Paycom Q2 revenue beats analyst expectations as automation strategy continues

Paycom Software

05/08/2026 21:51

Overview
Human capital management software firm's Q2 revenue rose 10%, beating analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company repurchased $346 mln in shares and paid $17.9 mln in dividends in Q2

Outlook
Paycom raises full-year 2026 revenue outlook to $2.197 bln-$2.212 bln, up 7%-8% yr/yr
Company expects 2026 recurring and other revenue growth of 8%-9% yr/yr
Paycom sees 2026 adjusted EBITDA of $1.007 bln-$1.022 bln, margin about 46% at midpoint

Result Drivers
AUTOMATION STRATEGY - Co attributed Q2 results to strength of its automation strategy
PRODUCT INNOVATION - CEO said momentum was driven by new product innovation and continued automation across platform

Company press release: ID:nBw6TxS4za

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$531.20 mln
$513.10 mln (18 Analysts)
Q2 Adjusted EPS
Beat
$2.78
$2.38 (18 Analysts)
Q2 EPS
 
$2.34
 
Q2 Adjusted Net Income
Beat
$128 mln
$118.29 mln (17 Analysts)
Q2 Net Income
 
$107.40 mln
 
Q2 Adjusted EBITDA
Beat
$235 mln
$213.24 mln (17 Analysts)
Q2 Operating Income
 
$168.50 mln
 
Q2 Pretax Profit
 
$156.90 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 14 "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 $145.00, about 17.3% below its August 4 closing price of $175.30
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Aug 4 - Paylocity Q4 adjusted EBITDA beats estimates, forecasts 2027 revenue growth
Aug 4 - Alight Q2 revenue falls on lower commercial activity, but beats analyst expectations
Aug 4 - BlackLine Q2 revenue rises 9%, slightly beats estimates

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.)