PAYX

ROCHESTER, N.Y., July 16, 2026 (GLOBE NEWSWIRE) -- The Board of Directors of Paychex, Inc. (Nasdaq: PAYX) declared a regular quarterly cash dividend on Paychex common stock of $1.19 per share, payable on August 28, 2026, to shareholders of record as of July 28, 2026. About Paychex Paychex, Inc. (Nasdaq: PAYX) provides a comprehensive suite of expert-enabled technology and advisory solutions that help businesses manage HR, payroll, and benefits. Serving approximately 800,000 clients and paying 1 in 11 U.S. private sector workers, Paychex combines scale, trusted expertise, and innovation to help businesses succeed. Built on more than 50 years of workforce experience and one of the industry’s largest proprietary HR datasets, Paychex’s WISE agentic AI platform embeds intelligence directly into workflows to improve productivity, enhance decision-making, and deliver better outcomes. Visit www.paychex.com to learn more. Investor Relations Rachel WhitePaychex, Inc. Head of Investor [email protected] Media RelationsTracy Volkmann Paychex, Inc. Manager, Public Relations [email protected]

Booking Holdings, Alphabet, and six other companies have underperformed their sectors despite improving earnings expectations, setting up potential upside during second-quarter earnings season.

Paychex Inc. (NASDAQ:PAYX) ranks among the top NASDAQ stocks for retirement. On June 24, Paychex Inc. (NASDAQ:PAYX) released its fiscal fourth quarter and full-year 2026 operational and financial results, showcasing double-digit revenue and earnings expansion along with the introduction of its WISE AI-based analytics platform. For the fourth quarter, the company reported adjusted earnings per share of $1.32, just over the average expectation of $1.31. Meanwhile, revenue of $1.61 billion was slightly higher than the $1.60 billion projection. Additionally, Stifel maintained a Hold rating on Paychex Inc. (NASDAQ:PAYX) on June 17 while increasing its price objective from $105 to $110. The firm’s messaging heading into the calm period reflected sustained confidence in fiscal 2027 consensus estimates of mid-single-digit revenue growth and a moderate margin increase. According to Stifel, the pace of fiscal 2026 cost-saving realization, combined with operational leverage and internal AI adoption, supports margin expansion. Customers have shown a willingness to rely on human capital management providers for AI rollouts, implying that there may be more AI-related potential than risk. ​Paychex Inc. (NASDAQ:PAYX) provides integrated human capital management (HCM) solutions focused on payroll, HR, benefits, and insurance for small- to medium-sized businesses, mainly in the US and Europe. It uses its SaaS platforms like Paychex Flex and SurePayroll to offer services. While we acknowledge the potential of PAYX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years Disclosure: None. Follow Insider Monkey on Google News.

With an annual dividend yield of 4.92%, Paychex, Inc. (NASDAQ:PAYX) is included among the 12 Best NASDAQ Stocks to Buy for Dividends. Paychex, Inc. (NASDAQ:PAYX) is a leading provider of integrated human capital management solutions for payroll, benefits, human resources, and insurance services. Paychex, Inc. (NASDAQ:PAYX) announced its Q4 2026 results on June 24. The company reported adjusted earnings of $1.32 per share, narrowly beating expectations by $0.01. Revenue also grew by 12.5% YoY to $1.61 billion and was roughly in line with estimates Meanwhile, Paychex delivered a 17% YoY growth in revenue to $6.5 billion in full-year 2026, while operating cash flow increased 35% to $2.6 billion and free cash flow surged by 36% to $2.3 billion. Paychex, Inc. (NASDAQ:PAYX) is now targeting a revenue growth of 5% to 6% in FY 2027, implying revenue of $6.84 billion – $6.90 billion. At the same time, the company expects its adjusted EPS to grow in the range of 7% to 9%, while adjusted operating margin is projected to be around 44%, up from 43.2% in the prior year. While we acknowledge the potential of PAYX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best S&P 500 Stocks to Buy for Dividends and 12 High Yield Fortune 500 Stocks to Buy Now Disclosure: None. Follow Insider Monkey on Google News.

Paychex, Inc. PAYX used its fourth-quarter fiscal 2026 earnings call to frame the year less around the quarter’s modest estimate beat and more around what management sees as a cleaner setup for fiscal 2027. Executives pointed to accelerating organic growth, Paycor integration progress and the launch of the WISE AI engine as the main reasons they believe the company is entering the new year with stronger momentum. Chief executive officer John Gibson said Paychex exited fiscal 2026 with improving sales momentum in every quarter, supported by execution in upmarket expansion and advisory offerings. He said fourth-quarter bookings topped the third quarter, which he had already described as unusually strong. Chief financial officer Robert Schrader said organic growth nearly doubled from about 3% a year earlier and that the fourth-quarter exit rate broadly aligns with the company’s fiscal 2027 revenue outlook. That framing mattered because management did not present next year as requiring a sharp second-half acceleration. For the quarter, adjusted EPS of $1.32 topped the Zacks Consensus Estimate of $1.31, delivering a 0.8% surprise. Revenues of $1.61 billion beat the consensus estimate of $1.6 billion by 0.2%. Total revenues rose 12% year over year. Paychex, Inc. price-consensus-eps-surprise-chart | Paychex, Inc. Quote Gibson devoted much of his prepared remarks to WISE, the company’s AI-powered intelligence engine, saying it now supports roughly 600 AI features and agents across workflows and internal operations. He positioned the offering as both a productivity tool and a longer-term monetization opportunity. Management said WISE is already helping automate handbook updates, schedule generation, payroll service tasks, and time-sheet approvals. In Q&A, Gibson added that some revenues are already being generated through reporting enhancements and intelligent timekeeping tools now in soft launch. The broader message was that Paychex sees AI differentiation coming from compliance knowledge, proprietary data, and advisory expertise rather than from automation alone. Gibson repeatedly tied that point to the company’s 50-plus years of payroll and HR data. Management’s tone around Paycor was notably confident. Gibson said the company exceeded its fiscal 2026 synergy targets, while Schrader said the deal contributed more than 50 basis points to revenue growth and delivere...

(Updates with latest market prices and developments.) US benchmark equity indexes were mixed intr

Paychex Inc (NASDAQ:PAYX) reported fiscal fourth quarter results that exceeded Wall Street expectations, though shares slipped about 2% in early trading as investors focused on the company’s fiscal 2027 guidance. For the quarter ended May 31, Paychex reported adjusted diluted earnings per share of $1.32, slightly ahead of analyst estimates of $1.31. Revenue rose 12% year over year to $1.61 billion, also topping consensus expectations of $1.60 billion. For fiscal 2026, revenue increased 17% to $6.51 billion, while adjusted diluted earnings per share rose 11% to $5.51. Paychex said growth in the quarter was supported in part by its acquisition of Paycor HCM, completed in April 2025, which contributed roughly eight percentage points to Management Solutions revenue growth. That segment rose 14% to $1.2 billion, while Professional Employer Organization (PEO) and Insurance Solutions revenue increased 9% to $369.7 million. Interest on funds held for clients climbed 15% to $52.2 million. “We finished fiscal 2026 with strong momentum, delivering double-digit revenue and earnings growth while accelerating organic revenue growth throughout the year,” Paychex CEO John Gibson said in a statement. He pointed to the integration of Paycor and continued investment in artificial intelligence, including the rollout of the company’s WISE AI-powered intelligence engine. For 2027, Paychex expects total revenue to grow 5% to 6% in fiscal 2027, with Management Solutions revenue also rising 5% to 6% and PEO and Insurance Solutions revenue increasing 6% to 7%. The company projects interest on funds held for clients of $195 million to $205 million and an effective tax rate of approximately 24%. Adjusted operating margin is expected to be about 44%, while adjusted diluted earnings per share are projected to increase 7% to 9%, implying a range of roughly $5.90 to $6.01 per share. The outlook was broadly in line with analyst expectations, though investors appeared cautious on the growth trajectory, contributing to the stock’s modest decline.

Paychex (PAYX) came out with quarterly earnings of $1.32 per share, beating the Zacks Consensus Estimate of $1.31 per share. This compares to earnings of $1.19 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +0.63%. A quarter ago, it was expected that this payroll processor and human-resources services provider would post earnings of $1.68 per share when it actually produced earnings of $1.71, delivering a surprise of +1.79%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Paychex, which belongs to the Zacks Internet - Software industry, posted revenues of $1.61 billion for the quarter ended May 2026, surpassing the Zacks Consensus Estimate by 0.22%. This compares to year-ago revenues of $1.43 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Paychex shares have lost about 12.7% since the beginning of the year versus the S&P 500's gain of 7.6%. While Paychex has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Paychex was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1...

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by strong momentum in the fourth quarter, with organic revenue growth accelerating sequentially throughout the fiscal year. Management attributed success to the successful integration of the Paycor acquisition, exceeding synergy targets by contributing over 50 basis points to revenue growth and $100 million in cost savings. The company completed a major organizational realignment, moving all sub-100 employee clients to the SMB segment and consolidating 100+ employee clients into the Enterprise segment. Strategic differentiation is increasingly centered on the 'Wise' AI engine, which utilizes 26 trillion data points to automate administrative tasks like handbook updates and payroll submissions. Growth in the PEO segment outpaced the industry, driven by record worksite employee retention and high demand for regulatory and benefits advisory services. The modernization of underlying infrastructure is now complete, enabling the development of payroll-agnostic and stand-alone solutions to expand the addressable market. Management emphasized a shift toward higher-value client acquisition, prioritizing lifetime value and product attachment over raw client count growth. Fiscal 2027 guidance assumes a stable macro environment with flat employment levels and no further changes to the Fed funds rate. Total revenue growth is projected at 5% to 6%, with PEO and Insurance Solutions expected to lead growth in the 6% to 7% range. Interest on funds held for clients is expected to decline to $195 million–$205 million due to the full-year impact of previous interest rate cuts and lapping one-time gains. Management expects adjusted operating income margins to expand to approximately 44%, driven by AI-enabled productivity gains and continued cost discipline. The product roadmap focuses on direct monetization of AI features and expanding the 'Perks' digital benefits marketplace to the Paycor platform's 2.5 million employees. The company reduced its leverage ratio by half a turn through strong earnings and the repayment of a $400 million debt tranche from the Oasis acquisition. A 750 basis point increase in GAAP operating margins was partially driven by lower acquisition-related costs compared to the prior ye...

Paychex, Inc. PAYX has reported solid fourth-quarter fiscal 2026 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues coming in line. Adjusted earnings of $1.32 per share surpassed the consensus estimate of $1.31 by a slight margin and increased 10.9% from the year-ago quarter. Total revenues of $1.61 billion rose 12.5% year over year and beat the consensus estimate by a slight margin. The earnings upside was backed by segment growth, Paycor contributions and disciplined expense performance. Management Solutions led the quarter, while PEO and Insurance Solutions, and client fund interest added further support. Paychex, Inc. price-consensus-eps-surprise-chart | Paychex, Inc. Quote Management Solutions’ revenues increased 14% year over year to $1.18 billion in the fiscal fourth quarter. The segment benefited from higher product penetration and growth in client worksite employees within Human Resources Solutions. Paycor, acquired in April 2025, contributed about 8 percentage points to Management Solutions revenue growth. The acquisition also supported price realization and higher revenues per client, reflecting Paycor’s upmarket client base. Management noted that the quarter included a full period of Paycor revenues and expenses compared with a partial period in the prior-year quarter. That comparison helped drive the sharper contribution from the acquired business in the latest quarter. Professional Employer Organization and Insurance Solutions revenues were $369.7 million, up 9% from the year-ago quarter. Growth in the number of average PEO worksite employees supported the segment’s performance. PEO insurance revenues also increased during the quarter. Interest on funds held for clients rose 15% to $52.2 million, driven by higher average investment balances resulting from the Paycor acquisition. Total service revenues came in at $1.55 billion, up 12% from the year-ago period. The broad advance across core services showed that growth was not confined to one operating line. Total expenses were relatively flat year over year at $1 billion. Increases in compensation-related expenses, amortization of intangible assets, technology investments, selling initiatives and marketing spending were offset by lower acquisition-related compensation and professional service costs. Operating income rose 40% to $604.7 million. The operating margin e...

This article first appeared on GuruFocus. Total Revenue (Q4): Increased 12% to $1.6 billion. Management Solutions Revenue (Q4): Grew 14% to $1.2 billion. PEO and Insurance Solutions Revenue (Q4): Increased 9% to $370 million. Interest on Funds Held for Clients (Q4): Grew 15% to $52 million. Operating Income Margin (Q4): Increased approximately 750 basis points to 37.7%. Adjusted Operating Income Margin (Q4): Increased by approximately 170 basis points to 42.1%. Diluted Earnings Per Share (Q4): Increased 43% to $1.17 per share. Adjusted Diluted Earnings Per Share (Q4): Increased 11% to $1.32 per share. Total Revenue (Full Year): Increased 17% to $6.5 billion. Management Solutions Revenue (Full Year): Grew 20% to $4.9 billion. PEO and Insurance Solutions Revenue (Full Year): Increased 7% to $1.4 billion. Operating Income Margin (Full Year): 38.6%. Adjusted Operating Income Margin (Full Year): Increased by approximately 70 basis points to 43.2%. Diluted Earnings Per Share (Full Year): Increased 7% to $4.89 per share. Adjusted Diluted Earnings Per Share (Full Year): Increased 11% to $5.51 per share. Operating Cash Flows (Full Year): Increased 35% to $2.6 billion. Free Cash Flow (Full Year): Increased 36% to $2.3 billion. Cash Dividends and Share Repurchases (Full Year): Returned $2.2 billion to shareholders. Guidance for Fiscal '27 Total Revenue Growth: Expected in the range of 5% to 6%. Guidance for Fiscal '27 Adjusted Operating Income Margin: Expected to be approximately 44%. Guidance for Fiscal '27 Adjusted Diluted EPS Growth: Expected in the range of 7% to 9%. Warning! GuruFocus has detected 4 Warning Sign with PAYX. Is PAYX fairly valued? Test your thesis with our free DCF calculator. Release Date: June 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Paychex Inc (NASDAQ:PAYX) reported double-digit revenue and earnings growth for both the fourth quarter and the full fiscal year 2026. The company successfully accelerated organic revenue growth in each quarter of the fiscal year. Strong client retention was noted, particularly in payroll clients, reflecting trust in Paychex Inc (NASDAQ:PAYX)'s advisory and benefits solutions. The launch of Wise, an AI-powered intelligence engine, is enhancing productivity and client outcomes, with over 600 AI features and agents. Paychex Inc (NASDAQ:PAYX) exceeded s...

US stock futures were mostly trending higher on Wednesday as markets looked to recover from the prev