Paycom soars on upbeat forecast driven by AI demand
PAYC•Results beat estimates
Paycom posted second-quarter adjusted earnings per share of $2.78, above analysts' estimates of $2.38. Revenue came in at $531.2 million, beating estimates of $513.1 million, according to data compiled by LSEG.
Shares surge after raised guidance
Shares of payroll processor Paycom Software PAYC.N rose 14.9% to $200.99 premarket after the company raised its FY26 revenue forecast to between $2.2 billion and $2.21 billion, from $2.18 billion to $2.2 billion, citing steady demand for its AI-driven services.
Broker commentary and stock performance
Morningstar said the company's automation efforts are boosting profitability, but growing competition and AI-related uncertainty continue to cloud the long-term growth outlook. Seven of 21 brokerages rate the stock "buy" or higher and 14 rate it "hold"; the median price target is $205. As of the last close, the stock was up 9.7% year to date.
