Paychex stock falls 2.04 percent after fiscal Q1 results

Published on 09/29/2026 at 08:11 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Paychex stock posted USD 99.30 on Nasdaq on September 28, 2026, after fiscal Q1 revenue rose 6 percent. TD Cowen cut its target to USD 105.00 from USD 117.00.

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Paychex stock (ISIN US7043261079) fell 2.04 percent to USD 99.30 on Nasdaq on September 28, 2026, after the company reported fiscal first-quarter results. The market reaction contrasts with a 14 percent rise in GAAP diluted earnings per share to USD 1.21, but analysts have questioned the pace and mix of growth.

Revenue growth reaches 6 percent

According to GlobeNewswire on September 23, 2026, Paychex generated USD 1.6305 billion in total revenue for the quarter ended August 31, 2026, up 6 percent from USD 1.5400 billion a year earlier. Operating income rose 14 percent to USD 619.2 million, while net income increased 12 percent to USD 429.7 million.

The business mix explains the investor caution. Management Solutions revenue grew 4 percent to USD 1.2131 billion, whereas PEO and Insurance Solutions revenue increased 12 percent to USD 367.6 million. Adjusted diluted earnings per share reached USD 1.34, up 10 percent from USD 1.22 and USD 0.02 above the consensus cited by MarketBeat.

Analysts lower their targets

According to MarketBeat on September 26, 2026, TD Cowen lowered its Paychex price target to USD 105.00 from USD 117.00 and retained a Hold rating. The same report said BMO Capital Markets cut its target to USD 113.00 from USD 118.00, while Jefferies reduced its target to USD 110.00 from USD 120.00.

Paychex maintained fiscal 2027 total revenue growth guidance of 5 percent to 6 percent, while raising its PEO and Insurance Solutions growth outlook to 7 percent to 8 percent from 6 percent to 7 percent. That split matters: the faster-growing segment is gaining weight, but the core Management Solutions business is expanding at a slower 4 percent rate.

Stock remains below its yearly high

Paychex traded at USD 99.30 on Nasdaq on September 28, 2026, against a prior close of USD 101.37. Its 52-week range was USD 85.45 to USD 130.32, placing the stock 23.75 percent below the yearly high, while market capitalization stood at USD 35.3 billion.