Paychex (NASDAQ:PAYX) is gearing up to announce its quarterly earnings on Friday, 2025-12-19. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Paychex will report an earnings per share (EPS) of $1.23.
The market awaits Paychex's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Overview of Past Earnings
During the last quarter, the company reported an EPS beat by $0.01, leading to a 2.17% drop in the share price on the subsequent day.
Here's a look at Paychex's past performance and the resulting price change:
| Quarter | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 |
|---|---|---|---|---|
| EPS Estimate | 1.21 | 1.19 | 1.48 | 1.13 |
| EPS Actual | 1.22 | 1.19 | 1.49 | 1.14 |
| Price Change % | -2.00 | 2.00 | 1.00 | 1.00 |
Tracking Paychex's Stock Performance
Shares of Paychex were trading at $116.7 as of December 17. Over the last 52-week period, shares are down 16.37%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analyst Opinions on Paychex
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Paychex.
With 11 analyst ratings, Paychex has a consensus rating of Neutral. The average one-year price target is $127.73, indicating a potential 9.45% upside.
Analyzing Analyst Ratings Among Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of Dayforce, Paycom Software and Paylocity Holding, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Dayforce, with an average 1-year price target of $70.0, suggesting a potential 40.02% downside.
- Analysts currently favor an Neutral trajectory for Paycom Software, with an average 1-year price target of $222.33, suggesting a potential 90.51% upside.
- Analysts currently favor an Buy trajectory for Paylocity Holding, with an average 1-year price target of $185.88, suggesting a potential 59.28% upside.
Key Findings: Peer Analysis Summary
In the peer analysis summary, key metrics for Dayforce, Paycom Software and Paylocity Holding are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Paychex | Neutral | 16.80% | $1.13B | 9.48% |
| Dayforce | Neutral | 9.45% | $242.80M | -7.29% |
| Paycom Software | Neutral | 9.16% | $407.90M | 6.31% |
| Paylocity Holding | Buy | 12.46% | $279.79M | 4.11% |
Key Takeaway:
Paychex ranks highest in revenue growth among its peers. It has the highest gross profit and return on equity.
Get to Know Paychex Better
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.
Paychex's Economic Impact: An Analysis
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Revenue Growth: Paychex's revenue growth over a period of 3 months has been noteworthy. As of 31 August, 2025, the company achieved a revenue growth rate of approximately 16.8%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.
Net Margin: Paychex's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 24.92% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 9.48%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.31%, the company showcases effective utilization of assets.
Debt Management: Paychex's debt-to-equity ratio is below the industry average. With a ratio of 1.26, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
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.
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