Paychex (PAYX) stock was down on Tuesday following the release of the integrated human capital management solutions company’s Fiscal Q1 2026 earnings report. This report started with adjusted diluted earnings per share of $1.22, which was above Wall Street’s estimate of $1.20 per share. It also represented a 5% increase from the $1.16 reported in the same period of the year prior.
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Paychex reported revenue of $1.54 billion in Fiscal Q1 2026, compared to analysts’ estimate of $1.54 billion. This marked a 17% gain year-over-year compared to $1.32 billion. The company attributed this to “continued progress integrating Paycor and sustained demand for our comprehensive HCM solutions.” It also noted an increase in the number of clients served, as well as more revenue generated per client.
Paychex stock was down 3.33% in pre-market trading on Tuesday, following a 0.25% boost yesterday. The shares have fallen 6.37% year-to-date and 8.71% over the past 12 months.
Paychex Guidance
Paychex provided shareholders with updated guidance in its latest earnings report. The company now expects adjusted EPS growth to range from 9% to 11% in Fiscal 2026. The company didn’t alter any other part of its guidance, despite having reported a double-digit percentage increase in revenue. This means it still expects revenue growth for the year to range from 16.5% to 18.5%.
Is Paychex Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Paychex is Hold, based on six Hold and two Sell ratings over the past three months. With that comes an average PAYX stock price target of $144.50, representing a potential 12.43% upside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.
