Zacks Research Analysts Lower Earnings Estimates for Paychex

Paychex, Inc. (NASDAQ:PAYX) – Zacks Research reduced their Q3 2025 earnings per share estimates for shares of Paychex in a note issued to investors on Monday, December 30th. Zacks Research analyst R. Department now anticipates that the business services provider will earn $1.47 per share for the quarter, down from their prior estimate of $1.48. The consensus estimate for Paychex’s current full-year earnings is $4.98 per share. Zacks Research also issued estimates for Paychex’s Q2 2026 earnings at $1.22 EPS and FY2026 earnings at $5.29 EPS.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings data on Thursday, December 19th. The business services provider reported $1.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.12 by $0.02. The business had revenue of $1.32 billion for the quarter, compared to the consensus estimate of $1.31 billion. Paychex had a return on equity of 45.97% and a net margin of 31.98%. The business’s revenue was up 4.7% on a year-over-year basis. During the same period in the prior year, the business earned $1.08 earnings per share.

Several other brokerages also recently issued reports on PAYX. UBS Group upped their price objective on shares of Paychex from $125.00 to $142.00 and gave the company a “neutral” rating in a research note on Wednesday, October 2nd. Citigroup raised their price objective on Paychex from $125.00 to $145.00 and gave the stock a “neutral” rating in a report on Wednesday, September 25th. Jefferies Financial Group lifted their price objective on Paychex from $120.00 to $130.00 and gave the company a “hold” rating in a research report on Wednesday, October 2nd. Morgan Stanley increased their target price on Paychex from $122.00 to $133.00 and gave the stock an “equal weight” rating in a research report on Wednesday, October 2nd. Finally, Stifel Nicolaus upped their price objective on shares of Paychex from $130.00 to $141.00 and gave the company a “hold” rating in a research note on Wednesday, October 2nd. Two analysts have rated the stock with a sell rating and eleven have issued a hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $132.23.

Paychex Price Performance

NASDAQ:PAYX opened at $138.50 on Wednesday. The firm has a market cap of $49.87 billion, a price-to-earnings ratio of 29.53, a price-to-earnings-growth ratio of 3.88 and a beta of 0.99. Paychex has a 12-month low of $114.72 and a 12-month high of $150.71. The company has a current ratio of 1.38, a quick ratio of 1.38 and a debt-to-equity ratio of 0.21. The company’s 50-day moving average is $142.50 and its two-hundred day moving average is $133.76.

Paychex Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, November 27th. Shareholders of record on Thursday, November 7th were paid a dividend of $0.98 per share. The ex-dividend date was Thursday, November 7th. This represents a $3.92 annualized dividend and a yield of 2.83%. Paychex’s dividend payout ratio is currently 82.53%.

Insider Transactions at Paychex

In other Paychex news, CFO Robert L. Schrader sold 13,015 shares of the stock in a transaction that occurred on Tuesday, October 15th. The shares were sold at an average price of $142.35, for a total value of $1,852,685.25. Following the completion of the sale, the chief financial officer now owns 17,362 shares of the company’s stock, valued at $2,471,480.70. This trade represents a 42.84 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Michael E. Gioja sold 26,428 shares of the business’s stock in a transaction on Wednesday, October 9th. The stock was sold at an average price of $139.03, for a total transaction of $3,674,284.84. Following the transaction, the vice president now directly owns 14,515 shares in the company, valued at approximately $2,018,020.45. The trade was a 64.55 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 11.40% of the company’s stock.

Institutional Investors Weigh In On Paychex

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. CVA Family Office LLC boosted its holdings in Paychex by 5.6% in the third quarter. CVA Family Office LLC now owns 1,388 shares of the business services provider’s stock valued at $186,000 after purchasing an additional 74 shares during the last quarter. Fortitude Family Office LLC boosted its stake in shares of Paychex by 42.0% during the 3rd quarter. Fortitude Family Office LLC now owns 250 shares of the business services provider’s stock valued at $34,000 after buying an additional 74 shares during the last quarter. Kanawha Capital Management LLC grew its position in shares of Paychex by 1.8% during the third quarter. Kanawha Capital Management LLC now owns 4,283 shares of the business services provider’s stock worth $575,000 after buying an additional 75 shares in the last quarter. Baron Wealth Management LLC increased its stake in shares of Paychex by 2.2% in the third quarter. Baron Wealth Management LLC now owns 3,628 shares of the business services provider’s stock worth $487,000 after buying an additional 79 shares during the last quarter. Finally, Daymark Wealth Partners LLC raised its holdings in Paychex by 0.8% in the second quarter. Daymark Wealth Partners LLC now owns 9,847 shares of the business services provider’s stock valued at $1,167,000 after acquiring an additional 82 shares in the last quarter. Hedge funds and other institutional investors own 83.47% of the company’s stock.

About Paychex

Paychex, Inc, together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.