What to Expect From Paycom Software’s Next Quarterly Earnings Report
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Headquartered in Oklahoma City, Paycom Software, Inc. (PAYC) is a leading provider of cloud-based human capital management (HCM) solutions, delivering its services as software-as-a-service to small and mid-sized businesses. Valued at $13.5 billion by market cap, Paycom offers data-driven software tools that streamline the entire employee lifecycle, from recruitment to retirement. The company is slated to announce its fiscal second-quarter earnings on Wednesday, July 30.
Ahead of the event, analysts expect PAYC to report a profit of $1.35 per share on a diluted basis, up 12.5% from $1.20 per share in the year-ago quarter. The company beat the consensus estimates in each of the last four quarters.
For the current year, analysts expect PAYC to report EPS of $7.30, down 15.3% from $8.62 in fiscal 2024. However, its EPS is expected to rise 14.3% year over year to $8.34 in fiscal 2026.
Paycom Software has surged 63.5% over the past 52 weeks, far outpacing the S&P 500’s ($SPX) 11.5% gain and the Technology Select Sector SPDR Fund’s (XLK) 8.1% uptick during the same period.
Additionally, Paycom shares jumped 9% after the company reported strong fiscal first-quarter 2025 results on May 7, beating Wall Street expectations across key metrics. Revenue came in at $530.5 million, representing a 6.1% year-over-year increase, and surpassing analyst forecasts. The company also reported solid profitability, with adjusted EBITDA rising 10.3% to $253.2 million. In addition, adjusted EPS rose 8.1% year-over-year to $2.80, comfortably beating consensus estimates. The upbeat results reflected healthy demand for Paycom’s cloud-based HCM solutions and solid execution on its strategic initiatives, fueling investor optimism and driving the stock higher.
However, analysts’ consensus opinion on PAYC stock is cautious, with a “Hold” rating overall. Out of 17 analysts covering the stock, three advise a “Strong Buy” rating, and 14 give a “Hold.” Its mean price target of $245 suggests an upside potential of 6.8% from the prevailing price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.