Paycom Q1 revenue, profit beat estimates

Paycom Software

06/05/2026 21:16

Overview

U.S. HCM software provider's Q1 revenue rose 8%, beating analyst expectations

Adjusted EPS for Q1 beat consensus

Company repurchased $1.06 bln in shares during the quarter

Outlook

Paycom expects 2026 revenue of $2.175 bln to $2.195 bln, up 6%-7% yr-over-yr

Company sees recurring and other revenue growth of 7%-8% yr-over-yr in 2026

Paycom expects 2026 adjusted EBITDA of $950 mln to $970 mln, margin about 44%

Result Drivers

AUTOMATION STRATEGY - Co said execution of full-solution automation and employee-first technology drove higher engagement and client satisfaction

AI SOLUTIONS - Co cited leadership in AI and automated decisioning, with products like Beti, GONE and IWant helping clients operate more efficiently

RECURRING REVENUE GROWTH - Recurring and other revenues grew 8.8% year-over-year and made up 95.1% of total revenues

Company press release: ID:nBw2JsXXMa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$571.90 mln
$564.46 mln (18 Analysts)
Q1 Adjusted EPS
Beat
$3.15
$2.99 (18 Analysts)
Q1 EPS
$3.04
Q1 Adjusted Net Income
Slight Beat*
$161.3 mln
$160.06 mln (16 Analysts)
Q1 Net Income
$155.70 mln
Q1 Adjusted EBITDA
Beat
$275.4 mln
$267.17 mln (18 Analysts)
Q1 Operating Income
$210.20 mln
Q1 Pretax Profit
$215.30 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 15 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy."

Wall Street's median 12-month price target for Paycom Software Inc is $138.50, about 5.2% above its May 5 closing price of $131.68

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)