Paychex (NASDAQ:PAYX – Get Free Report) issued an update on its FY 2027 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 5.896-6.006 for the period, compared to the consensus earnings per share estimate of 5.960. The company issued revenue guidance of $6.8 billion-$6.9 billion, compared to the consensus revenue estimate of $6.9 billion.
Wall Street Analysts Forecast Growth
A number of analysts have weighed in on PAYX shares. Stephens started coverage on Paychex in a research report on Friday, September 4th. They issued an “equal weight” rating and a $132.00 price target for the company. Stifel Nicolaus boosted their target price on shares of Paychex from $110.00 to $130.00 and gave the stock a “hold” rating in a research report on Wednesday, September 9th. Wells Fargo & Company upped their price target on Paychex from $95.00 to $111.00 and gave the stock an “underweight” rating in a report on Wednesday, September 9th. Weiss Ratings upgraded shares of Paychex from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, July 20th. Finally, Jefferies Financial Group boosted their price objective on Paychex from $105.00 to $120.00 and gave the company a “hold” rating in a research report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, eleven have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $126.76.
Get Our Latest Report on Paychex
Paychex Price Performance
Paychex (NASDAQ:PAYX – Get Free Report) last announced its earnings results on Wednesday, September 23rd. The business services provider reported $1.34 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.32 by $0.02. The company had revenue of $1.63 billion for the quarter, compared to analyst estimates of $1.63 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. Paychex’s quarterly revenue was up 5.9% on a year-over-year basis. During the same period in the prior year, the business earned $1.22 earnings per share. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. On average, equities analysts predict that Paychex will post 5.96 EPS for the current year.
Paychex Announces Dividend
The company also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Tuesday, July 28th were issued a dividend of $1.19 per share. This represents a $4.76 annualized dividend and a yield of 4.5%. The ex-dividend date of this dividend was Tuesday, July 28th. Paychex’s payout ratio is currently 97.34%.
Insider Activity
In related news, CFO Robert Schrader sold 2,600 shares of the business’s stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $115.09, for a total transaction of $299,234.00. Following the completion of the sale, the chief financial officer directly owned 18,547 shares of the company’s stock, valued at $2,134,574.23. The trade was a 12.29% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Joseph Tucci sold 3,907 shares of Paychex stock in a transaction on Friday, June 26th. The stock was sold at an average price of $98.25, for a total value of $383,862.75. Following the sale, the director directly owned 67,364 shares of the company’s stock, valued at approximately $6,618,513. This trade represents a 5.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.60% of the stock is currently owned by company insiders.
Key Paychex News
Here are the key news stories impacting Paychex this week:
- Positive Sentiment: Fiscal Q1 results exceeded expectations. Paychex reported revenue of approximately $1.63 billion, up 6% year over year, while adjusted diluted EPS rose 10% to $1.34, topping consensus estimates near $1.32–$1.33. Operating income increased 14% and the operating margin expanded to 38.0% from 35.2%. Paychex Reports First Quarter Fiscal 2027 Results
- Positive Sentiment: PEO and Insurance Solutions provided the strongest growth. Revenue in the segment climbed 12% to $367.6 million, prompting Paychex to raise its fiscal-year segment growth forecast to 7%–8% from 6%–7%. Higher revenue per client and margin expansion also supported results. Paychex Q1 Earnings and Revenues Surpass Estimates
- Positive Sentiment: Paychex launched WISE Hire, an AI-powered recruiting solution designed to automate candidate sourcing, matching and workflow management. The product is available independently or within Paychex’s HCM platforms and could support longer-term cross-selling and customer retention. Paychex Introduces Agentic AI Recruiting Capabilities
- Neutral Sentiment: Full-year guidance was maintained. Paychex continues to forecast total fiscal 2027 revenue growth of 5%–6% and adjusted EPS growth of 7%–9%. The PEO forecast increase was constructive, but investors appeared to want a stronger overall outlook following the earnings beat.
- Negative Sentiment: Core Management Solutions growth disappointed. The largest segment grew just 4% to roughly $1.2 billion, below the 5%–6% full-year target range. The result raised concerns that integration and cross-selling efforts may not yet be accelerating growth. Paychex Slides as Core Segment Growth Disappoints
- Negative Sentiment: Recent insider activity was tilted toward selling, with five reported open-market sales and no purchases over the past six months. This is a secondary sentiment factor, but it may add caution among investors.
About Paychex
Paychex, Inc is a provider of payroll, human resources, and workforce management solutions for businesses of varying sizes. Its offerings include payroll processing, tax administration, time and attendance tracking, employee benefits administration, retirement services, workers’ compensation and business insurance, recruiting, and compliance support.
The company also provides professional employer organization services, helping businesses manage employment administration and human resources through an integrated platform.
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