Paychex, Inc. · PAYX · FY2026 Q1 · Calendar Q3 2025

Paychex starts FY2026 strongly as guidance and synergies rise

The quarter supports a constructive near-term operating case: Paycor integration, resilient HCM demand, cross-selling and cost synergies are contributing to growth, while raised EPS guidance adds support. The evidence remains balanced by PEO regional headwinds, slower Paycor recurring-revenue growth and integration-related execution risk.

Reported Before market openNASDAQIndustrials $35.19B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $1.22 Consensus $1.20
EPS surprise +1.7% Reported versus consensus
Reported revenue $1.54B Consensus $1.54B
Revenue surprise +0.1% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move -1.4% Event window
SPY move +0.4% Same window
Abnormal move -1.8% Stock minus SPY
Volume 2.3× Versus trailing sessions
Subsequent drift -2.1% Up to 20 sessions
PAYXSPY benchmark

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Transcript intelligence

What changed

Compared with the prior quarter, guidance sentiment moved from maintained to raised. Management reported 17% year-over-year revenue growth, said cost synergies were exceeding the $90 million target, and introduced or expanded AI tools and a Bill Pay partnership as growth and productivity initiatives.

Guidance delta

Management raised adjusted diluted EPS guidance to 9–11% growth for FY2026.

Key takeaways

  • Revenue grew 17% year over year, driven largely by the Paycor acquisition and HCM demand.
  • Cost synergies are exceeding the $90 million target, with further opportunities identified.
  • AI tools and the Bill Pay partnership add new product and productivity initiatives.
  • PEO employee growth was mid-single-digit with record retention despite regional headwinds.

Management priorities

  • Scale agentic AI pilots for productivity and client service.
  • Expand Bill Pay into accounts receivable and deepen integration in 2026.
  • Accelerate cross-selling retirement, ASO and PEO solutions to Paycor clients.
  • Pursue additional cost synergies through procurement and functional consolidation.

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Earnings History

Estimate Beat Miss Match
PAYX REVENUE earnings history estimate and actual scatter chart 10 reported fiscal quarters and 4 future estimate-only quarters. Q2 '24 estimate $1B Q2 '24 actual $1B, miss Q3 '24 estimate $1B Q3 '24 actual $1B, miss Q4 '24 estimate $1B Q4 '24 actual $1B, beat Q1 '25 estimate $1B Q1 '25 actual $1B, beat Q4 '25 estimate $1B Q4 '25 actual $1B, miss Q1 '26 estimate $2B Q1 '26 actual $2B, beat Q2 '26 estimate $2B Q2 '26 actual $2B, beat Q3 '26 estimate $2B Q3 '26 actual $2B, beat Q4 '26 estimate $2B Q4 '26 actual $2B, beat Q1 '27 estimate $2B Q1 '27 actual $2B, beat Q2 '27 estimate $2B Q3 '27 estimate $2B Q4 '27 estimate $2B Q1 '28 estimate $2B
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Analyst Consensus ?

ConsensusHold31 ratings
Bullish516.1%
Neutral2167.8%
Bearish516.1%

Analyst 52W Price Targets

$98.94Current
$98Low
$122.14Average
$145High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 3, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Cantor Fitzgerald Underweight UnderweightMaintainSep 28, 2026
Baird Neutral NeutralMaintainSep 28, 2026
UBS Neutral NeutralMaintainSep 24, 2026
Stifel Hold HoldMaintainSep 24, 2026
RBC Capital Sector Perform Sector PerformMaintainSep 24, 2026
Show 26 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $98.94. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Robert W. BairdMark Marcon$110$101.37 +11.2%Sep 28, 2026
Stifel NicolausAnalyst unavailable$112$104.49 +13.2%Sep 24, 2026
BMO CapitalDaniel Jester$113$104.49 +14.2%Sep 24, 2026
Wells FargoJason Kupferberg$111$116.93 +12.2%Sep 9, 2026
UBSKevin McVeigh$115$111.96 +16.2%Jul 22, 2026
See 48 more

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Company context

Snapshot as of publication

Founded in 1971 and headquartered in Rochester, New York, Paychex, Inc. delivers comprehensive human capital management (HCM) solutions. The company primarily serves small to medium-sized enterprises (SMEs) across the United States, Europe, and India, addressing their needs in human resources, payroll administration, employee benefits, and insurance. Its diverse service portfolio includes: Payroll Management: Encompassing core payroll processing, payroll tax administration, employee payment facilitation, and ensuring compliance with regulations like new-hire reporting and garnishment processing. Human Resources Solutions: Providing support for employer compliance, HR and employee benefits administration, risk management outsourcing, and even the availability of professionally trained on-site HR representatives.…

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-10-03T04:36:07.100942+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-03T04:36:07.098135+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-03. For educational purposes only; not investment advice.