Paychex (PAYX) to Release Earnings on Wednesday

Paychex (NASDAQ:PAYX - Get Free Report) is expected to be announcing its Q4 2025 earnings results before the market opens on Wednesday, June 25th. Analysts expect the company to announce earnings of $1.20 per share and revenue of $1.38 billion for the quarter. Paychex has set its FY25 guidance at $4.96-5.05 EPS and its FY 2025 guidance at 4.960-5.050 EPS.

Paychex (NASDAQ:PAYX - Get Free Report) last released its quarterly earnings results on Wednesday, March 26th. The business services provider reported $1.49 EPS for the quarter, beating the consensus estimate of $1.48 by $0.01. The business had revenue of $1.51 billion for the quarter, compared to analyst estimates of $1.51 billion. Paychex had a net margin of 31.99% and a return on equity of 45.30%. The company's quarterly revenue was up 4.8% on a year-over-year basis. During the same period in the prior year, the business earned $1.38 earnings per share. On average, analysts expect Paychex to post $5 EPS for the current fiscal year and $5 EPS for the next fiscal year.

Paychex Price Performance

NASDAQ:PAYX opened at $152.52 on Wednesday. Paychex has a 12-month low of $115.40 and a 12-month high of $161.24. The firm has a market cap of $54.94 billion, a price-to-earnings ratio of 31.78, a price-to-earnings-growth ratio of 3.55 and a beta of 0.92. The company's 50-day moving average is $151.59 and its two-hundred day moving average is $147.58. The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 0.19.

Paychex Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, May 29th. Shareholders of record on Monday, May 12th were paid a dividend of $1.08 per share. The ex-dividend date of this dividend was Monday, May 12th. This represents a $4.32 dividend on an annualized basis and a yield of 2.83%. This is an increase from Paychex's previous quarterly dividend of $0.98. Paychex's dividend payout ratio (DPR) is currently 90.00%.

Insider Activity at Paychex

In other Paychex news, Director Joseph M. Velli sold 3,650 shares of Paychex stock in a transaction on Tuesday, April 15th. The shares were sold at an average price of $149.25, for a total transaction of $544,762.50. Following the sale, the director now owns 78,455 shares in the company, valued at $11,709,408.75. The trade was a 4.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 11.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Paychex

A number of hedge funds have recently made changes to their positions in PAYX. Woodline Partners LP bought a new stake in shares of Paychex during the first quarter worth approximately $3,333,000. Bison Wealth LLC lifted its position in Paychex by 3.0% during the 4th quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider's stock worth $566,000 after buying an additional 117 shares in the last quarter. Finally, Brighton Jones LLC boosted its position in Paychex by 26.3% during the fourth quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider's stock valued at $801,000 after purchasing an additional 1,190 shares during the last quarter. Institutional investors and hedge funds own 83.47% of the company's stock.

Analysts Set New Price Targets

Several research firms recently commented on PAYX. Jefferies Financial Group reissued a "hold" rating on shares of Paychex in a research report on Friday, May 23rd. UBS Group raised their target price on Paychex from $152.00 to $155.00 and gave the company a "neutral" rating in a research report on Tuesday, March 4th. Barclays upped their price objective on Paychex from $140.00 to $155.00 and gave the company an "equal weight" rating in a report on Monday, March 31st. Stifel Nicolaus upped their price objective on shares of Paychex from $141.00 to $156.00 and gave the company a "hold" rating in a research note on Thursday, March 27th. Finally, Citigroup increased their price target on shares of Paychex from $145.00 to $158.00 and gave the stock a "neutral" rating in a research report on Thursday, March 27th. Two investment analysts have rated the stock with a sell rating and ten have issued a hold rating to the company. Based on data from MarketBeat.com, Paychex presently has a consensus rating of "Hold" and an average target price of $142.55.

About Paychex

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.

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