Paychex Inc.
PAYX
Market Cap$44.89B
Close$
Earnings Call Q1 2026
September 30, 2025 - AI Summary
Strong Revenue Growth: Paychex experienced a robust 17% year-over-year revenue growth in Q1 FY2026, totaling $1.5 billion. Management Solutions revenue specifically grew by 21%, driven largely by the integration of Paycor and increased revenue per client. PEO and Insurance Solutions revenue increased by 3%, benefiting from growth in worksite employees.
Outlook for Fiscal 2026: Paychex reaffirmed its fiscal 2026 total revenue growth expectation of 16.5% to 18.5%. Management Solutions is forecasted to grow between 20% to 22%, while PEO and Insurance Solutions are expected to grow by 6% to 8%. Adjusted diluted earnings per share growth is now anticipated to be between 9% and 11%, up from 8.5% to 10.5%.
Challenges in PEO Environment: The PEO segment faces challenges, particularly in Florida, where competition and pricing pressures are impacting growth. Although worksite employee growth is mid-single digits, there are issues with enrollment and retention due to increased bankruptcy rates in the small business sector, which could pose risks going forward.
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$159.49
28% upside
Current Fair Value
28% upsideUndervalued by 28% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $44.89 Billion |
|---|---|
| Enterprise Value | $44.23 Billion |
| Dividend Yield | $4.12 (3.31%) |
| Earnings per Share | $4.6 |
| Beta | 0.91 |
| Outstanding Shares | 360,100,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 27.81 |
|---|---|
| PEG | -272.58 |
| Price to Sales | 7.79 |
| Price to Book Ratio | 11.33 |
| Enterprise Value to Revenue | 7.63 |
| Enterprise Value to EBIT | 19.79 |
| Enterprise Value to Net Income | 27 |
| Total Debt to Enterprise | 0 |
| Debt to Equity | 0.04 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Paychex Inc.
14,300 employees
CEO: Martin Mucci Paychex, Inc. is a leading provider of integrated human capital management solutions for human resources, payroll, benefits, and insurance services. By combining its innovative software-as-a-service technology and mobility platform with ...