Paychex (NASDAQ:PAYX) Updates FY 2027 Earnings Guidance

Paychex (NASDAQ:PAYX) updated its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 5.900-6.010 for the period, compared to the consensus estimate of 5.890. The company issued revenue guidance of $6.8 billion-$6.9 billion, compared to the consensus revenue estimate of $6.9 billion.

Analyst Upgrades and Downgrades

PAYX has been the subject of several research analyst reports. Citigroup raised Paychex from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $99.00 to $140.00 in a research note on Monday, June 15th. Weiss Ratings restated a “hold (c-)” rating on shares of Paychex in a research report on Friday, April 24th. Royal Bank Of Canada reiterated a “sector perform” rating on shares of Paychex in a report on Thursday, May 28th. Wells Fargo & Company decreased their price target on Paychex from $116.00 to $95.00 and set an “underweight” rating on the stock in a research note on Thursday, March 26th. Finally, Morgan Stanley dropped their price objective on Paychex from $123.00 to $107.00 and set an “equal weight” rating for the company in a research note on Tuesday, April 28th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have issued a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $105.07.

Paychex Stock Down 2.4%

Shares of Paychex stock traded down $2.37 during midday trading on Wednesday, hitting $95.62. The company had a trading volume of 2,523,116 shares, compared to its average volume of 3,724,482. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.26 and a current ratio of 1.26. The company has a 50 day moving average of $95.13 and a 200 day moving average of $99.36. Paychex has a 52-week low of $85.45 and a 52-week high of $148.76. The stock has a market capitalization of $34.26 billion, a P/E ratio of 21.10 and a beta of 0.84.

Paychex (NASDAQ:PAYX) last issued its earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.31 by $0.01. Paychex had a net margin of 25.84% and a return on equity of 48.52%. The business had revenue of $1.61 billion during the quarter, compared to analysts’ expectations of $1.60 billion. During the same period in the previous year, the company earned $1.19 earnings per share. The business’s revenue for the quarter was up 12.5% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. On average, equities analysts predict that Paychex will post 5.49 earnings per share for the current fiscal year.

Paychex Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Wednesday, May 13th were issued a dividend of $1.19 per share. This is an increase from Paychex’s previous quarterly dividend of $1.08. The ex-dividend date of this dividend was Wednesday, May 13th. This represents a $4.76 dividend on an annualized basis and a yield of 5.0%. Paychex’s payout ratio is 104.85%.

Trending Headlines about Paychex

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Paychex beat quarterly expectations with EPS of $1.32 versus $1.31 expected and revenue of $1.61 billion versus $1.60 billion expected, showing the business is still growing. Article title
• Positive Sentiment: The company also highlighted strong fiscal 2026 performance, including double-digit revenue and earnings growth, plus shareholder returns of $2.2 billion and expanded AI efforts with its WISE Workforce Intelligence Engine. Article title
• Neutral Sentiment: Paychex raised FY 2027 EPS guidance to 5.900-6.010, slightly above the consensus estimate of 5.890, while revenue guidance of about $6.8 billion-$6.9 billion is roughly in line with expectations. Article title
• Negative Sentiment: The stock is under pressure because the FY 2027 outlook points to slower growth after a strong fiscal 2026, with revenue growth projected at 5% to 6% and EPS growth at 7% to 9%, well below recent double-digit trends. Article title
• Negative Sentiment: Some reports also noted higher-than-expected expenses, which may be weighing on sentiment despite the earnings beat. Article title

Institutional Investors Weigh In On Paychex

Hedge funds and other institutional investors have recently modified their holdings of the business. 44 Wealth Management LLC increased its position in Paychex by 2.7% during the 2nd quarter. 44 Wealth Management LLC now owns 3,290 shares of the business services provider’s stock valued at $479,000 after purchasing an additional 86 shares during the period. Smartleaf Asset Management LLC lifted its holdings in shares of Paychex by 3.5% during the 2nd quarter. Smartleaf Asset Management LLC now owns 2,645 shares of the business services provider’s stock valued at $381,000 after purchasing an additional 89 shares during the last quarter. Prosperity Consulting Group LLC grew its stake in shares of Paychex by 1.4% during the third quarter. Prosperity Consulting Group LLC now owns 7,270 shares of the business services provider’s stock worth $922,000 after acquiring an additional 100 shares during the last quarter. Zacks Investment Management raised its holdings in shares of Paychex by 5.1% in the third quarter. Zacks Investment Management now owns 2,094 shares of the business services provider’s stock worth $265,000 after buying an additional 101 shares during the last quarter. Finally, Berkshire Asset Management LLC PA lifted its position in Paychex by 4.5% during the 4th quarter. Berkshire Asset Management LLC PA now owns 2,577 shares of the business services provider’s stock worth $289,000 after acquiring an additional 112 shares during the period. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

About Paychex

Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.

Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.