/Paycom%20Software%20Inc%20online%20payment%20stock%20phone-by%20Tevarak%20via%20iStock.jpg)
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.
