Paycom Software (NYSE:PAYC) Shares Gap Up on Better-Than-Expected Earnings

Posted by Francis Steltz on Aug 6th, 2026

Paycom Software, Inc. (NYSE:PAYC – Get Free Report)’s stock price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $174.80, but opened at $212.89. Paycom Software shares last traded at $215.6080, with a volume of 614,950 shares trading hands.

The software maker reported $2.78 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.38 by $0.40. The firm had revenue of $531.20 million for the quarter, compared to the consensus estimate of $513.12 million. Paycom Software had a return on equity of 28.34% and a net margin of 22.44%.The firm’s revenue was up 9.8% on a year-over-year basis. During the same period in the prior year, the firm earned $2.06 EPS.

Paycom Software Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 8th. Stockholders of record on Monday, August 24th will be issued a $0.375 dividend. The ex-dividend date of this dividend is Monday, August 24th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 0.7%. Paycom Software’s dividend payout ratio is currently 17.34%.

Key Stories Impacting Paycom Software

Here are the key news stories impacting Paycom Software this week:

Positive Sentiment: Q2 earnings beat expectations: Paycom reported adjusted earnings of $2.78 per share, above the $2.38 consensus estimate and up from $2.06 a year earlier. Revenue increased 9.8% year over year to $531.2 million, exceeding estimates of $513.1 million. Paycom Software Reports Second Quarter 2026 Results
Positive Sentiment: Raised 2026 forecast: Paycom now expects full-year revenue of approximately $2.197 billion to $2.212 billion and adjusted EBITDA of $1.007 billion to $1.022 billion. The higher outlook reflects steady demand for AI-driven services and expanded automation releases. Paycom Raises Annual Forecast on AI-Driven Demand
Positive Sentiment: Analysts lifted targets: BTIG Research raised its price target from $160 to $230 and maintained a Buy rating, helping reinforce the bullish reaction to the earnings report. BTIG Raises Paycom Price Target
Neutral Sentiment: Analyst views remain mixed: BMO Capital Markets raised its target to $208 but kept a Market Perform rating, while Cantor Fitzgerald increased its target to $195 and retained a Neutral rating. These targets suggest some analysts believe much of the improved outlook is already reflected in the stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the company. Zacks Research raised Paycom Software from a “hold” rating to a “strong-buy” rating in a report on Monday, May 18th. Guggenheim increased their price target on shares of Paycom Software from $180.00 to $225.00 and gave the stock a “buy” rating in a report on Thursday. Weiss Ratings upgraded shares of Paycom Software from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, July 16th. TD Cowen dropped their price objective on shares of Paycom Software from $154.00 to $149.00 and set a “buy” rating on the stock in a report on Friday, June 26th. Finally, UBS Group dropped their price objective on shares of Paycom Software from $210.00 to $183.00 and set a “buy” rating on the stock in a report on Tuesday, April 21st. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $179.58.

Check Out Our Latest Research Report on Paycom Software

Institutional Trading of Paycom Software

Institutional investors and hedge funds have recently modified their holdings of the stock. Brown Brothers Harriman & Co. lifted its stake in Paycom Software by 190.6% in the 4th quarter. Brown Brothers Harriman & Co. now owns 154 shares of the software maker’s stock valued at $25,000 after buying an additional 101 shares in the last quarter. Clearstead Advisors LLC increased its stake in Paycom Software by 140.3% during the 4th quarter. Clearstead Advisors LLC now owns 161 shares of the software maker’s stock worth $26,000 after buying an additional 94 shares in the last quarter. CYBER HORNET ETFs LLC acquired a new position in shares of Paycom Software during the second quarter valued at approximately $29,000. MUFG Securities EMEA plc acquired a new position in shares of Paycom Software during the second quarter valued at approximately $33,000. Finally, Palisade Asset Management LLC purchased a new position in shares of Paycom Software in the third quarter valued at approximately $33,000. Hedge funds and other institutional investors own 87.77% of the company’s stock.

Paycom Software Stock Performance

The company has a quick ratio of 1.08, a current ratio of 1.08 and a debt-to-equity ratio of 0.83. The firm has a market cap of $10.19 billion, a PE ratio of 24.56, a P/E/G ratio of 1.49 and a beta of 0.76. The firm has a 50-day moving average price of $141.40 and a two-hundred day moving average price of $133.66.

Paycom Software Company Profile

(Get Free Report)

Paycom Software, Inc (NYSE: PAYC) is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom’s software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company’s core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.