Paychex Inc "HUB Alliance aims for Mid-Market Momentum" (Neutral) McVeigh

Research evidence excerpt

Paychex Inc "HUB Alliance aims for Mid-Market Momentum" (Neutral) McVeigh

Global Research

18 May 2026ab

Paychex Inc Equities

United StatesHUB Alliance aims for Mid-Market Momentum

Software

12-month rating Neutral

Paycor and HUB International announce a partnership

The PAYX stock is up +2% intraday on news that Paycor—~$4.1b acquisition in Apr-25 12m price target US$94.00

—has entered a partnership with HUB International to enhance its broker-led go to

market strategy as it continues to scale in the mid market. We monitor this as it could

Price (18 May 2026) US$92.90

enhance Paycor’s ability to generate additional sales opportunities within HUB’s 21k+

employees and 570+ offices across North America. RIC: PAYX.O BBG: PAYX US

Trading data and key metrics

HUB adds scale—HUB is a high growth insurance broker with ~$4.8b revenue 52-wk range US$159.78-85.57

in 2024, up from $1.1b in 2013 amid a combination of organic growth + Market cap. US$33.6b

acquisition of 130+ brokerages. With 25+ years deep expertise on advisory, risk Shares o/s 361m (COM)

management and advisory, HUB has a strong track record of executing HCM Free float 90%

platform strategy guiding mid-market businesses through selection,

Avg. daily volume ('000) 3,848

implementation and optimization of technology.

Avg. daily value (m) US$355.5

Paycor could benefit—post Paychex’s sales realignment after its $4.1b Common s/h equity (05/26E) US$4.13b

Paycor acquisition, Paychex has been adding sales headcount to capture P/BV (05/26E) 8.0x

momentum. In addition, broker referrals have accelerated to pre-acquisition Net debt to EBITDA (05/26E) 1.1x

levels, generating more than half its new businesses. Access to HUB’s

distribution could add a new growth lever by bringing customers an end-to- EPS (UBS, diluted) (USD)