Paylocity Sets $1.62 B–$1.63 B 2026 Revenue Guidance as Analysts Lower Targets
Baird cut its price target on Paylocity to $220 from $245 while maintaining an Outperform rating after citing stronger-than-expected margins and free cash flow. Paylocity issued fiscal 2026 guidance of $1.62–1.63 billion in recurring revenue (10%–11% growth) and adjusted EBITDA of $622.5–630.5 million.
1. Analyst Price Target Revisions
On February 6, Baird trimmed its Paylocity price target to $220 from $245 and kept an Outperform rating, highlighting solid margin improvements and robust free cash flow. TD Cowen lowered its target to $178 from $188 with a Buy rating, while BMO Capital cut its target to $150 from $185 but maintained an Outperform stance, noting lighter recurring growth upside.
2. FY2026 Guidance Update
Paylocity issued a revised fiscal 2026 forecast projecting recurring and other revenue between $1.62 billion and $1.63 billion, representing 10%–11% year-over-year growth. The company anticipates adjusted EBITDA of $622.5 million to $630.5 million, and EBITDA excluding client-held funds of $510.5 million to $518.5 million, underscoring sustained operational discipline.
3. Operational and Competitive Strengths
Paylocity’s AI-driven platform and expanded product suite supported margin expansion and free cash flow generation during an industry slowdown. The company’s unified payroll and human capital management solutions drove competitive positioning in the mid-market segment and underpinned analyst confidence despite tempered growth expectations.