Rochester, New York-based Paychex, Inc. (PAYX) provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), and insurance services for small to medium-sized businesses. With a market cap of $52.7 billion, Paychex operations span the United States, Europe, and internationally.
The tech giant is expected to release its Q4 results on Wednesday, Jun. 25. Ahead of the event, analysts expect PAYX to report an adjusted EPS of $1.20, up 7.1% from $1.12 reported in the year-ago quarter. Moreover, the company has consistently surpassed Wall Street’s earnings estimates in each of the past four quarters.
For the full fiscal 2025, PAYX is expected to deliver an adjusted EPS of $4.99, up 5.7% from $4.72 in fiscal 2024. While in fiscal 2026, its earnings are projected to grow 6% year-over-year to $5.29 per share.
PAYX stock has soared 23.8% over the past 52 weeks, notably outpacing the S&P 500 Index’s ($SPX) 10.6% gains and the Technology Select Sector SPDR Fund’s (XLK) 7% returns during the same time frame.
Paychex stock prices gained 4.2% after the release of its better-than-expected Q3 results on Mar. 26. Driven by continued growth in client base, growth in price realization and increased product penetration, the company’s total revenues increased 4.8% year-over-year to $1.5 billion, surpassing the consensus estimates by a thin margin. Meanwhile, its adjusted net income for the quarter increased 8.6% year-over-year to $541.1 million, and its adjusted earnings of $1.49 per share also surpassed analysts’ projections, which boosted investor confidence.
However, the consensus view on PAYX stock remains neutral, with a “Hold” rating overall. Of the 17 analysts covering the stock, opinions include 14 “Holds,” one “Moderate Sell,” and two “Strong Sells.” As of writing, the stock is trading slightly above its mean price target of $146.64.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
