Paycom Software (PAYC) shares soared 12.16% in after-hours trading on Wednesday, after the payroll and human capital management software company reported second-quarter results that significantly surpassed Wall Street expectations and raised its full-year revenue outlook.

For the quarter ended June 30, Paycom posted adjusted earnings of $2.78 per share, handily beating the analyst consensus estimate of $2.38. Revenue climbed 9.8% year-over-year to $531.2 million, also above the $513.1 million forecast. The company attributed the strong performance to continued momentum from its automation strategy and product innovation, including AI-driven features that are helping businesses streamline workforce management.

Looking ahead, Paycom lifted its full-year 2026 revenue guidance to a range of $2.197 billion to $2.212 billion, up from its previous forecast and above the $2.19 billion FactSet consensus. The upbeat outlook, coupled with the second consecutive quarter of substantial earnings outperformance, fueled investor optimism and drove the sharp upward move in the stock during the extended trading session.