Paychex, Inc., together with its subsidiaries, provides human capital management solutions (HCM) for human resources, payroll processing, employee benefits, and insurance services for small to medium-sized businesses in the United States, Europe, Canada, India, and Israel. It offers technology and advisory solutions; and payroll tax administration services. The company also provides retirement solutions, such as plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services; HCM solutions from recruiting and hiring to retirement; and talent management and talent acquisition services. In addition, it offers payroll solutions, including calculation, preparation, and delivery of employee payroll checks; production of internal accounting records and management reports; preparation of federal, state, and local payroll tax returns; and collection and remittance of clients' payroll obligations. Further, the company provides workforce management solutions; benefits administration solutions; digital marketplace for earned wages, financial wellness solutions, and voluntary lifestyle benefits; administrative services organization HR outsourcing solutions; solutions to payroll and non-payroll customers; retirement and funding solutions; and insurance services for property and casualty coverage, such as workers' compensation, business-owner policies, cyber security protection, and commercial auto, as well as health and benefits coverage, including health, dental, vision, and life. Additionally, it offers payroll, HR, employee benefits administration, retirement, insurance, risk management outsourcing, and access to professionally trained HR representatives, virtually and on-site. It markets and sells its solutions primarily through its direct sales force. Paychex, Inc. was founded in 1971 and is headquartered in Rochester, New York.
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ManpowerGroup Appoints Paychex CEO John Gibson to Board
ManpowerGroup announced it will appoint Paychex President and CEO John B. Gibson, Jr. to its Board of Directors, effective September 1, 2026. Gibson brings decades of leadership experience across human capital management and technology, and his track record integrating technology with HR services and leading large-scale acquisitions could influence ManpowerGroup's workforce solutions and digital execution priorities. The appointment adds deep human capital and technology expertise to the board, which could be helpful for ManpowerGroup's digital and AI execution, but it does not materially change the near-term focus on restoring profitability and managing elevated debt risk. ManpowerGroup's narrative projects $20.3 billion revenue and $362.6 million earnings by 2029, requiring 3.4% yearly revenue growth and about a $379 million earnings increase from negative $16.4 million today.
Microsoft Deepens AI Partnerships Amid Forecast of $500 Billion Chip Funding Wave
Citadel Securities projects up to $500 billion in debt issuance by 2028 to fund AI chip infrastructure, with Microsoft expected to be a major participant. Microsoft is expanding AI-driven product integrations across Microsoft 365 Copilot and Azure with companies such as LegalZoom, Paychex, and ArcelorMittal, deepening its role in enterprise workflows and cloud partnerships as businesses adopt AI tools across legal, HR, and industrial use cases. The stock last closed at $492.81, with a return of 25.3% over the past week, 26.2% over the past month, and 54.7% over the past three years. The combination of large-scale AI infrastructure financing and new cloud partnerships gives Microsoft additional avenues to deepen its AI ecosystem, potentially influencing its competitive position in enterprise software, cloud services, and AI tools.
Paychex Expands WISE AI Engine into Microsoft 365 Copilot and Teams
Paychex announced that its AI-powered intelligence engine, WISE, is now available within Microsoft 365 Copilot and Teams, marking the first ecosystem in the company's broader channel-agnostic expansion strategy. The integration brings real-time workforce insights, proactive compliance guidance, and the ability to take actions like approving time-off requests directly into the collaboration tools businesses already use. WISE operates across Paychex's HCM platforms, including SurePayroll, Paychex Flex, and Paycor, and is designed to help customers manage tasks without switching systems. Paychex is also expanding integration opportunities for additional technology partners to embed workforce intelligence into their own workflows.
Paychex Shares Rise 14.4% Since Last Earnings Report
Paychex shares have gained about 14.4% since its last earnings report, outperforming the S&P 500. The company reported adjusted earnings of $1.32 per share for the fourth quarter of fiscal 2026, beating the Zacks Consensus Estimate of $1.31 and rising 10.9% year over year, while total revenues of $1.61 billion met expectations and increased 12.5%. Management Solutions revenues grew 14% to $1.18 billion, aided by the Paycor acquisition which contributed about 8 percentage points to that segment's growth, and PEO and Insurance Solutions revenues rose 9% to $369.7 million. Operating margin expanded to 37.7% from 30.2% a year earlier, and net income jumped 41% to $420.6 million. For fiscal 2027, Paychex expects total revenue growth of 5 to 6% and adjusted diluted earnings growth of 7 to 9%.
Paychex Chairman Martin Mucci Gifts 9,309 Shares to Family Foundation
Paychex Chairman Martin Mucci gifted 9,309 shares of Paychex, Inc. to The Mucci Family Foundation on July 17, 2026, according to an SEC filing. The shares were valued at approximately $1.1 million at the time of the transaction, representing a 2% reduction in his direct holdings. Mucci retains 434,891 shares directly, worth roughly $49.75 million, and remains one of the company's most invested insiders. The philanthropic transfer occurred after Paychex shares declined about 20% over the prior 12 months, following fiscal 2027 revenue growth guidance of just 5% to 6% despite fiscal 2026 revenue rising 17% to $6.51 billion.
Paychex CFO Robert Schrader sold 12% of his direct common shares for $299,000
Paychex Chief Financial Officer Robert L. Schrader sold 2,600 shares of the company's common stock at $115.09 per share on July 20, 2026, in a transaction valued at approximately $299,000. The sale reduced his direct common stock holdings by 12%, leaving him with 18,547 directly held shares and an additional 339 shares held indirectly through a 401(k) plan. Schrader also maintains 29,553 direct derivative securities. The transaction occurred with Paychex shares down 24% over the past year, despite the company reporting fiscal 2026 revenue up 17% to $6.51 billion and adjusted earnings per share up 11% to $5.51, and guiding for fiscal 2027 revenue growth of just 5% to 6%.
Nasdaq 100’s five highest-yielding stocks offer dependable dividends
The five highest-yielding stocks in the Nasdaq 100 are being highlighted as compelling picks for passive income, with all rated Buy by top Wall Street firms. Kraft Heinz pays a substantial 6.31% dividend and is committing $600 million to a turnaround strategy after scrapping a planned corporate split. Comcast offers a solid 5.56% dividend, while Paychex provides a 4.48% yield with significant upside potential. PepsiCo has a very solid 3.95% dividend yield and activist investor Elliott Investment Management holds a $4 billion stake, believing strategic changes could unlock over 50% upside. Mondelez rounds out the list with a 3.33% dividend yield.
Paychex Stock Rises 17.2% in Three Months on AI Launch and Improving Small-Business Hiring
Paychex shares have risen 17.2% over the past three months, outpacing the industry's 5.7% gain and the S&P 500's 10.6% advance. The company's first-quarter fiscal 2027 earnings are expected to increase 9.02% year over year, with full-year fiscal 2027 and 2028 earnings projected to rise 8.17% and 6.6%, respectively, while revenues are forecast to grow 5.4% and 5.6%. Paychex's Small Business Employment Watch shows its jobs index rising for the fourth consecutive month in June 2026 to the highest level since August 2025, signaling strengthening labor demand among businesses with fewer than 50 employees. The launch of the WISE AI platform embeds agentic artificial intelligence across Paychex Flex, Paycor, and SurePayroll, with more than 500 AI-powered capabilities now automating HR tasks and improving compliance. Risks include intense competition and cybersecurity threats, highlighted by a March 2024 data breach that exposed personal information.
Paychex Faces Mixed Analyst Views After Fiscal 2027 Guidance
Paychex received divergent analyst actions on June 25, with JPMorgan raising its price target to $105 from $100 while maintaining an Underweight rating, and UBS trimming its target to $98 from $100 with a Neutral rating. JPMorgan cited solid fourth-quarter results, while UBS pointed to the company's inaugural fiscal year 2027 guidance of 5 to 6 percent total revenue growth, which fell short of market expectations for stronger growth driven by cross-selling and larger deals. UBS also highlighted the HUB alliance impact and the WISE Workforce Intelligence announcement as potential future revenue drivers. Paychex, a provider of human capital management solutions, reported an operating margin of 38.32 percent.
Paychex Reports Strong Q4 Results, Introduces WISE AI Platform
Paychex reported fiscal fourth quarter adjusted earnings per share of $1.32, slightly above the average estimate of $1.31, with revenue of $1.61 billion exceeding the $1.60 billion projection. The company also introduced its WISE AI-based analytics platform. Stifel maintained a Hold rating and raised its price target to $110 from $105, citing confidence in fiscal 2027 estimates and AI-driven margin expansion.
StockStory flags Paychex, Teradata, Scholastic as cash-rich stocks to avoid
StockStory identifies Paychex, Teradata, and Scholastic as cash-producing companies that investors should steer clear of despite strong free cash flow margins. Paychex, with a trailing 12-month free cash flow margin of 35.7%, faces slowing demand and rising costs that have compressed its operating margin. Teradata, posting a 39.6% free cash flow margin, struggles with subpar billings growth and expects its free cash flow margin to contract by 20.2 percentage points. Scholastic, at a 28% free cash flow margin, has posted below-sector revenue growth and weak returns on capital, limiting its ability to invest or return cash to shareholders.
Paychex Fair Value Estimate Rises Modestly to US$105.43 Amid Mixed Analyst Views
Paychex's fair value estimate has been raised from US$102.07 to US$105.43 per share, reflecting a modest lift as analysts weigh the potential upside from the Paycor acquisition against execution risks. Citi upgraded the stock to Buy and hiked its price target to US$140 from US$99, citing bookings trends, expected synergies from Paycor, and a 4.73% dividend yield. Stifel raised its target to US$110 from US$105 with a Hold rating, while JPMorgan increased its target to US$105 from US$100 but maintained an Underweight rating. On the bearish side, UBS trimmed its target to US$98 from US$100 with a Neutral rating, and TD Cowen lifted its target to US$98 from US$94 while keeping a Hold rating. The updated fair value model assumes long-term annual revenue growth of 6.66%, a net profit margin of 30.50%, a future P/E multiple of 19.73 times, and a discount rate of 7.62%.
Paychex Q4 Revenue Jumps 12% to $1.6 Billion, Full-Year Revenue Up 17%
Paychex reported fourth-quarter total revenue increased 12% to $1.6 billion, driven by 14% growth in Management Solutions revenue to $1.2 billion and 9% growth in PEO and Insurance Solutions revenue to $370 million. Diluted earnings per share rose 43% to $1.17, while adjusted diluted EPS increased 11% to $1.32. For the full fiscal year 2026, total revenue grew 17% to $6.5 billion, with Management Solutions revenue up 20% to $4.9 billion and PEO and Insurance Solutions revenue up 7% to $1.4 billion. The company returned $2.2 billion to shareholders through dividends and share repurchases and provided fiscal 2027 guidance of 5% to 6% total revenue growth and adjusted diluted EPS growth of 7% to 9%.
Jim Cramer says he won't fight the tide on Paychex amid AI disruption fears
Jim Cramer said he is not going to fight the tide on Paychex, citing AI disruption fears and a pattern of poorly received quarters despite consistent beats and raises. Speaking on his show, Cramer noted that the payroll processor's stock has pulled back from $161 to $93, and while the underlying business remains strong with a 4.6% dividend yield and a price-to-earnings multiple of 17, he sees no catalyst to bridge the gap between the company's performance and its stock price. He described the situation as part of a broader 'macro morass' affecting good companies, where economic slowdown fears and AI worries override positive fundamentals. Cramer ultimately recommended not buying the stock.
Investors Need $123,881 in Paychex Stock to Earn $500 Monthly in Dividends
Investors would need approximately $123,881 invested in Paychex shares to generate $500 per month in dividend income, based on the company's current annual dividend yield of 4.85%. Paychex pays a quarterly dividend of $1.19 per share, or $4.76 annually, and the required investment equates to about 1,261 shares. For a more modest target of $100 per month, an investment of roughly $24,756, or 252 shares, would be needed. The calculation divides the desired annual income by the annual dividend per share. Paychex is set to report fourth-quarter earnings before the opening bell on Wednesday, June 24, with analysts expecting earnings of $1.31 per share on revenue of $1.61 billion.
Paychex to Report Q2 Earnings Amid 12.2% Revenue Growth Expectations
Paychex is set to announce its second-quarter earnings results this Wednesday morning. Analysts expect the human capital management company to report revenue growth of 12.2% year on year, an improvement from the 10.2% increase recorded in the same quarter last year. The company beat revenue expectations last quarter, reporting $1.81 billion, up 19.9% year on year, with a narrow beat on EBITDA estimates. Over the last 30 days, most analysts have reconfirmed their estimates, though Paychex has missed Wall Street revenue estimates multiple times over the past two years. Paychex shares are up 1.5% over the last month, while its peer group has declined 6.3% on average.
Paychex Earns Trust and Workplace Honors Ahead of Fiscal Fourth-Quarter Results
Paychex was named one of Newsweek and Statista's Most Trustworthy Companies in America and earned a place on Newsweek's America's Greatest Workplaces list in June 2026, as it prepares to release fiscal fourth-quarter results on June 24 with analysts expecting $1.31 in EPS and $1.61 billion in revenue. The accolades add to prior recognition from Ethisphere as one of the World's Most Ethical Companies, highlighting the company's reputation for responsible business practices and workplace quality. While the awards may support sentiment around the upcoming earnings call, the investment narrative remains centered on successful integration of Paycor and managing pressure on revenue per client and margins from smaller deal sizes and cost-sensitive customers. Paychex's long-term projections target $7.7 billion in revenue and $2.3 billion in earnings by 2029, implying 6.7% annual revenue growth and a $0.7 billion earnings increase from the current $1.6 billion.
Paylocity Earns Top Marks in Q1 HR Software Earnings
Paylocity reported the strongest results among HR software peers in the first quarter, with revenues of $502.3 million beating analyst estimates by 2.6% and full-year EBITDA guidance raised above expectations. The company's recurring revenue grew 11.6% year on year, and it announced the acquisition of AI-powered recruiting automation firm Grayscale. Paychex posted revenues of $1.81 billion, up 19.9% and exceeding estimates by 1.5%, while Asure Software's $42.76 million in revenue, a 22.7% increase, was overshadowed by next-quarter EBITDA guidance that significantly missed expectations. Paycom's revenues rose 7.8% to $571.8 million, meeting full-year guidance but delivering the slowest growth and weakest performance against estimates among the group. Despite the mixed results, the four HR software stocks collectively saw average share prices decline 2.4% since reporting.
Micron earnings, Amazon Prime Day, and Fed bank stress tests headline next week's catalysts
Next week's key market events include Micron's earnings report, the start of Amazon's Prime Day sales event, and the Federal Reserve's release of 2026 bank stress test results. Micron is scheduled to report on Wednesday, while Amazon's four-day Prime Day begins Tuesday, triggering overlapping sales from rivals Walmart, Target, Best Buy, and Kohl's. The Fed will publish stress test results for major banks including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley after the market close on Wednesday. Other notable earnings include FedEx and Carnival on Tuesday, and Paychex and Jefferies Financial on Wednesday. The June core PCE price index, a key inflation gauge, is due Thursday with economists forecasting a 3.4% core rate.
Wall Street analysts expect Paychex to report quarterly earnings of $1.31 per share, a 10.1% increase from the year-ago period, on revenues of $1.6 billion, up 12.3% year over year. The consensus EPS estimate has edged down 0.3% over the past 30 days. Among key metrics, Management Solutions revenue is forecast at $1.19 billion, up 14.6%, while PEO and Insurance Solutions revenue is seen at $361.45 million, up 6.2%. Total service revenue is projected at $1.55 billion, a 12.5% increase, and interest on funds held for clients is expected to reach $47.47 million, up 5%. Analysts also estimate the average interest rate earned on funds held for clients at 3.4%, down from 3.5% a year ago, and the average investment balance for those funds at $4.97 billion, compared with $5.14 billion in the prior-year quarter.