Paychex Inc.

Paychex Inc.

PAYX

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Market Cap$35.19B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Paychex Inc.Paychex Inc.19.64.59%49%5.51.3

Earnings Call Q1 2027

September 23, 2026 - AI Summary

Q1 fiscal ’27 results were strong; profitability expanded - Total revenue: +6% YoY to ~$1.6B - Operating income / EPS: Operating margin +280 bps to 38%; adjusted operating margin +~130 bps to ~42% - Diluted EPS: $1.21 (+14% YoY); adjusted diluted EPS: $1.34 (+10% YoY) - Expenses: up only ~1% YoY despite continued investment; offset by AI/productivity efficiencies - Cash flow from ops: $414M (timing of client & corporate tax payments) - Capital return: $424M dividends in the quarter; ~47% ROE (12-month rolling)
Guidance updated modestly—PEO is the main driver - Full-year fiscal ’27 guidance reaffirmed, but with updated segment expectations - PEO & Insurance Solutions revenue growth: now 7%–8% (up from prior guidance) due to stronger PEO momentum - Interest on funds held for clients: now $200M–$210M (includes latest +25 bps Fed funds rate impact) - Management Solutions (rest of the portfolio) color: if Q1 strength continues, PEO trends toward the high end while Management Solutions trends toward the low end (investors should expect a mix shift favoring PEO) - Macro assumption: “stable demand” and flat employment levels
Big surprise / “what’s working”: advisory-driven go-to-market + AI execution exceeded expectations - CEO emphasized AI as embedded “intelligence” (WISE) plus advisers “in the loop,” not standalone tools - WISE scale: 2,000+ agents/features deployed; 50 trillion proprietary workforce data points - Early KPI proof: Intelligent Pay Cycle pilot (50,000+ businesses) helped prevent ~90% of payroll errors - Operational efficiency: agentic payroll processing automation up ~20% (Jan–Aug) while maintaining quality/accuracy - Go-to-market execution exceeded plan: ASO → PEO upgrades were double expectations; HCM sales referrals into PEO were up ~50% YoY - New AI products launched/announced: WISE Hire (agentic recruiting for SMBs) and embedding WISE into Microsoft ecosystem

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$109.44

Target Price by Analysts

10.6% upsidePaychex Target Price DetailsTarget Price
$166.14

Current Fair Value

67.9% upside

Undervalued by 67.9% based on the discounted cash flow analysis.

Share Statistics

Market cap$35.19 Billion
Enterprise Value$39.29 Billion
Dividend Yield$4.54 (4.59%)
Earnings per Share$4.9
Beta0.81
Outstanding Shares355,800,000

Return

Return on Equity48.74%ROE
Return on Assets11.53%
Return on Invested Capital25.01%

Valuation & Multiples

P/E Ratio19.59P/E Ratio
PEG163.82PEG
Price to Sales5.5Price to Sales
Price to Book Ratio9.89Price to Book Ratio
Enterprise Value to Revenue5.95
Enterprise Value to EBIT16.86
Enterprise Value to Net Income21
Total Debt to Enterprise0.12
Debt to Equity1.27Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
September 29, 2026
EPS Estimate
$1.32
Average shareholder expectation
Revenue Estimate
$1.63 B
Average shareholder expectation

Next Earnings Call

Expected Date
December 18, 2026
EPS Estimate
$1.31
Average shareholder expectation
Revenue Estimate
$1.62 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.8933▲ 1.09%
Total Calls1,805,180▲ 7.98%
Total Puts1,612,500▲ 9.31%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %85.78%▲ 5.02%
Total Invested$30.17B▲ 12.72%
Investors Holding1,576▲ 18.00%

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 ...