Paychex (NASDAQ:PAYX) Announces FY 2027 Earnings Guidance

Paychex (NASDAQ:PAYX) issued an update on its FY 2027 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 5.896-6.006 for the period, compared to the consensus earnings per share estimate of 5.960. The company issued revenue guidance of $6.8 billion-$6.9 billion, compared to the consensus revenue estimate of $6.9 billion.

Analyst Ratings Changes

PAYX has been the subject of a number of recent analyst reports. Bank of America cut their price target on shares of Paychex from $450.00 to $225.00 in a research note on Wednesday, July 15th. Weiss Ratings upgraded Paychex from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, July 20th. TD Cowen raised their price objective on Paychex from $98.00 to $117.00 and gave the company a “hold” rating in a research report on Friday, September 11th. Raymond James Financial upgraded Paychex from a “market perform” rating to an “outperform” rating and set a $210.00 target price for the company in a research note on Thursday, July 16th. Finally, Wells Fargo & Company increased their price target on Paychex from $95.00 to $111.00 and gave the company an “underweight” rating in a research note on Wednesday, September 9th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $129.82.

Paychex Trading Down 2.8%

Shares of NASDAQ:PAYX opened at $101.59 on Friday. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.22. Paychex has a 12-month low of $85.45 and a 12-month high of $130.32. The stock has a market cap of $36.13 billion, a PE ratio of 20.16, a P/E/G ratio of 2.40 and a beta of 0.82. The business has a 50 day moving average of $118.78 and a 200-day moving average of $104.10.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings results on Wednesday, September 23rd. The business services provider reported $1.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.32 by $0.02. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The company had revenue of $1.63 billion during the quarter, compared to the consensus estimate of $1.63 billion. During the same period in the prior year, the business earned $1.22 earnings per share. The company’s revenue for the quarter was up 5.9% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. As a group, equities research analysts forecast that Paychex will post 5.96 earnings per share for the current year.

Paychex Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Tuesday, July 28th were paid a $1.19 dividend. This represents a $4.76 dividend on an annualized basis and a dividend yield of 4.7%. The ex-dividend date of this dividend was Tuesday, July 28th. Paychex’s payout ratio is currently 97.34%.

Insider Buying and Selling

In other news, CFO Robert Schrader sold 2,600 shares of Paychex stock in a transaction on Monday, July 20th. The shares were sold at an average price of $115.09, for a total value of $299,234.00. Following the completion of the sale, the chief financial officer owned 18,547 shares in the company, valued at $2,134,574.23. The trade was a 12.29% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.60% of the stock is owned by corporate insiders.

Trending Headlines about Paychex

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Paychex reported fiscal Q1 revenue of $1.63 billion, up approximately 6% year over year, while adjusted EPS of $1.34 exceeded consensus estimates. Operating margin expanded to 38%, and PEO and Insurance Solutions revenue rose 12% to $367.6 million. Paychex Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Management raised its full-year PEO and Insurance Solutions growth outlook to 7%-8% from 6%-7%, citing solid demand and faster PEO conversions. Full-year fiscal 2027 revenue and adjusted EPS growth guidance was maintained at 5%-6% and 7%-9%, respectively. Paychex Reaffirms FY2027 Guidance
• Positive Sentiment: Paychex launched WISE Hire, an agentic AI recruiting product available independently and within its HCM platforms. The company says the tool can help customers identify and hire candidates faster, potentially supporting future cross-selling and retention. Paychex Introduces WISE Hire

About Paychex

Paychex, Inc is a provider of payroll, human resources, and workforce management solutions for businesses of varying sizes. Its offerings include payroll processing, tax administration, time and attendance tracking, employee benefits administration, retirement services, workers’ compensation and business insurance, recruiting, and compliance support.

The company also provides professional employer organization services, helping businesses manage employment administration and human resources through an integrated platform.