Paychex Inc. (NASDAQ:PAYX) on Wednesday reported upbeat fiscal first-quarter 2027 results.
Revenue of $1.631 billion topped the $1.627 billion estimate. Adjusted earnings of $1.34 per share also beat the $1.32 estimate.
Paychex maintained its fiscal 2027 adjusted earnings growth outlook of 7% to 9% and revenue growth guidance of 5% to 6%.
For the second quarter, management expects revenue growth of about 4% and an adjusted operating margin near 40%.
“Paychex delivered a solid start to total revenue growth in fiscal 2027, with double-digit PEO and Insurance Solutions revenue and EPS growth underscoring the strength of our advisory solutions, disciplined execution, and continued progress against our strategic priorities,” stated John Gibson, President and Chief Executive Officer. “Our results reflect the durability of our business model, go-to-market investments helping us bring the full breadth of our solutions to more prospects and clients, and the value businesses place on our ability to combine innovative technology with trusted advisory expertise to navigate an increasingly complex workforce, regulatory, and benefits environment.”
Paychex shares fell 1.4% to trade at $103.07 on Thursday.
These analysts made changes to their price targets on Paychex following earnings announcement.
- JP Morgan analyst Tien-Tsin Huang upgraded the stock from Underweight to Neutral and raised the price target from $105 to $115.
- Stifel analyst David Grossman maintained the stock with a Hold and lowered the price target from $130 to $112.
- RBC Capital analyst Ashish Sabadra reiterated the stock with a Sector Perform and maintained a $130 price target.
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