Paycom Software Inc. (PAYC) experienced a significant after-hours plunge of 7.55% following the release of its fourth-quarter 2025 financial results and 2026 outlook.
The human resources software provider reported Q4 adjusted net income of USD 134.7 million, falling short of the Ibes estimate of USD 137.5 million. Additionally, the company issued 2026 revenue guidance in the range of $2.175 billion to $2.195 billion, which is below the FactSet consensus estimate of $2.23 billion.
While Paycom reported Q4 revenue of USD 544.3 million that slightly exceeded estimates and adjusted EPS of USD 2.45 that met expectations, investors reacted negatively to the missed adjusted net income figure and the weaker-than-expected revenue guidance for the coming year.