HR software provider Paychex on Tuesday reported higher expenses in the first quarter overshadowing a lift to its annual earnings forecast, and dragging the company's shares down 6.2% in early trading.
Paychex (PAYX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Paychex (PAYX) reported earnings 30 days ago. What's next for the stock?
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.
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Paychex President and CEO John Gibson joins 'Mad Money' host Jim Cramer to talk quarterly results, forward guidance, micro trends in the market, and more.
Major U.S. equities indexes were mixed in the midweek session as the truce between Iran and Israel appeared to hold steady, with President Donald Trump indicating that the U.S. would hold meetings with Iran next week.
Paychex, Inc. (NASDAQ:PAYX ) Q4 2025 Results Conference Call June 25, 2025 9:30 AM ET Company Participants John B. Gibson - President, CEO & Director Robert Lewis Schrader - Chief Financial Officer Conference Call Participants Andrew Owen Nicholas - William Blair & Company L.L.C.
The company posted revenue that misses analysts' expectations and provides mixed fiscal-year guidance.
PAYX tops 4Q25 estimates with 10% y/y revenue growth and raises the FY25 outlook, boosted by higher client revenues and acquisitions.
The headline numbers for Paychex (PAYX) give insight into how the company performed in the quarter ended May 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.