Paycom Software (NYSE:PAYC) Announces Earnings Results

Paycom Software (NYSE:PAYC) issued 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. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%. The firm had revenue of $543.80 million during the quarter, compared to analyst estimates of $535.26 million. During the same quarter last year, the firm earned $1.94 EPS. Paycom Software’s quarterly revenue was up 10.2% on a year-over-year basis.

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 Performance

Shares of Paycom Software stock traded up $5.40 during trading hours on Wednesday, reaching $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’s 50 day simple moving average is $237.97 and its 200 day simple moving average is $165.78. 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. The stock has a market cap of $12.10 billion, a P/E ratio of 30.33, a price-to-earnings-growth ratio of 1.41 and a beta of 0.75.

Paycom Software Announces Dividend

The firm also recently announced 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 dividend on an annualized basis 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%.

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

Analyst Upgrades and Downgrades

Several research firms have recently commented on PAYC. JPMorgan Chase & Co. increased their target price on Paycom Software from $140.00 to $264.00 and gave the company a “neutral” rating in a research note on Tuesday, August 25th. BTIG Research lifted their price target on shares of Paycom Software from $230.00 to $305.00 and gave the stock a “buy” rating in a research note on Monday, October 26th. UBS Group upped their price target on shares of Paycom Software from $205.00 to $285.00 and gave the company a “buy” rating in a report on Tuesday, September 1st. Cantor Fitzgerald upped their price target on shares of Paycom Software from $195.00 to $285.00 and gave the company a “neutral” rating in a report on Friday, October 30th. Finally, Bank of America started coverage on shares of Paycom Software in a research note on Tuesday, September 29th. They set an “underperform” rating and a $200.00 price objective on the stock. Five investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $256.21.

Insider Activity at Paycom Software

In related news, insider Shane Hadlock sold 2,577 shares of the business’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $237.60, for a total transaction of $612,295.20. Following the completion of the sale, the insider owned 70,152 shares of the company’s stock, valued at $16,668,115.20. This represents a 3.54% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 13.20% of the company’s stock.

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.