Core Insights - Paychex, Inc. (PAYX) is set to release its first-quarter fiscal 2026 results on September 30, before market open, with expectations of a decent earnings surprise based on past performance [1][10] Revenue Expectations - The consensus estimate for Paychex's first-quarter fiscal 2026 revenues is $1.5 billion, reflecting a 16.6% increase from the same quarter last year, driven by strong segmental growth [2][10] - Management Solutions revenues are projected at $1.1 billion, indicating a 20.2% year-over-year rise, supported by the addition of Paycor and higher revenues per client [3][10] - PEO and insurance solution revenues are expected to reach $339 million, representing a 6.2% increase from the prior year, attributed to robust growth in average PEO worksite employees [4] - Interest on funds held for clients is anticipated to be $41.2 million, implying a 10% rise from the year-ago quarter, bolstered by the inclusion of Paycor balance [4] Earnings Expectations - The Zacks Consensus Estimate for earnings is pegged at $1.21 per share, suggesting a 4.3% increase from the year-ago quarter, likely due to margin expansion [5] - The current model does not predict a definitive earnings beat for Paychex, with an Earnings ESP of +0.12% and a Zacks Rank of 4 (Sell) [6]

Core Insights - Paychex (NASDAQ: PAYX) is a well-established company specializing in payroll and HR solutions for small and mid-sized businesses, focusing on Human Capital Management (HCM) solutions to differentiate itself in a crucial industry for company operations and longevity [1] Company Overview - Paychex operates in the payroll and HR solutions sector, which is essential for the operational efficiency of small and mid-sized businesses [1] - The company emphasizes its Human Capital Management (HCM) solutions as a key differentiator in a relatively mundane industry [1] Analyst Perspective - The article is authored by an investment analyst with a focus on macroeconomic analysis and aims to provide insights into market trends and investment opportunities [1]

Core Viewpoint - Paychex, Inc. is set to announce its fiscal first-quarter earnings for 2026, with analysts expecting a profit increase compared to the previous year [1][2]. Financial Performance - Analysts anticipate PAYX to report earnings per share (EPS) of $1.21, reflecting a 4.3% increase from $1.16 in the same quarter last year [2]. - For the full fiscal year, EPS is projected to be $5.45, which is a 9.4% increase from $4.98 in fiscal 2025, and is expected to rise to $5.85 in fiscal 2027, marking a 7.3% year-over-year growth [3]. Stock Performance - PAYX stock has underperformed the S&P 500 Index, which gained 15.4% over the past 52 weeks, with PAYX shares down 4.4% during the same period [4]. - The stock also lagged behind the Technology Select Sector SPDR Fund, which saw a 24% increase [4]. Analyst Sentiment - The consensus opinion among analysts is cautious, with a "Hold" rating prevailing; 14 out of 16 analysts recommend a "Hold," while 2 suggest a "Strong Sell" [6]. - The average analyst price target for PAYX is $147.42, indicating a potential upside of 16.4% from current levels [6].

Core Viewpoint - Paychex (PAYX) is expected to report quarterly earnings of $1.21 per share, reflecting a year-over-year increase of 4.3%, with revenues projected at $1.54 billion, a 16.5% increase compared to the previous year [1]. Earnings Projections - The consensus EPS estimate has been revised upward by 0.1% in the last 30 days, indicating a reassessment by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts project 'Revenue- Management Solutions' to be $1.17 billion, indicating a year-over-year change of +21.4% [4]. - The estimated 'Revenue- Interest on funds held for clients' is $43.75 million, reflecting a +16.7% change from the prior year [5]. - 'Revenue- Total service revenue' is expected to reach $1.50 billion, suggesting a +17.1% year-over-year change [5]. - The average prediction for 'Revenue- PEO and Insurance Services' is $333.29 million, indicating a +4.4% change from the previous year [5]. Investment Balances and Interest Rates - The 'Average investment Balance - Funds held for clients' is expected to be $4.88 billion, up from $4.29 billion reported in the same quarter last year [6]. - Analysts estimate 'Average interest rates earned - Funds held for clients' to be 3.5%, unchanged from the previous year [6]. - The 'Average investment Balance - Corporate cash equivalents and investments' is projected at $1.68 billion, compared to $1.62 billion reported last year [7]. - 'Average interest rates earned - Corporate cash equivalents and investments' is forecasted to be 4.2%, down from 4.9% in the previous year [7]. Stock Performance - Paychex shares have decreased by -7.5% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% performance [7].

ROCHESTER, N.Y.--(BUSINESS WIRE)--Paychex, Inc. (Nasdaq: PAYX), an industry-leading human capital management ("HCM") company, will release financial results for its fiscal 2026 first quarter ended August 31, 2025 before the financial markets open on Tuesday, September 30, 2025. The company will host a conference call at 9:30 a.m. ET on Tuesday, September 30, 2025, to review the results for the quarter. Participating in this call will be John Gibson, President and Chief Executive Officer, and Bo. ...

Core Viewpoint - Paychex, Inc. (NASDAQ:PAYX) is currently viewed as a top large-cap stock to buy at a 52-week low, despite a recent price target reduction from $149 to $140 by TD Cowen analyst Bryan Bergin, who maintains a Hold rating on the stock [1]. Financial Performance - The analyst anticipates that Paychex's first-quarter results will slightly exceed market estimates, although there are concerns regarding the lack of clear growth drivers for fiscal 2026 [2]. - The company's organic growth target of approximately 5% is considered challenging to achieve compared to the previous year's exit rate [3]. Market Concerns - Recent stock underperformance is attributed to labor market concerns and skepticism regarding Paychex's organic growth guidance [2]. - The need for stronger organic growth in Q1 is emphasized as crucial for the stock to gain upward momentum, despite the company's efforts to manage pricing pressures [3]. Business Overview - Paychex, Inc. specializes in providing human capital management solutions tailored for small to medium-sized businesses [3].

ROCHESTER, N.Y.--(BUSINESS WIRE)--Paychex, Inc. (Nasdaq: PAYX), an industry-leading human capital management (HCM) company, has recently been named one of America's Greatest Companies 2025 by Newsweek. Through an in-depth analysis across four key pillars of success, Newsweek and Plant-A Insights Group compiled the list after evaluating and rating each company on performance, dedication to the American workforce, track record of innovation, and commitment to environmental sustainability and corp. ...

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 $48.7 billion, Paychex's operations span the United States, Europe, and internationally. Companies worth $10 billion or more are generally described as "large-cap stocks." Paychex fits this bill perfectly. Given the company’s extensive clientele, its valuation above this mar ...

Core Viewpoint - Paychex reported strong fourth-quarter fiscal 2025 results, with earnings and revenues exceeding estimates, indicating positive momentum leading up to the next earnings release [2][12]. Financial Performance - Paychex's Q4 earnings were $1.19 per share, a 6.3% increase year-over-year, and total revenues reached $1.4 billion, a 10% increase from the previous year [2]. - Management Solutions segment revenues grew 12% year-over-year to $1 billion, driven by the acquisition of Paycor and increased revenues per client [3]. - Professional employer organization (PEO) and Insurance Solutions revenues were $340.3 million, up 4% year-over-year, supported by growth in average PEO worksite employees [4]. - Service revenues increased 10% year-over-year to $1.4 billion, while interest on funds held for clients rose 18% to $45.2 million [5]. Profitability Metrics - EBITDA decreased 1% year-over-year to $518.2 million, missing estimates, while operating income fell 11% to $431.1 million, also below projections [6]. - The operating margin was reported at 30.2%, down 700 basis points from the previous year, but still exceeded estimates [6]. Balance Sheet & Cash Flow - At the end of Q4 fiscal 2025, Paychex had cash and cash equivalents of $1.6 billion, with long-term debt totaling $4.5 billion [7]. - Cash generated from operating activities was $394 million, with capital expenditures amounting to $60.5 million [7]. Future Guidance - For fiscal year 2025, Paychex expects revenue growth of 16.5-18.5% and has raised its forecast for interest on funds held for clients to $190-$200 million [8]. Market Sentiment - Recent estimates for Paychex have trended upward, reflecting positive market sentiment and expectations for above-average returns in the coming months [9][12].

Group 1: Technology Sector Overview - Technology stocks constitute approximately one-third of the S&P 500 index and are significantly outperforming the broader index this year [1] - The lack of dividends in many tech stocks is due to reinvestment of profits into scaling successful products, research, and AI infrastructure [2][4] Group 2: Cisco Systems - Cisco Systems reported third-quarter fiscal 2025 revenue of $14.1 billion, an 11% increase year-over-year, with earnings per share (EPS) of $0.62, up 35% from the previous year [5] - The company generated over $1 billion in AI-related revenue in 2024 and aims to double that in 2025, aided by the $28 billion acquisition of Splunk [6] - Cisco's stock has risen 15% in 2025 and offers a dividend yield of 2.3% [7] Group 3: International Business Machines (IBM) - IBM, known for its long history, is currently focused on cybersecurity, cloud computing, and consulting, with 81% of Fortune 500 companies using its mainframe computers [8] - The company has gained 30% in stock value this year, bolstered by its 2019 acquisition of Red Hat, which enhanced its hybrid cloud-computing capabilities [9] - Analysts project IBM's revenue to increase by 5.5% to $66.2 billion this year, with a further 4% growth expected in fiscal year 2026, alongside a 2.3% dividend yield [10] Group 4: Paychex - Paychex, a leader in payroll and human resources services, surpassed $5 billion in revenue in 2024 and serves over 745,000 clients [11][13] - The company experienced double-digit growth in its retirement services division, which now manages $52 billion in assets [13] - Paychex's revenue for fiscal Q4 2025 was $1.42 billion, a 10% increase year-over-year, despite an 11% drop in operating income due to a $4 billion acquisition of Paycor [13] - The company forecasts revenue growth of 16.5% to 18.5% and EPS growth of 8.5% to 10.5% for the next fiscal year [14] - Paychex stock has increased by 2% this year and offers a dividend yield of 3%, with a forward price-to-earnings (P/E) ratio of 26 [15]