Paychex Gears Up to Report Q3 Earnings: What's in the Offing?

Paychex, Inc. PAYX 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. QuotePaychex’s Q3 ExpectationsThe 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 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.Peer Earnings SnapshotEquifax Inc. EFX 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 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.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>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 Equifax, Inc. (EFX): Free Stock Analysis Report Gartner, Inc. (IT): 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