Paychex, Inc. (NASDAQ:PAYX) to Post Q2 2025 Earnings of $1.12 Per Share, William Blair Forecasts

Paychex, Inc. (NASDAQ:PAYX) – Investment analysts at William Blair reduced their Q2 2025 earnings per share (EPS) estimates for shares of Paychex in a note issued to investors on Wednesday, October 2nd. William Blair analyst A. Nicholas now expects that the business services provider will earn $1.12 per share for the quarter, down from their prior forecast of $1.13. The consensus estimate for Paychex’s current full-year earnings is $4.99 per share. William Blair also issued estimates for Paychex’s FY2025 earnings at $4.99 EPS, Q2 2026 earnings at $1.18 EPS, Q3 2026 earnings at $1.56 EPS and FY2026 earnings at $5.26 EPS.

Paychex (NASDAQ:PAYX) last released its quarterly earnings results on Tuesday, October 1st. The business services provider reported $1.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.14 by $0.02. Paychex had a return on equity of 46.63% and a net margin of 32.03%. The company had revenue of $1.32 billion during the quarter, compared to analysts’ expectations of $1.31 billion. During the same quarter in the prior year, the business posted $1.14 earnings per share. The company’s revenue for the quarter was up 2.5% compared to the same quarter last year.

A number of other research firms have also commented on PAYX. TD Cowen raised their price objective on shares of Paychex from $126.00 to $131.00 and gave the company a “hold” rating in a research note on Wednesday. Citigroup lifted their price target on Paychex from $125.00 to $145.00 and gave the company a “neutral” rating in a research report on Wednesday, September 25th. Robert W. Baird cut their price objective on Paychex from $126.00 to $124.00 and set a “neutral” rating for the company in a report on Thursday, June 27th. Morgan Stanley boosted their price target on shares of Paychex from $122.00 to $133.00 and gave the stock an “equal weight” rating in a research report on Wednesday. Finally, Jefferies Financial Group raised their price objective on shares of Paychex from $120.00 to $130.00 and gave the company a “hold” rating in a research report on Wednesday. Two research analysts have rated the stock with a sell rating and twelve have given a hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $130.77.

Paychex Stock Down 0.5 %

PAYX stock opened at $138.65 on Thursday. The firm’s 50-day moving average is $130.45 and its two-hundred day moving average is $124.83. The company has a market capitalization of $49.91 billion, a price-to-earnings ratio of 29.69, a price-to-earnings-growth ratio of 3.52 and a beta of 1.00. Paychex has a 52 week low of $106.27 and a 52 week high of $142.04. The company has a current ratio of 1.37, a quick ratio of 1.37 and a debt-to-equity ratio of 0.21.

Paychex Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 29th. Stockholders of record on Thursday, August 8th were issued a $0.98 dividend. The ex-dividend date was Thursday, August 8th. This represents a $3.92 dividend on an annualized basis and a dividend yield of 2.83%. Paychex’s payout ratio is currently 83.94%.

Insider Transactions at Paychex

In related news, CEO John B. Gibson sold 12,670 shares of the company’s stock in a transaction on Monday, July 15th. The stock was sold at an average price of $119.53, for a total transaction of $1,514,445.10. Following the transaction, the chief executive officer now directly owns 55,745 shares of the company’s stock, valued at approximately $6,663,199.85. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, VP Mark Anthony Bottini sold 8,954 shares of the company’s stock in a transaction on Wednesday, July 24th. The shares were sold at an average price of $123.60, for a total value of $1,106,714.40. Following the transaction, the vice president now directly owns 79,232 shares of the company’s stock, valued at approximately $9,793,075.20. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO John B. Gibson sold 12,670 shares of the stock in a transaction on Monday, July 15th. The stock was sold at an average price of $119.53, for a total value of $1,514,445.10. Following the sale, the chief executive officer now owns 55,745 shares of the company’s stock, valued at approximately $6,663,199.85. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 45,673 shares of company stock valued at $5,636,085 over the last quarter. Company insiders own 11.50% of the company’s stock.

Institutional Investors Weigh In On Paychex

Several institutional investors and hedge funds have recently modified their holdings of PAYX. Meeder Asset Management Inc. raised its holdings in Paychex by 286.0% during the second quarter. Meeder Asset Management Inc. now owns 220 shares of the business services provider’s stock valued at $26,000 after buying an additional 163 shares in the last quarter. ORG Partners LLC raised its stake in shares of Paychex by 227.6% in the 2nd quarter. ORG Partners LLC now owns 249 shares of the business services provider’s stock valued at $29,000 after acquiring an additional 173 shares in the last quarter. Strategic Financial Concepts LLC acquired a new stake in Paychex in the 2nd quarter worth approximately $30,000. Chilton Capital Management LLC bought a new stake in Paychex during the first quarter worth approximately $31,000. Finally, ESL Trust Services LLC acquired a new position in Paychex during the first quarter valued at approximately $31,000. Institutional investors and hedge funds own 83.47% of the company’s stock.

Paychex Company Profile

Paychex, Inc, together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.