headwinds, hiring woes, cautious guidance, and acquisition hurdles weighed on the price action.
However, those same macroeconomic headwinds and hiring woes have yet to be reflected in the jobs data, which is a leading indicator for Paychex's business. Labor market trends, including the non-farm payrolls report and weekly jobless claims, suggest that labor markets are not only improving compared to last year but also accelerating as the year progresses.
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Paychex Today
$98.83 +2.53 (+2.63%)
As of 09:39 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$85.45▼
$148.76Dividend Yield4.82%
P/E Ratio21.54
Price Target$105.40
If this strength continues, Paychex's business quality is all but assured, suggesting its high-yielding dividend and share buybacks are safe and reliable for long-term buy-and-hold investors. Trading near long-term lows, Payx stock offers a historically high yield of nearly 5%, compounded by share buybacks.
Share buybacks are aggressive, offsetting the cost of annual increases in distributions with quarterly reductions in the share count. Trailing 12-month activity reduced the count by an average of 1.1% as of fiscal Q2, a pace that is expected to continue.
There is some risk with the dividend payment, as it is a relatively high percentage, approximately 85% of the earnings. However, the more significant metric is cash from operations, which more than covers the distributions and share buybacks, leaving room for reinvestment and balance sheet maintenance.
The balance sheet is healthy, though it reflects the impact of last year’s debt-financed Paycor acquisition. Positive cash flow will enable debt reduction over time, though, and the Paycor acquisition underpins the growth outlook.
Paychex Fiscal Q2: Stronger Than It LooksPaychex had a solid fiscal Q2, with revenue growing by more than 12.5% to over $1.60 billion. The as-expected figure appears to be a tepid showing. However, with nearly 100% of analysts lowering the targets after the prior report, the bar was set low.
Paychex results were better than the low end, where whisper targets were set. Within this, the core Management Solutions segment led, up 14%, including an 8% acquisitional impact, while the PEO segment increased by 8%. Strength was underpinned by increased headcounts and money per end-user employee.
Margin news was also good, despite the tepid comp to consensus estimates. The company improved margin throughout its stack, driving a 17% increase in adjusted operating earnings. Critical details included earnings per share, which came in at $1.32, slightly above the consensus forecast and 75 bps above expectations.
Guidance was another mixed bag, with revenue expected to align with consensus. However, at 5.5%, revenue growth is present and will be compounded by accelerated earnings growth. Adjusted earnings are forecasted to grow by 8%, and may come in above forecasts.
Institutional Activity Underpins Paychex Stock Price Bottom2026’s chart price action reflects potential for a bottom, also seen in the institutional data. Price action aligns with a Head & Shoulders pattern, while institutions, which collectively own nearly 85% of the stock, have been accumulating shares and ramping up activity. The likely outcome is that they continue to support this market at its current levels, setting the stage for a complete market reversal later this year.
Analysts are among the catalysts for this stock, with the group's trends contributing to the stock price decline over the trailing 12 months, including significant reductions in price targets. The risk is that they continue to pressure the market lower, but that seems unlikely, given the institutional activity. The more likely scenario is that analyst trends, which peg the stock as a consensus Hold, remain steady, limiting downside as the year progresses. As it stands, the consensus of 17 analysts is just over $105, sufficient to place this market above its critical resistance target.
The critical resistance target is just under $103. It aligns with the latest high, the baseline for this pattern. Assuming a new high is set and sustained, the next move will be upward, potentially reaching the $117 level in the near term. Long-term, this stock should see a full price recovery. The low price discounts a healthy growth outlook, putting it at pennies on the dollar relative to its 2030 forecast.
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Q4: 2026-06-24 Earnings SummaryEPS of $1.32 beats by $0.01
|
Revenue of
$1.61B
(12.49% Y/Y)
misses by $793.19K
Paychex, Inc. (PAYX) Q4 2026 Earnings Call June 24, 2026 9:30 AM EDT
Company Participants
Robert Schrader - Senior VP & CFO
John Gibson - President, CEO & Director
Conference Call Participants
Bryan Keane - Citigroup Inc., Research Division
Mark Marcon - Robert W. Baird & Co. Incorporated, Research Division
Andrew Nicholas - William Blair & Company L.L.C., Research Division
Kevin McVeigh - UBS Investment Bank, Research Division
Jared Levine - TD Cowen, Research Division
Daniel Jester - BMO Capital Markets Equity Research
Jacob Cody Smith - Guggenheim Securities, LLC, Research Division
Samad Samana - Jefferies LLC, Research Division
William Qi - RBC Capital Markets, Research Division
Kartik Mehta - Northcoast Research Partners, LLC
David Grossman - Stifel, Nicolaus & Company, Incorporated, Research Division
Scott Wurtzel - Wolfe Research, LLC
Jason Kupferberg - Wells Fargo Securities, LLC, Research Division
Presentation
Operator
Good morning, everyone, and welcome to Paychex's Fourth Quarter Fiscal 2026 Earnings Call. Participating on the call today are John Gibson and Bob Schrader. [Operator Instructions] As a reminder, this conference is being recorded, and your participation implies consent to our recording of this call.
I would now like to turn the call over to Mr. Bob Schrader, Paychex Chief Financial Officer. Please go ahead, sir.
Robert Schrader
Senior VP & CFO
Thank you for joining us to discuss Paychex's fourth quarter and full year fiscal 2026 results. Our earnings release and presentation are available on our Investor Relations website. We plan to file our Form 10-K with the SEC before the end of July. This call is being webcast live and will be available for replay on our Investor Relations portal.
Today's call includes forward-looking statements that refer to future events and involve some risk. We encourage you to review our filings with the SEC for additional information on factors that could cause actual results to differ from our current
Key Takeaways PAYX beat Q4 adjusted earnings estimates as revenues rose 12.5% y/y to $1.61 billion.Paychex's Management Solutions revenues grew 14%, with Paycor adding about 8 points to growth.PAYX expects FY27 revenue growth of 5-6% and adjusted diluted EPS growth of 7-9%. Paychex, Inc. (PAYX - Free Report) has reported solid fourth-quarter fiscal 2026 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues coming in line. Adjusted earnings of $1.32 per share surpassed the consensus estimate of $1.31 by a slight margin and increased 10.9% from the year-ago quarter. Total revenues of $1.61 billion rose 12.5% year over year and beat the consensus estimate by a slight margin.
The earnings upside was backed by segment growth, Paycor contributions and disciplined expense performance. Management Solutions led the quarter, while PEO and Insurance Solutions, and client fund interest added further support.
PAYX's Management Solutions Powers GrowthManagement Solutions’ revenues increased 14% year over year to $1.18 billion in the fiscal fourth quarter. The segment benefited from higher product penetration and growth in client worksite employees within Human Resources Solutions.
Paycor, acquired in April 2025, contributed about 8 percentage points to Management Solutions revenue growth. The acquisition also supported price realization and higher revenues per client, reflecting Paycor’s upmarket client base.
Management noted that the quarter included a full period of Paycor revenues and expenses compared with a partial period in the prior-year quarter. That comparison helped drive the sharper contribution from the acquired business in the latest quarter.
Paychex's PEO & Client Funds Add SupportProfessional Employer Organization and Insurance Solutions revenues were $369.7 million, up 9% from the year-ago quarter. Growth in the number of average PEO worksite employees supported the segment’s performance.
PEO insurance revenues also increased during the quarter. Interest on funds held for clients rose 15% to $52.2 million, driven by higher average investment balances resulting from the Paycor acquisition.
Total service revenues came in at $1.55 billion, up 12% from the year-ago period. The broad advance across core services showed that growth was not confined to one operating line.
PAYX's Margin Profile Expands in Q4Total expenses were relatively flat year over year at $1 billion. Increases in compensation-related expenses, amortization of intangible assets, technology investments, selling initiatives and marketing spending were offset by lower acquisition-related compensation and professional service costs.
Operating income rose 40% to $604.7 million. The operating margin expanded to 37.7% from 30.2% a year earlier, while the adjusted operating margin improved to 42.1% from 40.4%.
Adjusted operating income increased 17% to $675.8 million. The adjusted figure excludes acquisition-related costs, which were lower than in the prior-year quarter.
Paychex's Profitability Shows Earnings LeverageNet income increased 41% year over year to $420.6 million in the fiscal fourth quarter. Diluted earnings were $1.17 per share, up 43% from the prior-year period.
Adjusted net income rose 10% to $474.6 million. EBITDA increased 39% to $719.1 million, while adjusted EBITDA advanced 17% to $729.7 million, reflecting revenue gains and reduced acquisition-related drag.
Interest expenses increased to $64.7 million from $63.7 million. Other income, net, declined to $14.2 million from $21.9 million due to lower average balances on corporate investments and higher share repurchases in fiscal 2026.
PAYX's Balance Sheet Remains SolidPaychex ended fiscal 2026 with cash, restricted cash and total corporate investments of $1.2 billion. Short-term and long-term borrowings, net of debt issuance costs, totaled $4.6 billion as of May 31, 2026.
Cash flow from operations was $2.6 billion for the fiscal year. The company paid out cumulative dividends of $4.43 per share, totaling $1.6 billion, and repurchased 5.6 million shares for $611 million.
Fiscal 2026 total revenues increased 17% to $6.51 billion. Adjusted diluted earnings advanced 11% to $5.51 per share, whereas adjusted operating income grew 19% to $2.81 billion.
Paychex's FY27 View Points to GrowthFor fiscal 2027, Paychex expects total revenues to grow 5-6%. Management Solutions’ revenues are also projected to rise 5-6%, while PEO and Insurance Solutions revenues are expected to increase 6-7%.
Interest on funds held for clients is expected to be $195-$205 million. The company anticipates an adjusted operating margin of 44%, an effective income tax rate of 24% and adjusted diluted earnings growth of 7-9%.
Paychex also highlighted the launch of WISE, its AI-powered intelligence engine, across HCM platforms and internal operations. Management said that the platform is designed to unlock insights from unstructured data, increase productivity and enhance client outcomes.
PAYX carries a Zacks Rank #4 (Sell) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings SnapshotVerisk Analytics, Inc. (VRSK - Free Report) reported first-quarter 2026 diluted adjusted earnings per share of $1.82, beating the Zacks Consensus Estimate of $1.76 by 3.4%. The figure increased 5.2% from the year-ago quarter.
VRSK's revenues came in at $782.6 million, topping the consensus mark of $775.9 million by 0.9% and rising 3.9% year over year.
Accenture plc (ACN - Free Report) posted third-quarter fiscal 2026 earnings of $3.80 per share, beating the Zacks Consensus Estimate by 2.7%. The metric increased 9% from the year-ago quarter.
ACN’s revenues of $18.718 billion missed the consensus mark by 0.4% but rose 6% year over year in U.S. dollars and 3% in local currency.
U.S. stocks traded higher midway through trading, with the Dow Jones index gaining more than 400 points on Wednesday.
The Dow traded up 0.83% to 52,095.25 while the NASDAQ surged 0.27% to 25,654.95. The S&P 500 also rose, gaining, 0.35% to 7,391.51.
Leading and Lagging Sectors
Health care shares jumped by 1.5% on Wednesday.
In trading on Wednesday, energy stocks fell by 1.7%.
Top Headline
Paychex Inc (NASDAQ:PAYX) reported better-than-expected earnings for the fourth quarter.
The company posted quarterly earnings of $1.32 per share which beat the analyst consensus estimate of $1.30 per share. The company reported quarterly sales of $1.606 billion which beat the analyst consensus estimate of $1.601 billion.
Equities Trading UP
Equities Trading DOWN
Commodities
In commodity news, oil traded down 4.2% to $70.14 while gold traded down 2.8% at $4,032.40.
Silver traded down 4.8% to $59.075 on Wednesday, while copper fell 2.6% to $5.9890.
Euro zone
European shares were mixed today. The eurozone’s STOXX 600 slipped 0.2%, while Spain’s IBEX 35 Index fell 0.7%. London’s FTSE 100 rose 0.1%, Germany’s DAX dipped 1.1%, while France’s CAC 40 gained 0.3%.
Asia Pacific Markets
Asian markets closed mostly higher on Wednesday, with Japan’s Nikkei 225 dipping 0.88%, Hong Kong’s Hang Seng Index gaining 0.33%, China’s Shanghai Composite rising 0.11% and India’s BSE Sensex gaining 1.04%.
Economics
The U.S. current account deficit rose to $226.8 billion in the first quarter from a revised $221.1 billion gap in the final quarter of 2025. U.S. building permits fell 0.9% month-over-month to an annual rate of 1.410 million in June. U.S. mortgage applications rose by 1% in the third week of June compared to a 3.8% decline in the previous period. Photo via Shutterstock
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Analysts expect the company to report quarterly earnings of $1.31 per share, up from $1.19 per share in the year-ago period. The consensus estimate for Paychex’s quarterly revenue is $1.61 billion. It reported $1.43 billion last year, according to Benzinga Pro.
Ahead of quarterly earnings, Stifel analyst David Grossman maintained a Hold rating on Paychex on June 17 and raised the price target from $105 to $110.
With the recent buzz around Paychex, some investors may be eyeing potential gains from the company’s dividends too. As of now, Paychex has an annual dividend yield of 4.85%, which is a quarterly dividend amount of $1.19 per share ($4.76 a year).
So, how can investors use its dividend yield to pocket a regular $500 per month?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $123,881 or around 1,261 shares. For a more modest $100 per month or $1,200 per year, you would need $24,756 or around 252 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($4.76 in this case). So, $6,000 / $4.76 = 1,261 ($500 per month), and $1,200 / $4.76 = 252 shares ($100 per month).
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
PAYX Price Action: Shares of Paychex gained 0.7% to close at $98.24 on Thursday.
Image by Tada Images via Shutterstock
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Paychex also earned Newsweek’s America’s Greatest Workplaces honor
Paychex named to Newsweek’s Most Trustworthy Companies in America 2026, recognizing strength in customer, investor, and employee trustThe company was also awarded Newsweek’s America’s Greatest Workplaces 2026, reinforcing Paychex’s reputation as a top employer with a strong workplace culture and employee experience ROCHESTER, N.Y., June 22, 2026 (GLOBE NEWSWIRE) -- Paychex, Inc. (Nasdaq: PAYX), an industry-leading human capital management (HCM) company, has recently been named one of the Most Trustworthy Companies in America 2026 by Newsweek and Statista. This ranking represents a select group of companies identified through an independent survey measuring customer, investor, and employee trust, together with social media listening analysis.
Newsweek Recognizes Paychex as a Trusted Workplace Built on its People
Paychex was also recently honored among America’s Greatest Workplaces 2026 by Newsweek and Plant-A Insights Group. The annual list is based on a nationwide survey of company reviews from employees, as well as data from previous studies, recognizing employers of excellence in the U.S.
“We are honored to be recognized by Newsweek for both trust and workplace excellence, which are principles that are deeply connected at Paychex,” said Mason Argiropoulos, Chief Human Resources Officer at Paychex. “By investing in our employees and consistently delivering for our clients, we continue to build a company that businesses can rely on, and where people want to work.”
"We all want to work somewhere we feel valued. Our newest research celebrates the companies making that a reality. When businesses put their people first, everyone wins—employees are happier, productivity goes up, and the company thrives. These rankings shine a light on the workplaces truly getting it right for their teams," said Jennifer H. Cunningham, Newsweek Editor-In-Chief.
A Trusted Leader HCM, Ethics, and Innovation
For 55 years, Paychex has built trust and empowered businesses through a purpose-driven culture rooted in six core values: integrity, partnership, accountability, respect, innovation, and service. This commitment to responsible business practices has earned the company recognition in 2026, including Ethisphere’s World’s Most Ethical Companies for the 18th time.
To learn more about Paychex’s corporate awards and honors, please see the awards page on the Paychex website.
Methodology
Newsweek and Statista’s Most Trustworthy Companies in America 2026 list evaluated U.S.-based public and private companies with at least $500 million in revenue. To determine rank, an independent survey of 25,000 U.S. residents that submitted 101,000 company evaluations and a social listening analysis of over 300,000 mentions were assessed. Newsweek and Plant-A Insights Group’s America’s Greatest Workplaces 2026 list was determined based on a large-scale nationwide survey that collected more than 2.7 million company reviews from over 179,000 employees, in addition to data from previous studies.
About Paychex
Paychex, Inc. (Nasdaq: PAYX) is the digitally driven HR leader that is reimagining how companies address the needs of today’s workforce with the most comprehensive, flexible, and innovative HCM solutions for organizations of all sizes. Offering a full spectrum of HR advisory and employee solutions, Paychex pays 1 out of every 11 American private sector workers and is raising the bar in HCM for approximately 800,000 customers in the U.S. and Europe. Every member of the Paychex team is committed to fulfilling the company’s purpose of helping businesses succeed. Visit paychex.com to learn more.
Media Contacts
Samantha Jean
PR Program Manager II
Paychex, Inc.
(585) 218-6086 [email protected]
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/14cab0da-f8c6-4b5e-a15e-5d94b0d52e0e
Paychex Newsweek Awards Paychex has been named to Newsweek's America's Most Trustworthy Companies and America's Greatest Wor...
Delivered Strong Double-Digit Revenue and Earnings GrowthExpanded AI Leadership with the Launch of WISE Workforce Intelligence EngineReturned $2.2 Billion to Shareholders in Fiscal 2026
ROCHESTER, N.Y., June 24, 2026 (GLOBE NEWSWIRE) -- Paychex (Nasdaq: PAYX), a leading provider of expert-enabled HR, payroll, and benefits, today reported results for the fiscal quarter ended May 31, 2026 (the "fourth quarter") of the fiscal year ended May 31, 2026 ("fiscal 2026"). Results compared to the same period last year were as follows:
Three months ended Twelve months ended May 31, May 31, In millions, except per share amounts 2026 2025 Change(2)
2026 2025 Change(2)Total revenue $1,605.5 $1,427.3 12% $6,512.0 $5,571.7 17%Operating income $604.7 $431.1 40% $2,510.5 $2,207.7 14%Adjusted operating income(1) $675.8 $576.7 17% $2,814.7 $2,370.0 19%Diluted earnings per share $1.17 $0.82 43% $4.89 $4.58 7%Adjusted diluted earnings per share(1) $1.32 $1.19 11% $5.51 $4.98 11% (1) Adjusted operating income and adjusted diluted earnings per share are not United States ("U.S.") generally accepted accounting principle ("GAAP") measures. Please refer to the "Non-GAAP Financial Measures" section of this press release for a discussion of non-GAAP measures.
(2) Percentage changes are calculated based on unrounded numbers.
“We finished fiscal 2026 with strong momentum, delivering double-digit revenue and earnings growth while accelerating organic revenue growth throughout the year,” stated John Gibson, President and Chief Executive Officer. "These results reflect solid execution against two of our strategic priorities, the successful integration of Paycor to advance our upmarket expansion and AI innovation that further differentiates our HCM and advisory solutions. Our durable business model and strong cash generation enabled us to return $2.2 billion to shareholders this fiscal year while continuing to invest in innovation and future growth."
Gibson continued, “As businesses look for a trusted partner to help them manage increasing work and complexity, we believe Paychex is well positioned to deliver differentiated value through the combination of our AI-driven technology and deep advisory expertise. This quarter, we launched WISE, our AI-powered intelligence engine, across our HCM platforms and internal operations, enabling more proactive, autonomous execution. It leverages patent-pending technology to unlock insights from unstructured data to increase productivity and enhance client outcomes.”
Fourth Quarter Business Highlights
Fourth quarter results reflect a full quarter of revenue and expenses from Paycor HCM, Inc. (“Paycor”), acquired in April 2025, compared to a partial-quarter in the prior-year period.
Total revenue increased to $1.6 billion for the fourth quarter, representing growth of 12% over the prior year period. Highlights compared to the prior year period include:
Management Solutions revenue increased 14% to $1.2 billion for the fourth quarter. Paycor, acquired in April 2025, contributed approximately 8% to Management Solutions revenue growth year-over-year. Management Solutions revenue increased due to the following:
Higher product penetration and growth in client worksite employees for Human Resources ("HR") Solutions; andPrice realization and higher revenue per client driven by Paycor's upmarket client base. Professional Employer Organization ("PEO") and Insurance Solutions revenue increased 9% to $369.7 million for the fourth quarter, primarily due to the following:
Growth in the number of average PEO worksite employees; andIncrease in PEO insurance revenues. Interest on funds held for clients increased 15% to $52.2 million for the fourth quarter due to higher average investment balances resulting from the acquisition of Paycor.
Total expenses were relatively flat for the fourth quarter, primarily impacted by the following:
Increases in compensation-related expenses and amortization of intangible assets, primarily driven by the acquisition of Paycor; andHigher technology, selling, and marketing investments driven by the acquisition of Paycor and continued investments in our strategic priorities; offset byLower acquisition-related compensation and other acquisition-related costs, primarily consisting of professional service fees.
Operating income increased 40% to $604.7 million for the fourth quarter. The increase in operating income primarily reflected revenue growth and lower acquisition-related costs compared to the prior year period. Adjusted operating income(1), which excludes acquisition-related costs included in selling, general and administrative expenses, grew 17% to $675.8 million for the fourth quarter. Operating margin (operating income as a percentage of total revenue) was 37.7% for the fourth quarter compared to 30.2% for the prior year period. Adjusted operating margin(1) (adjusted operating income as a percentage of total revenue) was 42.1% for the fourth quarter compared to 40.4% for the prior year period.
Interest expense increased $1.0 million to $64.7 million for the fourth quarter, primarily due to the issuance of incremental debt in April 2025 to finance the acquisition of Paycor. The prior-year period also included acquisition-related financing costs.
Other income, net, decreased $7.7 million to $14.2 million for the fourth quarter, primarily as a result of lower average investment balances on our corporate investments resulting from the repayment of the Company's long-term private placement debt, Senior Notes, Series A, which matured in March 2026, and higher share repurchases in fiscal 2026.
Our effective income tax rate was 24.1% for the fourth quarter and 23.7% for the prior year period. Both periods were affected by the recognition of discrete tax impacts related to employee stock-based compensation payments.
Diluted earnings per share increased 43% to $1.17 per share and adjusted diluted earnings per share(1) increased 11% to $1.32 per share for the fourth quarter.
Fiscal Year Business Highlights
Highlights for fiscal 2026 as compared to the corresponding prior year period are as follows:
Total revenue increased 17% to $6.5 billion.Operating income increased 14% to $2.5 billion and adjusted operating income(1) increased 19% to $2.8 billion.Operating margin was 38.6% for the fiscal year compared to 39.6% for the prior year period. Adjusted operating margin(1) was 43.2% for the fiscal year compared to 42.5% for the prior year period.Diluted earnings per share increased 7% to $4.89 per share. Adjusted diluted earnings per share(1) increased 11% to $5.51 per share. Financial Position and Liquidity
Our financial position and cash flow generation remained strong during fiscal 2026. As of May 31, 2026, we had:
Cash, restricted cash, and total corporate investments of $1.2 billion.Short-term and long-term borrowings, net of debt issuance costs, of $4.6 billion.Cash flow from operations was $2.6 billion for the fiscal year.
Return to Stockholders During Fiscal 2026
Paid cumulative dividends of $4.43 per share totaling $1.6 billion.Repurchased 5.6 million shares of our common stock for $611.0 million. Business Outlook
Our outlook for the fiscal year ending May 31, 2027 ("fiscal 2027") reflects current assumptions and market conditions. Changes in the macroeconomic environment could alter our guidance. Our updated business outlook is as follows:
Total revenue is anticipated to grow in the range of 5% to 6%.Management Solutions revenue is anticipated to grow in the range of 5% to 6%.PEO and Insurance Solutions revenue is anticipated to grow in the range of 6% to 7%.Interest on funds held for clients is expected to be in the range of $195 million to $205 million.Adjusted operating margin(1) is anticipated to be approximately 44%.The effective income tax rate for fiscal 2027 is anticipated to be approximately 24%.Adjusted diluted earnings per share(1) is anticipated to grow in the range of 7% to 9%.
(1) Adjusted operating income, adjusted operating margin, and adjusted diluted earnings per share are not U.S. GAAP measures. Please refer to the "Non-GAAP Financial Measures" section of this press release for a discussion of non-GAAP measures. Forward-looking adjusted operating margin and adjusted diluted earnings per share exclude acquisition-related costs.
Non-GAAP Financial Measures
Three months ended Twelve months ended May 31, May 31, $ in millions, except per share amounts 2026 2025 Change 2026 2025 ChangeOperating income $604.7 $431.1 40% $2,510.5 $2,207.7 14%Non-GAAP adjustments: Acquisition-related costs(1) 71.1 145.6 304.2 162.3 Adjusted operating income $675.8 $576.7 17% $2,814.7 $2,370.0 19%Adjusted operating margin 42.1% 40.4% 43.2% 42.5% Net income $420.6 $297.2 41% $1,760.1 $1,657.3 6%Non-GAAP adjustments: Acquisition-related costs(1) 71.1 166.4 304.2 196.3 Income tax benefit for acquisition-related costs (17.1) (33.3) (73.3) (40.6) Discrete tax shortfall/(windfall) related to employee stock-based compensation payments(2) 0.0 (0.7) (6.2) (10.1) Adjusted net income $474.6 $429.6 10% $1,984.8 $1,802.9 10% Diluted earnings per share(3) $1.17 $0.82 43% $4.89 $4.58 7%Non-GAAP adjustments: Acquisition-related costs(1) 0.20 0.46 0.84 0.54 Income tax benefit for acquisition-related costs (0.05) (0.09) (0.20) (0.11) Discrete tax shortfall/(windfall) related to employee stock-based compensation payments(2) 0.00 (0.00) (0.02) (0.03) Adjusted diluted earnings per share $1.32 $1.19 11% $5.51 $4.98 11% Net income $420.6 $297.2 41% $1,760.1 $1,657.3 6%Non-GAAP adjustments: Interest expense 64.7 63.7 269.5 105.4 Interest income on corporate investments (13.0) (20.5) (63.4) (72.8) Income taxes 133.6 92.1 550.8 518.6 Depreciation and amortization expense 113.2 85.7 442.6 209.5 EBITDA $719.1 $518.2 39% $2,959.6 $2,418.0 22%Non-GAAP adjustments: Acquisition-related costs(1) 10.6 104.9 62.2 121.6 Adjusted EBITDA $729.7 $623.1 17% $3,021.8 $2,539.6 19% (1) Acquisition-related costs included in selling, general and administrative expenses include:
$60.5 million for the fourth quarter and $242.0 million for the twelve months compared to $40.7 million for both corresponding prior-year periods, in amortization of intangibles acquired in the acquisition of Paycor,$10.4 million for the fourth quarter and $52.1 million for the twelve months compared to $70.8 million for both corresponding prior-year periods, in compensation costs related to the acquisition and integration of Paycor, including replacement awards, severance and retention bonuses, and$0.2 million for the fourth quarter and $10.1 million for the twelve months compared to $34.1 million and $50.8 million for corresponding prior-year periods, respectively, in other acquisition-related costs primarily consisting of professional service fees. In addition, acquisition-related costs for the three and twelve months ended May 31, 2025 include $20.8 million and $34.0 million, respectively, reflecting the amortization of financing fees related to debt instruments associated with the financing of the Paycor acquisition and the excluded component of the initial fair value of the interest rate swaption contracts that are included in Interest expense in the Company's Consolidated Statements of Income.
(2) Net tax shortfall/(windfall) related to employee stock-based compensation payments recognized in income taxes. This item is subject to volatility and will vary based on employee decisions on exercising employee stock options and fluctuations in our stock price, neither of which is within the control of management.
(3) The calculation of the impact of non-GAAP adjustments on diluted earnings per share is performed on each line independently. The table may not add down by +/- $0.01 due to rounding.
In addition to reporting operating income, operating margin, net income, and diluted earnings per share, which are U.S. GAAP measures, we present adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, earnings before interest, taxes, depreciation, and amortization ("EBITDA"), and adjusted EBITDA which are non-GAAP measures. We believe these additional measures are indicators of the performance of our core business operations period over period. Adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, EBITDA, and adjusted EBITDA are not calculated through the application of U.S. GAAP and are not required forms of disclosure by the Securities and Exchange Commission ("SEC"). As such, they should not be considered a substitute for the U.S. GAAP measures of operating income, operating margin, net income, and diluted earnings per share, and, therefore, they should not be used in isolation but in conjunction with the U.S. GAAP measures. The use of any non-GAAP measure may produce results that vary from the U.S. GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.
Annual Report on Form 10-K ("Form 10-K")
We anticipate filing our Form 10-K before the end of July 2026. Once filed, the report will be accessible via our Investor Relations portal at https://investor.paychex.com. This press release should be read in conjunction with the Form 10-K and the related Notes to Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in that Form 10-K.
Webcast Details
The Company will host an Earnings Conference Call on June 24, 2026 at 9:30 a.m. Eastern Time, to discuss these results. The live webcast will be available for replay on our Investor Relations portal at https://investor.paychex.com, where news releases, current financial information, and investor presentations are also accessible.
Contacts
Investor Relations:Media Relations:Rachel WhiteTracy VolkmannHead of Investor RelationsManager, Public Relations(513) 954-7388(585) [email protected]@paychex.com About Paychex
Paychex, Inc. (Nasdaq: PAYX) provides a comprehensive suite of expert-enabled technology and advisory solutions that help businesses manage HR, payroll, and benefits. Serving approximately 800,000 clients and paying 1 in 11 U.S. private sector workers, Paychex combines scale, trusted expertise, and innovation to help businesses succeed. Built on more than 50 years of workforce experience and one of the industry’s largest proprietary HR datasets, Paychex’s WISE agentic AI platform embeds intelligence directly into workflows to improve productivity, enhance decision-making, and deliver better outcomes. Learn more at paychex.com.
Certain written statements in this press release may contain, and members of management may from time to time make or discuss statements which constitute, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by such words and phrases as "expect," "outlook," "will," "guidance," "projections," "strategy," "anticipate," "believe," "can," "continue," "could," "future," "may," "possible," "potential," "should," "see," and other similar words or phrases. Forward-looking statements include, without limitation, all matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding operating performance, events, or developments that we expect or anticipate will occur in the future, including statements relating to our outlook, revenue growth, earnings, earnings-per-share growth, and similar projections.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to known and unknown uncertainties, risks, changes in circumstances, and other factors that are difficult to predict, many of which are outside our control. Our actual performance and outcomes, including without limitation, our actual results and financial condition, may differ materially from those indicated in or suggested by the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:
our ability to keep pace with changes in technology or provide timely enhancements to our solutions and support;risks related to our use of artificial intelligence ("AI") and new technologies in our business;software defects, undetected errors, and development delays for our solutions;the possibility of cyberattacks, security vulnerabilities or Internet disruptions, including data security and privacy leaks, and data loss and business interruptions;the possibility of failure of our business continuity plan during a catastrophic event;the failure of third-party service providers to perform their functions;the possibility that we may be exposed to additional risks related to our co-employment relationship with our PEO business;changes in health insurance and workers’ compensation insurance rates and underlying claim trends;risks related to acquisitions and the integration and performance of the businesses we acquire;our clients’ failure to reimburse us for payments made by us on their behalf;the effect of changes in government regulations mandating the amount of tax withheld or the timing of remittances;our failure to comply with covenants in our corporate bonds and debt agreements;changes in our credit ratings;changes in governmental regulations, laws, and policies;our ability to comply with U.S., state, and foreign laws and regulations;our compliance with data privacy and AI laws and regulations;our failure to protect our intellectual property rights;potential outcomes related to pending or future litigation matters;the impact of macroeconomic factors on the U.S. and global economy, and in particular on our small- and medium-sized business clients;volatility in the political, market, and economic environment, including inflation and interest rate changes;our ability to attract and retain qualified people; andthe possible effects of negative publicity on our reputation and the value of our brand. Any of these factors, as well as such other factors as discussed in our SEC filings, could cause our actual results to differ materially from our anticipated results. The information provided in this document is based upon the facts and circumstances known as of the date of this press release, and any forward-looking statements made by us in this document speak only as of the date on which they are made. Except as required by law, we undertake no obligation to update these forward-looking statements after the date of issuance of this press release to reflect events or circumstances after such date, or to reflect the occurrence of unanticipated events.
PAYCHEX, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In millions, except per share amounts) Three months ended Twelve months ended May 31, May 31, 2026 2025 Change(2) 2026 2025 Change(2)Revenue: Management Solutions $1,183.6 $1,041.8 14% $4,867.9 $4,067.1 20%PEO and Insurance Solutions 369.7 340.3 9% 1,433.2 1,342.9 7%Total service revenue 1,553.3 1,382.1 12% 6,301.1 5,410.0 16%Interest on funds held for clients(1) 52.2 45.2 15% 210.9 161.7 30%Total revenue 1,605.5 1,427.3 12% 6,512.0 5,571.7 17%Expenses: Cost of service revenue 417.3 393.9 6% 1,674.5 1,540.4 9%Selling, general and administrative expenses 583.5 602.3 (3)% 2,327.0 1,823.6 28%Total expenses 1,000.8 996.2 0% 4,001.5 3,364.0 19%Operating income 604.7 431.1 40% 2,510.5 2,207.7 14%Interest expense (64.7) (63.7) n/m (269.5) (105.4) n/m Other income, net(1) 14.2 21.9 (35)% 69.9 73.6 (5)%Income before income taxes 554.2 389.3 42% 2,310.9 2,175.9 6%Income taxes 133.6 92.1 45% 550.8 518.6 6%Net income $420.6 $297.2 41% $1,760.1 $1,657.3 6% Basic earnings per share $1.18 $0.82 44% $4.90 $4.60 7%Diluted earnings per share $1.17 $0.82 43% $4.89 $4.58 7%Weighted-average common shares outstanding 357.6 360.3 358.9 360.2 Weighted-average common shares outstanding, assuming dilution 358.2 362.3 360.0 362.0 (1) Further information on interest on funds held for clients and other income, net, and the short- and long-term effects of changing interest rates can be found in our filings with the SEC, including our Quarterly Reports on Form 10-Q and our Annual Report on Form 10-K, as applicable, under the caption "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and subheadings "Results of Operations" and "Market Risk Factors." These filings are accessible at https://investor.paychex.com.
(2) Percentage changes are calculated based on unrounded numbers.
n/m – not meaningful
PAYCHEX, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except per share amounts)
May 31, 2026 2025 ASSETS Cash and cash equivalents $1,088.2 $1,628.6 Restricted cash 52.8 47.9 Corporate investments 36.3 34.5 Interest receivable 36.1 27.9 Accounts receivable, net of allowance for credit losses 1,507.6 1,330.5 PEO unbilled receivables, net of advance collections 664.2 616.6 Prepaid income taxes 11.2 38.9 Prepaid expenses and other current assets 384.7 378.3 Current assets before funds held for clients 3,781.1 4,103.2 Funds held for clients 4,832.2 4,813.3 Total current assets 8,613.3 8,916.5 Property and equipment, net of accumulated depreciation 588.9 511.5 Operating lease right-of-use assets, net of accumulated amortization 63.9 63.8 Intangible assets, net of accumulated amortization 1,684.0 1,947.3 Goodwill 4,527.4 4,514.1 Long-term deferred costs 555.8 482.4 Other long-term assets 141.2 128.5 Total assets $16,174.5 $16,564.1 LIABILITIES Accounts payable $154.8 $129.8 Accrued corporate compensation and related items 162.1 183.9 Accrued worksite employee compensation and related items 844.8 735.8 Short-term debt — 18.6 Long-term debt, net, current portion — 399.8 Accrued income taxes 87.8 — Deferred revenue 69.4 69.4 Other current liabilities 637.1 552.0 Current liabilities before client fund obligations 1,956.0 2,089.3 Client fund obligations 4,884.6 4,867.0 Total current liabilities 6,840.6 6,956.3 Accrued income taxes 140.5 119.0 Deferred income taxes 543.3 444.7 Long-term debt, net 4,556.1 4,548.4 Operating lease liabilities 52.2 55.5 Other long-term liabilities 306.7 312.2 Total liabilities 12,439.4 12,436.1 STOCKHOLDERS’ EQUITY Common stock, $0.01 par value; Authorized: 600.0 shares;
Issued and outstanding: 355.6 shares as of May 31, 2026
and 360.5 shares as of May 31, 2025 3.6 3.6 Additional paid-in capital 1,975.6 1,901.1 Retained earnings 1,805.8 2,277.0 Accumulated other comprehensive loss (49.9) (53.7)Total stockholders’ equity 3,735.1 4,128.0 Total liabilities and stockholders’ equity $16,174.5 $16,564.1 PAYCHEX, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)
Twelve months ended May 31, 2026 2025 OPERATING ACTIVITIES Net income $1,760.1 $1,657.3 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 442.6 209.5 Amortization of discounts and premiums on available-for-sale securities, net (7.6) 23.4 Amortization of deferred contract costs 249.2 236.5 Stock-based compensation costs 96.1 111.8 Provision for/(Benefit from) deferred income taxes 103.7 (15.8)Provision for allowance for credit losses 38.1 24.2 Net realized (gains)/losses on sales of available-for-sale securities (7.6) 0.4 Net realized losses on disposal of assets 6.2 3.7 Premiums paid on cash flow hedges — (19.2)Changes in operating assets and liabilities: Interest receivable (8.2) (3.8)Accounts receivable and PEO unbilled receivables, net (105.8) (130.7)Prepaid expenses and other current assets 40.0 (12.0)Accounts payable and other current liabilities 291.4 42.3 Deferred costs (342.5) (246.5)Net change in other long-term assets and liabilities 3.9 21.9 Net change in operating lease right-of-use assets and liabilities (2.9) (2.1)Net cash provided by operating activities 2,556.7 1,900.9 INVESTING ACTIVITIES Purchases of available-for-sale securities (12,226.2) (14,302.9)Proceeds from sales and maturities of available-for-sale securities 11,517.6 14,292.5 Net change in purchased receivables (166.1) (157.3)Purchases of property and equipment (234.9) (191.8)Acquisition of businesses, net of cash acquired (0.4) (2,967.5)Purchases of other assets (42.4) (29.8)Net cash used in investing activities (1,152.4) (3,356.8)FINANCING ACTIVITIES Net change in client fund obligations 17.6 (290.7)Net proceeds from short-term borrowings (18.8) — Payments on long-term debt (400.0) — Proceeds from the issuance of corporate bonds — 4,180.9 Dividends paid (1,589.6) (1,448.5)Repurchases of common shares (611.0) (104.5)Debt issuance costs — (47.8)Activity related to equity-based plans (52.0) 3.8 Net cash (used in)/provided by financing activities (2,653.8) 2,293.2 Net change in cash, restricted cash, and equivalents (1,249.5) 837.3 Cash, restricted cash, and equivalents, beginning of fiscal year 2,734.3 1,897.0 Cash, restricted cash, and equivalents, end of fiscal year $1,484.8 $2,734.3 Reconciliation of cash, restricted cash and equivalents Cash and cash equivalents $1,088.2 $1,628.6 Restricted cash 52.8 47.9 Restricted cash and restricted cash equivalents included in funds held for clients 343.8 1,057.8 Total cash, restricted cash, and equivalents $1,484.8 $2,734.3
Paychex (PAYX - Free Report) came out with quarterly earnings of $1.32 per share, beating the Zacks Consensus Estimate of $1.31 per share. This compares to earnings of $1.19 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +0.63%. A quarter ago, it was expected that this payroll processor and human-resources services provider would post earnings of $1.68 per share when it actually produced earnings of $1.71, delivering a surprise of +1.79%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Paychex, which belongs to the Zacks Internet - Software industry, posted revenues of $1.61 billion for the quarter ended May 2026, surpassing the Zacks Consensus Estimate by 0.22%. This compares to year-ago revenues of $1.43 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Paychex shares have lost about 12.7% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for Paychex?While Paychex has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Paychex was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.34 on $1.61 billion in revenues for the coming quarter and $5.90 on $6.9 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Penguin Solutions, Inc. (PENG - Free Report) , another stock in the same industry, has yet to report results for the quarter ended May 2026. The results are expected to be released on July 7.
This company is expected to post quarterly earnings of $0.63 per share in its upcoming report, which represents a year-over-year change of +34%. The consensus EPS estimate for the quarter has been revised 13.3% higher over the last 30 days to the current level.
Penguin Solutions, Inc.'s revenues are expected to be $435 million, up 34.2% from the year-ago quarter.
For the quarter ended May 2026, Paychex (PAYX - Free Report) reported revenue of $1.61 billion, up 12.5% over the same period last year. EPS came in at $1.32, compared to $1.19 in the year-ago quarter.
The reported revenue represents a surprise of +0.22% over the Zacks Consensus Estimate of $1.6 billion. With the consensus EPS estimate being $1.31, the EPS surprise was +0.63%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Paychex performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Average interest rates earned (exclusive of net realized gains) - Funds held for clients: 3.5% versus the three-analyst average estimate of 3.4%.Average investment Balance - Corporate cash equivalents and investments: $1.46 billion versus the three-analyst average estimate of $2.03 billion.Average investment Balance - Funds held for clients: $5.85 billion compared to the $4.97 billion average estimate based on three analysts.Average interest rates earned (exclusive of net realized gains) - Corporate cash equivalents and investments: 3.6% versus the three-analyst average estimate of 3.4%.Revenue- Management Solutions: $1.18 billion compared to the $1.19 billion average estimate based on five analysts. The reported number represents a change of +13.6% year over year.Revenue- Interest on funds held for clients: $52.2 million compared to the $47.49 million average estimate based on five analysts. The reported number represents a change of +15.5% year over year.Revenue- Total service revenue: $1.55 billion versus $1.55 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +12.4% change.Revenue- PEO and Insurance Solutions: $369.7 million versus the five-analyst average estimate of $361.05 million. The reported number represents a year-over-year change of +8.6%.View all Key Company Metrics for Paychex here>>>
Shares of Paychex have returned +3.4% over the past month versus the Zacks S&P 500 composite's -1.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Paychex Inc (NASDAQ:PAYX) reported fiscal fourth quarter results that exceeded Wall Street expectations, though shares slipped about 2% in early trading as investors focused on the company’s fiscal 2027 guidance.
For the quarter ended May 31, Paychex reported adjusted diluted earnings per share of $1.32, slightly ahead of analyst estimates of $1.31.
Revenue rose 12% year over year to $1.61 billion, also topping consensus expectations of $1.60 billion.
For fiscal 2026, revenue increased 17% to $6.51 billion, while adjusted diluted earnings per share rose 11% to $5.51.
Paychex said growth in the quarter was supported in part by its acquisition of Paycor HCM, completed in April 2025, which contributed roughly eight percentage points to Management Solutions revenue growth.
That segment rose 14% to $1.2 billion, while Professional Employer Organization (PEO) and Insurance Solutions revenue increased 9% to $369.7 million. Interest on funds held for clients climbed 15% to $52.2 million.
“We finished fiscal 2026 with strong momentum, delivering double-digit revenue and earnings growth while accelerating organic revenue growth throughout the year,” Paychex CEO John Gibson said in a statement.
He pointed to the integration of Paycor and continued investment in artificial intelligence, including the rollout of the company’s WISE AI-powered intelligence engine.
For 2027, Paychex expects total revenue to grow 5% to 6% in fiscal 2027, with Management Solutions revenue also rising 5% to 6% and PEO and Insurance Solutions revenue increasing 6% to 7%.
The company projects interest on funds held for clients of $195 million to $205 million and an effective tax rate of approximately 24%.
Adjusted operating margin is expected to be about 44%, while adjusted diluted earnings per share are projected to increase 7% to 9%, implying a range of roughly $5.90 to $6.01 per share.
The outlook was broadly in line with analyst expectations, though investors appeared cautious on the growth trajectory, contributing to the stock’s modest decline.
