Paychex Inc Stock Price, News & Analysis

Paychex (NASDAQ:PAYX) has released its Small Business Employment Watch report for June 2025, showing stability in the small business labor market during the first half of the year. The report indicates that job growth in businesses with fewer than 50 employees maintained a steady pace, with the index at 99.65 in June, fluctuating less than half a percentage point over six months.

Hourly earnings growth remained consistent at 2.79%, staying below 3% for most of the past year. The Midwest leads regional performance with an index of 100.15, maintaining its top position for 13 consecutive months. Among major metros, Dallas leads with a 100.82 index, driven by strong construction sector gains. Ohio topped state rankings with a 101.04 index.

The Manufacturing sector showed the most significant movement, with the largest one-month (0.40 percentage points) and 12-month (0.18 percentage points) changes, reaching an index of 98.80.

Paychex (NASDAQ:PAYX) reported its Q4 and full-year 2025 results, demonstrating strong performance with 10% revenue growth to $1.4 billion in Q4. The company's fiscal 2025 showed 6% revenue growth to $5.6 billion. Key highlights include the successful completion of the Paycor acquisition, which strengthened their upmarket capabilities and expanded their addressable market.

Q4 adjusted operating income grew 11% to $576.7 million, while adjusted operating margin reached 40.4%. Management Solutions revenue increased 12% to $1.0 billion, primarily driven by the Paycor acquisition and higher revenue per client. The company maintained strong financial position with $1.7 billion in cash and investments, while completing strategic investments in AI and technology.

Paychex (NASDAQ: PAYX) has announced it will release its fiscal 2025 fourth quarter financial results on June 25, 2025, before market open. The company will host a conference call at 9:30 a.m. ET the same day, featuring President and CEO John Gibson and CFO Bob Schrader. The call will be available via webcast on the Paychex Investor Relations portal, with replay access for approximately 90 days. The earnings report will cover the quarter ended May 31, 2025.

Paychex (PAYX) has been recognized as one of America's Greatest Workplaces 2025 by Newsweek and Plant-A Insights Group. The recognition follows a comprehensive assessment involving employee interviews, company reviews, and analysis of over 120 key performance indicators. With nearly 19,000 employees, Paychex offers world-class training programs, Employee Business Resource Groups, and comprehensive benefits. The company's workplace culture is driven by six core values: integrity, partnership, accountability, respect, innovation, and service. The assessment process included over 400,000 employee interviews and 4.9 million company reviews, focusing on companies with more than 1,000 employees. Paychex has also recently received other notable recognitions, including being named to Ethisphere's World's Most Ethical Companies and Fortune's America's Most Innovative Companies lists.

Paychex has unveiled Paychex Partner Pro, a new portal designed to enhance accountants' access to client data and reporting within Paychex Flex. This upgraded platform replaces AccountantHQ (AHQ) and offers streamlined workflows and proactive insights to strengthen client advisory services. Key features include client search with pin capabilities, alerts for missing tax information and payroll dates, and a dedicated insights hub. The platform aims to improve efficiency by providing a centralized view of critical client data and helping accountants identify potential issues before they result in penalties. The company will showcase the new portal at AICPA & CIMA Engage 25 in Las Vegas from June 9-12, where Paychex experts will also conduct CPE-eligible educational sessions.

The Paychex Small Business Employment Watch reveals steady but flat employment growth in U.S. small businesses during May 2025, with the Small Business Jobs Index at 99.81. Notably, hourly earnings growth for small business workers hit a four-year low at 2.77%, with three-month annualized earnings growth falling to 2.45%, the lowest since December 2020. The Midwest leads regional employment growth with an index of 100.19, while the West continues to underperform. Construction sector saw its lowest level since March 2021 at 99.69, and Leisure and Hospitality remained the weakest sector for the fourth consecutive month at 98.18.

Paychex (NASDAQ: PAYX) founder B. Thomas Golisano has announced his departure from the company's Board of Directors, effective after the July 2025 board meeting. Golisano, 83, founded Paychex in 1971 and led its growth from a small payroll support business to a technology-driven human resources giant that now serves nearly 800,000 clients with annual revenues exceeding $5 billion and a market cap of over $50 billion.

After serving as President, CEO, and Chairman until 2004, Golisano remained Chairman until 2021 when Martin Mucci assumed the position. Known for his philanthropy, Golisano recently committed nearly half a billion dollars to over 120 non-profit organizations, bringing his lifetime charitable contributions to over $800 million.

Paychex (PAYX) has announced a 10% increase in its quarterly cash dividend to $1.08 per share, up from $0.98 previously. The dividend will be payable on May 29, 2025, to shareholders of record as of May 12, 2025. For fiscal year ending May 31, 2025, Paychex expects to return over $1.4 billion in dividends to shareholders. The company has maintained a consistent track record of paying quarterly dividends since 1988. CEO John Gibson attributed the dividend increase to strong financial performance, robust free cash flow generation, and confidence in the company's future growth prospects.

The Paychex Small Business Employment Watch reports stable job growth in U.S. small businesses during April, with the Jobs Index rising 0.27 percentage points to 100.02. Over the past 12 months, the index has averaged 99.99, indicating consistent employment levels in businesses with fewer than 50 employees.

Key findings include:

• Hourly earnings growth slowed to 2.82%, the lowest since May 2021
• Weekly hours worked showed negative growth at -0.17%
• All four regions saw improvements, with the Midwest leading for the 11th straight month
• Ohio topped state rankings with a 2.24 percentage point increase to 101.94
• Minneapolis led metropolitan areas with an index of 102.35

Paychex CEO John Gibson notes no signs of recession in the data, with business owners maintaining workforce levels while taking a wait-and-see approach to hiring amid economic uncertainty.