Paychex stock gained 1.24 percent on October 6 as margins widened
Published on 10/07/2026 at 05:55 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Paychex (ISIN US7043261079) was last at USD 101.02 on Nasdaq on October 6, 2026 at 4:00 p.m. ET, up 1.24 percent from the prior close. The move followed a fiscal first quarter in which revenue reached USD 1.6305 billion and adjusted earnings per share rose 10 percent to USD 1.34.
Revenue reaches USD 1.6305 billion
According to GlobeNewswire on September 23, 2026, Paychex reported fiscal Q1 2027 results for the quarter ended August 31, 2026. Total revenue increased 6 percent from USD 1.5400 billion in the prior-year quarter, while GAAP operating income advanced 14 percent to USD 619.2 million.
The earnings mix matters. Management Solutions revenue grew 4 percent to USD 1.2131 billion, while PEO and Insurance Solutions revenue increased 12 percent to USD 367.6 million. The faster-growing segment is therefore carrying more of the company's expansion than its core payroll and HR platform.
Margins widen as PEO accelerates
Paychex's GAAP operating margin reached 38.0 percent in fiscal Q1 2027, compared with 35.2 percent a year earlier. Adjusted operating margin rose to 42.0 percent from 40.7 percent, and adjusted operating income increased 9 percent to USD 684.7 million, according to GlobeNewswire.
Cash generation was less supportive than the income statement. Operating cash flow was USD 413.5 million in the quarter, compared with USD 718.4 million in the prior-year period, while Paychex paid USD 424.1 million in dividends.
Analysts keep a Hold consensus
MarketBeat reported on October 1, 2026, that 18 firms held a consensus rating of Hold, comprising 13 holds, two sells, two buys and one strong buy. The average 12-month price target was USD 127.59, which is 26.3 percent above the October 6 price of USD 101.02.
That valuation gap sits alongside a more selective growth story. Paychex maintained fiscal 2027 total revenue growth guidance of 5 percent to 6 percent and raised its PEO and Insurance Solutions growth outlook to 7 percent to 8 percent from 6 percent to 7 percent, according to GlobeNewswire.
Paychex stock stays below its yearly high
Paychex stock was last at USD 101.02 on Nasdaq on October 6, 2026 at 4:00 p.m. ET. Its 52-week range was USD 85.45 to USD 129.24, with a market capitalization of USD 35.9 billion and volume of 2,233,866 shares.
Paychex stock at a glance
- Company: Paychex, Inc.
- ISIN: US7043261079
- Ticker: PAYX
- Trading venue: Nasdaq
- Price (as of October 6, 2026, 4:00 p.m. ET): USD 101.02
- Market capitalization: USD 35.9 billion (as of October 6, 2026)
- 52-week range: USD 85.45-129.24 (as of October 6, 2026)
- Sector / Industry: Industrials / Staffing and Employment Services
- Index membership: Nasdaq-100
Upcoming dates for Paychex stock
- October 15, 2026: 2026 Annual Meeting of Stockholders
Paychex lists the annual meeting for October 15, 2026 at 9:30 a.m. EDT on its investor relations page.
