Paychex stock analysis
Paychex (0KGE) Share Price & Analysis
0KGE Stock Chart & Stats
- Day’s Range
- $114.40 - $116.99
- 52-Week Range
- $85.01 - $131.07
- Previous Close
- $115.80
- Volume
- N/A
- Average Volume (3M)
- 1,941
- Market Cap
- $41.36B
- Enterprise Value
- $49.04B
- Total Cash (Recent Filing)
- $934.20M
- Total Debt (Recent Filing)
- $4.62B
- Price to Earnings (P/E)
- 22.8
- Beta
- 0.27
- Next Earnings
- Dec 17, 2026 (Est.)
- EPS Estimate
- 1.27
- Last Dividend Ex-Date
- Oct 26, 2026
- Dividend Yield
- 4.03%
Bulls Say, Bears Say
Bulls Say
Durable Profitability
Consistently high gross and net margins indicate a scalable service model with durable earnings power. This profitability provides financial capacity to invest in product development, absorb operating volatility, and support shareholder returns while maintaining a strong competitive position.
High-quality Cash Generation
Free cash flow that closely tracks net income suggests earnings are well supported by cash rather than accounting benefits. Persistent operating cash generation strengthens Paychex's ability to fund investments, dividends, and strategic initiatives through changing conditions.
HCM Platform Expansion
Growth across PEO, insurance, ASO, and referral channels demonstrates effective cross-selling within Paychex's HCM ecosystem. Greater product penetration and client migration into broader services can raise revenue per customer and reinforce retention over multiple periods.
Bears Say
Higher Leverage
The sharp increase in debt-to-equity represents a meaningful deterioration from Paychex's prior balance-sheet profile. Higher leverage can reduce financial flexibility, increase obligations against future cash flow, and constrain the company's ability to respond to weaker conditions or pursue investments.
Slowing Revenue Growth
Recent revenue growth has slowed materially from earlier trends, and the near-term outlook remains moderated. Slower expansion can limit operating leverage and make future earnings growth more dependent on pricing, cross-selling, and execution rather than broad-based demand.
Structural Cost And Investment Pressure
Health-care cost inflation can complicate PEO renewals and encourage clients to seek alternatives, creating pressure on retention and growth. At the same time, sharply higher AI investment may weigh on near-term margins before productivity benefits become fully realized.
Paychex News
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Paychex Stock Smart Score
Company Description
Paychex
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. Retirement Services: Offering full administration for retirement plans, which covers implementation, ongoing adherence to government regulations, reporting for both participants and employers, online access capabilities, electronic funds transfers, and other administrative tasks. Cloud-based HR Software: A suite of software products designed for efficient HR administration, including tools for benefits management, time and attendance tracking, digital communication, recruitment, and onboarding processes. Additional Business Services: This category features plan administration outsourcing, state unemployment insurance services, and various support functions for SMBs such as payroll funding and outsourcing (including payroll processing, invoicing, and tax preparation), payment processing solutions, financial wellness programs, and a resource center for small business loans. Insurance Offerings: Providing both property and casualty coverage, which includes workers' compensation, business-owner policies, cybersecurity protection, and commercial auto insurance, alongside health and benefits coverage like medical, dental, vision, and life insurance. Paychex primarily distributes its services through its dedicated direct sales team.
- Sector
- Technology
- Industry
- Staffing & Employment Services
- CEO
- John Gibson Jr.
- Employees
- 17,600
- Website
- www.paychex.com
- Address
- 911 Panorama Trail South, Rochester, NY, 14625-2396, US
Paychex (0KGE) Earnings & Revenues
0KGE Company Deck
0KGE Earnings Call
Earnings Call SentimentPositive
The call was strongly positive. Paychex reported solid revenue, earnings and margin growth; raised PEO and Insurance Solutions guidance; achieved record PEO retention; and described strong momentum in advisory solutions, bookings, referrals, AI deployment and revenue synergies. The main cautions were a Management Solutions result slightly below expectations due to the favorable mix shift into PEO, a difficult second-quarter comparison, flat employment levels, health-care renewal uncertainty and continued heavy AI investment. Management remained confident in the strategy and full-year outlook.
View all GB:0KGE earnings summaries0KGE Net sales Breakdown
- 74.75% Management Solutions
- 22.01% PEO and Insurance Solutions
- 3.24% Interest on funds held for clients
0KGE Stock 12 Month Forecast
Average Price Target
Technical Analysis
Overall Consensus
| Indicator | Bullish | Neutral | Bearish |
|---|---|---|---|
| Overall Consensus | 10 | 6 | 6 |
| Technical Analysis | 2 | 6 | 2 |
| Moving Averages | 8 | 0 | 4 |














