Paycom's high-margin HCM platform continues to generate robust cash flows, with 2026Q2 FCF margin at 70.2% and gross margin at 83.2%, but revenue growth has decelerated to 9.8% and operating margins remain volatile.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has slowed to 9.8% in 2026Q2 from 13.6% in 2024Q4, while gross margins remain resilient at 83.2%, but operating margins have compressed from 57.2% in 2024Q1 to 31.7% in 2026Q2 due to rising R&D and SG&A costs.
Paycom reported full-year 2025 revenue of $2.05 billion and issued 2026 revenue guidance of $2.18-$2.20 billion, indicating steady growth.
The company generated $453.4 million in net income for 2025, demonstrating strong profitability alongside revenue growth.
With trailing and forward P/E ratios of 16.69 and 13.16 respectively, Paycom appears reasonably valued relative to earnings.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Nov 4, 2026 | $3.37+19.9% vs $2.81 | $544M+1.6% vs $535M |
Q3 2026 Aug 5, 2026 | $2.78+16.8% vs $2.38 | $531M+3.5% vs $513M |
Q2 2026 May 6, 2026 | $3.15+5.4% vs $2.99 | $572M+1.3% vs $564M |
Q1 2026 Feb 11, 2026 | $2.45+0.4% vs $2.44 | $544M+0.2% vs $543M |
Paycom Software, Inc. is still rated a Buy, as it trades at a sizable discount with strong forward return potential. Q3 2026 earnings exceeded expectations: revenue up 10% YoY, non-GAAP EPS up 37%, and adjusted EBITDA margin expanded to 49.3%. PAYC's recurring revenue climbed to 95.5% of total, driven by upselling and robust adoption of the IWant AI tool.
MongoDB (NASDAQ: MDB - Get Free Report) and Paycom Software (NYSE: PAYC - Get Free Report) are both large-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends. Volatility and Risk MongoDB has a beta of
PAYC's Q3 2026 earnings surge 73.7% on revenue growth, automation adoption and margin gains, prompting higher 2026 revenue and EBITDA guidance.
Paycom Software (PAYC) came out with quarterly earnings of $3.37 per share, beating the Zacks Consensus Estimate of $2.76 per share. This compares to earnings of $1.94 per share a year ago.
Benchmark PAYC against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Paycom Software, Inc. (PAYC)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $237.32 | $12.95B | 29.37 | 8.95% | 22.1% | 27.42% | 0.64% | |
| $117.06 | $41.63B | 23.94 | 16.88% | 27.35% | 47.11% | 3.77% | |
| $303.35 | $121.26B | 27.70 | 6.74% | 20.33% | 75.85% | 2.17% | |
| $173.15 | $9.27B | 35.19 | 11.04% | 15.23% | 23.44% | — | |
| $452.80 | $159.96B | 57.53 | 20.51% | 25.54% | 16.91% | — | |
| $72.76 | $3.96B | -154.81 | 19.75% | 4.87% | — | — |
Paycom Software, Inc. (PAYC) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Paycom Software, Inc. (PAYC) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 5, 2026·SEC
Aug 3, 2026·SEC
Jul 9, 2026·SEC
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Paycom Software, Inc. (PAYC) stock FAQ — growth, dividends, profitability & financials explained
Paycom Software, Inc. (PAYC) reported $2.14B in revenue over the trailing twelve months. Revenue was $2.05B in fiscal year 2025. That is 2571% more than the $76.8M of fiscal year 2012.
Paycom Software, Inc. (PAYC) grew revenue by 8.9% in fiscal year 2025, compared with the prior fiscal year.
Yes. Paycom Software, Inc. (PAYC) earned $487.6M in net income over the trailing twelve months (a 22.8% net margin).
Yes. Paycom Software, Inc. (PAYC) pays a dividend that yields 0.64% at the current price, a small yield.
Paycom Software, Inc. (PAYC) had a return on equity (ROE) of 27.4% in fiscal year 2025. That is well above the market's typical 10-15%.
Paycom Software, Inc. (PAYC) generated $754.5M in free cash flow over the trailing twelve months.
