DailyIQ
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Sector:TechnologyAll sectors
Last updated 1 minute ago

PAYC·Paycom Software, Inc.

$.
-. (-.%)
After Hours
High
$145.08
Open
$140.34
Market Cap
6.98B
52W High
$248.95
Low
$138.20
P. Close
$143.60
P/E
14.85
52W Low
$104.90
Fwd P/E
11.69
DailyIQ Est.
$153.84
Technical Score (1D)
86
BUY
News Sentiment
82
BULLISH
Paycom announced a new asset‑management solution that automates tracking of company assets, reduces loss incidents, and improves regulatory compliance. By integrating the tool with its existing payroll and HR platforms, the company can offer real‑time visibility into asset status, potentially lowering audit risk and operational costs for clients. The launch expands Paycom’s product mix beyond payroll into broader enterprise resource management, which could lift its revenue mix and support higher margin growth in the near term. The timing of the announcement, just a few hours before the market opens, positions the company to see immediate interest from current and prospective customers looking to streamline asset oversight. Earlier this week, Paycom was again named to Selling Power’s 60 Best Companies to Sell For list, underscoring a strong sales culture and training program that has helped the firm maintain robust sales momentum. The dual focus on product expansion and sales excellence signals that Paycom is likely to sustain or accelerate its revenue growth trajectory over the next 1–10 trading days. Traders should watch for any updates to earnings guidance that reflect the impact of the new asset‑management tool on top‑line and margin expectations. Additionally, keep an eye on customer adoption metrics and any early revenue contributions from the new solution, as they will validate the product’s market fit. Finally, monitor Paycom’s quarterly earnings release for confirmation that the expanded product suite is translating into tangible financial performance.
Earnings Summary
Paycom Software, Inc. (PAYC) delivers a cloud‑based human capital management platform for small to mid‑size U.S. businesses, positioning it within the SaaS‑HR technology sector. The company’s integrated suite spans talent acquisition, payroll, time and labor management, and analytics, enabling a centralized hub for HR functions. In Q4 2024, Paycom reported revenue of $493.8 million and EPS of $2.32, beating the $1.97 estimate and reflecting a 19.5 % revenue CAGR noted by analysts. Q1 2025 saw revenue rise to $530.5 million and EPS climb to $2.80, again surpassing the $2.56 forecast and continuing the upward trajectory. Q2 2025 revenue dipped slightly to $483.6 million while EPS of $2.06 exceeded the $1.78 estimate, demonstrating resilience amid a modest decline. Q3 2025 revenue rebounded to $493.3 million but EPS of $1.94 fell short of the $1.97 target, indicating margin pressure. The most recent quarter with complete data, Q4 2025, posted revenue of $544.3 million and EPS of $2.45, narrowly missing the $2.48 estimate, while Q1 2026 delivered $571.9 million in revenue and $3.15 EPS, beating the $3.05 forecast. Over the past year, Paycom’s revenue has grown at a double‑digit pace, with a YoY increase of roughly 18.7 % from Q2 2025 to Q1 2026, and EPS has surged by about 52 % in the same period, underscoring a strong earnings expansion despite occasional guidance misses. Recent news highlights a 19.5 % revenue CAGR and a debt‑free balance sheet, positioning PAYC as a low‑valuation, high‑growth play, while its removal from Russell growth indices to a value classification may influence fund flows and valuation multiples. Investors should watch for management’s guidance on revenue growth and margin expansion in the next earnings release, monitor any announcements of AI‑driven product initiatives that could reshape pricing dynamics, and keep an eye on macroeconomic indicators that could affect enterprise IT spending and, consequently, Paycom’s recurring revenue stream.

EPS

EstBeatMiss
$1.58$2.02$2.47$2.91$3.36Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$2.38 - -
Q1'26$3.05$3.15+3.3%
Q4'25$2.48$2.45-1.4%
Q3'25$1.97$1.94-1.6%
Q2'25$1.78$2.06+15.6%
Q1'25$2.56$2.80+9.4%

Revenue

EstBeatMiss
$470M$500M$530M$560M$590MQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$523M - -
Q1'26$576M$572M-0.7%
Q4'25$554M$544M-1.7%
Q3'25 - $493M -
Q2'25 - $484M -
Q1'25 - $531M -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

PAYC Stock Snapshot

PAYC is currently trading at $143.67, giving Paycom Software, Inc. a market cap of 6.98B and a P/E ratio of 14.8. Today's range spans $138.20–$145.08, with shares opening at $140.34 and moving up $0.07 (0.0%) from the prior close. DailyIQ's technical score sits at 86/100 (BUY) with a news sentiment reading of 82/100.

Over the past year PAYC has traded between $104.90 and $248.95 - the current price is +37.0% off the 52-week low and -42.3% from the high. 29 analysts cover the stock with a Hold consensus and a mean 12-month target of $151.12 (range $120.00–$195.00), implying upside of +5.2%.

Short interest can be a signal in itself for PAYC - at 6.98B in Technology market cap with a bullish technical setup (86/100, BUY) and bullish sentiment (82/100), a high short float turns into a potential catalyst. Price: $143.67 (in the lower half of its 52-week range in $104.90–$248.95). (P/E: 14.8) If the technical momentum persists and shorts are forced to cover, the move can be multiples of what the signal alone would imply - a dynamic unique to small-cap names with the right setup.

News sentiment (82/100, bullish) plays a larger role in small-cap price discovery than in mega-cap names, because the analyst coverage base is narrower and each incremental news item carries more weight in the information set. For PAYC — 6.98B in Technology market cap, technical score 86/100 (BUY), price $143.67 (in the lower half of its 52-week range) — a sustained improvement in the news backdrop could accelerate the bullish technical thesis toward the upper end of the $104.90–$248.95 range faster than fundamental models would suggest.