Track market-moving stories before they get noisy

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.

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]

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.

Posted by Defense World Staff on Jul 20th, 2026

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.

Featured Articles Five stocks we like better than Paychex Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Shopify’s Quiet AI Strategy Could Be Its Biggest Advantage Yet Why These 3 Nuclear ETFs Are Getting a Fresh Look as AI Power Demand Rises 3 Aerospace Suppliers That Could Benefit as Aircraft Makers Face Bottlenecks

Receive News & Ratings for Paychex Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Paychex and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEBroderick Brian C Takes $2.88 Million Position in NextEra Energy, Inc. $NEE

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 popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest 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 ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight 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 ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

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 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.

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%.

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 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.

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.

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.

Get Paychex alerts:

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.

Should You Invest $1,000 in Paychex Right Now?Before you consider Paychex, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Paychex wasn't on the list.

While Paychex currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Looking to profit from the electric vehicle mega-trend? Click the link to see our list of which EV stocks show the most long-term potential.

Get This Free Report

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.

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

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

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.

Cautionary Note Regarding Forward-Looking Statements

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 

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) will release its fourth quarter earnings report before the opening bell on Wednesday, June 24.

Analysts expect the Rochester, New York-based 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.

On May 1, Paychex declares a 10% increase to its quarterly cash dividend.

Paychex shares rose 0.3% to close at $100.90 on Tuesday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period.

Considering buying PAYX stock? Here’s what analysts think:

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

The upcoming report from Paychex (PAYX - Free Report) is expected to reveal quarterly earnings of $1.31 per share, indicating an increase of 10.1% compared to the year-ago period. Analysts forecast revenues of $1.6 billion, representing an increase of 12.3% year over year.

The consensus EPS estimate for the quarter has undergone a downward revision of 0.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

Given this perspective, it's time to examine the average forecasts of specific Paychex metrics that are routinely monitored and predicted by Wall Street analysts.

Analysts expect 'Revenue- Management Solutions' to come in at $1.19 billion. The estimate suggests a change of +14.6% year over year.

The combined assessment of analysts suggests that 'Revenue- Interest on funds held for clients' will likely reach $47.47 million. The estimate indicates a change of +5% from the prior-year quarter.

Analysts' assessment points toward 'Revenue- Total service revenue' reaching $1.55 billion. The estimate indicates a change of +12.5% from the prior-year quarter.

According to the collective judgment of analysts, 'Revenue- PEO and Insurance Solutions' should come in at $361.45 million. The estimate indicates a change of +6.2% from the prior-year quarter.

Analysts predict that the 'Average interest rates earned (exclusive of net realized gains) - Funds held for clients' will reach 3.4%. The estimate compares to the year-ago value of 3.5%.

It is projected by analysts that the 'Average investment Balance - Corporate cash equivalents and investments' will reach $2.03 billion. Compared to the current estimate, the company reported $1.96 billion in the same quarter of the previous year.

The average prediction of analysts places 'Average investment Balance - Funds held for clients' at $4.97 billion. Compared to the current estimate, the company reported $5.14 billion in the same quarter of the previous year.

The consensus estimate for 'Average interest rates earned (exclusive of net realized gains) - Corporate cash equivalents and investments' stands at 3.4%. Compared to the current estimate, the company reported 4.2% in the same quarter of the previous year.

View all Key Company Metrics for Paychex here>>>

Shares of Paychex have demonstrated returns of +2.8% over the past month compared to the Zacks S&P 500 composite's +0.3% change. With a Zacks Rank #3 (Hold), PAYX is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Paychex named a leading HCM provider to TIME’s America’s Top WorkTech Companies 2026 ListList identifies the most impactful and financially strong companies that have established themselves as leaders in shaping how people and organizations work ROCHESTER, N.Y., June 15, 2026 (GLOBE NEWSWIRE) -- Paychex, Inc. (Nasdaq: PAYX), an industry-leading human capital management (HCM) company, today announced that the company has been named to the inaugural list of America’s Top WorkTech Companies presented by TIME and Statista. This list identifies the most impactful and financially strong companies that have established themselves as leaders in shaping how people and organizations work.

“It’s an honor for Paychex to be recognized among America’s Top WorkTech Companies for the expert-enabled solutions we are bringing to market to transform business operations,” said Ryan Bergstrom, Chief Product Officer at Paychex. “With innovation as a core company value, we are committed to delivering solutions that enable clients to work faster, smarter, and more efficiently. As a trusted partner to businesses for over five decades, we’ve built one of the HCM industry’s largest proprietary datasets, which combined with all our workforce knowledge and expertise, enables us to deliver intelligence that proactively unlocks opportunities for efficiency and automation.”

Driving Innovation for Today’s Digital Workforce

Paychex is redefining HCM from a user-directed experience to an AI-powered one, where intelligence and expertise are infused across the HCM lifecycle. This shift transforms AI from a tool into a trusted teammate that anticipates client needs, making workforce management smarter, more intuitive, and in sync with business needs. Paychex recently unveiled AI-powered innovations in Paychex Flex®, Paycor®, and SurePayroll, embodying the company’s commitment to democratize access to enterprise-grade innovation.

WISE (Workforce Intelligence Strengthen by Expertise), the company’s AI-powered intelligence solution, is transforming business operations with embedded context-aware intelligence, expert-enabled guidance, and autonomous execution. WISE strategically underpins Paychex’s approach to powering people and performance through agents, intelligence, assistants, and advisory solutions that meet users where they are while automating routine tasks, delivering personalized experiences, and uncovering actionable insights at scale.

Unlocking Insights to Drive Organizational Efficiency

Paychex’s commitment to leveraging AI to enhance efficiency and effectiveness is also evident in the broad adoption of AI-powered capabilities internally across the enterprise. Paychex deploys AI solutions organization-wide with the goal of not only improving internal efficiencies but also having a positive impact on customers. For example, AI enables developers to focus more on user experience than on writing code, sales representatives can access the insights needed to close deals more efficiently, and service professionals can devote more time to high-value client interactions by reducing transactional work. Collectively, these efforts help position Paychex to deliver a consistently high-quality customer experience.

Methodology

In support of the research, Statista gathered and analyzed data from approximately 5,000 U.S. companies. The ranking is built on two pillars: financial strength and industry impact. Each company received a score in both dimensions, and these scores were combined into an overall score. The 250 companies with the highest scores were included in the ranking.

“Being named among America’s Top WorkTech Companies 2026 by TIME and Statista is a strong reflection of Paychex’s continued commitment to innovation and reliability in the HR technology space,” said Niels Terfehr, Vice President at Statista. “Placing in the top 20% within the HR Core, Payroll & Benefits (HRIS/HCM) category highlights the company’s ability to create impactful solutions. In a rapidly evolving market, the balance of financial strengths and industry impact is what enables organizations to confidently support their workforce and drive long-term success.”

To learn more about WISE and AI at Paychex, visit paychex.com/ai. More information about the company’s corporate awards and honors is available on the Paychex website.

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 Contact
Chelsea Wernick
Public Relations Program Manager
Paychex, Inc.
(585) 216-2974
[email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/33e0e8ef-b627-4279-99bb-39768b03f42b

TIME America's Top WorkTech Companies 2026 TIME America's Top WorkTech Companies 2026

Posted by Defense World Staff on Apr 6th, 2026

Aberdeen Group plc trimmed its holdings in shares of Paychex, Inc. (NASDAQ:PAYX – Free Report) by 3.0% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 239,560 shares of the business services provider’s stock after selling 7,355 shares during the quarter. Aberdeen Group plc owned 0.07% of Paychex worth $26,874,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Vista Investment Partners LLC boosted its position in shares of Paychex by 0.8% during the fourth quarter. Vista Investment Partners LLC now owns 26,919 shares of the business services provider’s stock worth $3,020,000 after buying an additional 211 shares during the period. Blue Trust Inc. lifted its stake in Paychex by 5.9% during the 4th quarter. Blue Trust Inc. now owns 3,425 shares of the business services provider’s stock worth $384,000 after acquiring an additional 191 shares in the last quarter. Applied Capital LLC FL purchased a new position in Paychex during the 4th quarter valued at about $1,010,000. Fulcrum Capital LLC boosted its holdings in Paychex by 13.1% during the 4th quarter. Fulcrum Capital LLC now owns 2,745 shares of the business services provider’s stock valued at $308,000 after acquiring an additional 317 shares during the period. Finally, Jamison Private Wealth Management Inc. grew its position in Paychex by 3.1% in the 4th quarter. Jamison Private Wealth Management Inc. now owns 50,886 shares of the business services provider’s stock valued at $5,708,000 after acquiring an additional 1,553 shares in the last quarter. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes Several analysts have recently issued reports on the stock. Weiss Ratings reissued a “hold (c)” rating on shares of Paychex in a research report on Monday, December 29th. Guggenheim assumed coverage on shares of Paychex in a report on Thursday, March 19th. They issued a “neutral” rating for the company. Citigroup cut their target price on shares of Paychex from $120.00 to $99.00 and set a “neutral” rating on the stock in a research note on Thursday, March 26th. Stephens decreased their price target on shares of Paychex from $125.00 to $105.00 and set an “equal weight” rating for the company in a research report on Thursday, March 26th. Finally, Wolfe Research decreased their target price on Paychex from $130.00 to $115.00 and set an “underperform” rating for the company in a report on Wednesday, December 10th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twelve have assigned a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Reduce” and an average target price of $108.81.

Get Our Latest Stock Analysis on PAYX

Paychex Stock Performance PAYX opened at $91.70 on Monday. Paychex, Inc. has a one year low of $86.89 and a one year high of $161.24. The company has a market cap of $32.86 billion, a P/E ratio of 20.20 and a beta of 0.88. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.26 and a current ratio of 1.26. The business’s 50-day simple moving average is $95.05 and its 200-day simple moving average is $109.18.

Paychex (NASDAQ:PAYX – Get Free Report) last issued its earnings results on Wednesday, March 25th. The business services provider reported $1.71 earnings per share for the quarter, topping the consensus estimate of $1.67 by $0.04. The business had revenue of $1.81 billion for the quarter, compared to analyst estimates of $1.78 billion. Paychex had a return on equity of 48.52% and a net margin of 25.84%.The business’s quarterly revenue was up 19.9% on a year-over-year basis. During the same quarter last year, the company earned $1.49 EPS. As a group, equities research analysts expect that Paychex, Inc. will post 4.99 EPS for the current fiscal year.

Paychex Announces Dividend The business also recently announced a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Wednesday, January 28th were issued a $1.08 dividend. The ex-dividend date was Wednesday, January 28th. This represents a $4.32 annualized dividend and a dividend yield of 4.7%. Paychex’s dividend payout ratio is presently 95.15%.

Paychex announced that its Board of Directors has authorized a share buyback plan on Friday, January 16th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the business services provider to buy up to 2.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

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.

Read More Five stocks we like better than Paychex 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).

Receive News & Ratings for Paychex Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Paychex and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEAberdeen Group plc Sells 28,289 Shares of Arch Capital Group Ltd. $ACGL

NEXT HEADLINE »Aberdeen Group plc Purchases 5,443 Shares of Targa Resources, Inc. $TRGP

Paychex is reaffirmed as a 'Buy,' with accelerating organic growth and strong execution post-Paycor acquisition. PAYX's Q3 2026 revenue grew 19.9% YoY, driven by Paycor synergies and robust cross-selling, with organic growth ramping to 6%. Shares trade at a steep 36% discount to fair value, with a forward P/E of 15.9 vs. a revised fair value multiple of 25.

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 popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

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 investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.93% 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.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

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.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

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 0.5% over the past four weeks.

Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.01 to $5.50 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.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of 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? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that 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 ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.93% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

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.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

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 10.4% for the current fiscal year.

Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.01 to $5.50 per share. PAYX 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.

Posted by Defense World Staff on Apr 29th, 2026

Comerica Bank increased its stake in Paychex, Inc. (NASDAQ:PAYX – Free Report) by 10.4% in the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 121,705 shares of the business services provider’s stock after acquiring an additional 11,497 shares during the period. Comerica Bank’s holdings in Paychex were worth $13,653,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Vermillion & White Wealth Management Group LLC purchased a new position in Paychex in the third quarter worth $27,000. Stance Capital LLC purchased a new position in Paychex in the third quarter worth $31,000. MMA Asset Management LLC purchased a new position in Paychex in the third quarter worth $32,000. Board of the Pension Protection Fund purchased a new position in Paychex in the fourth quarter worth $34,000. Finally, Westfuller Advisors LLC purchased a new position in Paychex in the third quarter worth $35,000. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Paychex Stock Performance Shares of NASDAQ:PAYX opened at $90.99 on Wednesday. The company has a market cap of $32.60 billion, a price-to-earnings ratio of 20.04 and a beta of 0.88. The company has a 50-day moving average price of $92.27 and a 200-day moving average price of $104.82. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.13. Paychex, Inc. has a 12 month low of $85.45 and a 12 month high of $161.24.

Paychex (NASDAQ:PAYX – Get Free Report) last issued its quarterly earnings data on Wednesday, March 25th. The business services provider reported $1.71 EPS for the quarter, beating the consensus estimate of $1.67 by $0.04. The firm had revenue of $1.81 billion during the quarter, compared to the consensus estimate of $1.78 billion. Paychex had a net margin of 25.84% and a return on equity of 48.52%. The company’s quarterly revenue was up 19.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.49 earnings per share. As a group, equities analysts anticipate that Paychex, Inc. will post 5.5 EPS for the current year.

Paychex declared that its board has initiated a share buyback program on Friday, January 16th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the business services provider to repurchase up to 2.5% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades PAYX has been the subject of several research reports. Royal Bank Of Canada cut their target price on shares of Paychex from $125.00 to $102.00 and set a “sector perform” rating for the company in a research report on Thursday, March 19th. BMO Capital Markets upped their price target on shares of Paychex to $52.00 and gave the company an “outperform” rating in a research report on Thursday, March 26th. Morgan Stanley cut their price target on shares of Paychex from $123.00 to $107.00 and set an “equal weight” rating for the company in a research report on Thursday, March 26th. Stephens cut their price target on shares of Paychex from $125.00 to $105.00 and set an “equal weight” rating for the company in a research report on Thursday, March 26th. Finally, Jefferies Financial Group cut their price target on shares of Paychex from $110.00 to $105.00 and set a “hold” rating for the company in a research report on Thursday, March 26th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twelve have assigned a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Reduce” and a consensus price target of $106.38.

Check Out Our Latest Research 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.

Read More Five stocks we like better than Paychex

Receive News & Ratings for Paychex Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Paychex and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEComerica Bank Buys 5,958 Shares of iShares S&P Small-Cap 600 Value ETF $IJS

NEXT HEADLINE »Comerica Bank Sells 9,639 Shares of IDEXX Laboratories, Inc. $IDXX

ROCHESTER, N.Y.--(BUSINESS WIRE)---- $PAYX #employmenttrends--The pace of job growth among U.S. small businesses showed an increase in April, marking the second consecutive month of gains as employers continued to demonstrate resilience amid ongoing economic uncertainty, according to the latest Paychex Small Business Employment Watch. The national jobs index, which reflects employment growth in U.S. small businesses with fewer than 50 employees, rose 0.35 percentage points from March to April (99.16), the largest one‑mont.

Paychex, Inc. (PAYX) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Paychex (PAYX - Free Report) , which belongs to the Zacks Internet - Software industry.

This payroll processor and human-resources services provider has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 1.70%.

For the last reported quarter, Paychex came out with earnings of $1.71 per share versus the Zacks Consensus Estimate of $1.68 per share, representing a surprise of 1.79%. For the previous quarter, the company was expected to post earnings of $1.24 per share and it actually produced earnings of $1.26 per share, delivering a surprise of 1.61%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for Paychex. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Paychex currently has an Earnings ESP of +0.22%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

June 10, 2026 09:18 ET  | Source: Paychex, Inc.

ROCHESTER, N.Y., June 10, 2026 (GLOBE NEWSWIRE) -- Paychex, Inc. (Nasdaq: PAYX), an industry-leading human capital management ("HCM") company, will release financial results for its fiscal 2026 fourth quarter and full-year ended May 31, 2026 on Wednesday, June 24, 2026, before the financial markets open.

The company will host a conference call at 9:30 a.m. ET on Wednesday, June 24, 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) 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. Visit paychex.com to learn more.

Paychex, Inc.’s news releases, current financial information, SEC filings, and investor presentations are accessible on the Paychex Investor Relations portal.

Contacts

Investor Relations:
Rachel White
Head of Investor Relations
(585) 216-0822
[email protected]                           

Media Relations:
Tracy Volkmann
Manager, Public Relations
(585) 387-6705
[email protected]