Paychex Inc.

Paychex Inc.

PAYX

Get informed when a big investor buys or sells

+ Follow
Market Cap$35.79B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Paychex Inc.Paychex Inc.20.34.43%47%5.91.3

Earnings Call Q4 2026

June 24, 2026 - AI Summary

Strong FY26 performance + accelerating organic growth (good) - Q4: Total revenue +12% YoY to $1.6B; Management Solutions revenue +14% to $1.2B; PEO & Insurance +9% to $370M. - FY26: Total revenue +17% YoY to $6.5B; Management Solutions +20% to $4.9B; PEO & Insurance +7% to $1.4B. - Profitability/earnings: FY26 adjusted operating margin +~70 bps to 43.2%; FY diluted EPS +7% to $4.89 and adjusted diluted EPS +11% to $5.51. - Organic growth trend: Management said organic growth improved sequentially each quarter in FY26, nearly doubling from the level at the prior-year exit (exiting FY26 around ~mid-single-digits).
Guidance for FY27: steady growth outlook but within a macro/stability frame (forecast) - Total revenue: expected +5% to +6% in FY27. - Management Solutions: +5% to +6%. - PEO & Insurance: +6% to +7%. - Interest on funds held for clients: $195M–$205M (explicit decline vs FY26 due to full-year impact of 75 bps Fed cuts and lapping one-time gains from earlier portfolio repositioning). - Margins & EPS: adjusted operating margin expected about 44%; adjusted diluted EPS expected +7% to +9%. - Q1 FY27: guided to revenue growth consistent with full-year guidance with adjusted op margin 41%–42%. - Assumptions/risks acknowledged: stable macro and employment levels flat; no further Fed rate changes assumed.
Capital returns + cash generation (investor-friendly shareholder returns) - FY26 cash flow: operating cash flow +35% to $2.6B; free cash flow +36% to $2.3B. - Returns: $2.2B to shareholders in FY26 via $1.6B dividends and $600M buybacks. - Leverage: reduced leverage by ~half a turn by repaying a $400M Oasis acquisition tranche (matured March). - Management emphasized “industry leading” cash margins with opportunity for expansion over time (esp. as AI/productivity ramps).

Exclusive for Stockcircle Pro members

Sign upSign Up
$104.50

Target Price by Analysts

1.7% downsidePaychex Target Price DetailsTarget Price
$199.36

Current Fair Value

87.5% upside

Undervalued by 87.5% based on the discounted cash flow analysis.

Share Statistics

Market cap$35.79 Billion
Enterprise Value$39.34 Billion
Dividend Yield$4.43 (4.43%)
Earnings per Share$4.9
Beta0.83
Outstanding Shares357,600,000

Return

Return on Equity47.12%ROE
Return on Assets10.88%
Return on Invested Capital24.15%

Valuation & Multiples

P/E Ratio20.35P/E Ratio
PEG49PEG
Price to Sales5.91Price to Sales
Price to Book Ratio10.64Price to Book Ratio
Enterprise Value to Revenue6.04
Enterprise Value to EBIT17.45
Enterprise Value to Net Income22
Total Debt to Enterprise0.12
Debt to Equity1.26Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
July 1, 2026
EPS Estimate
$1.32
Average shareholder expectation
Revenue Estimate
$1.61 B
Average shareholder expectation

Next Earnings Call

Expected Date
September 29, 2026
EPS Estimate
$1.33
Average shareholder expectation
Revenue Estimate
$1.63 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.8824▲ 35.80%
Total Calls1,671,780▼ 6.49%
Total Puts1,475,100▲ 57.37%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %80.09%▲ 0.26%
Total Invested$26.54B▼ 17.62%
Investors Holding1,545▼ 95.00%

ESG Score

No data

About Paychex Inc.

14,300 employees
CEO: Martin Mucci

Paychex, Inc. is a leading provider of integrated human capital management solutions for human resources, payroll, benefits, and insurance services. By combining its innovative software-as-a-service technology and mobility platform with ...

Relevant Senate Committees

Joint Committee on Taxation

This committee provides the official revenue estimates and technical analysis for all tax legislation. Its work directly influences the development and passage of tax laws, which are paramount to Paychex's payroll and benefits services and its clients' financial planning.

Finance

This powerful committee controls taxation, trade, and entitlement spending. Changes to federal tax policy (corporate income, payroll taxes) directly impact Paychex's payroll services and their clients' financial burdens. Entitlement spending decisions (e.g., Medicare) affect the benefits landscape Paychex helps administer.

Health, Education, Labor, and Pensions

This committee directly regulates labor laws (minimum wage, overtime, worker classification), pension plans (ERISA), and healthcare benefits (ACA, other health regulations). These areas are fundamental to Paychex's payroll, HR, and benefits administration services.

Small Business and Entrepreneurship

Paychex primarily serves small and medium-sized businesses (SMBs). This committee's oversight of the SBA and policies affecting capital flow, growth, and R&D for SMBs directly impacts Paychex's addressable market and client success.