Paycom Software (NYSE: PAYC) saw its stock price surge 10.41% in after-hours trading on Wednesday, following the release of its impressive second-quarter earnings report that surpassed analyst expectations. The human capital management software provider demonstrated robust financial performance and increased its revenue guidance for the full year 2025.

The company reported adjusted earnings per share of $2.06 for Q2, significantly beating the analyst consensus estimate of $1.79 by 15.34%. This represents a 27.16% increase from the $1.62 per share reported in the same period last year. Paycom's quarterly revenue also exceeded expectations, coming in at $483.6 million, surpassing the analyst estimate of $472 million by 2.44%. The revenue figure marks a 10.53% year-over-year increase from $437.512 million.

Adding to the positive sentiment, Paycom raised its full-year 2025 revenue guidance to a range of $2.045 billion to $2.055 billion, up from its previous outlook of $2.023 billion to $2.038 billion. This new guidance surpasses the average analyst expectation of $2.03 billion, signaling confidence in the company's growth trajectory. The strong quarterly performance and optimistic outlook have clearly resonated with investors, as reflected in the significant after-hours stock price increase.