Paychex Gears Up to Report Q2 Earnings: What's in Store?

Paychex, Inc. PAYX will release second-quarter fiscal 2026 results on Dec. 19, before market open.

PAYX’s earnings outperformed the Zacks Consensus Estimate in four preceding quarters, with an average earnings surprise of 1%.

Paychex’s Q2 Expectations

The consensus estimate for Paychex’s second-quarter fiscal 2026 revenues is pinned at $1.6 billion, indicating an 18% increase from the year-ago quarter.

Our estimate for revenues from Management Solutions is set at $1.2 billion, indicating a 21.3% year-over-year increase. The addition of Paycor and higher revenues per client, fueled by price realization and heightened product penetration, is likely to have driven this segment’s revenues.

We anticipate PEO and insurance solution revenues to be $341.5 million, indicating 7.4% growth from the same quarter last year. An increasing number of average PEO worksite employees is estimated to have aided this segment.

Interest on funds held for clients is anticipated to be $46.1 million, suggesting a 27.8% rise from the year-ago quarter’s actual. Inclusion of Paycor balances is expected to have fueled this segment’s revenues.

The Zacks Consensus Estimate for earnings is pegged at $1.24 per share, implying an 8.8% increase from the year-ago quarter’s reported figure.

What Our Model Says About PAYX

Our proven model does not conclusively predict an earnings beat for Paychex this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

PAYX has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings Snapshot

Verisk VRSK reported impressive third-quarter fiscal 2025 results.

VRSK’s adjusted earnings were $1.72 per share, surpassing the Zacks Consensus Estimate by 1.8% and increasing 3% from the year-ago quarter. Total revenues of $768.3 million missed the consensus estimate marginally but increased 5.9% on a year-over-year basis.

TransUnion TRU posted impressive third-quarter 2025 results.

TRU’s quarterly adjusted earnings (adjusting 61 cents from non-recurring items) of $1.10 per share surpassed the consensus mark by 5.8% and increased by the same margin year over year. Total revenues of $1.2 billion outpaced the consensus mark by 3.1% and increased 7.8% from the year-ago quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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