Paycom Beats Q4 EPS and Revenue but Forecasts Slower 2026 Growth
Paycom delivered adjusted Q4 EPS of $2.45, beating consensus by $0.01, and revenue of $544.3 million, a 10.2% year-over-year increase and 0.3% ahead of estimates. The company projected weaker-than-expected revenue growth for fiscal 2026, triggering a roughly 5% decline in its share price.
1. Q4 Earnings Beat Estimates
Paycom reported adjusted Q4 EPS of $2.45, up from $2.32 a year ago, beating the $2.44 consensus by $0.01. Revenue rose 10.2% to $544.3 million, exceeding estimates by $1.6 million and marking four consecutive quarters of upside surprises.
2. Weak 2026 Revenue Forecast
The company forecast fiscal 2026 revenue growth to decelerate sharply, revising guidance below Wall Street’s prior outlook. Management cited slowing new client acquisition and softer license sales as key factors in the revised outlook.
3. Market Reaction
Following the downgraded 2026 outlook, Paycom shares fell about 5% in intraday trading, underperforming peers and recording the largest single-day drop in three months. Investors are now focused on management’s upcoming commentary for further clarity.