What to Expect From Paychex's Q2 2026 Earnings Report

Company Overview - Paychex, Inc. (PAYX) is valued at a market cap of $42 billion and provides human capital management solutions, including payroll, employee benefits, HR, and insurance services for small to medium-sized businesses [1] Earnings Expectations - Analysts expect PAYX to report a profit of $1.24 per share for fiscal Q2 2026, which is an increase of 8.8% from $1.14 per share in the same quarter last year [2] - For the current fiscal year ending in May 2026, analysts project PAYX to report a profit of $5.47 per share, up 9.8% from $4.98 per share in fiscal 2025 [2] - EPS is expected to grow 7.1% year-over-year to $5.86 in fiscal 2027 [2] Recent Performance - PAYX's shares have declined 14.3% over the past 52 weeks, underperforming the S&P 500 Index's return of 11.1% and the State Street Technology Select Sector SPDR ETF's 22% increase [3] - Despite strong results, PAYX's shares fell 1.4% on Sep. 30 after the Q1 earnings release, where overall revenue increased 16.8% year-over-year to $1.5 billion, aligning with analyst estimates [4] - The adjusted EPS for Q1 improved 5.2% from the previous year to $1.22, exceeding consensus expectations of $1.21 [4] Analyst Ratings - Wall Street analysts maintain a cautious stance on PAYX's stock, with an overall "Hold" rating; 14 out of 17 analysts recommend "Hold," while three suggest "Strong Sell" [5] - The mean price target for PAYX is $129.36, indicating an 11.9% potential upside from current levels [5]