Paychex (PAYX) stock
Industrials · Human Resource & Employment Services
Paychex (PAYX) is a Human Resource & Employment Services company in the Industrials sector, headquartered in Penfield, New York. As of October 23, 2026, PAYX closed at $118.04, a market capitalization of $42.02 billion, the 264th largest company in the S&P 500. Over the last twelve months it generated $6.60 billion in revenue (+6% year over year) and $2.02 billion in free cash flow. The stock trades at 23.4x trailing earnings and 18.5x forward earnings.
- 1-year total return: -1.2% (dividends reinvested)
- 5-year return: +2.2% a year
- 52-week range: $85.45 – $127.98
- Gross margin 74.4%, operating margin 38.5%
- Dividend yield: 4.03%, 15 straight years of increases
- FI Handbook report card: B across 10 metrics
- 46th largest of 83 Industrials stocks in the S&P 500
PAYX price chart
1Y price change: -5.4% (price only; total returns below include dividends)
| Total return | 1M | YTD | 1Y | 3Y | 5Y | 10Y | MAX |
|---|---|---|---|---|---|---|---|
| PAYX | +13.0% | +8.8% | -1.2% | +3.9% | +2.2% | +11.1% | +18.1% |
Dividends reinvested. 3Y and longer are annualized; MAX is annualized since 1983.
PAYX key statistics
- Market cap
- $42.0B
- #264 in S&P 500
- P/E (TTM)
- 23.4x
- Forward P/E
- 18.5x
- EPS (TTM)
- $5.04
- Revenue (TTM)
- $6.6B
- +6%
- Free cash flow
- $2.0B
- Gross margin
- 74.4%
- Operating margin
- 38.5%
- Return on equity
- 47.1%
- Dividend yield
- 4.03%
- 52-week range
- $85.45 – $127.98
- Beta
- 0.85
- Price / sales
- 6.4x
- EV / EBITDA
- 14.8x
- Debt / equity
- 1.25x
- Employees
- 17,600
PAYX report card
BTen fundamentals graded A to F against fixed thresholds. Not a buy or sell rating.
- Revenue growth5.9%C
- Gross margin74.4%A
- Operating margin38.5%A
- FCF margin30.5%A
- Return on equity47.1%A
- Net debt / EBITDA1.2xC
- Forward P/E18.5xB
- PEG ratio2.0xD
- Shareholder yield5.5%A
- Share count change / yr-0.1%C
Paychex financials
Revenue went from $3.1B in fiscal 2017 to $6.3B in fiscal 2026, growing 8.2% a year.
| Fiscal year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $3.1B | $3.3B | $3.7B | $4.0B | $4.0B | $4.6B | $4.9B | $5.1B | $5.4B | $6.3B |
| Gross profit | — | $2.3B | $2.5B | $2.7B | $2.7B | $3.2B | $3.5B | $3.7B | $3.9B | $4.6B |
| Operating income | $1.3B | $1.3B | $1.4B | $1.5B | $1.5B | $1.8B | $2.0B | $2.2B | $2.2B | $2.5B |
| Net income | — | — | — | — | — | $1.4B | $1.6B | $1.7B | $1.7B | $1.8B |
| EPS (diluted) | $2.28 | $2.75 | $2.86 | $3.04 | $3.03 | $3.84 | $4.30 | $4.67 | $4.58 | $4.89 |
| Free cash flow | $866.1M | $1.1B | $1.1B | $1.3B | $1.1B | $1.5B | $1.6B | $1.7B | $1.7B | $2.3B |
| Buybacks | $166.2M | $143.1M | $56.9M | $171.9M | $155.7M | $145.2M | $0 | $169.2M | $104.5M | $611.0M |
| Dividends paid | $662.3M | $739.7M | $826.8M | $889.4M | $908.7M | $999.6M | $1.2B | $1.3B | $1.4B | $1.6B |
| Diluted shares | 362.6M | 361.5M | 361.8M | 361.0M | 362.1M | 363.1M | 362.3M | 362.1M | 362.0M | 360.0M |
Source: SEC filings (10-K XBRL). EPS and share counts are split-adjusted.
What's priced into PAYX?
A reverse DCF asks what growth the current price requires. With an enterprise value of $45.7B and $2.0B of trailing free cash flow, Paychex needs to grow free cash flow about 13.7% a year for ten years (fading to 3.0% terminal growth) to earn a 10% annual return. For context, free cash flow grew 15.2% a year over the last five years.
P/E ratio history
Current 24.1x vs. median 26.9x (10th–90th percentile 20.2x–32.1x).
A model, not a forecast or advice. Small changes in assumptions move the answer a lot.
PAYX dividend
- Dividend yield
- 4.03%
- Annual dividend
- $4.76
- Years of increases
- 15
- 5-yr dividend growth
- 11.2%
- per year
- Payout ratio
- 90%
- Payments per year
- 4
Regular dividends per share by calendar year; special dividends excluded. Current year omitted until complete.
PAYX analyst price targets
14 analysts' average 12-month target is $114.57 (-3% vs. $118.04). Targets range from $96.00 to $150.00. 11% rate it a buy.
PAYX earnings
Next report: December 18, 2026. Paychex has beaten EPS estimates 5 quarters in a row. Last quarter's revenue was $1.6B (+6% year over year).
| Report date | EPS estimate | EPS actual | Surprise |
|---|---|---|---|
| Sep 23, 2026 | $1.32 | $1.34 | +1.6% |
| Jun 24, 2026 | $1.31 | $1.32 | +0.9% |
| Mar 25, 2026 | $1.67 | $1.71 | +2.3% |
| Dec 19, 2025 | $1.23 | $1.26 | +2.4% |
| Sep 30, 2025 | $1.20 | $1.22 | +1.4% |
| Jun 25, 2025 | $1.20 | $1.19 | -0.7% |
| Mar 26, 2025 | $1.48 | $1.49 | +0.7% |
| Dec 19, 2024 | $1.12 | $1.14 | +1.5% |
Stocks like PAYX
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|---|---|---|---|---|---|
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PAYX news
- Paychex (PAYX) Up 17% Since Last Earnings Report: Can It Continue? · Oct 23, 2026
- These 3 Dividend Stocks Could Help Pay Retirement Bills Without Selling Shares · Oct 22, 2026
- 3 Large-Cap Stocks That Concern Us · Oct 21, 2026
- Paychex’s 4.3% Dividend Looks Attractive. But Its Safety Margin Is Shrinking · Oct 20, 2026
- 1 Cash-Producing Stock with Competitive Advantages and 2 Facing Challenges · Oct 20, 2026
PAYX stock FAQ
What is PAYX's market cap?
Paychex's market capitalization is $42.02 billion as of October 23, 2026, ranking 264th in the S&P 500.
What is PAYX's P/E ratio?
PAYX trades at a trailing price-to-earnings ratio of 23.4x and a forward P/E of 18.5x. Its median P/E over the period we track is 26.9x.
Does PAYX pay a dividend?
Yes. Paychex pays $4.76 per share a year, a 4.03% yield. It has raised its dividend 15 years in a row. Dividends grew 11.2% a year over the last five years.
How much has PAYX stock returned?
Including reinvested dividends, PAYX returned -1.2% over one year, +2.2% a year over five years, +11.1% a year over ten years through October 23, 2026.
Is PAYX stock overvalued?
At today's price, a reverse discounted cash flow model (10% discount rate, 3% terminal growth) implies Paychex must grow free cash flow about 14% a year for the next decade. Its free cash flow grew 15% a year over the last five years. Whether that is achievable decides if the stock is cheap or expensive. This is a model, not advice.
What is the PAYX price target?
14 analysts cover PAYX with an average 12-month price target of $114.57, -3% from the current price. 11% of them rate it a buy.
When does PAYX report earnings?
Paychex is expected to report earnings on December 18, 2026. It has beaten EPS estimates 5 quarters in a row.
How many employees does Paychex have?
Paychex has about 17,600 full-time employees, or $375,142 of revenue per employee.
Sources: SEC EDGAR filings, Yahoo Finance market data (delayed), FI Handbook calculations. Last close October 23, 2026. Methodology