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
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
Q2 results and key beats
Human capital management software firm's Q2 revenue rose 10%, beating analyst expectations
PAYC•
