Paychex, Inc. (NASDAQ:PAYX) Expected to Earn Q3 2025 Earnings of $1.49 Per Share

Paychex, Inc. (NASDAQ:PAYX) – Research analysts at William Blair increased their Q3 2025 earnings per share estimates for shares of Paychex in a research report issued to clients and investors on Thursday, June 27th. William Blair analyst A. Nicholas now expects that the business services provider will post earnings of $1.49 per share for the quarter, up from their previous forecast of $1.42. The consensus estimate for Paychex’s current full-year earnings is $4.99 per share. William Blair also issued estimates for Paychex’s Q4 2025 earnings at $1.20 EPS and FY2025 earnings at $4.98 EPS.

Other equities analysts have also issued research reports about the company. Barclays reduced their price objective on Paychex from $120.00 to $118.00 and set an “equal weight” rating on the stock in a research note on Monday. Morgan Stanley dropped their target price on Paychex from $125.00 to $122.00 and set an “equal weight” rating for the company in a research report on Thursday, June 27th. Royal Bank of Canada restated a “sector perform” rating and set a $130.00 target price on shares of Paychex in a research report on Thursday, June 27th. Bank of America boosted their target price on Paychex from $111.00 to $113.00 and gave the stock an “underperform” rating in a research report on Thursday, June 27th. Finally, Robert W. Baird dropped their target price on Paychex from $126.00 to $124.00 and set a “neutral” rating for the company in a research report on Thursday, June 27th. Two equities research analysts have rated the stock with a sell rating and eleven have assigned a hold rating to the stock. According to MarketBeat, Paychex presently has an average rating of “Hold” and an average target price of $122.46.

Paychex Price Performance

Paychex stock opened at $118.38 on Monday. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.24 and a current ratio of 1.37. The firm has a market cap of $42.61 billion, a P/E ratio of 25.24, a P/E/G ratio of 3.14 and a beta of 1.00. The business’s fifty day moving average is $122.29 and its two-hundred day moving average is $121.84. Paychex has a 52 week low of $106.27 and a 52 week high of $129.70.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings data on Wednesday, June 26th. The business services provider reported $1.12 EPS for the quarter, topping analysts’ consensus estimates of $1.10 by $0.02. The company had revenue of $1.30 billion for the quarter, compared to analyst estimates of $1.29 billion. Paychex had a return on equity of 46.63% and a net margin of 32.03%. The business’s revenue was up 5.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.97 earnings per share.

Paychex Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, May 30th. Investors of record on Friday, May 10th were issued a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a yield of 3.31%. The ex-dividend date was Thursday, May 9th. This is an increase from Paychex’s previous quarterly dividend of $0.89. Paychex’s dividend payout ratio is currently 83.94%.

Insider Activity at Paychex

In other Paychex news, Director David J. S. Flaschen sold 19,709 shares of the business’s stock in a transaction dated Friday, May 24th. The stock was sold at an average price of $124.55, for a total value of $2,454,755.95. Following the completion of the transaction, the director now directly owns 5,383 shares of the company’s stock, valued at $670,452.65. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 11.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PAYX. Chilton Capital Management LLC acquired a new position in Paychex in the first quarter valued at about $31,000. ESL Trust Services LLC acquired a new position in shares of Paychex during the first quarter worth about $31,000. Fortis Group Advisors LLC acquired a new position in shares of Paychex during the third quarter worth about $34,000. Clear Investment Research LLC boosted its position in shares of Paychex by 55.8% during the fourth quarter. Clear Investment Research LLC now owns 307 shares of the business services provider’s stock worth $37,000 after buying an additional 110 shares during the period. Finally, Criterion Capital Advisors LLC acquired a new position in shares of Paychex during the fourth quarter worth about $40,000. 83.47% of the stock is owned by institutional investors and hedge funds.

About Paychex

Paychex, Inc provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.