Paycom Software (NYSE:PAYC) Issues Earnings Results

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

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 Trading Up 2.1%

Paycom Software stock traded up $5.40 during mid-day trading on Wednesday, hitting $268.39. The company’s stock had a trading volume of 1,104,606 shares, compared to its average volume of 593,687. The company has a 50 day moving average of $237.97 and a 200-day moving average of $165.78. The stock has a market cap of $12.10 billion, a PE ratio of 30.33, a P/E/G ratio of 1.41 and a beta of 0.75. The company has a debt-to-equity ratio of 1.57, a quick ratio of 1.07 and a current ratio of 1.07. Paycom Software has a one year low of $104.90 and a one year high of $275.22.

Paycom Software Dividend Announcement

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

Insider Buying and Selling at Paycom Software

In other news, insider Shane Hadlock sold 241 shares of the business’s stock in a transaction on Friday, August 28th. The shares were sold at an average price of $240.07, for a total transaction of $57,856.87. Following the completion of the sale, the insider directly owned 69,911 shares of the company’s stock, valued at approximately $16,783,533.77. The trade was a 0.34% 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 this link. Company insiders own 13.20% of the company’s stock.

Wall Street Analysts Forecast Growth

PAYC has been the topic of several analyst reports. TD Cowen boosted their target price on Paycom Software from $244.00 to $286.00 and gave the company a “buy” rating in a research report on Friday, October 2nd. Barclays raised their price target on Paycom Software from $210.00 to $250.00 and gave the stock an “equal weight” rating in a research report on Tuesday, October 13th. Cantor Fitzgerald lifted their price objective on shares of Paycom Software from $195.00 to $285.00 and gave the stock a “neutral” rating in a research note on Friday, October 30th. Weiss Ratings upgraded shares of Paycom Software from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Finally, BTIG Research increased their target price on shares of Paycom Software from $230.00 to $305.00 and gave the company a “buy” rating in a research note on Monday, October 26th. Five equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently 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.