Paychex, Inc. (PAYX), headquartered in Rochester, New York, is a leading provider of human capital management (HCM) solutions, serving businesses of all sizes across the U.S. and beyond. With a market cap of $53.1 billion, Paychex offers a comprehensive suite of payroll, HR, retirement, and insurance services, helping companies streamline operations and enhance workforce management. The company is set to announce its Q3 earnings before the market opens on Tuesday, Apr. 1.
Ahead of the event, analysts expect PAYX to report a profit of $1.48 per share on a diluted basis, up 7.3% from $1.38 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. The company delivered an EPS of $1.14 in the last reported quarter, exceeding the consensus estimate by 1.8%. Paychex's Q2 performance was driven by client growth, higher product adoption, and increased PEO worksite employees.
For the full year 2025, analysts expect PAYX to report EPS of $4.99, up 5.7% from $4.72 in fiscal 2024.
Paychex's shares have gained 21.9% over the past 52 weeks, trailing the broader S&P 500 Index's ($SPX) 24.1% gains but outperforming the Technology Select Sector SPDR Fund’s (XLK) 15.8% returns over the same time frame.
Following the release of its Q2 earnings results on Dec. 19, Paychex's stock rose 1.4%. The company reported a total revenue of $1.3 billion, reflecting a 5% increase year-over-year. Operating income grew 6% to $538.1 million, with an operating margin of 40.9%, slightly up from 40.2% in the prior year. The increase in operating income was partially offset by the expiration of the ERTC program, which impacted results.
Analysts’ consensus opinion on PAYX stock is cautious, with a “Hold” rating overall. Out of 16 analysts covering the stock, 13 advise a “Hold” rating, one gives a “Moderate Sell” rating, and two recommend a “Strong Sell.” The average analyst price target for PAYX is $139.08, which indicates that the stock trades at a premium.
