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Paychex (PAYX) stock

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NASDAQ: PAYX Nasdaq Human Resource & Employment Services Next results ~December 18, 2026

B Fundamentals grade

Paychex is a US-listed company in the human resource & employment services industry. Its financial year ends in May.

Stock price today

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Third-party market data · may be delayed

Fair value per share

~$140

Cash-flow model

Base case. Range ~$110–$190 across our lower- and higher-growth cases (6.5%–16.5% a year).

Price vs value

Modestly undervalued

The price is inside our value range, 19% below our base value.

Price used: $115.49, November 2, 2026

Paychex valuation: adjust assumptions and compare models →

Who’s trading

What company insiders, investment funds and members of Congress have been doing with the stock, from their own filings.

Value diary

Our note on each quarter Paychex files

Where Paychex stands after its latest 10-Q

Revenue for the twelve months to August 2026 was $6.60bn, up 14.0% on a year earlier, slower than 16.9% a quarter earlier. Free-cash-flow margin fell to 30.5% from 32.1% a year earlier. Against its peers on growth, profitability, cash generation and balance sheet, it grades B. It passes 4 of our 7 financial-health checks. Our cash-flow model value is $144 a share, against a share price of $112. At that price, our model says the market is pricing in about 7.5% a year of cash-flow growth for five years, close to the 7.4% a year revenue growth it has delivered.

Source: 10-Q filed September 24, 2026 on SEC EDGAR · Financials · Valuation

Written from the company's filings and our models when each quarter's report arrives. Figures in older notes are as published at the time. Not investment advice.

The Fundamentalytics view

Next results ~December 18, 2026 (estimated)

Paychex's trailing-twelve-month revenue grew 14.0% year on year, with a free-cash-flow margin of 30.5%. Where it stands out: gross margin of 74.4% ranks 1 of 17 human resource & employment services companies we cover. Where it lags: change in growth rate of -2.9pp ranks 19 of 20 human resource & employment services companies we cover.

Our discounted-cash-flow model values the business at ~$140 per share in the base case (~$110–$190 across growth scenarios) — model values under stated assumptions, not a price target.

Current signal Gross margin expanding: TTM gross margin reached 74.4%, up 1.6pp year over year.

Assembled from SEC-filed figures — the full workings are on this page and in our methodology. Observations, not recommendations.

Highlights

How we pick these

Strengths

  • Priced below our value. The share price of $115.49 is 24% below our value per share of $140.
  • High operating margin. 39.2% of revenue is left as operating profit, against a median of 0.6% for human resource & employment services companies we cover.
  • Strong cash generation. 30.5% of revenue turned into free cash flow, against a median of 1.2% for human resource & employment services companies we cover.
  • Beating expectations. Earnings per share beat the analysts' consensus estimate in each of the last four quarters.

Things to watch

  • Growth easing. The growth rate is 2.9 points lower than a quarter earlier.
  • Below peers: change in growth rate. Change in growth rate of -2.9pp ranks 19 of 20 human resource & employment services companies we cover (median +0.5pp).
  • Below peers: long-term debt as % of assets. Long-term debt as % of assets of 29.1% ranks 12 of 14 human resource & employment services companies we cover (median 11.3%).

Latest results: FY2027 Q1

Filed September 24, 2026
Earnings per share
$1.34 against an average estimate of $1.32: beat by 1.6%
Revenue
$1.63bn, up 5.9% on a year earlier
Share reaction
-11.3% in the first session after the results on September 23, 2026, against -0.8% for the S&P 500
Guidance given
total revenue growth growth 5% to 6% (Fiscal Year 2027); management Solutions revenue growth growth 5% to 6% (Fiscal Year 2027)
Next report
December 18, 2026; average EPS estimate $1.28

Paychex's figures from its SEC filings and results release; estimates are the analysts' average. Not a recommendation.

Price chart

  • 1 day+3.0%
  • 1 week-0.2%
  • 1 month+17.9%
  • This year+7.5%
  • 1 year+4.1%
  • 5 years+9.8%
  • S&P 500 this year+11.2%

Closing prices to 2026-11-02. Price change only, dividends excluded.

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Third-party market data · may be delayed

At a glance

Trailing twelve months, from SEC filings

Profitability

Revenue (TTM)
$6.6B
Operating margin
39.2%
Net margin
27.4%
EPS (TTM, diluted)
$5.04

Growth

Revenue growth
+14.0%
Change in growth rate
−2.9 pts
Share count change
−0.9%

Cash

Free cash flow (TTM)
$2B
FCF margin
30.5%
Stock pay % of revenue
1.3%

Earnings

Last results
September 23, 2026
Next results (est.)
December 18, 2026

News & updates

Updated October 31, 2026

Company announcements, filed results and changes that matter to shareholders.

  1. Shareholder vote
  2. Dividend
  3. Results
  4. Guidance
  5. Leadership
  6. Insider trade

Refreshed hourly when new source data is available. Summaries are checked against company releases and SEC filings. Company announcement headlines are labelled when a checked summary is unavailable.

Valuation

Paychex valuation models and calculator

What the price is pricing in

The share price implies about 6.2% a year of cash-flow growth for five years.That is close to the 7.4% a year revenue growth Paychex has delivered.

  • Priced in6.2%
  • Last 12 months14.0%
  • 3 years a year9.1%
  • 5 years a year7.4%

Our cash-flow model with every input fixed except growth over the next five years, solved for the growth at which the model value equals the share price ($112.64, Nov 3, 2026). Cash-flow growth then fades to 2.5% a year; discount rate 8.5%. Delivered figures are revenue growth from SEC filings. This is a model exercise, not investment advice or a forecast of the share price. All companies

Fundamentalytics rating

model v1.6 · 2026-11-03
Hold12-month view
12-month price target
~$140
Price used
$112.64close November 3, 2026
Implied change
▲ +27%
Uncertainty
Medium

How we got here: a discounted-cash-flow model of Paychex's free cash flow after stock-based pay with after-tax interest added back ($2.1B, FY2027 Q1 TTM), growing 7% and 9.3% in the next two years (forecasts, guidance and its record), then back to 11.5% by year five, and fading to 2.5%, discounted at 8.5%. Lower and higher growth cases span ~$110–~$190 ; that spread sets a 25% margin before we rate Buy or Sell.

Produced by Fundamentalytics' automated valuation model on November 3, 2026, using delayed market prices. Rating meanings, methodology and conflicts: recommendations disclosure and research disclaimer. General research, not personal advice — it does not consider your circumstances. Prices can fall as well as rise.

Our value per share comes from a discounted-cash-flow model of Paychex's free cash flow after stock-based pay ( $2.1B, FY2027 Q1 TTM, with after-tax interest added back): growth for five years as below (the first two years from forecasts, guidance and the company's record), fading to 2.5%, discounted at 8.5%, then cash added and debt and other claims subtracted. These are model values under stated assumptions, not price targets or recommendations.

Valuation models

We value Paychex as an operating company, with every model that fits that kind of business. Cost of equity 8%: the 10-year Treasury yield (4.9%) plus a beta of 0.69 times a 4.5% equity risk premium.

Value per share by model
Model Value per share In the combined value?
Cash-flow model (DCF) Free cash flow to the firm (after stock pay, with after-tax interest added back), grown then faded to 2.5%, discounted at 8.5% as the firm rate, less debt and other claims. ~$140 ~$110–$190 Primary model, counts double
Forward price-to-earnings vs peers Next year's consensus earnings per share times peers' typical (harmonic-mean) forward price-to-earnings. Uses analysts' consensus estimates (third-party data), not our forecasts. ~$86 ~$71–$120 Included
Residual income Book value plus the present value of returns above the cost of equity, fading over ten years. — Does not apply: return on equity above 40%: buybacks or intangibles make book value too small an anchor
Justified price-to-book Book value times (return on equity - growth) / (cost of equity - growth): steady-state returns. ~$85 ~$71–$110 Included
Combined value Weighted average of the models that apply: the primary model (cash-flow model (dcf)) counts double. Models more than 5x or less than 0.2x the share price, or more than 3x away from the other models' median, are left out. ~$110 ~$85–$140 3 models

Different models fail in different ways, so where several apply we average them rather than trust one. Peer-based models compare Paychex with Human Resource & Employment Services in our coverage, using third-party market data. Model values are estimates under stated assumptions, updated as new filings arrive; not price targets or investment advice. How each model works.

What moves the value

  • Revenue growth 5 points lower ▼ −26%
  • Revenue growth 5 points higher ▲ +33%
  • Free-cash-flow margin 1 point lower ▼ −3%
  • Last year's free-cash-flow margin change, if it persists ▼ −5%
  • Discount rate 1 point higher ▼ −16%
Value per share under different assumptions
Discount rate ↓ / growth → −5% growth0% growth5% growth10% growth15% growth20% growth
7% $74$104$144$197$265$354
8.5% $54$76$105$142$191$254
10% $42$59$81$110$147$195

Valuation multiples over time Market data may be delayed

At fiscal year end 20162017201820192020202120222023202420252026Now
Share price$39.03$44.00$50.33$67.99$59.13$85.23$106.86$93.12$109.92$148.60$95.01$115.49
Market value$14.1bn$16.0bn$18.2bn$24.6bn$21.3bn$30.9bn$38.8bn$33.7bn$39.8bn$53.8bn$34.2bn$41.4bn
+ Net debt (− = net cash)−$132m−$185m−$358m$126m−$103m−$191m$436m−$414m−$652m$3.4bn$3.5bn$4.0bn
Enterprise value$14.0bn$15.8bn$17.8bn$24.7bn$21.2bn$30.7bn$39.2bn$33.3bn$39.1bn$57.2bn$37.7bn$45.4bn
Multiples
Price / sales 4.8x5.1x5.4x6.5x5.3x7.6x8.4x6.7x7.5x9.7x5.3x6.3x
Price / earnings 18.7x19.3x18.3x23.8x19.4x28.1x27.9x21.7x23.5x32.5x19.4x22.9x
Price / free cash flow 15.4x18.4x16.2x21.4x16.2x27.0x26.7x21.6x22.9x31.5x14.7x20.5x
EV / EBITDA 11.1x11.4x12.5x15.9x12.7x18.6x19.3x15.1x16.7x23.6x12.8x15.7x

Market value uses the period's diluted share count; figures for each fiscal year use that year's results and the price at year end. "Now" uses today's price and the last twelve months.

Moat

82 /100

Strong moat

How hard Paychex's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

  • Returns on capital 20 / 20

    Net income has been a median 12.8% of total assets over 10 years.

  • Pricing power 20 / 20

    Gross margin has been a median 71.3%, moving by 1.9 percentage points (standard deviation) across 7 years.

  • Durability 20 / 20

    Operating margin has been a median 38.8%; its worst year was 35.1%.

  • Cash conversion 20 / 20

    Free cash flow was positive in 10 of 10 years, at a median 30.4% of revenue.

  • Discipline 17 / 20

    The diluted share count fell 1.0% over five years; stock-based pay has been a median 1.2% of revenue.

AI disruption exposure: High. In this industry, the core product is information work that AI systems increasingly perform. The score above includes a 15-point deduction for that exposure (97 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Forecasts and guidance

Next results: December 18, 2026, before the open. Analysts expect revenue of $1.6bn and EPS of $1.28 (range $1.24 to $1.31) for the quarter.

Analysts' consensus

Fiscal yearEPSGrowthRevenueGrowth
Current $5.96 +8% $6.9bn +5%
Next $6.39 +7% $7.2bn +6%

Next year's EPS estimate has moved 0.0% in 90 days, across 19 analysts.

How the EPS forecast has moved

The consensus EPS forecast for the current fiscal year is −0.4% on 90 days ago. In the last 30 days, 5 analysts raised Paychex's forecast and 7 cut it.

Consensus EPS forecast Paychex, last 90 days
$5.80 $6.00 $6.20 $6.40 90 days ago 60 days ago 30 days ago 7 days ago Now Current fiscal year, 90 days ago: $5.98 Current fiscal year, 60 days ago: $5.98 Current fiscal year, 30 days ago: $5.96 Current fiscal year, 7 days ago: $5.96 Current fiscal year, Now: $5.96 $5.96 Next fiscal year, 90 days ago: $6.39 Next fiscal year, 60 days ago: $6.39 Next fiscal year, 30 days ago: $6.39 Next fiscal year, 7 days ago: $6.39 Next fiscal year, Now: $6.39 $6.39

Average of analysts' published estimates (third-party data).

View chart data
Period Current fiscal yearNext fiscal year
90 days ago $5.98$6.39
60 days ago $5.98$6.39
30 days ago $5.96$6.39
7 days ago $5.96$6.39
Now $5.96$6.39

Earnings against estimates

Quarter toEstimateActualSurprise
Aug 2026 $1.32 $1.34 +1.6%
May 2026 $1.31 $1.32 +0.9%
Feb 2026 $1.67 $1.71 +2.3%
Nov 2025 $1.23 $1.26 +2.4%

Adjusted EPS as companies report it, against the average analyst estimate.

Management guidance

Earnings release, September 23, 2026
  • Total revenue growth Fiscal Year 2027 5% growth to 6% growth Maintained
    “Total revenue growth 5% to 6% No change” source
  • Adjusted diluted earnings per share growth Fiscal Year 2027 7% growth to 9% growth Non-GAAP Maintained
    “Adjusted diluted earnings per share growth 7% to 9% No change” source
  • Adjusted operating margin Fiscal Year 2027 about 44% Non-GAAP Maintained
    “Adjusted operating margin ~44% No change” source
  • Management Solutions revenue growth Fiscal Year 2027 5% growth to 6% growth Maintained
    “Management Solutions revenue growth 5% to 6% No change” source
  • PEO and Insurance Solutions revenue growth Fiscal Year 2027 7% growth to 8% growth Raised
    “PEO and Insurance Solutions revenue growth 7% to 8% Previously 6% to 7%” source
  • Interest on funds held for clients Fiscal Year 2027 $200m to $210m Raised
    “Interest on funds held for clients $200 million to $210 million Previously $195 million to $205 million” source
Show 1 more item
  • Effective income tax rate Fiscal Year 2027 about 24% Maintained
    “Effective income tax rate ~24% No change” source

Figures and quotations are management's, copied from the company's own press release (SEC 8-K exhibit) and checked word for word against it. Forward-looking statements are the company's expectations, not ours and not advice; guidance can change or be missed.

How our valuation uses these forecasts

Our cash-flow model grows Paychex's revenue by +7.0% next year and +9.3% the year after, then fades back toward its own record by year five. Next year's rate weighs analysts' consensus (+5.4%, weight 56%) , management guidance (+5.5%, weight 19%) and the company's own record (+11.5%, weight 25%) . How the weights are set.

Analyst recommendations

19 analysts, Oct 2026
Buy211%
Hold1579%
Sell211%

Monthly trend

  1. Oct 2026215219
  2. Sep 2026215219
  3. Aug 20262113218
  4. Jul 2026212318

Counts of recommendations published by analysts covering Paychex, by month. Source: Aggregated broker recommendations (third-party data). Aggregated counts only: we do not reproduce any firm's recommendation or price target, and these are not Fundamentalytics ratings.

Positioning

Short interest
6.5%
of tradable shares
Days to cover
5.88
at average volume
Short interest, 1 month
+5%
to October 15, 2026
Held by institutions
86%
of shares
Held by insiders
10.2%
of shares
Employees
17,600
full time

Consensus figures average analysts' published estimates (third-party data); guidance is the company's own. Neither is our forecast. Short interest is reported twice a month and lags. Market data may be delayed.

This section is general information, not investment advice or a personal recommendation, and it does not take account of your objectives or circumstances. Forecasts and guidance are estimates, not promises: companies miss their own guidance and analysts' figures are often revised. Prices can fall as well as rise, and you can lose money. See our disclaimer.

Share-price performance

Market data may be delayed

What moved the share price

Last 12 months +4.1%

$110.96 on October 31, 2025 to $115.49

ThenNowEffect
Revenue (last 12 months) $5.8bn $6.6bn +14.0%
Net margin 27.9% 27.4% −1.8%
P/E multiple 24.9x 22.9x −7.9%
Share count 362m 359m +0.9%

Biggest factor: revenue.

Last 3 years +17.0%

$98.73 on November 3, 2023 to $115.49

ThenNowEffect
Revenue (last 12 months) $5.1bn $6.6bn +29.8%
Net margin 31.4% 27.4% −12.9%
P/E multiple 22.4x 22.9x +2.4%
Share count 362m 359m +1.0%

Biggest factor: revenue.

The effects multiply back to the price change exactly. Results are the last 12 months as known on each date (filings assumed public 45 days after quarter end).

Return and risk by year

Calendar year 202120222023202420252026 to date
Return
PAYX+50%−13%+6%+21%−18%+8%
Industry peers (median)+48%−21%+4%−17%−35%+19%
S&P 500+29%−18%+26%+25%+18%+11%
Months that ended higher
PAYX67%42%42%75%42%64%
S&P 50075%42%67%75%75%46%
Largest fall from a high during the year
PAYX−10%−23%−14%−9%−31%−24%
S&P 500−5%−25%−10%−8%−19%−9%

Worst fall since November 3, 2015: 45% from June 6, 2025 to April 10, 2026. Getting back needed a 82% gain, and the shares have not yet recovered.

Price behaviour

52-week range
$82.77 – $126.06
From 52-week high
−8.4%
vs 50-day average
+3.5%
vs 200-day average
+14.0%
Volatility (1 year)
31%
Beta vs S&P 500
-0.08

Volatility is the annualised standard deviation of daily returns. Beta 1.5 means the shares typically moved 1.5% for each 1% move in the S&P 500 over the past year. Prices to November 2, 2026.

Share price after results

Next day
5 up, 7 down
typical move ±4.5%
After a week
6 up, 6 down
typical move ±4.7%
After a month
5 up, 7 down
typical move ±4.8%
Results releasedNext dayS&P 500 next day5 days21 days
September 23, 2026 −11.3% −0.8% −14.0% +3.7%
June 24, 2026 −1.3% +0.1% +4.8% +15.9%
March 25, 2026 +3.3% −1.2% +0.3% −0.9%
December 19, 2025 +0.6% +1.5% −0.2% −6.2%
September 30, 2025 −3.5% +0.7% −1.2% −8.7%
June 25, 2025 −7.4% +0.8% −4.1% −2.1%
March 26, 2025 +5.3% −1.5% +7.5% −0.6%
December 19, 2024 +2.7% +1.2% +4.0% +6.5%
October 1, 2024 +4.9% −0.9% +3.0% +5.4%
June 26, 2024 −5.8% +0.3% −6.1% +0.6%
April 2, 2024 −1.1% −0.5% +4.1% −1.8%
December 21, 2023 −6.3% +1.2% −6.8% −4.7%

From the close before the release date to the close 1, 5 and 21 trading days after it, so releases before the open and after the close are both captured. Past moves don't predict future ones.

Options strategies

All options ideas

How Paychex’s listed options are priced, and three ways to use them that follow from our valuation. Quotes are delayed, read November 2, 2026. Check the live chain at your broker before trading.

Implied vs realised volatility

Includes results

A results date falls inside these options’ life. Implied volatility is meant to be higher for that, so we do not call it rich.

  • Implied is 1.10× the last 60 days’ realised volatility .
  • Calls are priced 2 points richer than puts (25-delta): demand for upside is high, which favours selling calls over puts.
  • Why: an earnings date falls inside the option's life, so implied volatility is expected to be high.

Our rule for “rich”: implied at least 1.2× 60-day realised (beyond measurement noise), above 1-year realised (not just a calm spell), and in the top 20% of our coverage that day. Never with results inside the option’s life. These are our conventions, built on research showing option prices usually imply more movement than follows, most when the gap is wide. How we judge this.

Cash-secured put

Not offered: fundamentals grade B (needs B+ or better).

We suggest selling a put only on well-rated companies, at a strike where the price you would pay if assigned (strike less premium) is at or below our fair value.

Covered call

Not offered: no liquid call at or above our price target — the model says the upside is worth more than any listed strike.

For holders: sell a call at a strike at or above our fair value, so the shares are only sold at a price the model calls full value.

Collar

Not offered: the shares trade below our fair value: a collar caps upside the model expects.

For holders of a stock trading at or above our fair value: buy a put for a floor and sell a call to pay for it.

General research, not personal advice. Options can lose you more than you expect and are not suitable for everyone: put sellers can be made to buy shares that keep falling, call sellers give up gains above the strike, and results or news can move prices sharply. Chances shown are approximations from each option’s delta. Spreads, fees and early assignment are not modelled.

Paychex in five measures

Fundamentals grade B
Growth Profitability Cash Balance sheet Value

Growth, profitability, cash generation and balance sheet are percentiles against the companies we cover in the same industry, from SEC filings (100 = best). Value compares the share price with our modelled value range (50 = at our base value; higher = cheaper). A description of reported data and our model — not a quality score or advice.

Fundamentals

Revenue (TTM) Paychex
$5B $5.5B $6B $6.5B $7B FY24 Q2 FY25 Q1 FY25 Q4 FY27 Q1 Revenue (TTM), FY24 Q2: $5.2B Revenue (TTM), FY24 Q3: $5.2B Revenue (TTM), FY24 Q4: $5.3B Revenue (TTM), FY25 Q1: $5.3B Revenue (TTM), FY25 Q2: $5.4B Revenue (TTM), FY25 Q3: $5.4B Revenue (TTM), FY25 Q4: $5.6B Revenue (TTM), FY26 Q1: $5.8B Revenue (TTM), FY26 Q2: $6B Revenue (TTM), FY26 Q3: $6.3B Revenue (TTM), FY26 Q4: $6.5B Revenue (TTM), FY27 Q1: $6.6B $6.6B

Source: SEC EDGAR filings. Retrieved October 20, 2026.

View chart data
Period Revenue (TTM)
FY24 Q2 $5.2B
FY24 Q3 $5.2B
FY24 Q4 $5.3B
FY25 Q1 $5.3B
FY25 Q2 $5.4B
FY25 Q3 $5.4B
FY25 Q4 $5.6B
FY26 Q1 $5.8B
FY26 Q2 $6B
FY26 Q3 $6.3B
FY26 Q4 $6.5B
FY27 Q1 $6.6B
Revenue growth, TTM YoY Paychex
0% 5% 10% 15% 20% FY24 Q2 FY25 Q1 FY25 Q4 FY27 Q1 Revenue growth, TTM YoY, FY24 Q2: 7.0% Revenue growth, TTM YoY, FY24 Q3: 5.9% Revenue growth, TTM YoY, FY24 Q4: 5.4% Revenue growth, TTM YoY, FY25 Q1: 4.4% Revenue growth, TTM YoY, FY25 Q2: 4.2% Revenue growth, TTM YoY, FY25 Q3: 4.3% Revenue growth, TTM YoY, FY25 Q4: 5.6% Revenue growth, TTM YoY, FY26 Q1: 9.1% Revenue growth, TTM YoY, FY26 Q2: 12.4% Revenue growth, TTM YoY, FY26 Q3: 16.4% Revenue growth, TTM YoY, FY26 Q4: 16.9% Revenue growth, TTM YoY, FY27 Q1: 14.0% 14.0%

Source: SEC EDGAR filings. Retrieved October 20, 2026.

View chart data
Period Revenue growth, TTM YoY
FY24 Q2 7.0%
FY24 Q3 5.9%
FY24 Q4 5.4%
FY25 Q1 4.4%
FY25 Q2 4.2%
FY25 Q3 4.3%
FY25 Q4 5.6%
FY26 Q1 9.1%
FY26 Q2 12.4%
FY26 Q3 16.4%
FY26 Q4 16.9%
FY27 Q1 14.0%
Operating margin (TTM) Paychex
36% 38% 40% 42% FY24 Q2 FY25 Q1 FY25 Q4 FY27 Q1 Operating margin (TTM), FY24 Q2: 40.9% Operating margin (TTM), FY24 Q3: 41.2% Operating margin (TTM), FY24 Q4: 41.2% Operating margin (TTM), FY25 Q1: 41.1% Operating margin (TTM), FY25 Q2: 41.3% Operating margin (TTM), FY25 Q3: 41.5% Operating margin (TTM), FY25 Q4: 39.6% Operating margin (TTM), FY26 Q1: 38.0% Operating margin (TTM), FY26 Q2: 37.1% Operating margin (TTM), FY26 Q3: 36.9% Operating margin (TTM), FY26 Q4: 38.6% Operating margin (TTM), FY27 Q1: 39.2% 39.2%

Source: SEC EDGAR filings. Retrieved October 20, 2026.

View chart data
Period Operating margin (TTM)
FY24 Q2 40.9%
FY24 Q3 41.2%
FY24 Q4 41.2%
FY25 Q1 41.1%
FY25 Q2 41.3%
FY25 Q3 41.5%
FY25 Q4 39.6%
FY26 Q1 38.0%
FY26 Q2 37.1%
FY26 Q3 36.9%
FY26 Q4 38.6%
FY27 Q1 39.2%
FCF margin (TTM) Paychex
28% 30% 32% 34% 36% 38% FY24 Q2 FY25 Q1 FY25 Q4 FY27 Q1 FCF margin (TTM), FY24 Q2: 35.6% FCF margin (TTM), FY24 Q3: 37.0% FCF margin (TTM), FY24 Q4: 32.9% FCF margin (TTM), FY25 Q1: 30.0% FCF margin (TTM), FY25 Q2: 29.2% FCF margin (TTM), FY25 Q3: 29.5% FCF margin (TTM), FY25 Q4: 30.7% FCF margin (TTM), FY26 Q1: 32.1% FCF margin (TTM), FY26 Q2: 33.1% FCF margin (TTM), FY26 Q3: 33.0% FCF margin (TTM), FY26 Q4: 35.7% FCF margin (TTM), FY27 Q1: 30.5% 30.5%

Source: SEC EDGAR filings. Retrieved October 20, 2026.

View chart data
Period FCF margin (TTM)
FY24 Q2 35.6%
FY24 Q3 37.0%
FY24 Q4 32.9%
FY25 Q1 30.0%
FY25 Q2 29.2%
FY25 Q3 29.5%
FY25 Q4 30.7%
FY26 Q1 32.1%
FY26 Q2 33.1%
FY26 Q3 33.0%
FY26 Q4 35.7%
FY27 Q1 30.5%

Data: SEC EDGAR XBRL company facts (as filed in 10-K/10-Q); forms 10-K, 10-Q. Generated November 3, 2026. Definitions in our methodology.

Where the money goes

FY2026, from the 10-K

Each dollar Paychex took in during FY2026, followed through to profit: what it cost to make, what went on running the business, and what was left after tax.

  1. Revenue $6.5B
  2. Cost of revenue $1.7B · 25.7%
  3. Gross profit $4.8B · 74.3%
  4. Selling, general and admin $2.3B · 35.7%
  5. Operating income $2.5B · 38.6%
  6. Income tax $551M · 8.5%
  7. Interest and other $200M · 3.1%
  8. Net income $1.8B · 27.0%

Shares of revenue. Source: Paychex's 10-K for FY2026, as filed with the SEC. "Other" lines are what the reported lines leave unexplained.

Financial statements

US$ millions unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year 2010 May 2010 2011 May 2011 2012 May 2012 2013 May 2013 2014 May 2014 2015 May 2015 2016 May 2016 2017 May 2017 2018 May 2018 2019 May 2019 2020 May 2020 2021 May 2021 2022 May 2022 2023 May 2023 2024 May 2024 2025 May 2025 2026 May 2026 LTM Aug 2026
Income
Revenue 2,001 2,084 2,230 2,326 2,519 2,740 2,952 3,153 3,378 3,773 4,041 4,057 4,612 5,007 5,278 5,572 6,512 6,603
Gross profit — — — — — — — — 2,360 2,595 2,760 2,786 3,255 3,554 3,799 4,031 4,838 4,912
EBITDA 811 875 952 1,003 1,088 1,160 1,262 1,381 1,430 1,553 1,670 1,653 2,032 2,210 2,351 2,417 2,953 2,882
Operating income 725 786 854 905 983 1,054 1,147 1,254 1,292 1,371 1,461 1,461 1,840 2,033 2,174 2,208 2,511 2,588
Net income 477 515 548 569 628 675 757 826 994 1,034 1,098 1,098 1,393 1,557 1,690 1,657 1,760 1,806
Diluted EPS $1.32 $1.42 $1.51 $1.56 $1.71 $1.85 $2.09 $2.28 $2.75 $2.86 $3.04 $3.03 $3.84 $4.30 $4.67 $4.58 $4.89 $5.04
Growth (year on year)
Revenue −3.9% +4.2% +7.0% +4.3% +8.3% +8.8% +7.7% +6.8% +7.1% +11.7% +7.1% +0.4% +13.7% +8.6% +5.4% +5.6% +16.9% +14.0%
EBITDA −8.9% +7.9% +8.8% +5.4% +8.4% +6.7% +8.7% +9.4% +3.5% +8.6% +7.6% −1.0% +22.9% +8.8% +6.4% +2.8% +22.2% +17.3%
Operating income −10.0% +8.5% +8.6% +6.0% +8.6% +7.2% +8.8% +9.4% +3.0% +6.2% +6.5% +0.0% +26.0% +10.5% +6.9% +1.5% +13.7% +17.5%
Net income −10.6% +8.0% +6.3% +3.8% +10.3% +7.6% +12.1% +9.2% +20.3% +4.1% +6.2% −0.1% +26.9% +11.8% +8.5% −2.0% +6.2% +11.9%
Diluted EPS −10.8% +7.6% +6.3% +3.3% +9.6% +8.2% +13.0% +9.1% +20.6% +4.0% +6.3% −0.3% +26.7% +12.0% +8.6% −1.9% +6.8% +13.0%
Margins
Gross margin — — — — — — — — 69.9% 68.8% 68.3% 68.7% 70.6% 71.0% 72.0% 72.4% 74.3% 74.4%
EBITDA margin 40.5% 42.0% 42.7% 43.1% 43.2% 42.3% 42.7% 43.8% 42.3% 41.2% 41.3% 40.7% 44.1% 44.1% 44.5% 43.4% 45.3% 43.6%
Operating margin 36.2% 37.7% 38.3% 38.9% 39.0% 38.5% 38.8% 39.8% 38.2% 36.3% 36.1% 36.0% 39.9% 40.6% 41.2% 39.6% 38.6% 39.2%
Net margin 23.8% 24.7% 24.6% 24.5% 24.9% 24.6% 25.6% 26.2% 29.4% 27.4% 27.2% 27.1% 30.2% 31.1% 32.0% 29.7% 27.0% 27.4%
Free-cash-flow margin 27.5% 29.5% 27.7% 24.8% 31.6% 28.9% 31.2% 27.5% 33.2% 30.4% 32.5% 28.1% 31.6% 31.2% 32.9% 30.7% 35.7% 30.5%
Cash flow
Cash from operations 611 715 707 675 881 895 1,018 960 1,276 1,272 1,441 1,260 1,590 1,706 1,898 1,901 2,557 2,252
Capital spending 61 101 90 99 84 103 98 94 154 124 127 118 134 143 161 192 235 235
Free cash flow 550 615 617 577 797 792 921 866 1,122 1,148 1,314 1,142 1,456 1,563 1,736 1,709 2,322 2,017
Stock-based pay 26 25 23 23 26 31 35 35 45 46 47 53 53 63 61 112 96 89
Free cash flow after stock pay 524 590 594 554 771 761 886 831 1,078 1,102 1,267 1,089 1,403 1,501 1,675 1,597 2,226 1,928
Balance sheet
Cash 284 119 109 107 153 170 132 185 358 674 905 995 370 1,222 1,469 1,629 1,088 601
Total debt 0 0 0 0 0 0 0 0 0 800 802 805 806 808 817 5,000 4,600 4,558
Net debt (negative = net cash) −284 −119 −109 −107 −153 −170 −132 −185 −358 126 −103 −191 436 −414 −652 3,371 3,512 3,957
Diluted shares 362m 362m 363m 365m 366m 365m 363m 363m 362m 362m 361m 362m 363m 362m 362m 362m 360m 359m
Returned to shareholders
Dividends 449 449 461 477 511 552 607 662 740 827 889 909 1,000 1,175 1,315 1,449 1,590 1,625
Buybacks — — 0 0 250 182 108 166 143 57 172 156 145 0 169 105 611 451
Total returned 449 449 461 477 760 734 714 829 883 884 1,061 1,064 1,145 1,175 1,485 1,553 2,201 2,076

Source: SEC EDGAR XBRL company facts (US and foreign periodic filings); column headings link to the filing. EBITDA is operating income plus depreciation and amortisation. Free cash flow is cash from operations minus capital spending. Growth is left blank when last year's figure was a loss or under 2% of revenue. Share counts and EPS are restated for stock splits. A dash means the company didn't report the figure.

Financial health

4 of 7 checks passed · August 31, 2026
What it owns · $15.7bn
Short-term assets $8.1bnLonger-term assets $7.6bn
What it owes, and who funded it · $15.7bn
Short-term liabilities $6.3bnLonger-term liabilities $5.6bnShareholders' equity $3.7bn
  • Short-term assets cover short-term liabilities $8.1bn of assets due within a year against $6.3bn of liabilities due within a year.
  • Short-term assets cover long-term liabilities $8.1bn short-term assets against $5.6bn of longer-dated liabilities.
  • More cash than debt $601m of cash against $4.6bn of debt.
  • Debt below 40% of shareholders' equity Debt is 123% of equity.
  • Debt burden no higher than five years ago Debt to equity moved from 24% to 123% over five years.
  • A year's operating cash flow covers at least 20% of debt $2.3bn of operating cash flow against $4.6bn of debt.
  • Operating profit covers interest at least five times over Operating income of $2.6bn against $266m of interest.

From Paychex's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Dividends, buybacks and capital spending

FY2027 Q1 TTM
Buybacks (TTM)
$451M
Dividends (TTM)
$1.6B
Returned to shareholders
103%
of free cash flow
Buybacks, last 3 fiscal years
$885M
Diluted share count
−0.9%
year over year
Total shareholder yield
5.0%
dividends 4.0% + buybacks 1.1% of market value
Dividend payout ratio
90%
of net income paid out
Sales & admin spending
35.2%
of revenue

Competitors: side by side with peers

Closest by revenue in human resource & employment services
Last 12 months unless stated PAYX NSP RHI TNET KELYA EFOR Median
Revenue, last 12 months $6.6bn $6.9bn $5.3bn $4.8bn $4.1bn $4.0bn $1.7bn
Revenue growth, last 12 months 14.0% 2.1% −2.9% −4.2% −9.6% 0.0% 5.6%
Revenue growth, 3-year average 9.1% 2.6% −7.3% −0.7% −6.0% −4.1% −0.5%
Revenue growth, latest quarter 5.9% 1.7% 0.4% −4.6% −5.8% 2.0% 5.2%
Gross margin 74.4% 13.0% 37.3% — 19.7% 28.3% 28.0%
Operating margin 39.2% 0.3% 1.4% 6.8% −2.3% 4.6% 1.0%
Operating margin, 3-year average 39.5% 1.0% 2.3% 8.9% −0.6% 6.1% 2.3%
Net margin 27.4% 0.0% 2.3% 3.6% −6.7% 1.7% 1.5%
Cash from operations / revenue 34.1% 3.4% 4.6% 7.8% 0.7% 5.8% 1.9%
Free-cash-flow margin 30.5% 2.9% 3.9% 5.9% 0.5% 4.9% 1.2%
Free-cash-flow margin, 3-year average 30.9% 0.8% 4.6% 8.2% 1.5% 7.1% 2.4%
Stock pay / revenue 1.3% 0.8% — 1.4% 0.3% 1.3% 1.3%
Change in share count −0.9% 0.7% −0.7% −2.1% −1.9% −5.8% −0.1%

Median of all 21 companies we cover in human resource & employment services. Shaded: best of the six on that line (lowest for stock pay and share-count growth). 3-year figures average the last three 12-month periods; 3-year growth is compound annual. Source: SEC filings.

Peer comparison

21 human resource & employment services companies
Measure Company Peer median Rank
Revenue growth Growth 14.0% 5.6% 6 of 21
Change in growth rate Growth -2.9pp +0.5pp 19 of 20
Gross margin Profitability 74.4% 27.8% 1 of 17
Operating margin Profitability 39.2% 0.6% 1 of 19
Net margin Profitability 27.4% 1.5% 1 of 21
Free-cash-flow margin Cash generation 30.5% 1.2% 2 of 21
Stock pay as % of revenue Cash generation 1.3% 1.3% 12 of 20
Long-term debt as % of assets Balance sheet 29.1% 11.3% 12 of 14
Change in share count Balance sheet -0.9% -0.1% 7 of 20

Rank 1 = best in the group (for spending, debt and dilution, lower ranks first).

Where the revenue comes from

Fiscal year to May 31, 2026
Products and services
Line of business Revenue YoY
Management Solutions $4.9B ▲ 19.7%
Peo and Insurance Solutions $1.4B ▲ 6.7%

These categories overlap or exclude eliminations, so shares aren't shown.

From Paychex's 10-K filed July 17, 2026, as tagged in the filing. View filing. Indented rows are part of the line above; their share is of that line. In the bars, the faint bar behind is the year before.

Who owns it

Funds buying and selling
Reported value
$29.2B
Institutions reporting
1,524
Shares held vs prior quarter
▲ 0.3%
Positions opened / closed
138 / 118

Top buyers and sellers, Q2 2026: 767 institutions bought and 655 sold ; the biggest buyer was Victory Capital Management Inc (+1.3M shares) and the biggest seller Capital Research Global Investors (−2.1M). See which funds bought and sold →

Largest reported holders, June 30, 2026
Manager Value Shares Share of 13F value Shares QoQ
Capital International Investors $2.8B 28.8M 9.7% ▼ 3.7%
Blackrock, Inc. $2.7B 27.8M 9.4% ▼ 2.3%
Vanguard Capital Management LLC $2.1B 21.0M 7.1% ▲ 0.4%
Vanguard Portfolio Management LLC $1.5B 15.3M 5.2% ▲ 0.2%
State Street Corp $1.4B 14.4M 4.9% ▲ 2.6%
Invesco Ltd. $1.3B 13.0M 4.4% ▲ 2.0%
Charles Schwab Investment Management Inc $1B 10.4M 3.5% ▲ 11.0%
Geode Capital Management, LLC $1B 10.3M 3.5% ▼ 0.2%
Morgan Stanley $643M 6.5M 2.2% ▲ 23.5%
Federated Hermes, Inc. $578M 5.9M 2.0% ▼ 0.1%
Goldman Sachs Group Inc $454M 4.6M 1.6% ▲ 16.7%
Bank Of America Corp $434M 4.4M 1.5% ▲ 2.1%

From Form 13F filings with the SEC ( quarterly data sets), as reported by each manager for June 30, 2026 and filed up to 45 days later. 13F reports cover long US-listed positions of managers above $100M only, so this is not Paychex's complete shareholder register. Values are as reported by the filers ; 6 inconsistently scaled filing rows were excluded.

Insider trading activity

Full insider history and chart
Insider purchases History → $197,258 2 trades by 2 insiders, last 12 months Insider sales History → $4.6M 6 trades by 6 insiders · 0% under pre-set plans
Net ▼ $4.4M net selling
Insider Date Trade Shares Price Value
Velli Joseph M Director October 14, 2026 Sell 7,839 $107.68 $844,104
Schrader Robert L. Sr. VP, CFO July 20, 2026 Sell 2,600 $115.09 $299,234
Simmons Christopher C VP, Controller & Treasurer July 17, 2026 Sell 2,615 $115.92 $303,131
Mucci Martin Director July 14, 2026 Sell 25,000 $109.93 $2.7M
Tucci Joseph M Director June 26, 2026 Sell 3,907 $98.25 $383,863
Roaldsen Elizabeth Sr. Vice President May 13, 2026 Sell 459 $90.00 $41,310
Bonadio Tom Director February 4, 2026 Buy 1,000 $98.50 $98,498
Doody Joseph Director February 4, 2026 Buy 1,000 $98.76 $98,760

From insiders' Form 4 filings with the SEC. Excludes awards, option exercises and shares withheld for tax. "Pre-set plan" means the filing marks the trade as made under a Rule 10b5-1 plan. See every insider trade since five years ago, on a price chart.

Trades by members of Congress

All 47 trades and filings

In the last 12 months, 5 members of Congress disclosed 2 purchases and 7 sales of Paychex shares.

  • April McClain Delaney(D-MD 6):Sale (full), $100,001 - $250,000, traded August 25, 2026, filed September 9, 2026
  • April McClain Delaney(D-MD 6):Sale (partial), $1,001 - $15,000, traded April 21, 2026, filed May 6, 2026
  • April McClain Delaney(D-MD 6):Sale (partial), $1,001 - $15,000, traded April 16, 2026, filed May 6, 2026

Value ranges as filed; reports can arrive up to 45 days after a trade.

Earnings dates and SEC filings

Results announcements

Next expected around December 18, 2026 estimated from the company's past filing pattern, not announced

  • September 23, 2026
  • June 24, 2026
  • March 25, 2026
  • December 19, 2025
  • September 30, 2025
  • June 25, 2025

Recent SEC filings

Data status

When each part of this page on Paychex was last updated.

DataLast updatedSource
Share priceExchange closing prices
Financial statementsSEC 10-K and 10-Q filings
News and updatesCompany releases and SEC 8-K filings
Analyst estimatesAggregated analyst estimates
Valuation and scoresOur models, from the filed figures

How we build and check these figures: methodology and data sources.

Paychex in brief

What does Paychex do?
Paychex is a US-listed company in the human resource & employment services industry. Its financial year ends in May.
What is Paychex's stock ticker?
Paychex trades under the ticker PAYX on Nasdaq. This page brings together its financial statements, valuation models, ownership and recent company updates.
What is Paychex's revenue, and how fast is it growing?
Over its most recent trailing twelve months, Paychex reported revenue of $6.6B, 14.0% higher than a year earlier, according to its SEC filings.
What is Paychex's free cash flow?
Paychex's free-cash-flow margin is 30.5% of revenue over the trailing twelve months, ranking 2 of the 21 human resource & employment services companies we cover.
What is Paychex's fair value (intrinsic value) per share?
Our discounted-cash-flow model of Paychex's free cash flow after stock-based pay gives ~$140 per share in the base case, and ~$110–$190 across growth scenarios. These are model values under stated assumptions — not a price target or a recommendation.
Who are Paychex's largest institutional shareholders?
By value reported in 13F filings for June 30, 2026, the largest reported holders are Capital International Investors, Blackrock, Inc. and Vanguard Capital Management LLC. 13F reports cover long US-listed positions of managers above $100M, filed up to 45 days after quarter end.
Is Paychex buying back stock, and does it pay a dividend?
Paychex spent $451M on share repurchases over the trailing twelve months, and its diluted share count fell 0.9% over the year.
What is Paychex's market cap?
On November 2, 2026, Paychex's market capitalisation was about $41.4B, with a price-to-earnings ratio of 22.9 and net debt of $4B. Market figures come from third-party market data and may be delayed.
Does Paychex pay a dividend?
Yes: Paychex paid $1.6B in dividends over the trailing twelve months, a dividend yield of 3.95% and a payout ratio of 90.0%.
How much debt does Paychex have?
Paychex's debt-to-equity ratio is 123.0%, from its latest balance sheet (24.3% five years earlier). The financial health section below sets out its other solvency checks.
Who are Paychex's competitors?
In our Human Resource & Employment Services peer group, the companies closest to Paychex are Insperity, Inc., Robert Half Inc., Trinet Group, Inc., Kelly Services Inc and Everforth Inc. The side-by-side comparison below sets their revenue, margins and growth against Paychex's.
Are insiders buying or selling Paychex stock?
Over the last 12 months, Paychex's directors and officers reported 2 open-market purchases and 6 sales on Form 4. The insider trading page charts every trade.
When is Paychex's next earnings date?
Around December 18, 2026, estimated from the spacing of its past results announcements (8-K filings). That is an estimate, not a confirmed date — Paychex announces its own schedule.