Paycom raises annual forecast on AI-driven demand

Aug. 5 (Reuters) - Payroll processor Paycom on Wednesday lifted its annual revenue forecast, driven by steady demand for its AI-driven employee management services.

Shares of the company were up 15.1% in extended trading following the results.

Here are some details:

• Paycom, which offers a broad product suite and tools helping employers track and manage workforce tasks, has been integrating AI features into its software.
• The company expects full-year 2026 revenue of $2.197 billion to $2.212 billion, above its previous forecast of $2.175 billion to $2.195 billion.
• Integration of AI into its services has boosted demand for Paycom's services, as businesses look to simplify workforce management functions.
• The company offers employee-focused tools such as Beti, GONE and IWant.
• It reported revenue of $531.2 million for the quarter ended June 30, ahead of analysts' average estimate of $513.1 million, according to data compiled by LSEG.
• Human capital management vendors such as Automatic Data Processing, Workday and Paychex are among the major competitors of Paycom.