At a glance
Paychex Inc is worth $41.11B, about 24 times its fiscal 2026 earnings. Revenue grew 16.9% to $6.51B in fiscal 2026, with 27.0% kept as profit; over 5 years it has grown 9.9% a year. It pays a 4.96% dividend yield, raised every year for at least 9 years, and returned $7.56B to shareholders in dividends and buybacks over FY2022–FY2026. The stock returned +4.1% over the past year with dividends reinvested and +1.9% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 44.2% in the 2020 crash (S&P 500: 33.7%) and 22.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 23 months after the lows.
The business in plain English
Paychex is a human capital management (HCM) company. It handles the people side of a business: payroll, HR (human resources), employee benefits and insurance. As of May 31, 2026, it served about 840,000 customers in the U.S. and parts of Europe, about 800,000 of them payroll clients. Paychex says it pays 1 in 11 U.S. private-sector workers and moved about $1.3 trillion in the fiscal year ended May 31, 2026.
Customers pay for cloud software and services. Three platforms cover different business sizes: SurePayroll for small self-service firms, Paychex Flex for small and medium businesses, and Paycor, acquired in April 2025, for larger employers. Modules cover hiring, scheduling and benefits. Paychex also provides HR outsourcing for about 2.6 million worksite employees. In its professional employer organization (PEO), it becomes co-employer of a client's staff and handles payroll, benefits and insurance.
In fiscal 2026, Management Solutions (software, payroll and other HR services) brought in about $4.9 billion, or 75% of total revenue of $6.5 billion. PEO and Insurance Solutions added about $1.4 billion, or 22%. More than 60% of revenue comes from services other than payroll processing. Paychex also earns interest on client money it holds before paying it out. Contracts can generally be ended with 30 days' notice, and payroll client retention was 82% to 83%.
Price history
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PAYX +4.1% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Management Solutions | $4.87B | 74.8% |
| Peo And Insurance Solutions | $1.43B | 22% |
Latest results
- In Q1 FY2027 (ended Aug 31, 2026), revenue was $1.63B, up 5.9% from a year earlier, and net income was $429.7M (+12.0%).
- For fiscal 2026, revenue was $6.51B (+16.9% year over year; +9.9% a year from FY2021 to FY2026) with a 27% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +9.9% good |
|---|---|
| Operating margin | 38.6% good |
| Free cash flow margin | 35.7% good |
| Return on equity (FY2026) | 47.1% good |
| Return on assets (FY2026) | 10.9% good |
| Net cash (cash minus debt) | $-3.62B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $4.06B | $1.10B | $1.14B |
| FY2022 | $4.61B | $1.39B | $1.46B |
| FY2023 | $5.01B | $1.56B | $1.56B |
| FY2024 | $5.28B | $1.69B | $1.74B |
| FY2025 | $5.57B | $1.66B | $1.71B |
| FY2026 | $6.51B | $1.76B | $2.32B |
Valuation snapshot
| Market value | $41.11B |
|---|---|
| P/E ratio | 23.6 |
| Dividend yield | 4.96% |
Rank among 1514 US companies
Market value at each year end
Paychex’s market value went from $21.85B at the end of 2016 to $41.11B on Nov 2, 2026, up 88%; since the end of 2025 it is up 2%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $41.11B | +2.1% |
| 2025 | $40.27B | -20.2% |
| 2024 | $50.49B | +17.8% |
| 2023 | $42.86B | +2.9% |
| 2022 | $41.66B | -15.4% |
| 2021 | $49.24B | +46.5% |
| 2020 | $33.60B | +10.2% |
| 2019 | $30.48B | +30.3% |
| 2018 | $23.39B | -4.3% |
| 2017 | $24.45B | +11.9% |
| 2016 | $21.85B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| PAYX price data to Nov 2, 2026 | +7.6% | +4.1% | +4.7% | +1.9% | +11.3% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +7.6% |
| 2025 | -17.5% |
| 2024 | +21.3% |
| 2023 | +6.2% |
| 2022 | -13.2% |
| 2021 | +50.2% |
| 2020 | +13.2% |
| 2019 | +34.5% |
| 2018 | -1.1% |
| 2017 | +15.4% |
| 2016 | +19.0% |
| 2015 | +18.4% |
| 2014 | +4.9% |
| 2013 | +48.9% |
| 2012 | +9.7% |
| 2011 | +1.5% |
| 2010 | +5.4% |
| 2009 | +22.1% |
| 2008 | -24.6% |
| 2007 | -6.0% |
| 2006 | +5.6% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 48.9% over that stretch · deepest drop along the way 49.5%, back to its old high 47.3 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 44.1% over that stretch · deepest drop along the way 44.2%, back to its old high 7.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 18.2% over that stretch · deepest drop along the way 22.6%, back to its old high 22.7 months after the low |
Insider activity
Form 4 filings from 2025-10-27 to 2026-10-27 (25 read): 0 open-market purchases and 3 sales ($1.4M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Oct 14, 2026 | Joseph M Velli Director | sell | $844K |
| Jul 17, 2026 | Christopher C Simmons VP, Controller & Treasurer | sell | $303K |
| Jul 20, 2026 | Robert L. Schrader Sr. VP, CFO | sell | $299K |
Who owns it
Large shareholders (13G filings)
| Capital International Investors | 8.6% | Dec 31, 2025 |
| Vanguard Capital Management | 6.77% | Mar 31, 2026 |
ETFs with the most weight in PAYX
| UDI USCF Dividend Income Fund | 4.88% |
| QQLV Invesco QQQ Low Volatility ETF | 4.01% |
| NEWZ StockSnips AI-Powered Sentiment US All Cap ETF | 3.1% |
| DIVS SmartETFs Dividend Builder ETF | 3% |
| CCOR Core Alternative ETF | 2.8% |
| GFGF Guru Favorite Stocks ETF | 2.76% |
| QQQG Pacer Nasdaq 100 Top 50 Cash Cows Growth Leaders ETF | 2.25% |
| EMOT First Trust S&P 500 Economic Moat ETF | 2.19% |
What could go wrong
- PEO co-employment and insurance costs. As a professional employer organization (PEO), Paychex is co-employer of its clients' workers, which carries added risks. Swings in health insurance and workers' compensation rates or claims trends can also hurt results.
- Clients who can't cover payroll payments. Paychex makes payments, such as wages and payroll taxes, on clients' behalf. If a client lacks the money to cover them, Paychex can be left with the loss.
- Rule changes could shrink interest on client funds. Paychex earns interest on client money it holds before paying wages and taxes. Government changes to how much tax is withheld, or when it must be sent, could reduce that income.
- AI could disrupt the business or misfire. Paychex is building AI into its products through its WISE engine. Customers could choose rival AI tools, new AI could add pressure across the industry, and AI errors could bring lawsuits or reputational harm.
- Acquisitions and debt obligations. Deals like the April 2025 Paycor acquisition carry integration risk. As of August 31, 2026, debt of about $4.6 billion exceeded cash and investments of $0.9 billion. A credit-rating cut could hurt profits.
- Cyberattacks on sensitive payroll data. Paychex holds pay, tax and personal data for about 800,000 payroll clients and their workers. A cyberattack, security flaw or internet disruption could mean lost revenue, higher costs, legal claims and a weaker competitive position.
Recent events
- Shareholder vote results
- Quarterly results released
- Executive or board change
- Quarterly results released
- Quarterly results released
- Major agreement signed; Major agreement ended; New debt or financial obligation
- Executive or board change; Other company announcement
- Quarterly results released
For income and retirement investors
Paychex has raised its dividend for at least nine straight fiscal years through fiscal 2026, and the streak may be longer. Dividends per share grew from $2.52 in fiscal 2021 to $4.43 in fiscal 2026, about 11.9% a year. The yield was 5.3% as of October 28, 2026. The payout is high: dividends took about 90% of fiscal 2026 earnings and 69% of free cash flow (the cash left after running and investing in the business). Buybacks are modest: about $1.0 billion over FY2022–FY2026, versus $6.5 billion in dividends.
The stock has fallen hard in downturns. It lost about 50% in the 2008 financial crisis and took about 47 months from its low to regain its prior high. It fell 44% in the 2020 COVID crash but recovered in about 7.5 months. In the 2022 bear market, it fell 23% and took about 23 months to recover. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Paychex make money?
Paychex makes money mainly by charging businesses for payroll, HR software and outsourced HR services. In fiscal 2026 (ended May 31, 2026), Management Solutions, which covers its software, payroll and administrative HR services, brought in about $4.9 billion, or 75% of revenue. PEO and Insurance Solutions, where Paychex acts as co-employer and helps clients offer benefits and insurance, added about $1.4 billion, or 22%. It also earns interest on client funds it holds before paying wages and taxes.
Does Paychex raise its dividend every year?
Yes. Paychex has raised its regular dividend for at least nine fiscal years in a row through fiscal 2026 (ended May 31, 2026), and the streak may be longer. Dividends per share grew from $2.52 in fiscal 2021 to $4.43 in fiscal 2026, about 11.9% a year on average. The yield was 5.3% as of October 28, 2026. Past increases don't guarantee future ones, and dividends already take about 90% of earnings.
How much of its profit does Paychex pay out as dividends?
Most of it. In fiscal 2026, Paychex paid about $1.6 billion in dividends, roughly 90% of its $1.76 billion net income. Measured against free cash flow, the cash left after running and investing in the business, the payout was about 69%, because free cash flow of $2.3 billion was higher than profit. A payout this high leaves less room for dividends to keep growing faster than earnings.
Why did Paychex acquire Paycor?
Mainly to reach larger businesses. Paychex completed its acquisition of Paycor HCM, a provider of HR, payroll and talent software, on April 14, 2025. Paychex says the deal expanded its reach upmarket, created more chances to offer extra services to existing clients, and strengthened its AI-driven HR tools. Paycor is now its main platform for larger employers with complex needs. Revenue rose 16.9% to $6.5 billion in fiscal 2026, the first full fiscal year with Paycor, though acquisitions also carry integration risk.
How has Paychex stock performed over the long term?
Strong over 10 years, but flat over five. As of October 28, 2026, the stock returned about 10.4% a year over 10 years, or 169% in total, but only about 0.7% a year over five years and a loss of 8% over one year. It fell 17.5% in calendar 2025, and in the 12 months to October 28, 2026, it dropped as much as 30% from a peak. Past returns do not predict future results.