PAYCHEX INC(PAYX)Stock Analysis
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Rank #136 of 2,879 stocksTOP 5%
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
PAYX Stock Analysis & AI Quality Score
AI stock analysis and institutional research for PAYCHEX INC (PAYX), a Technology sector company. 13F Pro's AI-powered ranking engine scores PAYX at 75.1/100 on a 32-signal composite quality model, placing it at rank #136 of 2,879 stocks — the top 5% of the AI-ranked universe. PAYX scores in the top quartile across free cash flow (90.0), balance sheet strength (88.0), profitability (87.5). Shareholder dilution risk is elevated at 47.9/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q4 2026), PAYCHEX INC reports quarterly revenue of $1.6B, net income of $420.6M, an operating margin of 37.7%. Top institutional holders of PAYX by reported 13-F value include Capital International Investors, BlackRock,, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. PAYX trades on the Nasdaq exchange and files with the SEC under CIK 723531. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate PAYX daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for PAYCHEX INC directly from SEC EDGAR. PAYCHEX INC's 13F Pro composite quality score has ranged between 8 and 81 since 2021, currently 75.1 — an improving long-term trajectory across 57 quarterly and live scoring snapshots.
What's Driving PAYX's Business? Latest 10-K Breakdown
✓ 27/27 datapoints verifiedAI-extracted from PAYCHEX INC's 10-K filed 2026-07-17 — FY2026 (year ended May 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Total revenue grew 17% to $6.5B, driven by Paycor acquisition (12% contribution) and organic growth; adjusted operating income rose 19% to $2.8B.
Biggest Revenue Drivers
Total revenue: $6.5B+17% YoY
Growth in average clients and HR outsourcing worksite employees; higher revenue per client from Paycor upmarket base, price realization, and product penetration.
Higher average investment balances from Paycor acquisition and realized gains from strategic portfolio repositioning.
Continued growth in PEO worksite employees and increase in PEO insurance revenues.
Largest Expense Items
Increase in average headcount driven by Paycor acquisition.
Paycor acquisition amortization of intangibles ($242M), replacement awards and integration costs ($52.1M), and professional service fees.
Growth in PEO worksite employees and insurance revenues.
Higher property and equipment balances from customer-facing software development and Paycor acquisition intangibles.
Margins: Operating margin declined to 38.6% from 39.6% YoY due to acquisition-related costs; adjusted operating margin (excluding acquisition costs) improved to 43.2% from 42.5%, reflecting operational leverage and productivity gains.
Watch Items from the Filing
- Paycor acquisition integration risk: $4.1B acquisition completed April 2025 with $304.2M acquisition-related costs in FY2026 and ongoing integration work; contributed 12% to revenue growth but integration success is critical.
- Interest expense doubled to $269.5M from $105.4M due to $4.2B corporate debt issuance for Paycor acquisition; significant increase in annual interest burden going forward.
- Payroll client retention maintained at 82-83% range; company serves approximately 840,000 total customers with 800,000 payroll clients, reliant on high retention for recurring revenue model.
- Investment portfolio unrealized losses of $52.5M as of May 31, 2026 due to interest rate changes; fair value increased from 3.3% to 3.7% yield-to-maturity but duration extended to 3.1 years, increasing rate sensitivity.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q4 2026
$1.6B
Net Income
Q4 2026
$420.6M
Free Cash Flow
Q4 2026
$515.0M
Operating Margin
Q4 2026
37.7%
D/E Ratio
Q4 2026
1.22
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+16.9% YoYNet Income
+6.2% YoYOperating Income
+13.7% YoYEPS (Diluted)
+6.8% YoYTotal Assets
-2.4% YoYTotal Debt
-15.1% YoYOp. Cash Flow
+34.5% YoY| Metric | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Revenue | $6.51B +16.9% | $5.57B +5.6% | $5.28B +5.4% | $5.01B +8.6% | $4.61B +13.7% | $4.06B |
| Net Income | $1.76B +6.2% | $1.66B -2.0% | $1.69B | — | — | — |
| Operating Income | $2.51B +13.7% | $2.21B +1.5% | $2.17B +6.9% | $2.03B +10.5% | $1.84B +26.0% | $1.46B |
| EPS (Diluted) | $4.89 +6.8% | $4.58 -1.9% | $4.67 +8.6% | $4.30 +12.0% | $3.84 +26.7% | $3.03 |
| Total Assets | $16.17B -2.4% | $16.56B +59.5% | $10.38B -1.5% | $10.55B +9.5% | $9.64B +4.4% | $9.23B |
| Total Debt | $4.56B -15.1% | $5.37B +556.6% | $817.3M +1.1% | $808.4M +0.2% | $806.4M +0.2% | $804.7M |
| Operating Cash Flow | $2.56B +34.5% | $1.90B +0.2% | $1.90B +11.2% | $1.71B +7.3% | $1.59B +26.1% | $1.26B |
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13F Pro tracks comprehensive data for PAYCHEX INC including:
Top Institutional Holders of PAYX
Capital International Investors
$2.8B29,948,686 shBlackRock, Inc.
$2.6B28,414,452 shVANGUARD CAPITAL MANAGEMENT LLC
$1.9B20,965,270 shVANGUARD PORTFOLIO MANAGEMENT LLC
$1.4B15,249,560 shSTATE STREET CORP
$1.3B14,049,628 shGEODE CAPITAL MANAGEMENT, LLC
$951.4M10,270,528 shCHARLES SCHWAB INVESTMENT MANAGEMENT INC
$863.6M9,375,253 shFEDERATED HERMES, INC.
$542.2M5,885,576 shMORGAN STANLEY
$488.1M5,298,028 shInvesco Ltd.
$483.7M5,250,908 sh
| Fund | Value | Shares |
|---|---|---|
| Capital International Investors | $2.8B | 29,948,686 |
| BlackRock, Inc. | $2.6B | 28,414,452 |
| VANGUARD CAPITAL MANAGEMENT LLC | $1.9B | 20,965,270 |
| VANGUARD PORTFOLIO MANAGEMENT LLC | $1.4B | 15,249,560 |
| STATE STREET CORP | $1.3B | 14,049,628 |
| GEODE CAPITAL MANAGEMENT, LLC | $951.4M | 10,270,528 |
| CHARLES SCHWAB INVESTMENT MANAGEMENT INC | $863.6M | 9,375,253 |
| FEDERATED HERMES, INC. | $542.2M | 5,885,576 |
| MORGAN STANLEY | $488.1M | 5,298,028 |
| Invesco Ltd. | $483.7M | 5,250,908 |
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Is PAYX a good stock to buy?
13F Pro's AI-powered analysis of PAYCHEX INC (PAYX) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for PAYX are available on the PAYX stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own PAYX?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling PAYX. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of PAYCHEX INC's investment landscape.