Paychex Inc PAYX

What the company does

Paychex Inc is a large-cap company in the Technology sector (Software - Application), with a market value of $42.0B, based in the USA.

It employs about 17,600 people and has been listed since Mar 26, 1990.

Paychex, Inc., together with its subsidiaries, provides human capital management solutions (HCM) for human resources, payroll processing, employee benefits, and insurance services for small to medium-sized businesses in the United States, Europe, Canada, India, and Israel. It offers technology and advisory solutions; and payroll tax administration services. The company also provides retirement solutions, such as plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services; HCM solutions from recruiting and hiring to retirement; and talent management and talent acquisition services.

Cheap or expensive? relatively cheap

Its price-to-earnings (P/E) is 23.4 versus 38.7 for the median of the Technology sector in our universe (65 companies) — relatively cheap.

Revenue is growing 6% versus the same quarter last year.

On analysts' next-year forecasts the multiple drops to 19.2 — they expect higher earnings.

The average analyst price target is 113.93, 4% below the current price (their view, not ours).

The stock sits at 78% of its one-year range (0% = the low, 100% = the high).

The risks

• No risk flags were detected from the data we have.

Strengths

• ✅ Profitable — 26 of every 100 dollars of revenue stays as profit.
• ✅ Generates free cash flow — profit becomes cash in the bank.
• ✅ Buys back its shares (2% fewer shares in a year).
• ✅ Pays a dividend (3.8% a year).

What changed this week

Over the past week the stock rose 5.7% (for comparison: S&P 500 -0.4%, sector ETF XLK -0.1%).

This week's news

• Paychex (PAYX) Up 17% Since Last Earnings Report: Can It Continue? finance.yahoo.com · 2026-10-23
  What the article says

  It has been about a month since the last earnings report for Paychex (PAYX). Shares have added about 17% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Paychex due for a pullback? Before we dive into how investors and analysts have… source ↗

• NSP Benefits From HRScale Adoption Amid High Competition finance.yahoo.com · 2026-10-21
  What the article says

  Insperity's NSP second-quarter 2026 adjusted earnings were 34 cents per share in the second quarter of 2026, rising 31% year over year and surpassing the Zacks Consensus Estimate of 33 cents by 3%. Revenues increased 2% to $1.69 billion and beat the consensus mark of $1.67 billion by 0.5%. How Is Insperity Doing?… source ↗

• 3 Large-Cap Stocks That Concern Us finance.yahoo.com · 2026-10-21
  What the article says

  3 Large-Cap Stocks That Concern Us Large-cap stocks usually command their industries because they have the scale to drive market trends. The flip side though is that their sheer size can limit growth as expanding further becomes an increasingly challenging task. This dynamic can trouble even the most skilled… source ↗

• 1 Cash-Producing Stock with Competitive Advantages and 2 Facing Challenges finance.yahoo.com · 2026-10-20
  What the article says

  1 Cash-Producing Stock with Competitive Advantages and 2 Facing Challenges A company that generates cash isn't automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand. Not all companies are created equal, and StockStory is here to surface the ones with real… source ↗

• Paychex Expands Payroll Tax Support with New Tax Penalty Protection Service finance.yahoo.com · 2026-10-19
  What the article says

  Paychex, Inc. First-of-its-kind service expands payroll tax resolution and provides financial protection Provides financial protection for penalties and interest* when resolution efforts do not obtain relief Helps businesses protect cash flow, save time, and reduce the stress associated with payroll tax issues… source ↗

What changed since last week

• The price rose 5.7% since the last summary.