Paycom Software (NYSE:PAYC) Issues Quarterly Earnings Results, Beats Expectations By $0.56 EPS

Paycom Software (NYSE:PAYC) posted its earnings results on Wednesday. The software maker reported $3.37 earnings per share for the quarter, topping analysts’ consensus estimates of $2.81 by $0.56, FiscalAI reports. Paycom Software had a net margin of 23.28% and a return on equity of 47.97%. The firm had revenue of $543.80 million for the quarter, compared to analyst estimates of $535.26 million. During the same period in the previous year, the firm posted $1.94 EPS. The company’s revenue for the quarter was up 10.2% compared to the same quarter last year.

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 Stock Down 5.3%

Shares of PAYC traded down $13.16 during trading hours on Friday, hitting $236.86. The stock had a trading volume of 716,481 shares, compared to its average volume of 1,159,708. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.07 and a quick ratio of 1.07. The firm has a 50 day simple moving average of $238.33 and a 200-day simple moving average of $166.29. The firm has a market capitalization of $10.68 billion, a P/E ratio of 22.87, a price-to-earnings-growth ratio of 1.43 and a beta of 0.75. Paycom Software has a 1-year low of $104.90 and a 1-year high of $275.22.

Paycom Software Announces Dividend

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

Analyst Upgrades and Downgrades

Several analysts recently weighed in on PAYC shares. Guggenheim boosted their price objective on shares of Paycom Software from $225.00 to $300.00 and gave the stock a “buy” rating in a research note on Friday, October 23rd. Weiss Ratings raised Paycom Software from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Barclays lifted their target price on Paycom Software from $210.00 to $250.00 and gave the stock an “equal weight” rating in a report on Tuesday, October 13th. Wall Street Zen lowered Paycom Software from a “buy” rating to a “hold” rating in a research report on Sunday, September 6th. Finally, Zacks Research cut Paycom Software from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. Four investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $256.43.

Trending Headlines about Paycom Software

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

• Positive Sentiment: Third-quarter earnings were $3.37 per share, above the $2.81 consensus, while revenue of $543.8 million topped estimates and rose 10.2% year over year. Coverage also cited automation adoption and margin gains, and Paycom raised its 2026 revenue and EBITDA guidance. Paycom Q3 Earnings Beat Estimates on Revenue Growth, Margin Gains
• Positive Sentiment: KeyCorp raised its price target to $297 and maintained an overweight rating. Paycom also declared its first cash dividend, adding a potential shareholder-return appeal. Paycom Declares Its First Cash Dividend
• Neutral Sentiment: JPMorgan lifted its target slightly to $265 but kept a neutral rating, suggesting limited conviction in further gains at current levels. JPMorgan analyst recommendations
• Negative Sentiment: BTIG downgraded Paycom from buy to neutral. Commentary also cautioned that the stock could be richly valued after gaining more than 40% over the past year, despite the improved outlook. Paycom Stock Could Be Rich Despite Raised Revenue Guidance

Insider Buying and Selling

In other news, insider Shane Hadlock sold 241 shares of the business’s stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $240.07, for a total transaction of $57,856.87. Following the completion of the sale, the insider owned 69,911 shares in the company, valued at $16,783,533.77. The trade was a 0.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Company insiders own 13.20% of the company’s stock.

Paycom Software Company Profile

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.