Paychex: A Deal Too Good To Pass Up
Paychex remains a "Buy," trading at a 28% discount to fair value with robust fundamentals and a stable BBB+ credit rating. PAYX's Paycor acquisition is exceeding synergy targets, driving up-market growth, and supporting high single-digit adjusted EPS growth projections. With a 3.9% forward yield and 12 years of consecutive dividend growth, PAYX offers attractive, sustainable income and dividend growth prospects.
Why Paychex Stock Is Primed For A Breakout From Current Levels
We believe Paychex (PAYX) shares may represent a solid value investment at current levels, as the stock trades at a valuation below its historical average despite steady execution across the business. Recent multiple compression appears driven by broader market rotation away from defensive and payroll services names rather than any material deterioration in fundamentals.
Is Paychex Stock Undervalued?
We believe Paychex (PAYX) stock might be an attractive value buy. It is currently trading at a valuation lower than average, and boasts reasonable revenue growth along with strong margins that accompany its modest valuation.
SaaS Demand and Client Retention Aid Paychex Amid Heavy Competition
PAYX rides strong cloud and SaaS demand that drive revenues and dividends, but client insolvency, cyber risks and stiff competition cloud outlook.
Paychex: Taking A Risk At This Price May Pay Off
Paychex, Inc. demonstrates robust fundamentals and growth, supported by its Paycor acquisition and strong exposure to SMBs. PAYX's valuation remains attractive, trading below historical averages, with target prices ranging from $126 to $143 based on multiple methodologies. Risks from inflation and AI-driven headcount reductions are mitigated by SMB focus and a solid balance sheet with ample liquidity and manageable debt.
Reasons Why You Should Retain Paychex Stock in Your Portfolio
PAYX's growth is driven by rising SaaS adoption, the Paycor acquisition and AI launches, with FY26 revenues projected to rise 16.5% and earnings gains ahead.
Paychex (PAYX) Reports Q2 Earnings: What Key Metrics Have to Say
Although the revenue and EPS for Paychex (PAYX) give a sense of how its business performed in the quarter ended November 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Paychex: Paycor Deal Continues To Shine
I rate Paychex a BUY, with a current price around $112 versus a fair value north of $150 per share. Q2 2026 earnings showed strong revenue growth (18% YoY), driven by the Paycor acquisition and solid organic expansion. Cost synergies from Paycor are now projected at $100M for FY26, up from $80M previously estimated.
Watch Jim Cramer's full interview with Paychex CEO John Gibson
CNBC's Jim Cramer talks with Paychex president and CEO John Gibson about the state of small business, the labor market, its latest earnings report and more.
Paychex, Inc. (PAYX) Q2 2026 Earnings Call Transcript
Paychex, Inc. ( PAYX ) Q2 2026 Earnings Call December 19, 2025 9:30 AM EST Company Participants Robert Schrader - Senior VP & CFO John Gibson - President, CEO & Director Conference Call Participants Mark Marcon - Robert W. Baird & Co. Incorporated, Research Division Bryan Bergin - TD Cowen, Research Division Bryan Keane - Citigroup Inc., Research Division Tien-Tsin Huang - JPMorgan Chase & Co, Research Division Andrew Nicholas - William Blair & Company L.L.C.
Paychex Q2 Earnings & Revenues Surpass Estimates, Increase Y/Y
PAYX beats on 2Q26 earnings and revenues. EPS grows 10.5% y/y and sales rise 18.3%, as management solutions led growth.
Paychex's higher quarterly expenses overshadow annual earnings forecast raise
Payroll services provider Paychex reported higher expenses for the second quarter on Friday, taking the shine off its raise in annual adjusted earnings growth forecast.
