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
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Paychex, Inc. is upgraded from hold to buy as valuation becomes attractive following a 20% price decline. PAYX remains resilient with high client retention, robust margins, and strategic growth via the Paycor acquisition despite macroeconomic and RTO headwinds. Hybrid work trends and recent Fed rate cuts support continued demand for PAYX's HCM solutions and ease borrowing pressures.
Paychex offers a market-tripling 3.5% dividend yield and could be primed to deliver high-single-digit annual dividend growth for the foreseeable future. The company is successfully integrating its Paycor acquisition, with cross-selling success and synergies progressing nicely. Paychex maintains a healthy financial position, with a BBB+ S&P credit rating.
Paychex's NASDAQ: PAYX stock price declined in 2025 over valuation and growth concerns but seems to have bottomed out. FQ1 results sparked a buy-the-dip, indicating a rebound is likely.