Paychex, Inc. (PAYX) Stock Analysis
Technology · Software - Application · NasdaqGS
Paychex, Inc. (PAYX) posted $6.51B in revenue for fiscal 2026 (up 16.9% year over year), at a 27.0% net margin, and has compounded revenue about 9.9%/yr over five years, per its SEC filings.
Data last refreshed August 2, 2026 from SEC filings · how we compute this
The analyst's take on Paychex, Inc.
Paychex, Inc. has grown revenue from $3.15B to $6.51B over the last 10 fiscal years, compounding about 9.9% a year. The most recent year was up 16.9%, so growth is actually accelerating.
Net margin sits at 27%, down 2.7 points year over year on a 74.3% gross margin. It carries about $4.56B of total debt.
At today's valuation the market is pricing in roughly 6.2% annual free-cash-flow growth — versus the 15.2% it actually delivered over the last five years, so the price is arguably undemanding against what it has already proven. The one thing worth a second look in the filings is net margin shrinking.
Synthesised from Paychex, Inc.'s SEC filings — descriptive, not advice. Ask the analyst your own question →
Paychex, Inc. revenue & earnings — last 10 fiscal years
| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $3.15B | $3.38B | $3.77B | $4.04B | $4.06B | $4.61B | $5.01B | $5.28B | $5.57B | $6.51B |
| Gross profit | — | $2.36B | $2.59B | $2.76B | $2.79B | $3.26B | $3.55B | $3.80B | $4.03B | $4.84B |
| Net income | $0 | $0 | $0 | $0 | $0 | $1.39B | $1.56B | $1.69B | $1.66B | $1.76B |
| Net margin | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 30.2% | 31.1% | 32.0% | 29.7% | 27.0% |
Source: Paychex, Inc. SEC filings (10-K). 19 years of history available in the interactive view.
Paychex, Inc.: 1 potential red flag in the filings
Patterns in the filed statements worth a second look — computed and cited, not AI guesswork, and not a signal to sell. The kind of thing that hides in a 10-K.
- Net margin shrinkingNet margin fell from 31.1% to 27.0% over ~3 years — profitability is compressing.
What growth is priced into PAYX stock?
At today's market cap of $41.56B, Paychex, Inc. is priced for free-cash-flow growth of about 6.2% per year for 10 years (assuming a 10% discount rate and 2.5% terminal growth, base FCF $2.32B from the FY ending 2026-05-31). For comparison, free cash flow actually grew 15.2%/yr over the last five fiscal years and revenue 9.9%/yr, computed from its SEC filings. This is a reverse DCF — a translation of the price into a growth assumption you can judge, not a fair value and not advice. Change the assumptions yourself in the interactive view →
Explore 19 years of Paychex, Inc. financials — interactive
Full income statement, balance sheet and cash flow with CAGR and trend on every row, 48 quarters, valuation ratios, plain-English health checks, and Ask — our SEC-grounded research assistant.
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Paychex, Inc. financial history by metric
Compare Paychex, Inc. with peers
About Paychex, Inc.
Paychex, Inc., together with its subsidiaries, provides human capital management solutions (HCM) for human resources, payroll processing, employee benefits, and insurance services for small to medium-sized businesses in the United States, Europe, Canada, India, and Israel. It offers technology and advisory solutions; and payroll tax administration services. The company also provides retirement solutions, such as plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services; HCM solutions from recruiting and hiring to retirement; and talent management and talent acquisition services. In addition, it offers payroll solutions, including calculation, preparation, and delivery of employee payroll checks; production of internal accounting records and management reports; preparation of federal, state, and local payroll tax returns; and collection and remittance of clients' payroll obligations. Further, the company provides workforce management solutions; benefits administration solutions; digital marketplace for earned wages, financial wellness solutions, and voluntary lifestyle benefits; administrative services organization HR outsourcing solutions; solutions to payroll and non-payroll customers; retirement and funding solutions; and insurance services for property and casualty coverage, such as workers' compensation, business-owner policies, cyber security protection, and commercial auto, as well as health and benefits coverage, including health, dental, vision, and life. Additionally, it offers payroll, HR, employee benefits administration, retirement, insurance, risk management outsourcing, and access to professionally trained HR representatives, virtually and on-site. It markets and sells its solutions primarily through its direct sales force. Paychex, Inc. was founded in 1971 and is headquartered in Rochester, New York.
Paychex, Inc. — frequently asked questions
What is Paychex, Inc.'s revenue?
Paychex, Inc. (PAYX) reported revenue of $6.51B for fiscal year 2026, up 16.9% from the prior year, according to its SEC filings.
Is Paychex, Inc. profitable?
Yes. PAYX earned net income of $1.76B in fiscal 2026, a net margin of 27.0%.
What is PAYX's P/E ratio?
Paychex, Inc. trades at a price-to-earnings ratio of about 23.8 based on the latest data in our nightly-refreshed cache.
How fast is Paychex, Inc. growing?
PAYX's revenue grew at roughly 9.9% per year over the last five fiscal years (compound annual growth rate), computed from SEC-filed statements.
How much debt does Paychex, Inc. have?
As of fiscal year 2026, PAYX carried roughly $4.56B in total debt (short- plus long-term borrowings), per its filed balance sheet.
What is Paychex, Inc.'s gross margin?
PAYX's gross margin was 74.3% in fiscal 2026 — gross profit of $4.84B on revenue of $6.51B.
What is Paychex, Inc.'s market cap?
Paychex, Inc. (PAYX) has a market capitalization of about $41.56B, based on the latest data in our nightly-refreshed cache.
When does Paychex, Inc.'s fiscal year end?
PAYX's fiscal year ends in May. Its most recent annual filing covers the fiscal year ending 2026-05-31.
What growth is priced into PAYX stock?
At today's market cap of $41.56B, Paychex, Inc. is priced for free-cash-flow growth of about 6.2% per year for 10 years (assuming a 10% discount rate and 2.5% terminal growth, base FCF $2.32B from the FY ending 2026-05-31). For comparison, free cash flow actually grew 15.2%/yr over the last five fiscal years and revenue 9.9%/yr, computed from its SEC filings.
Where does this data come from?
All figures are computed from Paychex, Inc.'s official SEC filings (10-K and 10-Q), covering 19 years of history, refreshed nightly. stockportfolio.pro does not provide investment advice.