Why Paychex Stock Fell 10% This Morning
Paychex posted solid results, so why did the stock fall?
Shares of Paychex (NASDAQ: PAYX) fell as much as 9.9% on Wednesday morning, tripped up by an unimpressive earnings report. The payroll processing services expert's stock recovered slightly to a 7.6% drop as of 12:20 p.m. ET.
In the fourth quarter of fiscal year 2025, Paychex saw revenues rise 10% year over year to $1.43 billion. Adjusted earnings ticked 6.3% higher, landing at $1.19 per diluted share.
The results were in line with the consensus analyst estimates, but management's guidance for the next fiscal year was a mixed bag. At the midpoint of each guidance range, Paychex projected full-year earnings 2% above the current analyst view, while the revenue target stopped 0.8% below Wall Street's consensus.
