Rochester, New York-based Paychex, Inc. (PAYX) offers integrated human capital management solutions covering payroll, benefits, human resources (HR), and insurance services tailored for small to medium-sized businesses. With a market capitalization of $52.7 billion, Paychex operates across the United States, Europe, and beyond.

Upcoming Q4 Earnings Expectations

Paychex is set to announce its Q4 results on Wednesday, June 25. Analysts anticipate that PAYX will report an adjusted EPS of $1.20, which would mark a 7.1% increase from the $1.12 reported in the same quarter last year. The firm has consistently outperformed Wall Street’s earnings estimates for four consecutive quarters.

Fiscal Year Projections

For the complete fiscal 2025, projections indicate that PAYX will deliver an adjusted EPS of $4.99, reflecting a 5.7% rise from the $4.72 for fiscal 2024. Furthermore, in fiscal 2026, earnings are expected to grow at a rate of 6%, reaching a forecasted $5.29 per share.

Stock Performance Overview

Over the past 52 weeks, PAYX stock has risen 23.8%, significantly outperforming the S&P 500 Index’s ($SPX) 10.6% gains and the Technology Select Sector SPDR Fund’s (XLK) 7% returns during the same period.

Following its better-than-expected Q3 results released on March 26, PAYX stock gained 4.2%. This growth was driven by an expanding client base, effective pricing strategies, and increased product adoption. The company reported total revenues of $1.5 billion, which is a 4.8% increase year-over-year, surpassing consensus estimates. Additionally, its adjusted net income rose 8.6% year-over-year to $541.1 million, further enhancing investor confidence with adjusted earnings of $1.49 per share, exceeding analysts’ expectations.

Analyst Ratings and Price Targets

Despite the positive performance, the consensus rating for PAYX stock remains neutral, characterized by a “Hold” rating overall. Out of the 17 analysts covering the stock, 14 have rated it as a “Hold,” while one suggests a “Moderate Sell,” and two have issued “Strong Sell” recommendations. Currently, the stock trades slightly above its average price target of $146.64.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data are provided solely for informational purposes. For more details, please refer to the Barchart Disclosure Policy here.

The views and opinions expressed here are those of the author and do not necessarily reflect those of Nasdaq, Inc.