We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Paycom (PAYC) Down 1% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Paycom Software (PAYC - Free Report) . Shares have lost about 1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Paycom due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Paycom Software, Inc. before we dive into how investors and analysts have reacted as of late.
Paycom reported better-than-expected first-quarter 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.
The online payroll and human resource technology provider reported non-GAAP earnings of $3.15 per share, which increased 12.5% year over year and beat the Zacks Consensus Estimate by 7.5%.
Paycom’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, the average surprise being 5.7%.
Revenues totaled $571.9 million, which rose 7.8% from the year-ago quarter and exceeded the consensus estimate of $565 million by 1.2%.
Paycom’s Q1 in Detail
Paycom’s Recurring revenues (representing 95.1% of the total revenues) improved 8.8% to $544 million in the first quarter. Our estimate for the company’s Recurring revenues was pegged at $538.2 million.
Paycom’s revenues from the Interest on funds held for clients segment decreased to $27.8 million from $30.5 million in the year-ago quarter and contributed 4.9% to total sales. Our estimate for the segment’s revenues was pegged at $27.7 million.
Adjusted gross profits increased 8.4% from the year-ago period to $486.7 million. The adjusted gross margin expanded 50 basis points (bps) on a year-over-year basis to 85.1%.
Paycom’s adjusted EBITDA rose 8.8% year over year to $275.4 million. The adjusted EBITDA margin expanded 50 basis points to 48.2%.
Paycom’s Balance Sheet & Cash Flow
Paycom exited the first quarter with cash and cash equivalents of $153.9 million compared with $370 million recorded in the previous quarter. The company had long-term debt of $675 million as of March 31, 2026.
In the first quarter of 2026, PAYC generated operating cash flow of approximately $213.8 million, paid out $17.7 million in dividends and bought back $1.06 billion worth of its common stock.
The board also approved a new $2 billion buyback authorization. Earlier on May 4, Paycom declared its upcoming quarterly dividend of 37.5 cents per share, payable on May 26, 2026.
Paycom Reaffirms 2026 Guidance
Following the first-quarter performance, management reaffirmed full-year guidance ranges. For 2026, Paycom continues to expect total revenues of $2.175-$2.195 billion, implying year-over-year growth of 6-7%.
The company projects recurring revenues to grow 7-8% year over year. PAYC forecasts revenues from Interest on funds held for clients to be $103 million.
Paycom expects its 2026 adjusted EBITDA to be between $950 million and $970 million, translating to an EBITDA margin of approximately 44% at the midpoint.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, Paycom has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Paycom has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Paycom is part of the Zacks Internet - Software industry. Over the past month, Broadridge Financial Solutions (BR - Free Report) , a stock from the same industry, has gained 0.8%. The company reported its results for the quarter ended March 2026 more than a month ago.
Broadridge Financial reported revenues of $1.95 billion in the last reported quarter, representing a year-over-year change of +7.8%. EPS of $2.72 for the same period compares with $2.44 a year ago.
For the current quarter, Broadridge Financial is expected to post earnings of $3.76 per share, indicating a change of +5.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.4% over the last 30 days.
Broadridge Financial has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Why Is Paycom (PAYC) Down 1% Since Last Earnings Report?
A month has gone by since the last earnings report for Paycom Software (PAYC - Free Report) . Shares have lost about 1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Paycom due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Paycom Software, Inc. before we dive into how investors and analysts have reacted as of late.
Paycom's Q1 Earnings Surpass Expectations, Revenues Rise Y/Y
Paycom reported better-than-expected first-quarter 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.
The online payroll and human resource technology provider reported non-GAAP earnings of $3.15 per share, which increased 12.5% year over year and beat the Zacks Consensus Estimate by 7.5%.
Paycom’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, the average surprise being 5.7%.
Revenues totaled $571.9 million, which rose 7.8% from the year-ago quarter and exceeded the consensus estimate of $565 million by 1.2%.
Paycom’s Q1 in Detail
Paycom’s Recurring revenues (representing 95.1% of the total revenues) improved 8.8% to $544 million in the first quarter. Our estimate for the company’s Recurring revenues was pegged at $538.2 million.
Paycom’s revenues from the Interest on funds held for clients segment decreased to $27.8 million from $30.5 million in the year-ago quarter and contributed 4.9% to total sales. Our estimate for the segment’s revenues was pegged at $27.7 million.
Adjusted gross profits increased 8.4% from the year-ago period to $486.7 million. The adjusted gross margin expanded 50 basis points (bps) on a year-over-year basis to 85.1%.
Paycom’s adjusted EBITDA rose 8.8% year over year to $275.4 million. The adjusted EBITDA margin expanded 50 basis points to 48.2%.
Paycom’s Balance Sheet & Cash Flow
Paycom exited the first quarter with cash and cash equivalents of $153.9 million compared with $370 million recorded in the previous quarter. The company had long-term debt of $675 million as of March 31, 2026.
In the first quarter of 2026, PAYC generated operating cash flow of approximately $213.8 million, paid out $17.7 million in dividends and bought back $1.06 billion worth of its common stock.
The board also approved a new $2 billion buyback authorization. Earlier on May 4, Paycom declared its upcoming quarterly dividend of 37.5 cents per share, payable on May 26, 2026.
Paycom Reaffirms 2026 Guidance
Following the first-quarter performance, management reaffirmed full-year guidance ranges. For 2026, Paycom continues to expect total revenues of $2.175-$2.195 billion, implying year-over-year growth of 6-7%.
The company projects recurring revenues to grow 7-8% year over year. PAYC forecasts revenues from Interest on funds held for clients to be $103 million.
Paycom expects its 2026 adjusted EBITDA to be between $950 million and $970 million, translating to an EBITDA margin of approximately 44% at the midpoint.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, Paycom has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Paycom has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Paycom is part of the Zacks Internet - Software industry. Over the past month, Broadridge Financial Solutions (BR - Free Report) , a stock from the same industry, has gained 0.8%. The company reported its results for the quarter ended March 2026 more than a month ago.
Broadridge Financial reported revenues of $1.95 billion in the last reported quarter, representing a year-over-year change of +7.8%. EPS of $2.72 for the same period compares with $2.44 a year ago.
For the current quarter, Broadridge Financial is expected to post earnings of $3.76 per share, indicating a change of +5.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.4% over the last 30 days.
Broadridge Financial has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.