Paychex’s January Small Business Employment Watch shows that job growth among firms with fewer than 50 employees in the U.S. held steady to begin 2026. The Small Business Jobs Index ticked up 0.04 percentage points to 99.30, reflecting consistent payroll expansion from December. Hourly earnings growth has hovered at 2.68% since July 2025, while weekly earnings growth slowed to 2.53% in January. On an annualized basis, one-month weekly earnings growth has remained below 2% for three straight months at 1.62%—a run not seen since December 2020. Regionally, the Midwest led small business job gains for the 20th consecutive month, and the Education and Health Services sector continued its nearly five-year streak of growth with an index reading of 100.57.

In its latest 13F filing, AE Wealth Management LLC boosted its holdings in Paychex by 222.4%, acquiring an additional 8,385 shares to reach a total position of 12,156 shares valued at $1.54 million. Other mid-size asset managers also made modest adjustments: Brighton Jones LLC added 71 shares, Empirical Finance LLC bought 75 shares, Quantum Portfolio Management LLC increased its stake by 3.1%, and GPS Wealth Strategies Group LLC lifted its position by 40.6%. Institutional and hedge fund ownership of Paychex stands at 83.47%, underscoring continued confidence from professional investors.

In its latest quarter, Paychex reported adjusted earnings per share of $1.26, topping consensus by $0.03, with revenue up 18.3% year-over-year to $1.56 billion. Return on equity reached 46.4% and net margin 26.5%. The company issued full-year guidance of $5.48 to $5.53 in EPS and declared a quarterly dividend of $1.08 per share, representing a 4.2% yield and a 97.96% payout ratio. Additionally, the board authorized a $1.0 billion share repurchase program, equivalent to 2.5% of outstanding shares, signaling management’s view that the stock remains undervalued.