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Paychex's gross profit for the
three
months ended in May. 2026 was €1,017 Mil. Paychex's gross profit for the trailing twelve months (TTM) ended in May. 2026 was €4,141 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Paychex's gross profit for the
three
months ended in May. 2026 was €1,017 Mil. Paychex's Revenue for the
three
months ended in May. 2026 was €1,374 Mil. Therefore, Paychex's Gross Margin % for the quarter that ended in May. 2026 was 74.01%.
Paychex had a gross margin of 74.01% for the quarter that ended in May. 2026 => Durable competitive advantage
During the past 13 years, the highestGross Margin % of Paychex was 74.29%. The lowest was 68.30%. And the median was 70.72%.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Paychex had a gross margin of 74.01% for the quarter that ended in May. 2026 => Durable competitive advantage
Paychex Gross Profit Related Terms
Paychex Gross Profit Historical Data
* Premium members only.
The historical data trend for Paychex's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:PCX vs ADSK, ROP, MSTR: Gross Profit Comparison
For the Software - Application subindustry, Paychex's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Paychex Gross Profit vs Software Industry
For the Software industry and Technology sector, Paychex's Gross Profit distribution charts can be found below:
* The bar in red indicates where Paychex's Gross Profit falls into.
Gross Profit for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €4,141 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Paychex (FRA:PCX) has a Gross Profit of €4,141 Mil as of May. 2026. Gross Profit equals net sales less total cost of goods sold. View historical data on Paychex and its competitors.
Is Paychex's Gross Profit too high?
Paychex's current Gross Profit is €4,141 Mil. Overall, Paychex has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paychex's Gross Profit compare to ADSK and ROP?
Paychex's Gross Profit of €4,141 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Profit for a Software company?
A good Gross Profit depends on the Software industry context. However, Gross Profit should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Profit mean?
A high Gross Profit can signal that a stock is expensive relative to its fundamentals. Gross Profit equals net sales less total cost of goods sold. View historical data on Paychex and its competitors. Paychex's current Gross Profit is €4,141 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paychex stock overvalued right now?
Based on GuruFocus' analysis, Paychex (FRA:PCX) is currently considered Modestly Undervalued. The stock's GF Value™ is €130.69, compared to a current price of €104.10 — trading 20.3% below its estimated fair value. The current Gross Profit is €4,141 Mil. Paychex's overall GF Score™ is 89/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Profit calculated?
Gross Profit is calculated from a company's financial statements. For Paychex (FRA:PCX), the current Gross Profit is €4,141 Mil as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Paychex (FRA:PCX) Overvalued in 2026?
Based on GuruFocus' analysis, Paychex stock appears to be undervalued.
The current stock price of €104.10 is trading 20.3% below its estimated GF Value™ of €130.69.
GuruFocus considers Paychex to be Modestly Undervalued.
Key valuation signals for FRA:PCX:
Gross Profit: €4,141 Mil
GF Value™: €130.69 vs. price of €104.10 (20.3% below fair value)
No single metric tells the full story. See the FRA:PCX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paychex is a cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. The firm also provides HR outsourcing services, including professional employer organization, or PEO, offerings, enabling clients to reduce HR overhead. Paychex primarily targets small and midsize businesses, although its acquisition of Paycor in 2025 signals the firm's aspirations to expand into the midmarket segment, serving firms with more than 100 employees. As of fiscal 2025, Paychex has approximately 800,000 clients and manages payroll for one in 11 workers in the United States.
89GF Score
Get the complete analysis for FRA:PCX
Gross Profit is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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