Paycom Software (NYSE:PAYC) Issues Earnings Results, Beats Expectations By $0.01 EPS

Paycom Software (NYSE:PAYC) released its quarterly earnings results on Wednesday. The software maker reported $2.45 EPS for the quarter, beating the consensus estimate of $2.44 by $0.01, FiscalAI reports. The company had revenue of $517.10 million for the quarter, compared to analyst estimates of $542.79 million. Paycom Software had a net margin of 22.65% and a return on equity of 24.79%. The firm’s revenue was up 10.2% on a year-over-year basis. During the same quarter last year, the business earned $2.32 earnings per share.

Here are the key takeaways from Paycom Software’s conference call:

• Paycom reported strong 2025 results with total revenue of $2.05B (Q4 revenue $544M, recurring revenue up 11% in Q4) and full‑year recurring revenue growth of 10%, driven by higher sales and automation efficiencies.
• Profitability and cash generation were robust — full‑year Adjusted EBITDA of $882M (43% margin, +180 bps), operating cash flow of $679M (+27%), free cash flow of $404M (+20%), zero debt, and continued opportunistic buybacks ($370M repurchased in 2025 with ~$1.1B remaining authorization).
• Product automation adoption (IWant, Beti, GONE) is boosting client ROI and retention — annual revenue retention rose to 91%, Paycom saw a record number of returning clients, and IWant usage jumped ~80% in January, supporting upsell and stickiness.
• 2026 guidance is conservative vs. 2025 results — management expects total revenue of $2.175B–$2.195B (6%–7% growth) and recurring revenue up 7%–8%, signaling a near‑term deceleration and reliance on sales execution and “inflection opportunities” to outpace the guide.
• Management invested heavily in 2025 CapEx (~$275M, ~13% of revenue) including ~ $100M for data center expansion to support AI/automation; this supports longer‑term product differentiation but raised capital intensity for the year.

Paycom Software Trading Down 4.8%

NYSE:PAYC traded down $5.96 during midday trading on Wednesday, hitting $118.98. 3,137,812 shares of the company were exchanged, compared to its average volume of 1,252,054. Paycom Software has a fifty-two week low of $116.83 and a fifty-two week high of $267.76. The company has a market capitalization of $6.69 billion, a PE ratio of 16.70, a price-to-earnings-growth ratio of 1.31 and a beta of 0.79. The company has a fifty day simple moving average of $151.96 and a 200 day simple moving average of $185.32.

Paycom Software Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 23rd. Shareholders of record on Monday, March 9th will be paid a $0.375 dividend. The ex-dividend date is Monday, March 9th. This represents a $1.50 dividend on an annualized basis and a yield of 1.3%. Paycom Software’s dividend payout ratio (DPR) is currently 18.66%.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on PAYC shares. Barclays lowered their price target on Paycom Software from $210.00 to $185.00 and set an “equal weight” rating on the stock in a research report on Monday, January 12th. BTIG Research started coverage on Paycom Software in a research report on Wednesday, December 17th. They set a “buy” rating and a $195.00 target price on the stock. Zacks Research lowered shares of Paycom Software from a “hold” rating to a “strong sell” rating in a report on Tuesday, January 20th. Cantor Fitzgerald reduced their price objective on shares of Paycom Software from $170.00 to $135.00 and set a “neutral” rating for the company in a research report on Thursday, January 29th. Finally, Weiss Ratings lowered shares of Paycom Software from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Tuesday, February 3rd. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $202.86.

Insider Activity at Paycom Software

In other news, CFO Robert D. Foster sold 1,300 shares of the stock in a transaction dated Wednesday, December 10th. The shares were sold at an average price of $162.66, for a total transaction of $211,458.00. Following the completion of the sale, the chief financial officer owned 14,747 shares in the company, valued at approximately $2,398,747.02. This represents a 8.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 10.90% of the company’s stock.

Institutional Investors Weigh In On Paycom Software

Large investors have recently bought and sold shares of the stock. Two Sigma Investments LP increased its position in Paycom Software by 228.7% during the 3rd quarter. Two Sigma Investments LP now owns 532,124 shares of the software maker’s stock worth $110,756,000 after purchasing an additional 370,219 shares in the last quarter. Woodline Partners LP purchased a new stake in shares of Paycom Software during the 3rd quarter valued at $58,452,000. Freestone Grove Partners LP acquired a new stake in Paycom Software during the third quarter worth about $42,414,000. State Street Corp lifted its position in Paycom Software by 8.4% during the second quarter. State Street Corp now owns 2,097,910 shares of the software maker’s stock valued at $485,456,000 after buying an additional 162,477 shares in the last quarter. Finally, Alyeska Investment Group L.P. purchased a new stake in Paycom Software during the 3rd quarter worth $33,119,000. Institutional investors and hedge funds own 87.77% of the company’s stock.

Key Stories Impacting Paycom Software

Here are the key news stories impacting Paycom Software this week:

• Positive Sentiment: Q4 EPS narrowly beat estimates (EPS $2.45 vs. $2.44 consensus), showing underlying profitability held up. Zacks: Paycom Q4 Earnings and Revenues Beat
• Positive Sentiment: The board declared a regular quarterly cash dividend of $0.375 per share (record March 9), which supports yield-oriented investors. Globe and Mail: Paycom Declares Quarterly Dividend
• Positive Sentiment: At least one shop (Guggenheim) remains constructive on Paycom as an oversold value opportunity, which could limit downside if sentiment stabilizes. InsiderMonkey: Guggenheim Bullish on Paycom
• Neutral Sentiment: Company filed its official quarter and year‑end results (press release), which investors can review for full detail on margins and cash flow. BusinessWire: Paycom Q4 and Year‑End Results
• Negative Sentiment: Revenue missed expectations materially (reported ~$517.1M vs. ~$542.8M consensus), a clear headwind for growth narratives and valuation. Quarterly Filing / Press Release
• Negative Sentiment: Management’s 2026 revenue guidance came in below Street expectations, triggering a sharp selloff as investors re‑price growth; Reuters notes shares fell on the weak outlook. Reuters: Paycom Forecasts Weak 2026 Revenue
• Negative Sentiment: Market reaction pushed the stock to a new 52‑week low amid elevated volume and negative momentum, amplifying downside risk in the near term. Investing.com: Paycom Hits 52‑Week Low

About Paycom Software

Paycom Software, Inc (NYSE: PAYC) is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom’s software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company’s core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.