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Paycom Gears Up to Report Q3 Earnings: What's in Store for the Stock?
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Key Takeaways
Paycom will report Q3 2025 earnings on Nov. 5, with estimates calling for a 17.4% profit rise.
Consensus estimates for Q3 sales are projected at $492.4M, up 9% year over year.
AI tools Beti, GONE, and IWant likely boosted client growth despite softer macro conditions.
Paycom Software, Inc. ((PAYC - Free Report) ) is set to report third-quarter 2025 results on Nov. 5, after market close.
The Zacks Consensus Estimate for third-quarter earnings is pinned at $1.96 per share, indicating a year-over-year increase of 17.4%. The consensus estimate for the bottom line has remained unchanged over the past 60 days.
The Zacks Consensus Estimate for Paycom’s second-quarter revenues is pegged at approximately $492.4 million, suggesting a rise of 9% from the year-ago quarter’s sales of $451.9 million.
Paycom’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.8%.
Paycom’s third-quarter performance is likely to have benefited from expanding its client base through its sustained focus on enhancing its product portfolio and a high-margin recurring revenue business model. The enhancement of its offerings through artificial intelligence (AI) implementation is likely to have gained new clients, driving the company’s revenues. Our estimate for PAYC’s recurring revenues is pegged at $464.5 million, suggesting year-over-year growth of 10.1%.
PAYC’s continuous efforts in employee usage strategy, sales, and investments in areas of AI, automation, international expansion, and value proposition for its clients might have boosted its sales growth in the third quarter of 2025.
Paycom’s focus on adding more functionality to its Beti and GONE solutions, while delivering a seamless employee experience, enables it to attract new customers. Notably, Beti reduces administrative burdens, enabling employees to manage their own payroll requirements independently, while GONE takes care of time-off requests.
Additionally, Paycom’s third-quarter result is expected to reflect early benefits from the rollout of IWant, the company’s new AI command-driven tool that enhances user interaction through voice and text-based navigation. IWant’s command-driven AI engine is expected to increase usage among non-daily users, while also delivering better return on investment for its clients. The company’s innovative solutions are likely to have positively impacted the to-be-reported quarter’s performance.
However, despite strong product innovation, Paycom’s growth is expected to have been negatively impacted by a weaker macroeconomic environment. Moreover, geopolitical tensions and economic uncertainty are anticipated to have created near-term revenue headwinds. Additionally, layoffs and hiring slowdowns in various industries could have weighed on transaction volumes, while reducing the overall demand for payroll services. Together, these factors are expected to have weighed on the company's third-quarter overall performance.
Earnings Whispers for PAYC Stock
Our proven model conclusively predicts an earnings beat for Paycom this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
While Paycom carries a Zacks Rank #3 at present, it has an Earnings ESP of -4.51%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model indicates that they possess the right combination of factors to exceed earnings expectations in their upcoming releases:
The Zacks Consensus Estimate for StoneCo’s third-quarter earnings is pegged at 43 cents per share, up by 2 cents over the past 30 days, indicating an increase of 22.9% from the year-ago quarter’s reported figure. Shares of StoneCo have soared 138.5% year to date.
Fair Isaac ((FICO - Free Report) ) is scheduled to report fourth-quarter fiscal 2025 results on Nov. 5. It has an Earnings ESP of +0.46% and sports a Zacks Rank #1 at present.
The Zacks Consensus Estimate for Fair Isaac’s fourth-quarter earnings is pegged at $7.34 per share, up by 2 cents over the past 30 days, implying a rise of 12.2% from the year-ago quarter’s reported figure. Shares of Fair Isaac have plunged 16.7% year to date.
Lumentum((LITE - Free Report) ) is slated to report first-quarter fiscal 2026 results on Nov. 4. It has an Earnings ESP of +2.14% and carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Lumentum’s first-quarter earnings is pegged at $1.03 per share, unchanged over the past 60 days, calling for a surge of 472.2% from the year-ago quarter’s reported figure. Shares of Lumentum have soared 140.1% year to date.
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Paycom Gears Up to Report Q3 Earnings: What's in Store for the Stock?
Key Takeaways
Paycom Software, Inc. ((PAYC - Free Report) ) is set to report third-quarter 2025 results on Nov. 5, after market close.
The Zacks Consensus Estimate for third-quarter earnings is pinned at $1.96 per share, indicating a year-over-year increase of 17.4%. The consensus estimate for the bottom line has remained unchanged over the past 60 days.
The Zacks Consensus Estimate for Paycom’s second-quarter revenues is pegged at approximately $492.4 million, suggesting a rise of 9% from the year-ago quarter’s sales of $451.9 million.
Paycom’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.8%.
Paycom Software, Inc. Price and EPS Surprise
Paycom Software, Inc. price-eps-surprise | Paycom Software, Inc. Quote
Factors Likely to Influence PAYC’s Q3 Results
Paycom’s third-quarter performance is likely to have benefited from expanding its client base through its sustained focus on enhancing its product portfolio and a high-margin recurring revenue business model. The enhancement of its offerings through artificial intelligence (AI) implementation is likely to have gained new clients, driving the company’s revenues. Our estimate for PAYC’s recurring revenues is pegged at $464.5 million, suggesting year-over-year growth of 10.1%.
PAYC’s continuous efforts in employee usage strategy, sales, and investments in areas of AI, automation, international expansion, and value proposition for its clients might have boosted its sales growth in the third quarter of 2025.
Paycom’s focus on adding more functionality to its Beti and GONE solutions, while delivering a seamless employee experience, enables it to attract new customers. Notably, Beti reduces administrative burdens, enabling employees to manage their own payroll requirements independently, while GONE takes care of time-off requests.
Additionally, Paycom’s third-quarter result is expected to reflect early benefits from the rollout of IWant, the company’s new AI command-driven tool that enhances user interaction through voice and text-based navigation. IWant’s command-driven AI engine is expected to increase usage among non-daily users, while also delivering better return on investment for its clients. The company’s innovative solutions are likely to have positively impacted the to-be-reported quarter’s performance.
However, despite strong product innovation, Paycom’s growth is expected to have been negatively impacted by a weaker macroeconomic environment. Moreover, geopolitical tensions and economic uncertainty are anticipated to have created near-term revenue headwinds. Additionally, layoffs and hiring slowdowns in various industries could have weighed on transaction volumes, while reducing the overall demand for payroll services. Together, these factors are expected to have weighed on the company's third-quarter overall performance.
Earnings Whispers for PAYC Stock
Our proven model conclusively predicts an earnings beat for Paycom this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
While Paycom carries a Zacks Rank #3 at present, it has an Earnings ESP of -4.51%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model indicates that they possess the right combination of factors to exceed earnings expectations in their upcoming releases:
StoneCo ((STNE - Free Report) ) is set to report third-quarter 2025 results on Nov. 6. It has an Earnings ESP of +7.81% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for StoneCo’s third-quarter earnings is pegged at 43 cents per share, up by 2 cents over the past 30 days, indicating an increase of 22.9% from the year-ago quarter’s reported figure. Shares of StoneCo have soared 138.5% year to date.
Fair Isaac ((FICO - Free Report) ) is scheduled to report fourth-quarter fiscal 2025 results on Nov. 5. It has an Earnings ESP of +0.46% and sports a Zacks Rank #1 at present.
The Zacks Consensus Estimate for Fair Isaac’s fourth-quarter earnings is pegged at $7.34 per share, up by 2 cents over the past 30 days, implying a rise of 12.2% from the year-ago quarter’s reported figure. Shares of Fair Isaac have plunged 16.7% year to date.
Lumentum ((LITE - Free Report) ) is slated to report first-quarter fiscal 2026 results on Nov. 4. It has an Earnings ESP of +2.14% and carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Lumentum’s first-quarter earnings is pegged at $1.03 per share, unchanged over the past 60 days, calling for a surge of 472.2% from the year-ago quarter’s reported figure. Shares of Lumentum have soared 140.1% year to date.