Paylocity’s Q2 Revenue Jumps 10.4% to $416.1M as Targets Adjusted
Paylocity’s fiscal Q2 2026 revenue rose 10.4% to $416.1M with recurring subscriptions up 11.3% to $387M, and trailing-twelve-month cash flow and free cash flow margins were 28.3% and 23.6%. Mizuho maintained a Buy rating with a $150 target while Baird and TD Cowen cut theirs to $220 and $178.
1. Robust Fiscal Q2 Results
Paylocity posted fiscal Q2 2026 total revenue of $416.1M, up 10.4% year-over-year, and recurring subscription revenue of $387.0M, up 11.3%. Trailing-twelve-month operating cash flow margin reached 28.3% and free cash flow margin was 23.6%, underscoring strong cash conversion.
2. Mizuho Buy Rating and $150 Target
Following the earnings release, Mizuho reaffirmed its Buy rating on Paylocity and set a price target of $150, citing sustained revenue growth and robust free cash flow. The firm highlighted the company’s expanding margins and recurring revenue base as key growth drivers.
3. Analyst Price Target Revisions
In the wake of Q2 results, Baird reduced its price target to $220 from $245 while maintaining an Outperform rating, attributing the cut to updated margin assumptions. TD Cowen also trimmed its target to $178 from $188, noting a respectable earnings beat and confidence in AI-driven competitive advantages.