Paylocity (NASDAQ:PCTY) Releases Earnings Results, Beats Expectations By $0.22 EPS

Paylocity (NASDAQ:PCTY) issued its earnings results on Tuesday. The software maker reported $1.84 EPS for the quarter, topping the consensus estimate of $1.62 by $0.22, FiscalAI reports. The business had revenue of $444.73 million during the quarter, compared to analysts’ expectations of $431.46 million. Paylocity had a return on equity of 27.58% and a net margin of 15.23%.Paylocity’s revenue was up 11.0% compared to the same quarter last year. During the same quarter last year, the firm posted $1.56 earnings per share.

Here are the key takeaways from Paylocity’s conference call:

• Fiscal 2026 exceeded expectations: Q4 recurring revenue rose 12.4% and total revenue increased 11%, while adjusted EBITDA of $145.5 million surpassed the high end of guidance by $12.9 million.
• Paylocity reported continued operating momentum, with approximately 44,400 clients, 5% growth in average revenue per client to roughly $37,200, and revenue retention above 92%. Broker referrals contributed more than 25% of new business.
• The company is expanding its platform through Ignite AI, Paylocity Retirement, Elevate Solutions, and the Grayscale and Aidora acquisitions, aiming to improve client productivity and create premium, monetizable product offerings.
• Fiscal 2027 guidance calls for slower growth, with recurring revenue up approximately 8% and total revenue up approximately 7%; assumptions include flat client workforce levels and two interest-rate cuts that would reduce funds-held-for-clients interest income.
• Paylocity repurchased about $398 million of stock in fiscal 2026, reducing diluted shares by 3.1%, and retains approximately $1.3 billion under its authorization while maintaining capacity for acquisitions and other growth investments.

Paylocity Stock Performance

Shares of Paylocity stock traded up $2.11 on Thursday, reaching $149.92. The stock had a trading volume of 100,409 shares, compared to its average volume of 809,972. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.08 and a current ratio of 1.08. The business’s 50-day moving average price is $117.58 and its two-hundred day moving average price is $114.37. The stock has a market cap of $8.03 billion, a P/E ratio of 30.19 and a beta of 0.48. Paylocity has a fifty-two week low of $92.99 and a fifty-two week high of $190.52.

Wall Street Analysts Forecast Growth

PCTY has been the subject of a number of research reports. UBS Group raised their price objective on Paylocity from $122.00 to $128.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 22nd. Barclays set a $154.00 price target on shares of Paylocity in a report on Wednesday. TD Cowen increased their target price on shares of Paylocity from $137.00 to $168.00 and gave the stock a “buy” rating in a research report on Wednesday. Jefferies Financial Group reiterated a “buy” rating and set a $165.00 price objective on shares of Paylocity in a report on Wednesday. Finally, Cantor Fitzgerald lifted their price objective on Paylocity from $140.00 to $165.00 and gave the company an “overweight” rating in a research report on Wednesday. Twelve equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Paylocity currently has an average rating of “Moderate Buy” and a consensus price target of $160.00.

Paylocity News Summary

Here are the key news stories impacting Paylocity this week:

• Positive Sentiment: Quarterly results exceeded expectations. Paylocity reported fiscal Q4 EPS of $1.84, above the $1.62 consensus estimate and up from $1.56 a year earlier. Revenue increased 11% year over year to $444.73 million, surpassing the $431.46 million consensus. Paylocity Announces Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: Recurring revenue and product expansion support the outlook. Recurring revenue grew 12.4% year over year, while management highlighted AI-driven product development and balanced growth across its human-capital-management, finance and IT software offerings. PCTY Q2 Deep Dive: AI-Driven Product Expansion and Balanced Growth Shape Outlook
• Positive Sentiment: Forward revenue guidance was modestly above expectations. Paylocity forecast fiscal Q1 2027 revenue of $439.5 million to $444.5 million, compared with analyst expectations of $438.6 million, suggesting continued demand despite a competitive software environment. Paylocity Exceeds Expectations and Provides Revenue Guidance
• Positive Sentiment: Analysts raised their valuations. BMO lifted its target to $175 with an “outperform” rating, BTIG raised its target to $180 with a “buy” rating, and Cantor Fitzgerald increased its target to $165 while maintaining an “overweight” rating. Analyst Price Target Increases for Paylocity
• Neutral Sentiment: With Paylocity trading well above its 50-day and 200-day moving averages and at a roughly 30 price-to-earnings ratio, investors may focus on whether AI investments and recurring-revenue growth can justify the stock’s stronger valuation.

Insider Transactions at Paylocity

In related news, SVP Andrew Cappotelli sold 899 shares of Paylocity stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $115.05, for a total value of $103,429.95. Following the transaction, the senior vice president owned 17,679 shares in the company, valued at $2,033,968.95. This trade represents a 4.84% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 19.40% of the company’s stock.

Institutional Investors Weigh In On Paylocity

Hedge funds have recently bought and sold shares of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Paylocity by 5.9% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 136,388 shares of the software maker’s stock valued at $25,551,000 after purchasing an additional 7,594 shares during the period. Focus Partners Wealth lifted its holdings in shares of Paylocity by 24.5% during the first quarter. Focus Partners Wealth now owns 1,365 shares of the software maker’s stock worth $256,000 after buying an additional 269 shares during the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of Paylocity by 537.0% during the second quarter. EverSource Wealth Advisors LLC now owns 465 shares of the software maker’s stock worth $84,000 after buying an additional 392 shares during the last quarter. Marshall Wace LLP boosted its position in shares of Paylocity by 2,782.7% in the second quarter. Marshall Wace LLP now owns 35,688 shares of the software maker’s stock valued at $6,466,000 after acquiring an additional 34,450 shares during the period. Finally, Cerity Partners LLC boosted its position in shares of Paylocity by 10.0% in the second quarter. Cerity Partners LLC now owns 19,241 shares of the software maker’s stock valued at $3,486,000 after acquiring an additional 1,749 shares during the period. 94.76% of the stock is currently owned by institutional investors.

About Paylocity

Paylocity (NASDAQ: PCTY) is a leading provider of cloud-based payroll and human capital management (HCM) software designed to streamline workforce administration for mid-sized organizations. The company’s integrated platform automates core functions such as payroll processing, benefits administration, time and labor tracking, and compliance management, enabling employers to manage employee data more efficiently and reduce administrative burdens.

In addition to payroll and HR capabilities, Paylocity offers talent management solutions including recruiting, onboarding, performance tracking, and learning management.