Paychex (NASDAQ:PAYX) Updates FY 2026 Earnings Guidance

Paychex (NASDAQ:PAYX) issued an update on its FY 2026 earnings guidance on Friday morning. The company provided earnings per share (EPS) guidance of 5.480-5.530 for the period, compared to the consensus estimate of 5.460. The company issued revenue guidance of -, compared to the consensus revenue estimate of $6.5 billion.

Paychex Stock Performance

PAYX stock opened at $112.28 on Friday. The firm has a market cap of $40.41 billion, a PE ratio of 25.23 and a beta of 0.91. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 1.15. The stock has a 50-day moving average price of $116.08 and a 200-day moving average price of $131.99. Paychex has a 1-year low of $108.00 and a 1-year high of $161.24.

Paychex (NASDAQ:PAYX) last announced its earnings results on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, beating the consensus estimate of $1.23 by $0.03. The company had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.55 billion. Paychex had a return on equity of 45.17% and a net margin of 27.85%.The firm’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.14 EPS. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, equities research analysts expect that Paychex will post 4.99 earnings per share for the current year.

Paychex Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, November 26th. Stockholders of record on Friday, November 7th were given a dividend of $1.08 per share. The ex-dividend date of this dividend was Friday, November 7th. This represents a $4.32 annualized dividend and a dividend yield of 3.8%. Paychex’s dividend payout ratio (DPR) is 97.08%.

Analyst Ratings Changes

A number of research analysts recently issued reports on PAYX shares. Robert W. Baird dropped their target price on shares of Paychex from $153.00 to $148.00 and set a “neutral” rating on the stock in a research report on Wednesday, October 1st. Wells Fargo & Company dropped their price objective on shares of Paychex from $128.00 to $116.00 and set an “underweight” rating on the stock in a report on Tuesday, December 9th. Wolfe Research cut their price objective on shares of Paychex from $130.00 to $115.00 and set an “underperform” rating on the stock in a research report on Wednesday, December 10th. Royal Bank Of Canada decreased their target price on Paychex from $150.00 to $125.00 and set a “sector perform” rating for the company in a research report on Friday, December 5th. Finally, TD Cowen dropped their price target on Paychex from $126.00 to $114.00 and set a “hold” rating on the stock in a research note on Monday, December 1st. Fourteen research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Reduce” and a consensus price target of $130.60.

Key Stores Impacting Paychex

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Q2 results beat expectations — EPS of $1.26 topped estimates and revenue rose 18.3% year-over-year, driven by management solutions and the recent Paycor contribution. Paychex Q2 Earnings & Revenues Surpass Estimates
• Positive Sentiment: Paycor acquisition helping scale revenue and lift the company’s profit outlook, supporting the stronger top-line and the raised FY26 EPS range. Paychex Scales Fast After Paycor Acquisition
• Positive Sentiment: Company raised FY2026 EPS guidance to $5.48–$5.53, slightly above consensus, signaling management confidence in earnings power despite near-term costs. Paychex Reports Second Quarter Results
• Neutral Sentiment: Analysts were active ahead of the release, with some revisions to estimates — reflecting varied views on growth durability and integration risk. Analysts Revise Forecasts Ahead Of Earnings
• Neutral Sentiment: Some brokerages remain cautious (example: Stifel maintained a hold), keeping a range of opinions on valuation and growth vs. execution risk. Stifel Maintains Hold
• Negative Sentiment: Higher quarterly expenses (integration, amortization, or operating costs) were highlighted as offsetting some of the upside and tempered investor reaction to the guidance raise. Reuters: Higher Quarterly Expenses Overshadow Forecast Raise

Institutional Trading of Paychex

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PAYX. Danske Bank A S purchased a new position in Paychex in the third quarter worth $22,837,000. San Luis Wealth Advisors LLC purchased a new position in shares of Paychex in the 3rd quarter worth about $384,000. OmniStar Financial Group Inc. bought a new position in shares of Paychex during the 3rd quarter valued at approximately $1,243,000. Morningstar Investment Management LLC purchased a new stake in shares of Paychex during the 3rd quarter worth approximately $3,713,000. Finally, Caxton Associates LLP raised its holdings in shares of Paychex by 7.7% in the 3rd quarter. Caxton Associates LLP now owns 7,438 shares of the business services provider’s stock worth $943,000 after purchasing an additional 532 shares during the period. 83.47% of the stock is owned by institutional investors.

Paychex Company Profile

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.