Paychex Inc

PAYX: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$396.00	Vyp	Ldwtmvvd

Paychex Benefits From Resilient Labor Market in Fiscal Q3 2023, but Conditions Likely to Soften; FVE Intact

Emma Williams , Ava Gams

Mar 30, 2023

Wide-moat Paychex posted a solid third-quarter fiscal 2023 result that was in line with our expectations. Despite a moderation in hiring activity, the firm enjoyed year-on-year revenue growth of 8% during the quarter underpinned by new client wins, healthy product attachment and like-for-like price increases, partly offset by ongoing weakness in insurance adoption. The firm continues to benefit from increased uptake of nonrecurring employee retention tax credit services, and an uplift in ultra-high margin interest income.

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United States