Paychex Analysts Slash Their Forecasts Following Q2 Earnings

Benzinga
2025/12/23

Paychex, Inc. (NASDAQ:PAYX) reported upbeat earnings for its fiscal second-quarter on Friday.

The company posted an 18% year-over-year increase in total revenue to $1.557 billion. Adjusted diluted earnings per share were $1.26, up from $1.14 a year earlier, while GAAP diluted earnings per share were $1.10, slightly lower than the $1.14 reported last year. Adjusted EPS beat estimates by 3 cents; sales missed by $10 million.

"We are proud of the significant progress we've made on key strategic priorities, enabling us to deliver the most comprehensive suite of HCM solutions in the industry," commented CEO John Gibson. He credited strategic progress and AI-driven productivity for improved efficiency and client value.

Paychex raised its fiscal 2026 adjusted EPS growth outlook to 10%-11%, with guidance now ranging from $5.48 to $5.53 per share.

Paychex shares rose 2.1% to trade $114.66 on Monday.

These analysts made changes to their price targets on Paychex following earnings announcement.

  • Morgan Stanley analyst James Faucette maintained Paychex with an Equal-Weight rating and lowered the price target from $133 to $123.
  • JP Morgan analyst Tien-Tsin Huang maintained the stock with an Underweight rating and cut the price target from $140 to $125.
  • Citigroup analyst Bryan Keane maintained Paychex with a Neutral and lowered the price target from $139 to $120.

Considering buying PAYX stock? Here’s what analysts think:

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