Paychex Inc: F4Q26 Recap: Solid Quarter Caps Off Year of Impressive Execution

研报英文原文证据摘录

Paychex Inc: F4Q26 Recap: Solid Quarter Caps Off Year of Impressive Execution

J P M O R G A N North America Equity Research

24 June 2026

Paychex Inc Underweight

PAYX, PAYX US

F4Q26 Recap: Solid Quarter Caps Off Year of Price (24 Jun 26):$96.30

Impressive Execution ▲Price Target (Dec-26):$105.00 Prior (Dec-26):$100.00

PAYX shares declined ~2% on Wednesday (SPX flat), despite reporting a modest

F4Q beat and FY27 profit guidance that was ahead of Street estimates at the Payments, Processors & IT Services

midpoint. That said, beneath the surface F4Q MS growth missed consensus Tien-tsin Huang, CFA AC

expectations, and bulls were likely looking for slightly more upside to the FY27 (1-212) 622-6632

growth guide, particularly in light of continued outperformance in PEO. Our sense tien-tsin.huang@jpmorgan.com

is Paycor growth was softer than hoped (though still positive), partially on noise Brendan Biles

related to Enterprise/SMB/PEO resegmentation, while PEO guidance came in (1-212) 270-0880

brendan.biles@jpmorgan.com

prudently conservative, leaving room for revenue/EPS upside throughout the year

Charles Pearce, CFA

contingent upon macro and retention trends holding up. Stepping back, F4Q

(1-212) 622-4368

capped off a year of strong execution for Paychex, highlighted by ramping organic charles.pearce@jpmchase.com

growth acceleration throughout the year (to exit at 6%) and outsized margin J.P. Morgan Securities LLC

expansion. We remain on the sidelines with much to reflect on as the company

navigates its integration execution and new AI complexities. We maintain our UW

rating and establish a $105 Dec-27 PT (same 16x adj EPS multiple from prior $100 Key Changes (FYE May)

Dec-26 PT). Prev Cur Δ

Adj. EPS - 27E ($) 5.88 5.97 1.6%

• F4Q Highlights.