PAYX: F4Q First Look Is Mixed; Call at 9:30am ET

Research evidence excerpt

PAYX: F4Q First Look Is Mixed; Call at 9:30am ET

Equity Research

Flash Comment — June 24, 2026

Payments, Processors, and IT Services

Paychex, Inc.

F4Q First Look Is Mixed; Call at 9:30am ET Underweight

Price Target: $95.00

Ticker PAYX

Our Call Upside/(Downside) to Target (3.1)%

Not surprised to see shares of PAYX down on softer-than-expected MS growth, offset by Price (06/23/2026) $97.99

upside in PEO. Initial F27 guide is solidly in line with WFSe/Street. Await more clarity on 52 Week Range $85.45 - 152.57

underlying Paycor trends on 9:30am call. Market Cap (MM) $35,227

Source: Company Data, Wells Fargo Securities estimates, and Factset.

Initial Thoughts NA = Not Available, NC = No Change, NE = No Estimate

Shares are trading down pre-market following mixed F4Q results which included Jason Kupferberg

modestly softer-than-expected MS growth offset by strength in PEO. While organic Equity Analyst | Wells Fargo Securities, LLC

Jason.Kupferberg@wellsfargo.com | 212-214-5457

MS growth of ~5.6% reflects ~150bps acceleration vs. last quarter, questions around

underlying Paycor growth remain. That said, we were encouraged to see PAYX exceed Tyler DuPont, CFA

both revs and cost synergies (>50bps revs growth and $100M+ cost synergies) Associate Equity Analyst | Wells Fargo Securities, LLC Tyler.J.Dupont@wellsfargo.com | 212-214-5431

associated with Paycor. Reiterate U/W on potential AI headwinds and cyclical employment

Cassie Chantrends.

Equity Analyst | Wells Fargo Securities, LLC

Cassie.Chan@wellsfargo.com | 212-214-5331

Initial F27 revs guide in line with WFSe and Street. Given mgmt already blessed F27 Melissa Chen, CFA

consensus revs growth of 5.5% last quarter, we are not surprised to see initial growth Associate Equity Analyst | Wells Fargo Securities, LLC