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, Inc. Price and EPS Surprise  Paychex, Inc. price-eps-surprise | Paychex, Inc. QuotePaychex’s Q2 ExpectationsThe 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 PAYXOur 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 SnapshotVerisk 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.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Paychex, Inc. (PAYX): Free Stock Analysis Report Verisk Analytics, Inc. (VRSK): Free Stock Analysis Report TransUnion (TRU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks