F4Q26: Results and FY27 Guidance Largely Met Expectations

研报英文原文证据摘录

F4Q26: Results and FY27 Guidance Largely Met Expectations

USA | Software

Paychex EquityJuneResearch24, 2026

ESTIMATE CHANGEF4Q26: Results and FY27 Guidance Largely Met

RATING HOLDExpectations

PRICE $97.99^

Rev growth of 12.5% and EPS growth of 11% were slightly ahead of consensus

of 12.2%/10.1%. Notably, in-line MS was more muted than expected based on PRICE TARGET | % TO PT $105.00 | +7%

bullish comments intraQ and PPC trends. FY27 rev and EPS growth guidance 52W HIGH-LOW $152.57 - $85.45

bracketed consensus, and mgmt cited strong bookings momentum exiting FLOAT (%) | ADV MM (USD) 89.8% | 331.02

F2H. While FY27 guidance met consensus and valuation is undemanding, we MARKET CAP $35.1B

think investors want to see a path to stronger positive revisions to support TICKER PAYX ^Prior trading day's closing price unless otherwise

multiple expansion. noted.

F4Q Results: MS a Touch Light; Ex-PYCR Growth Accel'd Again. PAYX delivered +12.5% revenue FY (May) CHANGE TO JEFe JEF vs CONS

growth and +11% EPS growth, slightly above consensus of +12.2% and +10.1%, respectively. Mgmt 2027 2028 2027 2028

cited healthy momentum during the qtr -- new bookings grew by double-digits, and ASO/PEO client REV NM NA NM NA

retention hit records. By segment, Management Solutions grew by +13.6%, below consensus of

EPS NM NA +1% NA

+14.5%, despite relatively stronger employment trends. Mgmt cited continued product penetration

and price realization as key growth drivers. PYCR contributed 8-pts of MS growth -- we estimate that

2027 ($) Q1 Q2 Q3 Q4 FY

standalone PYCR Recurring revs grew by MSD-HSD (JEFe). Mgmt called out tough comparability

EPS 1.32 1.37 1.85 1.43 5.97

given how enterprise clients are moving around and noted that PAYX exceeded the FY26 PYCR

PREV 1.29 1.36 1.86 1.44 5.94