Paychex Inc. shares fell 3.06% and hit a 52-week low amid a broader market decline, with the Nasdaq-100 down 1.84% and the S&P 500 down 1.82%.
The company has announced a share buyback program of up to $1 billion, replacing its previous authorization of $400 million, indicating strong confidence in future growth prospects. Additionally, Paychex declared a quarterly dividend of $1.08 per share, consistent with previous levels, which is expected to attract more income-focused investors. The company also raised its adjusted EPS growth outlook for fiscal 2026 to 10%-11%, demonstrating a proactive strategy in technology investment and profitability enhancement.
These strategic moves, including the share buyback and dividend declaration, are likely to enhance investor confidence and support Paychex's long-term growth, despite the current market challenges.
Wall Street analysts forecast PAYX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PAYX is 120.55 USD with a low forecast of 110.00 USD and a high forecast of 126.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
Wall Street analysts forecast PAYX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PAYX is 120.55 USD with a low forecast of 110.00 USD and a high forecast of 126.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
10 Hold
2 Sell
Hold
Current: 102.450
Low
110.00
Averages
120.55
High
126.00
Current: 102.450
Low
110.00
Averages
120.55
High
126.00
Cantor Fitzgerald
Ramsey El-Assal
Underweight
initiated
$98
2026-01-26
New
Reason
Cantor Fitzgerald
Ramsey El-Assal
Price Target
$98
AI Analysis
2026-01-26
New
initiated
Underweight
Reason
Cantor Fitzgerald analyst Ramsey El-Assal initiated coverage of Paychex with an Underweight rating and $98 price target.
Cantor Fitzgerald
Underweight
initiated
$98
2026-01-26
New
Reason
Cantor Fitzgerald
Price Target
$98
2026-01-26
New
initiated
Underweight
Reason
Cantor Fitzgerald initiated coverage of Paychex with an Underweight rating and $98 price target. An intense small-to-medium business competitive landscape and macro-related pressures have inhibited Paychex's ability to re-accelerate organic top-line growth, the analyst tells investors in a research note. While the acquisition of Paycor bolsters Paychex's up-market capabilities, the firm believes the move was largely defensive and remains uncertain of the longer-term organic growth profile of the business.
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Citi
Bryan Keane
Neutral
downgrade
$139 -> $120
2025-12-22
Reason
Citi
Bryan Keane
Price Target
$139 -> $120
2025-12-22
downgrade
Neutral
Reason
Citi analyst Bryan Keane lowered the firm's price target on Paychex to $120 from $139 and keeps a Neutral rating on the shares. The firm cites the company's guidance reduction for the target cut. Paychex now sees hitting the lower end of its annual revenue growth guidance range, but the company is doing well managing the factors within its control, the analyst tells investors in a research note.
Morgan Stanley
Equal Weight
downgrade
$133 -> $123
2025-12-22
Reason
Morgan Stanley
Price Target
$133 -> $123
2025-12-22
downgrade
Equal Weight
Reason
Morgan Stanley lowered the firm's price target on Paychex to $123 from $133 and keeps an Equal Weight rating on the shares. The company now expects to track towards the low-end of its reiterated revenue growth ranges across Management Solutions, PEO, and total revenue, notes the analyst, who is lowering top-line estimates but raising EPS estimates on higher cost synergies.
About PAYX
Paychex, Inc. is a human capital management (HCM) company. The Company is engaged in delivering a full suite of technology and advisory services in human resources, employee benefit solutions, insurance, and payroll. It is a provider of integrated HCM solutions for human resources (HR), payroll, benefits, and insurance for small- to medium-sized businesses in the United States (U.S.) and parts of Europe. It supports its small-business clients by utilizing its proprietary, software as a service (SaaS) Paychex Flex platform and the Company’s SurePayroll SaaS-based solutions. Its HR solutions include HR packages, HR consulting, employee onboarding, hiring services, and artificial intelligence -assisted recruiting. Its payroll services include payroll packages, small business payroll, midsize to enterprise payroll, switch payroll companies, and payroll tax services. Its employee benefits services include Group health insurance, retirement services, and benefits administration services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
