Paycom Q4 revenue rises 10.2%, slightly beats estimates

Paycom Software

11/02/2026 21:13

Overview

Human capital management firm's Q4 revenue slightly beat analyst expectations, rising 10.2% yr/yr

Adjusted EPS for Q4 beat analyst expectations

Company repurchased 554,226 shares for $108.8 mln and paid $20.6 mln in dividends

Outlook

Paycom expects 2026 revenue between $2.175 bln and $2.195 bln

Company forecasts 2026 recurring revenue growth of 7% to 8%

Paycom projects 2026 adjusted EBITDA between $950 mln and $970 mln

Result Drivers

RECURRING REVENUE GROWTH - Recurring and other revenues increased 11.2% yr/yr, making up 95% of total revenues

CLIENT RETENTION - Annual revenue retention rate improved to 91% in 2025, up from 90% in 2024

AI TOOL EXPANSION - Launch of AI tool IWant contributed to software usability and client satisfaction

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Beat*
$544.30 mln
$543.009 mln (19 Analysts)
Q4 Adjusted EPS
Beat
$2.45
$2.44 (19 Analysts)
Q4 EPS
$2.07
Q4 Adjusted Net Income
Miss
$134.70 mln
$137.49 mln (18 Analysts)
Q4 Net Income
$113.80 mln
Q4 Adjusted EBITDA
Beat
$236.30 mln
$232.19 mln (18 Analysts)
Q4 Operating Income
$157.20 mln
Q4 Pretax Profit
$159.20 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 $190.00, about 52.1% above its February 10 closing price of $124.94

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw4V3TCya

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(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.)