Paycom Software (NYSE:PAYC) Announces Earnings Results, Beats Estimates By $0.56 EPS

Paycom Software (NYSE:PAYC) posted its quarterly earnings data on Wednesday. The software maker reported $3.37 earnings per share for the quarter, beating analysts’ consensus estimates of $2.81 by $0.56, FiscalAI reports. The firm had revenue of $543.80 million for the quarter, compared to analysts’ expectations of $535.26 million. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%. The business’s quarterly revenue was up 10.2% on a year-over-year basis. During the same period in the previous year, the firm earned $1.94 EPS.

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

• Paycom beat expectations in Q3: Revenue rose 10% year over year to $544 million, while non-GAAP diluted EPS increased 74% to $3.37. Adjusted EBITDA was $268 million, a 49.3% margin.
• The company raised its 2026 outlook for revenue to $2.213 billion–$2.218 billion and Adjusted EBITDA to $1.069 billion–$1.079 billion, implying an EBITDA margin of 48.5% at the midpoint.
• Management highlighted growing demand for automation and AI: IWant usage is up about 65% since year-end 2025, and the company said its AI features carry no incremental client cost. Asset Management, a newer product designed to help clients control asset spending, has more than 300 clients.
• Management expects further efficiency and product opportunities: It cited automation and owned data-center infrastructure as drivers of productivity and margins, and said free cash flow should be stronger in 2027. Executives also described a robust product pipeline and increased sales and marketing focus for next year.

Paycom Software Price Performance

Shares of Paycom Software stock traded up $5.40 during trading on Wednesday, reaching $268.39. 1,104,606 shares of the stock traded hands, compared to its average volume of 593,687. The company has a market capitalization of $12.10 billion, a price-to-earnings ratio of 30.33, a P/E/G ratio of 1.41 and a beta of 0.75. The business has a fifty day simple moving average of $237.97 and a two-hundred day simple moving average of $165.78. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.07 and a quick ratio of 1.07. Paycom Software has a 52-week low of $104.90 and a 52-week high of $275.22.

Paycom Software Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 7th. Shareholders of record on Monday, November 23rd will be issued a dividend of $0.3750 per share. This represents a $1.50 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend is Monday, November 23rd. Paycom Software’s dividend payout ratio is 15.94%.

Insider Activity at Paycom Software

In related news, insider Shane Hadlock sold 241 shares of the business’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $240.07, for a total value of $57,856.87. Following the sale, the insider directly owned 69,911 shares in the company, valued at approximately $16,783,533.77. The trade was a 0.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 13.20% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on PAYC shares. Weiss Ratings raised Paycom Software from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, October 8th. Citigroup increased their target price on Paycom Software from $194.00 to $279.00 and gave the stock a “neutral” rating in a research report on Tuesday, October 27th. Stifel Nicolaus lifted their target price on Paycom Software from $120.00 to $200.00 and gave the company a “hold” rating in a research note on Thursday, August 6th. BMO Capital Markets boosted their price target on Paycom Software from $145.00 to $208.00 and gave the stock a “market perform” rating in a report on Thursday, August 6th. Finally, Guggenheim upped their price target on Paycom Software from $225.00 to $300.00 and gave the stock a “buy” rating in a research note on Friday, October 23rd. Five investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $256.21.

Key Paycom Software News

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

• Positive Sentiment: Paycom reported earnings per share of $3.37, topping the $2.81 consensus estimate by $0.56. Revenue was $543.8 million, above the $535.26 million forecast and up 10.2% from a year earlier. The earnings and revenue beats, along with higher year-over-year profit, may support investor sentiment. Paycom Software, Inc. Reports Third Quarter 2026 Results
• Neutral Sentiment: Paycom declared a quarterly dividend of $0.375 per share, payable December 7 to shareholders of record November 23. The payout is unchanged, equivalent to $1.50 annually and a yield of about 0.6%, offering a modest income component but no increase in the dividend. Paycom Software Keeps Quarterly Dividend at $0.375 a Share

About Paycom Software

Paycom Software, Inc is a provider of cloud-based human capital management (HCM) software designed to help businesses manage employee-related processes through a unified platform. Its solutions support payroll, human resources, talent acquisition and management, time and labor management, compliance, and employee engagement.

The company’s software is intended to allow employers and employees to enter and manage workforce information within a single system. Its offerings include payroll processing, benefits administration, expense management, scheduling, performance management, learning, and recruiting tools.