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.
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.
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.
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.
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 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.
PAYX beats on 2Q26 earnings and revenues. EPS grows 10.5% y/y and sales rise 18.3%, as management solutions led growth.
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.
Paychex (PAYX) came out with quarterly earnings of $1.26 per share, beating the Zacks Consensus Estimate of $1.24 per share. This compares to earnings of $1.14 per share a year ago.
PAYX prepares to report 2Q26 results, with revenues expected to jump 18% y/y, driven by Management Solutions growth and added Paycor contributions.
Paychex (Nasdaq: PAYX) pays a quarterly dividend of $1.08 per share, yielding 3.65%.
Paychex, Inc. (PAYX) Presents at 53rd Annual Nasdaq Investor Conference Transcript