Paychex, Inc. PAYX will release its third-quarter fiscal 2025 results on March 26, before market open.

See Zacks Earnings Calendar to stay ahead of market-making news.

PAYX has delivered a decent earnings surprise in the trailing four quarters, with the metric outpacing the Zacks Consensus Estimate in all quarters, delivering an earnings surprise of 1.7%, on average.

Paychex, Inc. Price, Consensus and EPS Surprise

Paychex’s Q3 Expectations

The consensus estimate for Paychex’s third-quarter fiscal 2025 revenues is pegged at $1.5 billion, indicating a 4.8% increase from the year-ago quarter’s reported figure. Higher client wins across segments are anticipated to have benefited the top line.

We expect PEO and insurance solution revenues of $372.6 million, a 7.8% rise from the year-ago quarter’s reported figure. The rally is likely to have been driven by an increase in worksite employees, fuelled by a strong sales performance, high retention levels and improved overall insurance enrolment.

Our estimate for revenues from Management Solutions is pegged at $1.1 billion, indicating a 4.5% rise on a year-over-year basis. Growth in clients across PAYX’s suite of HCM solutions, client employees for HR solutions and higher product penetration are anticipated to have improved this segment’s revenues.

Interest on funds held for clients is anticipated to be $38.4 million, implying a 12.5% decline from the year-ago quarter’s actual.

The Zacks Consensus Estimate for earnings is pegged at $1.48 per share, implying a 7.3% increase from the year-ago quarter’s reported figure. Top-line growth and strong margins are expected to have boosted the bottom line.

What Our Model Says About PAYX

Our model predicts 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. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

PAYX has an Earnings ESP of +0.83% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings Snapshot of Other Players

Gartner, Inc. IT reported better-than-expected fourth-quarter 2024 results.

IT’s adjusted earnings per share of $5.6 beat the Zacks Consensus Estimate by 69.3% and increased 79.3% from the year-ago quarter. Revenues of $1.7 billion surpassed the consensus estimate by 1.8% and improved 8.2% year over year.

Broadridge Financial Solutions, Inc. BR posted impressive second-quarter fiscal 2025 results.

BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and increased 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.

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Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report

Paychex, Inc. (PAYX) : Free Stock Analysis Report

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

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