For the quarter ended August 2025, Paychex (PAYX) reported revenue of $1.54 billion, up 16.8% over the same period last year. EPS came in at $1.22, compared to $1.16 in the year-ago quarter.
The reported revenue represents a surprise of +0.22% over the Zacks Consensus Estimate of $1.54 billion. With the consensus EPS estimate being $1.21, the EPS surprise was +0.83%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Paychex performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenue- Management Solutions: $1.16 billion versus the six-analyst average estimate of $1.17 billion. The reported number represents a year-over-year change of +21%.
- Revenue- Interest on funds held for clients: $47.6 million versus $43.75 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +26.9% change.
- Revenue- Total service revenue: $1.49 billion versus $1.5 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +16.5% change.
- Revenue- PEO and Insurance Services: $329.1 million compared to the $333.29 million average estimate based on six analysts. The reported number represents a change of +3.1% year over year.
View all Key Company Metrics for Paychex here>>>
Shares of Paychex have returned -7.8% over the past month versus the Zacks S&P 500 composite's +3.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Paychex, Inc. (PAYX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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