Paychex Analysts Slash Their Forecasts Following Q2 Earnings

Group 1 - Paychex, Inc. reported an 18% year-over-year increase in total revenue to $1.557 billion for its fiscal second quarter [1] - Adjusted diluted earnings per share (EPS) were $1.26, up from $1.14 a year earlier, while GAAP diluted EPS were $1.10, slightly lower than the previous year's $1.14 [1] - The company raised its fiscal 2026 adjusted EPS growth outlook to 10%-11%, with guidance now ranging from $5.48 to $5.53 per share [2] Group 2 - CEO John Gibson highlighted significant progress on strategic priorities and credited AI-driven productivity for improved efficiency and client value [2] - Paychex shares rose 2.1% to trade at $114.66 following the earnings announcement [2] Group 3 - Analysts made changes to their price targets on Paychex after the earnings announcement [3] - Morgan Stanley analyst James Faucette maintained an Equal-Weight rating and lowered the price target from $133 to $123 [4] - JP Morgan analyst Tien-Tsin Huang maintained an Underweight rating and cut the price target from $140 to $125 [4] - Citigroup analyst Bryan Keane maintained a Neutral rating and lowered the price target from $139 to $120 [4]