Paychex, Inc. (PAYX), headquartered in Rochester, New York, offers integrated human capital management solutions (HCM) that encompass payroll, benefits, human resources (HR), and insurance services for small to medium-sized businesses. With a market cap of $46.1 billion, the company's services range from calculating payroll and filing tax payments to administering retirement plans and workers' compensation. The industry-leading HCM company is expected to announce its fiscal first-quarter earnings for 2026 before the market opens on Tuesday, Sep. 30.

Ahead of the event, analysts expect PAYX to report a profit of $1.21 per share on a diluted basis, up 4.3% from $1.16 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.

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For the full year, analysts expect PAYX to report EPS of $5.45, up 9.4% from $4.98 in fiscal 2025. Its EPS is expected to rise 7.3% year over year to $5.85 in fiscal 2027.

PAYX stock has underperformed the S&P 500 Index’s ($SPX) 15.4% gains over the past 52 weeks, with shares down 4.4% during this period. Similarly, it considerably underperformed the Technology Select Sector SPDR Fund’s (XLK) 24% gains over the same time frame.

On Jun. 25, PAYX shares closed down more than 9% after reporting its Q4 results. Its adjusted EPS of $1.19 surpassed Wall Street expectations of $1.18. The company’s revenue was $1.43 billion, surpassing Wall Street forecasts of $1.41 billion.

Analysts’ consensus opinion on PAYX stock is cautious, with a “Hold” rating overall. Out of 16 analysts covering the stock, 14 give a “Hold,” and two recommend a “Strong Sell.” PAYX’s average analyst price target is $147.42, indicating a potential upside of 16.4% from the current levels.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com