What is Zacks Research’s Estimate for Paychex Q1 Earnings?

Paychex, Inc. (NASDAQ:PAYX) – Equities research analysts at Zacks Research upped their Q1 2027 earnings per share (EPS) estimates for shares of Paychex in a report issued on Wednesday, July 8th. Zacks Research analyst Team now forecasts that the business services provider will earn $1.33 per share for the quarter, up from their prior forecast of $1.31. The consensus estimate for Paychex’s current full-year earnings is $5.97 per share. Zacks Research also issued estimates for Paychex’s Q2 2027 earnings at $1.36 EPS, Q3 2027 earnings at $1.78 EPS, Q4 2027 earnings at $1.45 EPS, FY2027 earnings at $5.92 EPS, Q1 2028 earnings at $1.40 EPS, Q3 2028 earnings at $1.67 EPS, Q4 2028 earnings at $1.70 EPS, FY2028 earnings at $6.22 EPS and FY2029 earnings at $6.69 EPS.

Paychex (NASDAQ:PAYX) last posted its earnings results 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. The business had revenue of $1.61 billion for the quarter, compared to analysts’ expectations of $1.60 billion. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The business’s revenue for the quarter was up 12.5% compared to the same quarter last year. During the same period in the previous year, the company posted $1.19 earnings per share. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS.

A number of other research firms have also recently weighed in on PAYX. Weiss Ratings reissued a “hold (c-)” rating on shares of Paychex in a research report on Friday, April 24th. Citigroup raised Paychex from a “neutral” rating to a “buy” rating and lifted their target price for the stock from $99.00 to $140.00 in a research report on Monday, June 15th. BMO Capital Markets boosted their price target on Paychex to $52.00 and gave the stock an “outperform” rating in a research note on Thursday, March 26th. UBS Group reduced their price target on Paychex from $100.00 to $98.00 and set a “neutral” rating for the company in a report on Thursday, June 25th. Finally, Stifel Nicolaus raised their price objective on Paychex from $105.00 to $110.00 and gave the company a “hold” rating in a research note on Wednesday, June 17th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $105.80.

Paychex Stock Performance

Paychex stock opened at $106.58 on Thursday. Paychex has a 12-month low of $85.45 and a 12-month high of $148.11. The company has a market capitalization of $38.19 billion, a price-to-earnings ratio of 21.80 and a beta of 0.84. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26. The firm’s fifty day moving average price is $97.59 and its 200 day moving average price is $98.46.

Hedge Funds Weigh In On Paychex

A number of hedge funds have recently bought and sold shares of the company. Capital International Investors raised its stake in Paychex by 59.1% during the fourth quarter. Capital International Investors now owns 30,265,174 shares of the business services provider’s stock valued at $3,395,583,000 after buying an additional 11,243,295 shares in the last quarter. Vanguard Group Inc. grew its position in shares of Paychex by 12.1% in the 4th quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider’s stock worth $4,750,669,000 after acquiring an additional 4,583,157 shares in the last quarter. Federated Hermes Inc. grew its position in shares of Paychex by 4,141.2% in the 4th quarter. Federated Hermes Inc. now owns 2,409,229 shares of the business services provider’s stock worth $270,267,000 after acquiring an additional 2,352,423 shares in the last quarter. Norges Bank bought a new stake in shares of Paychex in the 4th quarter valued at approximately $257,699,000. Finally, Pacer Advisors Inc. increased its holdings in shares of Paychex by 773.0% in the 1st quarter. Pacer Advisors Inc. now owns 1,321,663 shares of the business services provider’s stock valued at $121,752,000 after acquiring an additional 1,170,277 shares during the last quarter. 83.47% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Paychex

In other news, Director Joseph M. Tucci sold 3,907 shares of the company’s stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $98.25, for a total value of $383,862.75. Following the sale, the director owned 67,364 shares in the company, valued at approximately $6,618,513. This represents a 5.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.80% of the company’s stock.

Paychex Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Wednesday, May 13th were given a $1.19 dividend. This represents a $4.76 annualized dividend and a dividend yield of 4.5%. The ex-dividend date of this dividend was Wednesday, May 13th. This is an increase from Paychex’s previous quarterly dividend of $1.08. Paychex’s payout ratio is presently 97.34%.

Key Paychex News

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Zacks Research raised multiple EPS estimates for Paychex, including FY2027, FY2028 and FY2029, signaling stronger long-term profit expectations.
• Positive Sentiment: The firm also increased forecasts for several quarterly periods, including Q1 2027, Q2 2027, Q3 2027 and Q4 2028, reinforcing a constructive earnings outlook.
• Neutral Sentiment: Recent commentary highlighted Paychex’s improving small-business hiring trends, AI expansion and workplace recognition, which support the company’s growth narrative. Article Title
• Negative Sentiment: Some estimates were cut, including Q4 2027, Q1 2028, Q3 2028 and FY2028 EPS, which may temper enthusiasm around near- to mid-term growth.

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.