Paychex’s Acquisition of Paycor: Revenue Growth Amidst Margin Adjustments Leads to Hold Rating

William Blair analyst Andrew Nicholas has maintained their neutral stance on PAYX stock, giving a Hold rating yesterday.

Andrew Nicholas has given his Hold rating due to a combination of factors related to Paychex’s recent acquisition of Paycor. The acquisition, which was finalized on April 14, led to adjustments in the financial estimates for Paychex. For the fiscal fourth quarter of 2025, revenue projections increased to $1,439 million from $1,372 million, while the adjusted operating income margin slightly decreased to 41.6% from 41.9%. Similarly, the adjusted EPS was revised to $1.20 from $1.21.
For fiscal 2026, the revenue forecast was significantly raised to $6,616 million from $5,812 million, but the adjusted operating income margin was lowered to 41.6% from 43.3%. The adjusted EPS estimate saw a minor increase to $5.32 from $5.30. Despite these changes, Andrew Nicholas’s overall perspective on the stock remains consistent, leading to the decision to maintain a Hold rating.

In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $153.00 price target.