Paychex Inc. (NASDAQ: PAYX) benefits from a stable labor market and resilient clients despite inflationary pressures and a challenging economic environment. The company leverages its strong foundation and recently acquired PayCor business to expand its AI-driven HCM capabilities and unlock new growth opportunities across market segments.
estimate
The Rochester-based human capital management solutions provider will announce its earnings in the fourth quarter at 8:30am on Wednesday, June 25th. According to analysts, the company worked well in the last few months of 2025. The consensus revenue estimate was $1.41 billion, representing a 9% increase from the previous year. Market Watcher forecasts May quarterly earnings of $1.19 per share on an adjusted basis, compared to $1.12 per share for the fourth quarter of 2024.
Paychex stocks have been in an upward spiral over the past few weeks, climbing to new highs earlier this month. However, momentum has declined and since then the stock has compensated for some of its previous profits. PayX has grown nearly 20% over the past 12 months, frequently surpassing the S&P 500 index this year. Recently, the company announced that its quarterly dividend would increase by 10% and yields would increase to 2.8%.
Q3 Results
In the third quarter, revenues rose 5% year-on-year to $1.51 billion, in line with Wall Street estimates. As a result, adjusted revenues were $1.49 per share in the third quarter, from $1.38 per share for the same period in 2024 to $1.49 per share. Revenue exceeded expectations for the seventh consecutive quarter. Net income, including special items, was $519.3 million or $1.43 per share in the February quarter, with earnings rising from $498.6 million or $1.38 per share last year.
From Paychex’s revenue calls from the third quarter:
“Client retention has improved with solid performance and retention in HR outsourcing solutions last year. Client losses have declined across all employee size segments. Last year, revenue retention has improved and we continue to focus on acquiring and retaining high-value clients, making us surpass pre-pandemic levels. Paychex achieved the second highest rise in customer satisfaction among all two companies on the list.”
update
Recently, Paychex acquired PayCor, a provider of HCM pay and talent software, for $4.1 billion. The transaction is charged on the company’s adjusted revenue per revenue for fiscal year 2026, and is expected to produce a significant cost synergy. Small and medium-sized businesses are the central focus of the company. A stable labor market has helped the SME sector remain resilient despite economic uncertainty. In particular, the services segment accounts for the majority of the industry.
PayeChex stocks show weakness this week, and this trend appears likely to go further than next week’s earnings. On Friday, PayX made almost low transactions during the session. The final closing price is above the stock’s 52-week average.
