ROCHESTER, N.Y.--(BUSINESS WIRE)---- $PAYX #employmenttrends--The small business labor market has remained stable with minimal changes observed through the first half of 2025, according to the Paychex Small Business Employment Watch. The pace of job growth in U.S. businesses with fewer than 50 employees has fluctuated less than half a percentage point over the last six months, reporting a 99.65 index level for June. At the same time, hourly earnings growth for small business workers continued to trend below three percent.
Paychex (NASDAQ:PAYX) experienced a decline of nearly 10% in Wednesday's trading session following the payroll processing firm's announcement of its Q4 FY'25 results (the fiscal year ends in May). Although revenue grew by 10% year-over-year, reaching $1.43 billion, and adjusted earnings increased by 6% to $1.19 per share, the FY'26 guidance provided by the company seemed to disappoint investors.
Paychex's business remains fundamentally solid, with improving client retention and successful Paycor integration. But the recent stock sell-off wasn't an overreaction to a temporary slowdown. Management's FY2026 guidance is bullish, but consensus expects slower EPS growth than historical averages, limiting the case for multiple expansion. Valuation is now fair at 25.87x forward earnings, with no upside even after the post-earnings correction, so the stock lacks a margin of safety.
![]() PCX 1 month ago | Other | €0.92 Per Share |
![]() PCX 4 months ago | Other | €0.84 Per Share |
![]() PCX 7 months ago | Other | €0.84 Per Share |
![]() PCX 10 months ago | Other | €0.84 Per Share |
![]() PCX 9 May 2024 | Other | €0.84 Per Share |
1 Oct 2025 (In 3 months) Date | | 1.23 Cons. EPS | - EPS |
24 Jun 2025 Date | | - Cons. EPS | - EPS |
31 Mar 2025 Date | | - Cons. EPS | - EPS |
19 Dec 2024 Date | | - Cons. EPS | - EPS |
11 Oct 2024 Date | | - Cons. EPS | - EPS |
![]() PCX 1 month ago | Other | €0.92 Per Share |
![]() PCX 4 months ago | Other | €0.84 Per Share |
![]() PCX 7 months ago | Other | €0.84 Per Share |
![]() PCX 10 months ago | Other | €0.84 Per Share |
![]() PCX 9 May 2024 | Other | €0.84 Per Share |
1 Oct 2025 (In 3 months) Date | | 1.23 Cons. EPS | - EPS |
24 Jun 2025 Date | | - Cons. EPS | - EPS |
31 Mar 2025 Date | | - Cons. EPS | - EPS |
19 Dec 2024 Date | | - Cons. EPS | - EPS |
11 Oct 2024 Date | | - Cons. EPS | - EPS |
Staffing & Employment Services Industry | Industrials Sector | John B. Gibson Jr. CEO | XDUS Exchange | US7043261079 ISIN |
US Country | 16,500 Employees | - Last Dividend | 23 May 2000 Last Split | 26 Mar 1990 IPO Date |
Paychex, Inc. is a company that specializes in offering integrated human capital management solutions tailored for small to medium-sized businesses across the United States, Europe, and India. Founded in 1971 and based in Rochester, New York, Paychex serves as a comprehensive provider for a variety of services that span the realms of human resources (HR), payroll, benefits, and insurance. The company distinguishes itself by delivering a broad array of services aimed at simplifying the complexities of managing a workforce, ensuring regulatory compliance, and optimizing employer and employee relations. This approach helps businesses to focus more on their core operations while leaving specialized HR, payroll, and benefits tasks to experts.
Includes automated payroll processing, ensuring accurate and timely employee payments alongside comprehensive tax administration services. This service covers everything from the calculation of deductions and withholdings to the filing and payment of payroll taxes.
Covers essential services such as new-hire reporting and garnishment processing, ensuring that businesses stay in compliance with the ever-changing state and federal regulations.
Comprehensive suite that includes employer compliance, HR and employee benefits administration, risk management outsourcing, and access to on-site HR professionals, facilitating a smooth operation of human resources functions.
Offers services related to the implementation and ongoing administration of retirement plans, adhering to governmental regulations, coupled with detailed reporting for both employees and employers, and streamlined electronic transactions.
Cloud solutions for managing employee benefits, time and attendance, digital communication, recruiting, and onboarding processes, aiming to streamline HR operations through technology.
A range of services targeted at small to medium-sized businesses that include payroll funding, outsourcing, payroll processing, invoicing, and tax preparation, alongside payment processing services and financial fitness programs.
Offers insurance solutions for businesses covering property and casualty, including workers' compensation, business-owner policies, and cyber security protection, as well as health and benefits coverage like health, dental, vision, and life insurance.