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

Paycom Software (NYSE:PAYC) posted its quarterly earnings results on Wednesday. The software maker reported $3.37 EPS for the quarter, beating 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 52.12%. The company had revenue of $543.80 million during the quarter, compared to analyst estimates of $535.26 million. During the same period in the prior year, the business posted $1.94 EPS. The firm’s revenue 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 0.6%

Shares of PAYC traded down $1.32 during midday trading on Monday, hitting $236.00. The company had a trading volume of 1,160,502 shares, compared to its average volume of 1,160,693. The company’s 50-day simple moving average is $238.29 and its 200-day simple moving average is $166.73. The company has a debt-to-equity ratio of 1.06, a quick ratio of 1.06 and a current ratio of 1.06. The firm has a market capitalization of $10.63 billion, a P/E ratio of 22.61, a P/E/G ratio of 1.26 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 disclosed a quarterly dividend, which will be paid on Monday, December 7th. Stockholders of record on Monday, November 23rd will be paid a $0.3750 dividend. This represents a $1.50 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Monday, November 23rd. Paycom Software’s dividend payout ratio (DPR) is presently 14.37%.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the stock. JPMorgan Chase & Co. upped their price target on shares of Paycom Software from $264.00 to $265.00 and gave the company a “neutral” rating in a report on Thursday. Bank of America began coverage on shares of Paycom Software in a research report on Tuesday, September 29th. They issued an “underperform” rating and a $200.00 target price on the stock. KeyCorp increased their price objective on shares of Paycom Software from $295.00 to $297.00 and gave the company an “overweight” rating in a research report on Thursday. Citigroup cut their price objective on shares of Paycom Software from $279.00 to $264.00 and set a “neutral” rating on the stock in a research report on Friday. Finally, Wall Street Zen raised shares of Paycom Software from a “hold” rating to a “buy” rating in a research report on Saturday. Four equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $255.36.

Insider Buying and Selling at Paycom Software

In other news, insider Shane Hadlock sold 241 shares of the firm’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $240.07, for a total transaction of $57,856.87. Following the sale, the insider owned 69,911 shares of the company’s stock, valued at approximately $16,783,533.77. This trade represents a 0.34% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 13.20% of the company’s stock.

About Paycom Software

Paycom Software, Inc. provides cloud-based human capital management (HCM) software that helps employers manage payroll and related workforce processes through a unified platform. Its services support organizations throughout the employee life cycle, from hiring and onboarding to payroll, benefits administration, time and labor management, and talent management. The company’s platform includes employee self-service tools and Beti, a feature that enables employees to review and complete their own payroll.