Paychex's (PAYX) ability to deliver growth acceleration in the second-half is in focus after its Q2 results were modestly ahead of estimates, RBC Capital Markets said in a note Friday.

The report said smaller deal sizes, lower attachment rates, softer volumes for HR outsourcing solutions, and businesses opting for lower-tier service bundles weighed on revenue growth in Q2.

The challenging environment also led the company to expect revenue growth to be at the lower end of its fiscal 2026 guidance, it added.

"We continue to monitor the back-half loaded revenue growth

and margins given the tough macro," the note said.

RBC kept its sector perform rating with a $125 price target.

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