Insights Ahead: Paychex's Quarterly Earnings

Paychex (NASDAQ: PAYX) will release its quarterly earnings report on Tuesday, 2025-09-30. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Paychex to report an earnings per share (EPS) of $1.21.

The announcement from Paychex is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Overview of Past Earnings

During the last quarter, the company reported an EPS missed by $0.00, leading to a 2.23% increase in the share price on the subsequent day.

Here's a look at Paychex's past performance and the resulting price change:

Stock Performance

Shares of Paychex were trading at $128.21 as of September 26. Over the last 52-week period, shares are down 8.58%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Insights on Paychex

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Paychex.

With 5 analyst ratings, Paychex has a consensus rating of Neutral. The average one-year price target is $148.6, indicating a potential 15.9% upside.

Understanding Analyst Ratings Among Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Paycom Software, Dayforce and Paylocity Holding, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Paycom Software, with an average 1-year price target of $263.71, suggesting a potential 105.69% upside.
• Analysts currently favor an Neutral trajectory for Dayforce, with an average 1-year price target of $70.6, suggesting a potential 44.93% downside.
• Analysts currently favor an Buy trajectory for Paylocity Holding, with an average 1-year price target of $215.89, suggesting a potential 68.39% upside.

Peer Metrics Summary

Within the peer analysis summary, vital metrics for Paycom Software, Dayforce and Paylocity Holding are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Paychex ranks in the middle for revenue growth among its peers. It has the highest gross profit compared to others. Paychex has the lowest return on equity.

All You Need to Know About Paychex

Paychex is a technology company providing human capital management solutions, enabling clients to better implement payroll, talent, time, tax, and benefits administration. It has a diverse set of product offerings addressing client needs. Aside from its traditional cloud-based payroll and HCM software offering, which accounts for close to half of total revenue, the company provides outsourcing options. Paychex's administrative service organization and professional employer organization accounts generate over 40% of sales. The balance of revenue is generated through retirement services, insurance solutions, and other products. In fiscal 2025, the company had 800,000 clients and almost 2.5 million worksite employees across its ASO and PEO.

Financial Milestones: Paychex's Journey

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Over the 3 months period, Paychex showcased positive performance, achieving a revenue growth rate of 10.21% as of 31 May, 2025. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Paychex's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 20.82%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Paychex's ROE stands out, surpassing industry averages. With an impressive ROE of 7.21%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Paychex's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.14% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Paychex's debt-to-equity ratio is below the industry average at 1.22, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Paychex visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.