Paychex (NASDAQ:PAYX) Releases FY 2027 Earnings Guidance

Paychex (NASDAQ:PAYX) updated its FY 2027 earnings guidance on Wednesday. The company provided EPS guidance of 5.900-6.010 for the period, compared to the consensus EPS 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.

Paychex Stock Down 1.9%

NASDAQ PAYX traded down $1.87 during trading hours on Wednesday, hitting $96.12. The company’s stock had a trading volume of 2,319,036 shares, compared to its average volume of 3,724,482. The company has a market capitalization of $34.44 billion, a PE ratio of 21.19 and a beta of 0.84. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.13. Paychex has a 52 week low of $85.45 and a 52 week high of $148.76. The company’s 50-day simple moving average is $95.13 and its two-hundred day simple moving average is $99.36.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings data on Wednesday, June 24th. The business services provider reported $1.32 EPS for the quarter, topping analysts’ consensus estimates of $1.31 by $0.01. Paychex had a return on equity of 48.52% and a net margin of 25.84%.The firm had revenue of $1.61 billion during the quarter, compared to analyst estimates of $1.60 billion. During the same period in the previous year, the company posted $1.19 EPS. The company’s revenue for the quarter was up 12.5% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. Research analysts anticipate that Paychex will post 5.49 EPS 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 paid a dividend of $1.19 per share. This is a boost from Paychex’s previous quarterly dividend of $1.08. The ex-dividend date was Wednesday, May 13th. This represents a $4.76 annualized dividend and a yield of 5.0%. Paychex’s dividend payout ratio (DPR) is 104.85%.

Analyst Upgrades and Downgrades

PAYX has been the topic of a number of analyst reports. JPMorgan Chase & Co. cut their price objective on shares of Paychex from $125.00 to $100.00 and set an “underweight” rating on the stock in a report on Thursday, March 26th. UBS Group dropped their price target on shares of Paychex from $98.00 to $94.00 and set a “neutral” rating on the stock in a research report on Monday, April 13th. Weiss Ratings restated a “hold (c-)” rating on shares of Paychex in a report on Friday, April 24th. Morgan Stanley reduced their price objective on shares of Paychex from $123.00 to $107.00 and set an “equal weight” rating for the company in a research report on Tuesday, April 28th. Finally, Citigroup upgraded shares of Paychex from a “neutral” rating to a “buy” rating and increased their price objective for the company from $99.00 to $140.00 in a research note on Monday, June 15th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $105.07.

Paychex News Roundup

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

Several large investors have recently added to or reduced their stakes in the company. 44 Wealth Management LLC lifted its holdings in Paychex by 2.7% during the second 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 last quarter. Smartleaf Asset Management LLC increased its stake in shares of Paychex by 3.5% in the second quarter. Smartleaf Asset Management LLC now owns 2,645 shares of the business services provider’s stock worth $381,000 after purchasing an additional 89 shares in the last quarter. Prosperity Consulting Group LLC raised its position in shares of Paychex by 1.4% in the third quarter. Prosperity Consulting Group LLC now owns 7,270 shares of the business services provider’s stock valued at $922,000 after purchasing an additional 100 shares during the period. Zacks Investment Management raised its position 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 valued at $265,000 after purchasing an additional 101 shares during the period. Finally, Berkshire Asset Management LLC PA lifted its stake in shares of 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 valued at $289,000 after buying an additional 112 shares in the last quarter. Hedge funds and other institutional investors own 83.47% of the company’s stock.

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.