Company Reports

Paychex is a leading payroll and human capital management provider. Although the firm's average customer size of fewer than 20 employees implies a customer base that skews very small, Paychex has successfully tailored its platforms to solidify its position as a dominant provider in its target markets. The company operates two segments: management solutions and professional employer organization, or PEO, and insurance solutions.

Paychex reported first-quarter sales of $1.63 billion, up 6% year over year, and an adjusted operating margin of 42%, both in line with guidance. Management raised its full-year outlook for the PEO and insurance solutions segment and for interest income, with the rest of the guidance left unchanged.

Paychex reported fiscal 2026 fourth-quarter revenue of $1.6 billion, up 12% year over year, and an adjusted operating margin of 42%, up 170 basis points year over year. In fiscal 2027, management expects revenue growth and adjusted operating margin of about 6% and 44%, respectively.

Paychex is a leading payroll and human capital management provider. Although the firm's average customer size of fewer than 20 employees implies a customer base that skews very small, Paychex has successfully tailored its platforms to solidify its position as a dominant provider in its target markets. The company operates two segments: management solutions and professional employer organization, or PEO, and insurance solutions.

Paychex is a leading payroll and human capital management provider. Although the firm's average customer size of fewer than 20 employees implies a customer base that skews very small, Paychex has successfully tailored its platforms to solidify its position as a dominant provider in its target markets. The company operates two segments: management solutions and professional employer organization, or PEO, and insurance solutions.

We are transferring coverage of payroll and human capital management, or HCM, providers ADP, Paychex, and Paycom, and relaunching coverage of Paylocity. Their solutions span payroll, talent management, and workforce analytics, with ADP and Paychex also offering outsourcing and retirement services.

Paychex is a leading payroll and human capital management provider. Although the firm's average customer size of fewer than 20 employees implies a customer base that skews very small, Paychex has successfully tailored its platforms to solidify its position as a dominant provider in its target markets. The company operates two segments: management solutions and professional employer organization, or PEO, and insurance solutions.

Paychex reported solid fiscal third-quarter 2026 earnings. Revenue was up 20% year over year, driven primarily by the Paycor acquisition, while adjusted earnings per share rose 14%.

Paychex is a leader in payroll and human capital management, or HCM, software in the United States. The company, which focuses on servicing small and medium-size businesses, generates revenue from three sources: management solutions, professional employer organization and insurance, and interest income on funds held for clients.

We conducted a comprehensive review of Morningstar Economic Moat Ratings across our global technology and technology-adjacent coverage universe of more than 130 companies. In doing so, we updated our moat ratings and fair value estimates for our payroll sector coverage.

Paychex is a leader in payroll and human capital management software in the United States. The company, which focuses on servicing small and medium-size businesses, generates revenue from three sources: management solutions, professional employer organization and insurance, and interest income on funds held for clients.

Paychex is a leader in payroll and human capital management software in the United States. The company, which focuses on servicing small and medium-size businesses, generates revenue from three sources: management solutions, professional employer organization and insurance, and interest income on funds held for clients.

Paychex reported second-quarter results with revenue increasing 18% year over year to nearly $1.6 billion and adjusted operating margins improving 80 basis points to 41.7%. Management reiterated its belief that it can achieve full-year growth in the high teens and 43% adjusted operating margins.

Paychex reported first-quarter fiscal 2026 results characterized by revenue growth of 17% and adjusted operating income growth of 15% year over year. Despite reaffirming full-year revenue guidance and increasing adjusted earnings expectations by 50 basis points, shares have fallen 5% on the print.

Paychex is a leader in payroll and human capital management software in the United States. The company, which focuses on servicing small and medium-size businesses, generates revenue from three sources: management solutions, professional employer organization and insurance, and interest income on funds held for clients.

Paychex reported fourth-quarter 2025 revenue growth of 10%, largely driven by the company's acquisition of Paycor. Adjusted EPS increased 6%, in line with FactSet estimates. Nonetheless, shares have traded down, with the intraday price declining 9%.

We are relaunching coverage of Paychex, Dayforce, and Paylocity due to a change in analyst. After review, we are maintaining our economic moat ratings of narrow for Dayforce and Paylocity and wide for Paychex. However, we are reducing our fair value estimates by 30% to $47 per share for Dayforce, by 29% to $142 for Paylocity, and by 6% to $122 for Paychex.

Paychex is a leader in payroll and human capital management software in the United States. The company, which focuses on servicing small and medium-size businesses, generates revenue from three sources: management solutions, professional employer organization and insurance, and interest income on funds held for clients.

Wide-moat Paychex reported strong fiscal third-quarter results that were in line with our expectations. The company continued to benefit from robust client retention and margin expansion despite headwinds in Florida’s professional employer organization segment. Paychex’s $4.1 billion acquisition of Paycor is on track and expected to close next quarter. We have made slight adjustments accounting for updated guidance, while our longer-term revenue growth and operating margin expansion estimates are unchanged. As a result, we maintain our $130 fair value estimate and view the shares as slightly overvalued after the postearnings pop in the stock price.

Paychex has announced it intends to acquire Paycor in an all-cash deal for $22.50 per share, or roughly $4.1 billion in enterprise value. The deal is expected to close in the first half of 2025, which we see as realistic as we do not expect any major regulatory pushback in what is a relatively fragmented human capital management, or HCM, space. We are maintaining our fair value estimate for Paychex of $130 per share, as we believe the value of the deal will primarily come down to revenue synergies, which we do not want to give full credit for just yet. Overall, we think the deal makes strategic sense and will come down to execution on product integration, salesforce integration, and cross-selling.