Paychex (NASDAQ:PAYX) Announces Earnings Results, Beats Expectations By $0.03 EPS

25 Mar 2026, 13:22 by Sarita Garza · The Markets Daily

Paychex (NASDAQ:PAYX – Get Free Report) issued its earnings results on Wednesday. The business services provider reported $1.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.68 by $0.03, Briefing.com reports. Paychex had a return on equity of 46.38% and a net margin of 26.45%.The business had revenue of $1.81 billion during the quarter, compared to analyst estimates of $1.78 billion. During the same quarter in the prior year, the firm earned $1.49 earnings per share. Paychex’s revenue for the quarter was up 19.9% on a year-over-year basis.

Paychex Price Performance

Shares of Paychex stock opened at $90.61 on Wednesday. The company’s fifty day simple moving average is $97.72 and its two-hundred day simple moving average is $111.51. Paychex has a 12-month low of $86.89 and a 12-month high of $161.24. The firm has a market cap of $32.53 billion, a PE ratio of 20.55 and a beta of 0.91. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.17.

Paychex Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Wednesday, January 28th were given a dividend of $1.08 per share. The ex-dividend date of this dividend was Wednesday, January 28th. This represents a $4.32 annualized dividend and a yield of 4.8%. Paychex’s dividend payout ratio is presently 97.96%.

Institutional Trading of Paychex

A number of institutional investors have recently modified their holdings of PAYX. Bison Wealth LLC lifted its holdings in Paychex by 3.0% in the 4th quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider’s stock worth $566,000 after buying an additional 117 shares during the period. Brighton Jones LLC increased its stake in shares of Paychex by 26.3% during the fourth quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider’s stock valued at $801,000 after buying an additional 1,190 shares during the period. Stokes Family Office LLC raised its holdings in shares of Paychex by 26.1% during the fourth quarter. Stokes Family Office LLC now owns 2,123 shares of the business services provider’s stock valued at $238,000 after acquiring an additional 439 shares in the last quarter. Abel Hall LLC bought a new position in shares of Paychex during the fourth quarter valued at approximately $232,000. Finally, Quarry LP lifted its stake in Paychex by 1,541.7% in the fourth quarter. Quarry LP now owns 1,970 shares of the business services provider’s stock worth $221,000 after acquiring an additional 1,850 shares during the period. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

Paychex announced that its Board of Directors has authorized a stock buyback plan on Friday, January 16th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the business services provider to buy up to 2.5% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s leadership believes its stock is undervalued.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on PAYX shares. Stifel Nicolaus lowered their price objective on shares of Paychex from $137.00 to $126.00 and set a “hold” rating for the company in a report on Wednesday, December 17th. Wolfe Research reduced their target price on shares of Paychex from $130.00 to $115.00 and set an “underperform” rating on the stock in a report on Wednesday, December 10th. Cantor Fitzgerald upgraded shares of Paychex to a “strong sell” rating in a research report on Tuesday, January 27th. Jefferies Financial Group set a $110.00 price target on shares of Paychex in a research report on Friday, December 19th. Finally, TD Cowen reaffirmed a “hold” rating on shares of Paychex in a research note on Monday, December 1st. One research analyst has rated the stock with a Buy rating, fourteen have assigned a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Reduce” and a consensus target price of $121.38.

Get Our Latest Stock Analysis on PAYX

Paychex Company Profile

(Get Free Report)

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.