Equities Analysts Set Expectations for Paychex, Inc.’s Q2 2025 Earnings (NASDAQ:PAYX)

Paychex, Inc. (NASDAQ:PAYX) – Research analysts at Zacks Research reduced their Q2 2025 earnings per share (EPS) estimates for Paychex in a report released on Tuesday, October 15th. Zacks Research analyst R. Department now forecasts that the business services provider will post earnings per share of $1.13 for the quarter, down from their prior estimate of $1.15. The consensus estimate for Paychex’s current full-year earnings is $4.98 per share. Zacks Research also issued estimates for Paychex’s Q3 2025 earnings at $1.48 EPS, FY2025 earnings at $4.96 EPS and Q4 2026 earnings at $1.27 EPS.

Other research analysts have also recently issued reports about the company. Morgan Stanley raised their price objective on Paychex from $122.00 to $133.00 and gave the company an “equal weight” rating in a research note on Wednesday, October 2nd. Barclays raised their price objective on Paychex from $118.00 to $132.00 and gave the company an “equal weight” rating in a research note on Monday, September 23rd. Stifel Nicolaus raised their price objective on Paychex from $130.00 to $141.00 and gave the company a “hold” rating in a research note on Wednesday, October 2nd. JPMorgan Chase & Co. raised their price objective on Paychex from $120.00 to $128.00 and gave the company an “underweight” rating in a research note on Tuesday, August 20th. Finally, TD Cowen raised their price objective on Paychex from $126.00 to $131.00 and gave the company a “hold” rating in a research note on Wednesday, October 2nd. Two research analysts have rated the stock with a sell rating and eleven have given a hold rating to the company’s stock. Based on data from MarketBeat, Paychex presently has an average rating of “Hold” and an average target price of $130.77.

Paychex Trading Down 0.0 %

NASDAQ PAYX opened at $142.28 on Thursday. The stock’s 50-day simple moving average is $132.66 and its two-hundred day simple moving average is $125.89. Paychex has a twelve month low of $106.27 and a twelve month high of $144.17. The company has a quick ratio of 1.38, a current ratio of 1.38 and a debt-to-equity ratio of 0.21. The company has a market capitalization of $51.22 billion, a price-to-earnings ratio of 30.47, a PEG ratio of 3.73 and a beta of 1.00.

Paychex (NASDAQ:PAYX) last released its quarterly earnings results on Tuesday, October 1st. The business services provider reported $1.16 earnings per share for the quarter, beating analysts’ consensus estimates of $1.14 by $0.02. Paychex had a return on equity of 45.97% and a net margin of 31.98%. The business had revenue of $1.32 billion for the quarter, compared to the consensus estimate of $1.31 billion. During the same quarter last year, the business posted $1.14 earnings per share. The company’s revenue for the quarter was up 2.5% on a year-over-year basis.

Paychex Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 27th. Stockholders of record on Thursday, November 7th will be issued a dividend of $0.98 per share. The ex-dividend date is Thursday, November 7th. This represents a $3.92 annualized dividend and a dividend yield of 2.76%. Paychex’s payout ratio is 83.94%.

Insider Activity

In other news, VP Michael E. Gioja sold 14,731 shares of Paychex stock in a transaction that occurred on Friday, October 4th. The shares were sold at an average price of $139.18, for a total transaction of $2,050,260.58. Following the completion of the transaction, the vice president now directly owns 14,515 shares in the company, valued at approximately $2,020,197.70. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, VP Michael E. Gioja sold 14,731 shares of Paychex stock in a transaction that occurred on Friday, October 4th. The shares were sold at an average price of $139.18, for a total transaction of $2,050,260.58. Following the completion of the transaction, the vice president now directly owns 14,515 shares in the company, valued at approximately $2,020,197.70. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David J. S. Flaschen sold 9,615 shares of the business’s stock in a transaction that occurred on Friday, July 26th. The stock was sold at an average price of $125.60, for a total transaction of $1,207,644.00. Following the completion of the transaction, the director now owns 5,383 shares of the company’s stock, valued at approximately $676,104.80. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 74,162 shares of company stock worth $9,846,185. Insiders own 11.50% of the company’s stock.

Hedge Funds Weigh In On Paychex

A number of hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its holdings in Paychex by 0.4% in the 1st quarter. Vanguard Group Inc. now owns 30,541,306 shares of the business services provider’s stock worth $3,750,472,000 after acquiring an additional 123,268 shares during the last quarter. Capital International Investors raised its stake in Paychex by 12.8% during the 1st quarter. Capital International Investors now owns 20,878,283 shares of the business services provider’s stock valued at $2,563,853,000 after buying an additional 2,373,894 shares during the last quarter. Capital World Investors raised its stake in Paychex by 155.6% during the 1st quarter. Capital World Investors now owns 2,478,325 shares of the business services provider’s stock valued at $304,338,000 after buying an additional 1,508,681 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in Paychex by 19.5% during the 2nd quarter. Dimensional Fund Advisors LP now owns 2,356,262 shares of the business services provider’s stock valued at $279,351,000 after buying an additional 384,184 shares during the last quarter. Finally, TD Asset Management Inc raised its stake in Paychex by 57.2% during the 1st quarter. TD Asset Management Inc now owns 2,179,930 shares of the business services provider’s stock valued at $267,695,000 after buying an additional 793,468 shares during the last quarter. 83.47% of the stock is currently owned by hedge funds and other institutional investors.

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.