Paychex stock reports 6.00 percent revenue growth as targets reset

Published on 09/28/2026 at 14:15 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Paychex stock delivered USD 1.34 in adjusted EPS for fiscal Q1 2027, while TD Cowen cut its target to USD 105.00 from USD 117.00. PEO and insurance revenue grew 12.00 percent.

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Paychex stock (ISIN US7043261079) was last at USD 101.37 on Nasdaq on September 25, 2026 at 4:00 p.m. ET, down 0.22 percent from the prior session. The company reported fiscal first-quarter results on September 23, giving investors a sharper split between faster-growing insurance services and its larger payroll operation.

Revenue reaches USD 1.63 billion

For the quarter ended August 31, 2026, total revenue rose 6.00 percent year over year to USD 1.63 billion, while operating income increased 14.00 percent to USD 619.2 million, according to Paychex.

GAAP diluted EPS rose 14.00 percent to USD 1.21, while adjusted diluted EPS increased 10.00 percent to USD 1.34. Adjusted operating margin reached 42.00 percent, compared with 40.70 percent in the prior-year quarter, providing a measurable cushion against slower top-line expansion.

PEO growth changes the mix

PEO and Insurance Solutions revenue climbed 12.00 percent to USD 367.6 million, while Management Solutions revenue grew 4.00 percent to USD 1.21 billion. The contrast matters because the faster-growing segment now supplies a larger part of the company's incremental revenue, even as its core payroll business remains the bigger base.

Paychex raised its fiscal 2027 PEO and Insurance Solutions growth outlook to 7.00 percent to 8.00 percent from 6.00 percent to 7.00 percent. Total fiscal-year revenue growth guidance stayed at 5.00 percent to 6.00 percent, while adjusted EPS growth guidance remained 7.00 percent to 9.00 percent.

Analyst target moves closer

TD Cowen lowered its Paychex price target to USD 105.00 from USD 117.00 and kept a Hold rating in a report dated September 26, 2026, according to MarketBeat. The new target stands 3.58 percent above the September 25 price, leaving the earnings beat and the slower Management Solutions growth in direct tension.

Paychex stock stays below yearly high

Paychex stock was last at USD 101.37 on Nasdaq on September 25, 2026 at 4:00 p.m. ET, with a 52-week range of USD 85.45 to USD 130.32 and a session volume of 3,931,636 shares. Its market capitalization was USD 36.1 billion on that date.