Overview
Human capital management firm's Q4 revenue slightly beat analyst expectations, rising 10.2% yr/yr
Adjusted EPS for Q4 beat analyst expectations
Company repurchased 554,226 shares for $108.8 mln and paid $20.6 mln in dividends
Outlook
Paycom expects 2026 revenue between $2.175 bln and $2.195 bln
Company forecasts 2026 recurring revenue growth of 7% to 8%
Paycom projects 2026 adjusted EBITDA between $950 mln and $970 mln
Result Drivers
RECURRING REVENUE GROWTH - Recurring and other revenues increased 11.2% yr/yr, making up 95% of total revenues
CLIENT RETENTION - Annual revenue retention rate improved to 91% in 2025, up from 90% in 2024
AI TOOL EXPANSION - Launch of AI tool IWant contributed to software usability and client satisfaction
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Beat* | $544.30 mln | $543.009 mln (19 Analysts) |
Q4 Adjusted EPS | Beat | $2.45 | $2.44 (19 Analysts) |
Q4 EPS | $2.07 | ||
Q4 Adjusted Net Income | Miss | $134.70 mln | $137.49 mln (18 Analysts) |
Q4 Net Income | $113.80 mln | ||
Q4 Adjusted EBITDA | Beat | $236.30 mln | $232.19 mln (18 Analysts) |
Q4 Operating Income | $157.20 mln | ||
Q4 Pretax Profit | $159.20 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 15 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for Paycom Software Inc is $190.00, about 52.1% above its February 10 closing price of $124.94
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 19 three months ago
Press Release: ID:nBw4V3TCya
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)