TD Cowen cuts target for Paychex stock from USD 117.00 to USD 105.00

Published on 10/01/2026 at 16:19 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Paychex posted USD 1.34 adjusted earnings per share in fiscal 2027's first quarter. Paychex stock costs EUR 88.65 on October 1, 2026 versus EUR 86.83.

Flatlay-Foto mit ISIN-Karte US7043261079, Gehaltsabrechnung, Taschenrechner und Kugelschreiber auf Holztisch — Paychex Inc. US7043261079 als Flatlay mit ISIN-Karte, generischer Gehaltsabrechnung, Taschenrechner und Kugelschreiber, Illustration mit AI erstellt.

Paychex Inc. (ISIN US7043261079) was trading at EUR 88.65 at Lang & Schwarz on October 1, 2026 at 4:06 p.m. CEST, while TD Cowen cut its USD 117.00 price target to USD 105.00 in a note dated September 25, 2026, as MarketBeat reports. The target cut followed Paychex's first-quarter fiscal 2027 results and leaves the analyst's rating at Hold.

First-quarter growth remains uneven

According to Nasdaq on September 23, 2026, Paychex reported total revenue of USD 1.63 billion for the three months ended August 31, 2026, up 6.00 percent from USD 1.54 billion in the prior-year quarter. GAAP diluted earnings per share rose 14.00 percent to USD 1.21, while adjusted diluted earnings per share increased 10.00 percent to USD 1.34.

The mix matters. Management Solutions revenue grew 4.00 percent to USD 1.21 billion, while PEO and Insurance Solutions revenue rose 12.00 percent to USD 367.60 million. Operating income increased 14.00 percent to USD 619.20 million, and the operating margin expanded to 38.00 percent from 35.20 percent in the comparable quarter.

Guidance favors the PEO segment

Paychex kept fiscal 2027 total revenue growth guidance at 5.00 percent to 6.00 percent, but raised PEO and Insurance Solutions growth guidance to 7.00 percent to 8.00 percent from 6.00 percent to 7.00 percent. The company also projected interest on funds held for clients of USD 200.00 million to USD 210.00 million, compared with prior guidance of USD 195.00 million to USD 205.00 million.

That upgrade gives the strongest operating signal in the release, but the second-quarter outlook is more restrained. Paychex expects second-quarter revenue growth of 4.00 percent and an adjusted operating margin of 40.00 percent, reflecting a tougher comparison with the prior year.

Analyst targets point to caution

TD Cowen's USD 105.00 target is 18.18 percent below its former USD 128.33 level? No. The actual former target was USD 117.00, a cut of 10.26 percent. MarketBeat also reported a Hold consensus and an average target of USD 129.12 among its tracked analysts.

The contrast is clear: operating results improved, yet the target reset shows that valuation and forward growth remain central to the debate. Paychex had a market capitalization of USD 35.70 billion and a 52-week range of USD 85.45 to USD 129.24 as of October 1, 2026.

Paychex stock rises in afternoon trading

Paychex stock was trading at EUR 88.65 at Lang & Schwarz on October 1, 2026 at 4:06 p.m. CEST, up 2.10 percent versus the prior close of EUR 86.83 at Lang & Schwarz on September 30, 2026. The Nasdaq-listed stock's primary exchange is Nasdaq, where the quotation currency is USD.

The further course of trading is shown by the continuously updated real-time quote of Paychex stock.