Paychex Q4 Profit Falls, Analyst Targets Cut

Paychex reported fourth-quarter revenue of $1.43 billion, up 10.2% year-on-year, driven in part by its recent $4.1 billion acquisition of Paycor. Net profit declined to $297.2 million ($0.82 per share) from $379.9 million a year earlier, with operating and free cash flow margins also decreasing. Adjusted earnings per share were $1.19, meeting analyst estimates. For fiscal 2026, Paychex projects revenue growth of 16.5% to 18.5% and adjusted EPS growth of 8.5% to 10.5%. The stock has recently fallen below its 200-day moving average but remains up nearly 30% over the past year, while analyst price targets now range from $110 to $130 and sentiment is mixed between hold and buy. Investors are advised to focus on long-term dividend growth and company fundamentals as Paychex continues to integrate Paycor and compete in the HR and payroll software market.