Founded in 1998, Oklahoma-based Paycom Software, Inc. (PAYC) is a provider of cloud-based human capital management (HCM) software as a service solution for integrated software for both employee records and talent management processes. The company has a market cap of $8.9 billion and is expected to release its Q4 2025 earnings soon.
Ahead of the event, analysts expect the company to generate a profit of $1.96 per share on a diluted basis, down 3% from $2.02 per share in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in three of its last four quarters, while missing on one occasion.
For the current year, analysts expect the company to report EPS of $7.59, down 12% from $8.62 in fiscal 2024. However, its EPS is expected to rise by roughly 6.1% year over year (YoY) to $8.05 in fiscal 2026.
Shares of PAYC have declined 21.6% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 19.3% rise and the Technology Select Sector SPDR ETF’s (XLK) 29% return during the same time frame.
On Nov. 6, PAYC shares plunged 10.7% following the release of the company’s mixed Q3 2025 earnings release. The company’s revenue for the quarter amounted to $493.3 million, coming well on top of the Street’s estimates. However, PAYC’s adjusted EPS for the quarter came in at $1.94, falling behind Wall Street estimates. Moreover, a sharp decline in its total assets to $4.2 billion, from $5.9 billion in the year-ago quarter, also shattered investor confidence.
Analysts’ consensus opinion on the stock is somewhat bullish, with a “Moderate Buy” rating overall. Among the 21 analysts covering the stock, six are recommending a “Strong Buy,” and the remaining 15 analysts suggest a “Hold” for the stock. PAYC’s average analyst price target is $204, indicating an upside of 29.5% from the current levels.
On the date of publication, Anushka Mukherjee 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.
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