PAYX

Paychex Inc

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Advanced Chart

134.990

-3.61(-2.605%)1D

Overview
Forecast
Valuation
Earnings

Line

Candle

YTD

High

138.730

Open

138.590

VWAP

136.13

Vol

3.12M

Mkt Cap

48.63B

Low

134.810

Amount

425.21M

EV/EBITDA(TTM)

20.97

Total Shares

359.96M

53.23B

EV/OCF(TTM)

28.00

P/S(TTM)

9.00

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.

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Market Estimates

Earnings Estimates

Revenue

YoY Chg

EPS

YoYChg

FY2026Q3

FY2026Q2

FY2026Q1

1.80B

+19.55%

1.666

+11.79%

1.57B

+19%

1.268

+11.21%

1.54B

+16.66%

1.215

+4.74%

Estimates Revision

The market is revising Downward the revenue expectations for Paychex, Inc. (PAYX) for FY2026, with the revenue forecasts being adjusted by -1.18% over the past three months. During the same period, the stock price has changed by -10.76%.

Revenue Estimates for FY2026

Revise Downward

-1.18%

In Past 3 Month

EPS Estimates for FY2026

Revise Upward

+2.2%

In Past 3 Month

Stock Price

Go Down

-10.76%

In Past 3 Month

11 Analyst Rating

10.90% Upside

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 149.70 USD with a low forecast of 135.00 USD and a high forecast of 165.00 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

9 Hold

2 Sell

Hold

10.90% Upside

Current: 134.990

Low

135.00

Averages

149.70

High

165.00

10.90% Upside

Current: 134.990

Low

135.00

Averages

149.70

High

165.00

BMO Capital

Market Perform

initiated

$160

2025-07-10

Reason

BMO Capital

Price Target

$160

2025-07-10

initiated

Market Perform

Reason

BMO Capital initiated coverage of Paychex with a Market Perform rating and $160 price target. The firm says the company's recent acquisition of Paycor is a "major strategic endeavor" to broaden its market opportunity across customers and products. Patience will be required to evaluate the execution and the stock's valuation appears reasonably balanced, the analyst tells investors in a research note.

Morgan Stanley

James Faucette

Equal Weight

maintain

$150 -> $148

2025-06-27

Reason

Morgan Stanley

James Faucette

Price Target

$150 -> $148

2025-06-27

maintain

Equal Weight

Reason

Morgan Stanley analyst James Faucette lowered the firm's price target on Paychex to $148 from $150 and keeps an Equal Weight rating on the shares following what the firm calls a "slightly-soft" Q4. Paychex's growth guidance suggests about a 5% normalized growth guide, which is "notably below investor expectations," and the lack of organic growth guidance leaves questions around core business performance, the analyst contends.

Stifel

Hold

downgrade

$156 -> $152

2025-06-26

Reason

Stifel

Price Target

$156 -> $152

2025-06-26

downgrade

Hold

Reason

Stifel lowered the firm's price target on Paychex to $152 from $156 and keeps a Hold rating on the shares, stating that "confusion" surrounding FY26 guidance is "more impactful than any fundamental shifts." Last year's fiscal Q4 annual price increase was instituted earlier than historical practice, which distorts the comparisons, says the analyst, who adds that while management reported some weakening data points, they view the installed base as stable and see no signs of pending recession.

UBS

Neutral

downgrade

$155 -> $145

2025-06-26

Reason

UBS

Price Target

$155 -> $145

2025-06-26

downgrade

Neutral

Reason

UBS lowered the firm's price target on Paychex to $145 from $155 and keeps a Neutral rating on the shares. A "lackluster" fiscal 2026 should keep Paychex range bound, the analyst tells investors in a research note.

Jefferies

Hold

downgrade

$155 -> $140

2025-06-25

Reason

Jefferies

Price Target

$155 -> $140

2025-06-25

downgrade

Hold

Reason

Jefferies lowered the firm's price target on Paychex to $140 from $155 and keeps a Hold rating on the shares. The company's Q4 results disappointed largely due to organic Management Solutions revenue growth slowing, with the management having cited multiple reasons including distractions related to integrating Paycor, the analyst tells investors in a research note. Jefferies adds however that while shares could bleed further, the large post-print move and easier setup likely creates a floor against material near-term downside.

JPMorgan

Underweight

maintain

$140 -> $148

2025-06-19

Reason

JPMorgan

Price Target

$140 -> $148

2025-06-19

maintain

Underweight

Reason

JPMorgan raised the firm's price target on Paychex to $148 from $140 and keeps an Underweight rating on the shares. The firm updated the company's model for the acquisition of Paycor.

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Valuation Metrics

The current forward P/E ratio for Paychex Inc (PAYX.O) is 24.73, compared to its 5-year average forward P/E of 28.04. For a more detailed relative valuation and DCF analysis to assess Paychex Inc 's fair value, click here.

Forward PE

The forward P/E ratio is a valuation metric that divides a company's current stock price by its estimated future earnings per share over the next 12 months.

Undervalued

5Y Average PE

28.04

Current PE

24.73

Overvalued PE

31.13

Undervalued PE

24.95

Forward EV/EBITDA

The forward EV/EBITDA ratio is a valuation metric that divides a company's enterprise value (EV) by its estimated future earnings before interest, taxes, depreciation, and amortization (EBITDA) over the next 12 months.

Undervalued

5Y Average EV/EBITDA

19.04

Current EV/EBITDA

17.09

Overvalued EV/EBITDA

20.89

Undervalued EV/EBITDA

17.19

Forward PS

The forward P/S ratio is a valuation metric that divides a company's current stock price by its estimated future sales (or revenue) per share over the next 12 months.

Undervalued

5Y Average PS

8.45

Current PS

7.64

Overvalued PS

9.22

Undervalued PS

7.69