Paylocity (NASDAQ:PCTY) Releases Quarterly Earnings Results, Beats Expectations By $0.22 EPS

Posted by Geri Gentry on Aug 4th, 2026

Paylocity (NASDAQ:PCTY – Get Free Report) announced its quarterly earnings results on Tuesday. The software maker reported $1.84 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.62 by $0.22, FiscalAI reports. The company had revenue of $444.73 million for the quarter, compared to the consensus estimate of $431.46 million. Paylocity had a return on equity of 25.63% and a net margin of 14.94%.

Here are the key takeaways from Paylocity’s conference call:

Fiscal 2026 exceeded expectations: Q4 recurring revenue rose 12.4% and total revenue increased 11%, while adjusted EBITDA of $145.5 million surpassed the high end of guidance by $12.9 million.
Paylocity reported continued operating momentum, with approximately 44,400 clients, 5% growth in average revenue per client to roughly $37,200, and revenue retention above 92%. Broker referrals contributed more than 25% of new business.
The company is expanding its platform through Ignite AI, Paylocity Retirement, Elevate Solutions, and the Grayscale and Aidora acquisitions, aiming to improve client productivity and create premium, monetizable product offerings.
Fiscal 2027 guidance calls for slower growth, with recurring revenue up approximately 8% and total revenue up approximately 7%; assumptions include flat client workforce levels and two interest-rate cuts that would reduce funds-held-for-clients interest income.
Paylocity repurchased about $398 million of stock in fiscal 2026, reducing diluted shares by 3.1%, and retains approximately $1.3 billion under its authorization while maintaining capacity for acquisitions and other growth investments.

Paylocity Stock Up 2.5%

PCTY traded up $3.55 during trading on Tuesday, reaching $143.32. The stock had a trading volume of 977,961 shares, compared to its average volume of 809,934. The stock’s 50 day moving average is $116.13 and its two-hundred day moving average is $114.31. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.07. The company has a market capitalization of $7.67 billion, a price-to-earnings ratio of 30.56 and a beta of 0.47. Paylocity has a one year low of $92.99 and a one year high of $197.78.

Insider Activity at Paylocity

In other news, SVP Andrew Cappotelli sold 899 shares of the business’s stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $115.05, for a total transaction of $103,429.95. Following the sale, the senior vice president owned 17,679 shares in the company, valued at approximately $2,033,968.95. The trade was a 4.84% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 19.40% of the company’s stock.

Hedge Funds Weigh In On Paylocity

Large investors have recently made changes to their positions in the business. AQR Capital Management LLC increased its position in Paylocity by 75.1% during the 4th quarter. AQR Capital Management LLC now owns 943,591 shares of the software maker’s stock valued at $143,747,000 after buying an additional 404,605 shares in the last quarter. Morgan Stanley boosted its holdings in Paylocity by 117.9% in the fourth quarter. Morgan Stanley now owns 817,209 shares of the software maker’s stock worth $124,625,000 after acquiring an additional 442,218 shares in the last quarter. Millennium Management LLC boosted its holdings in Paylocity by 97.7% in the third quarter. Millennium Management LLC now owns 748,803 shares of the software maker’s stock worth $119,262,000 after acquiring an additional 369,975 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Paylocity by 6.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 659,472 shares of the software maker’s stock worth $100,570,000 after acquiring an additional 42,725 shares during the last quarter. Finally, Alyeska Investment Group L.P. bought a new position in shares of Paylocity during the third quarter valued at $104,657,000. 94.76% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

PCTY has been the topic of a number of recent analyst reports. Jefferies Financial Group set a $135.00 price objective on Paylocity in a research report on Saturday, May 9th. BMO Capital Markets upped their target price on Paylocity from $135.00 to $143.00 and gave the company an “outperform” rating in a report on Friday, May 8th. Citigroup raised their price target on Paylocity from $133.00 to $136.00 and gave the stock a “buy” rating in a research note on Monday, May 11th. Zacks Research cut shares of Paylocity from a “strong-buy” rating to a “hold” rating in a report on Monday, July 27th. Finally, Weiss Ratings reissued a “sell (d+)” rating on shares of Paylocity in a research report on Tuesday, July 21st. Twelve research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $151.88.

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Paylocity Company Profile

(Get Free Report)

Paylocity (NASDAQ: PCTY) is a leading provider of cloud-based payroll and human capital management (HCM) software designed to streamline workforce administration for mid-sized organizations. The company’s integrated platform automates core functions such as payroll processing, benefits administration, time and labor tracking, and compliance management, enabling employers to manage employee data more efficiently and reduce administrative burdens.

In addition to payroll and HR capabilities, Paylocity offers talent management solutions including recruiting, onboarding, performance tracking, and learning management.