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The consensus estimate for Paychex’s third-quarter fiscal 2026 revenues is pinned at $1.8 billion, indicating an 18.3% increase from the year-ago quarter.
We expect the company to generate $1.4 billion in revenues from Management Solutions. This figure is a 22.8% hike from the year-ago quarter’s actual. This growth is likely to have been primarily driven by product penetration and price realization.
For PEO and Insurance Solutions, our estimated revenues are $392.8 million, indicating a 7.5% year-over-year increase. Strong growth in the average number of PEO worksite employees and a rise in PEO insurance revenues are expected to have contributed to this segment’s growth.
Revenues from Interest on funds held for clients are expected to gain 6.9% from the year-ago quarter’s actual. The figure is set at $45.8 million. Solid realized gains from long-term investment portfolios are expected to have boosted this segment’s revenues.
The Zacks Consensus Estimate for earnings is pegged at $1.68 per share, hinting at a 12.8% gain from the year-ago quarter’s reported figure. Continued cost control is likely to have enhanced the bottom line.
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.
Equifax Inc. (EFX - Free Report) reported impressive fourth-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
EFX posted $2.09 in EPS, beating the Zacks Consensus Estimate by 2.2%. This marked a 1.4% dip from the fourth quarter of 2025. The company recorded $1.6 billion in its top line, surpassing the consensus estimate by 1.3%. Revenues spiked 9.1% from the year-ago quarter’s actual.
Gartner, Inc. (IT - Free Report) registered fourth-quarter 2025 results.
The company’s adjusted earnings per share of $3.94 beat the Zacks Consensus Estimate by 12.6% but decreased 27.7% from the year-ago quarter. Revenues of $1.8 billion beat the consensus estimate by a slight margin and improved 2.2% year over year.
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Paychex Gears Up to Report Q3 Earnings: What's in the Offing?
Key Takeaways
Paychex, Inc. (PAYX - Free Report) will release third-quarter fiscal 2026 results on March 25, before market open.
PAYX’s earnings outperformed the Zacks Consensus Estimate in four preceding quarters, with an average earnings surprise of 1%.
Paychex, Inc. Price and EPS Surprise
Paychex, Inc. price-eps-surprise | Paychex, Inc. Quote
Paychex’s Q3 Expectations
The consensus estimate for Paychex’s third-quarter fiscal 2026 revenues is pinned at $1.8 billion, indicating an 18.3% increase from the year-ago quarter.
We expect the company to generate $1.4 billion in revenues from Management Solutions. This figure is a 22.8% hike from the year-ago quarter’s actual. This growth is likely to have been primarily driven by product penetration and price realization.
For PEO and Insurance Solutions, our estimated revenues are $392.8 million, indicating a 7.5% year-over-year increase. Strong growth in the average number of PEO worksite employees and a rise in PEO insurance revenues are expected to have contributed to this segment’s growth.
Revenues from Interest on funds held for clients are expected to gain 6.9% from the year-ago quarter’s actual. The figure is set at $45.8 million. Solid realized gains from long-term investment portfolios are expected to have boosted this segment’s revenues.
The Zacks Consensus Estimate for earnings is pegged at $1.68 per share, hinting at a 12.8% gain from the year-ago quarter’s reported figure. Continued cost control is likely to have enhanced the bottom line.
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.
Peer Earnings Snapshot
Equifax Inc. (EFX - Free Report) reported impressive fourth-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
EFX posted $2.09 in EPS, beating the Zacks Consensus Estimate by 2.2%. This marked a 1.4% dip from the fourth quarter of 2025. The company recorded $1.6 billion in its top line, surpassing the consensus estimate by 1.3%. Revenues spiked 9.1% from the year-ago quarter’s actual.
Gartner, Inc. (IT - Free Report) registered fourth-quarter 2025 results.
The company’s adjusted earnings per share of $3.94 beat the Zacks Consensus Estimate by 12.6% but decreased 27.7% from the year-ago quarter. Revenues of $1.8 billion beat the consensus estimate by a slight margin and improved 2.2% year over year.