Paylocity Raises 2026 Guidance to $1.74B, Tops HR Survey Rankings
Paylocity raised its fiscal 2026 revenue guidance to $1.732–1.742 billion after Q2 adjusted EBITDA of $142.7 million (34.3% margin), leading TD Cowen to lower its price target to $178 while maintaining a Buy rating. The company also ranked first in mid-market time and attendance and SMB analytics in Sapient Insights Group’s survey.
1. Q2 Results and Guidance Raise
Paylocity reported Q2 fiscal 2026 adjusted EBITDA of $142.7 million, a 34.3% margin that exceeded guidance high by $7.2 million. The company generated GAAP gross profit of $282.1 million and net income of $50.2 million, repurchased 690,000 shares for $100 million, and raised fiscal 2026 revenue guidance to $1.732–1.742 billion with recurring revenue now expected at $1.620–1.630 billion.
2. Analyst Reaction
TD Cowen maintained its Buy rating on Paylocity while lowering the price target from $188 to $178, noting the strong Q2 performance and positioning in AI-driven HR technology as key drivers for future upside potential of roughly 74.5%.
3. Sapient Survey Honors
In Sapient Insights Group’s 28th Annual HR Systems Survey – Voice of the Customer, Paylocity ranked first for user experience in mid-market Time & Attendance and SMB Analytics. It also secured top-five positions in user experience for 14 of 22 HR technology segments and in vendor satisfaction for 17 of 22 segments based on feedback from over 4,500 organizations.