Paycom Software (NYSE:PAYC) Announces Earnings Results

Posted by Micah Haroldson on Feb 12th, 2026

Paycom Software (NYSE:PAYC – Get Free Report) released its quarterly earnings data on Wednesday. The software maker reported $2.45 EPS for the quarter, topping the consensus estimate of $2.44 by $0.01, FiscalAI reports. The business had revenue of $517.10 million for the quarter, compared to analyst estimates of $542.79 million. Paycom Software had a return on equity of 24.79% and a net margin of 22.65%.The business’s quarterly revenue was up 10.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.32 EPS.

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 Stock Down 4.8%

Shares of Paycom Software stock traded down $5.96 during mid-day trading on Wednesday, reaching $118.98. 3,137,812 shares of the stock traded hands, compared to its average volume of 1,229,038. The stock has a market capitalization of $6.69 billion, a PE ratio of 14.80, a PEG ratio of 1.36 and a beta of 0.79. The business has a 50-day moving average of $151.96 and a 200 day moving average of $185.32. Paycom Software has a fifty-two week low of $116.83 and a fifty-two week high of $267.76.

Paycom Software Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 23rd. Shareholders of record on Monday, March 9th will be issued a dividend of $0.375 per share. The ex-dividend date of this dividend is Monday, March 9th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 1.3%. Paycom Software’s dividend payout ratio is presently 18.66%.

Insider Activity at Paycom Software

In related news, CFO Robert D. Foster sold 1,300 shares of the business’s stock in a transaction that occurred on Wednesday, December 10th. The stock was 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 directly owned 14,747 shares in the company, valued at approximately $2,398,747.02. The trade was a 8.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 10.90% of the company’s stock.

Institutional Investors Weigh In On Paycom Software

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. State Street Corp raised its position in shares of Paycom Software by 2.8% in the third quarter. State Street Corp now owns 2,157,127 shares of the software maker’s stock valued at $448,984,000 after buying an additional 59,217 shares during the last quarter. Invesco Ltd. grew its stake in Paycom Software by 9.3% during the 3rd quarter. Invesco Ltd. now owns 1,216,188 shares of the software maker’s stock valued at $253,137,000 after acquiring an additional 103,801 shares in the last quarter. Two Sigma Investments LP grew its stake 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 valued at $110,756,000 after acquiring an additional 370,219 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in Paycom Software by 2.8% in the 3rd quarter. Dimensional Fund Advisors LP now owns 417,185 shares of the software maker’s stock valued at $86,884,000 after acquiring an additional 11,274 shares during the last quarter. Finally, Deutsche Bank AG lifted its stake in Paycom Software by 38.9% in the 4th quarter. Deutsche Bank AG now owns 291,491 shares of the software maker’s stock worth $46,452,000 after purchasing an additional 81,587 shares in the last quarter. Institutional investors and hedge funds own 87.77% of the company’s stock.

Paycom Software News Roundup

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

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the stock. UBS Group decreased their target price on shares of Paycom Software from $245.00 to $210.00 and set a “buy” rating for the company in a research note on Monday, January 26th. Cantor Fitzgerald cut their price objective on shares of Paycom Software from $170.00 to $135.00 and set a “neutral” rating for the company in a report on Thursday, January 29th. Jefferies Financial Group lowered their target price on shares of Paycom Software from $225.00 to $190.00 and set a “hold” rating on the stock in a research note on Thursday, November 6th. BMO Capital Markets restated a “market perform” rating and set a $175.00 target price on shares of Paycom Software in a research report on Friday, January 16th. Finally, Citigroup cut their price target on Paycom Software from $191.00 to $185.00 and set a “neutral” rating for the company in a research note on Tuesday, December 23rd. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $202.86.

View Our Latest Stock Report on Paycom Software

Paycom Software Company Profile

(Get Free Report)

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.