Paychex Inc (PAYX.O): CEO / CFO Highlight Positive Momentum Shift

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Paychex Inc (PAYX.O): CEO / CFO Highlight Positive Momentum Shift

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29 Jul 2026 18:00:00 ET │ 14 pages

Paychex Inc (PAYX.O)

CEO / CFO Highlight Positive Momentum Shift

CITI'S TAKE

We met with President and CEO John Gibson and CFO Bob Schrader and

came away more constructive on PAYX’s long-term growth algorithm, with

management expressing increasing confidence that PAYX’s competitive Buy

positioning is strengthening and several growth initiatives remain at early Price (29 Jul 26 13:04) US$123.85

stages (we recently upgraded shares to Buy on 6/15/26). We believe

improving competitive dynamics, disciplined customer acquisition and a Target price US$150.00↑

normalized Paycor sales organization should support the recent from US$140.00

acceleration in organic growth (6% exiting FY26 vs. 3% exiting FY25), Expected share price return 21.1%combined with high-single-digit bookings momentum in 2H26. PAYX’s

growth will increasingly be driven by revenue per client through higher- Expected dividend yield 3.8%

value customer acquisition, cross-sell, pricing and additional product Expected total return 25.0%

penetration (highest product penetration is 20%). Market Cap US$44,051M

We also note Paycor revenue synergies (50-100 bps in FY27), payroll-agnostic

product availability (new potential growth driver), and AI-driven productivity

(boosting top and bottom line) remain in early innings and should support

Price Performancesustainable revenue growth and continued operating leverage over the medium

term. We reiterate Buy, and due to improving fundamentals, raise our TP to $150 (RIC: PAYX.O, BB: PAYX US)

from $140.

Competitive Dynamics Continue to Improve, Supporting Confidence in PAYX’s

Long-Term Growth Algorithm. The competitive environment has structurally