Paycom Software (NYSE: PAYC) saw its stock soaring 6.96% in pre-market trading on Thursday, following the release of its impressive second-quarter earnings report that surpassed analysts' expectations across key financial metrics. The human capital management software provider demonstrated robust financial performance and increased its revenue guidance for the full year 2025.

For the second quarter, Paycom reported adjusted earnings per share of $2.06, significantly beating the analyst consensus estimate of $1.78 by 15.7%. This represents a 27.2% increase from $1.62 per share in the same period last year. Revenue also exceeded expectations, coming in at $483.6 million, up 10.5% year-over-year and above the anticipated $472 million. The company's adjusted EBITDA reached $198 million, outperforming the estimated $176.8 million, with the adjusted EBITDA margin expanding to 41.0%, up 4.5 percentage points from the previous year.

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 upward revision signals management's confidence in the company's growth trajectory. The strong quarterly performance, improved profitability, and optimistic outlook have clearly resonated with investors, as reflected in the significant pre-market stock price increase.