Paycom Software, Inc. (PAYC) Earnings
Paycom Software, Inc. is expected to report next earnings on August 5, 2026 (in NaN days), with a consensus EPS estimate of $2.38. PAYC has beaten EPS estimates in 10 of its last 12 reported quarters (average surprise +3.5% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $2.99 | $3.15 | +5.4% | $572M | +1.3% |
| Feb 11, 2026 | $2.44 | $2.45 | +0.4% | $544M | -3.9% |
| Nov 5, 2025 | $1.95 | $1.94 | -0.5% | $493M | +0.1% |
| May 7, 2025 | $2.57 | $2.80 | +8.9% | $531M | +1.0% |
| Feb 12, 2025 | $1.99 | $2.32 | +16.6% | $494M | +2.6% |
| Oct 30, 2024 | $1.61 | $1.67 | +3.7% | $452M | -6.2% |
| Jul 31, 2024 | $1.58 | $1.62 | +2.5% | $438M | +0.2% |
| May 1, 2024 | $2.43 | $2.59 | +6.6% | $500M | +0.8% |
| Feb 7, 2024 | $1.78 | $1.93 | +8.4% | $435M | +2.8% |
| Oct 31, 2023 | $1.62 | $1.77 | +9.3% | $406M | -1.2% |
| May 2, 2023 | $2.35 | $2.46 | +4.7% | $452M | +1.7% |
| Feb 7, 2023 | $1.49 | $1.73 | +16.1% | $371M | +1.0% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 6, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
Chad Richardson mentioned that first quarter results were solid as they advance the full solution automation strategy, create greater client ROI achievement, and deliver world-class service. The 2026 plan is well on track. Focus on client ROI and world-class service strengthens client relationships, increases revenue retention, and improves Net Promoter Score. AI and automation are key, with solutions like Betty, GON, and IWANT eliminating manual processes, reducing redundancy, and driving efficiency. Paycom is uniquely positioned with a single database architecture and employee-first technology. Bob reviewed first quarter results, including revenues, net income, adjusted EBITDA, share repurchases, dividends, and balance sheet details. The company is advancing automation capabilities and has a strong sales team.
Guidance
Following first quarter results, Paycom is reaffirming full-year revenue and adjusted EBITDA guidance ranges. Total revenues are expected to be between $2.175 billion and $2.195 billion, or approximately 6.5% year-over-year growth at the midpoint. Recurring and other revenue is expected to be up 7% to 8% year-over-year. Full year adjusted EBITDA is expected to be between $950 million to $970 million, representing an adjusted EBITDA margin of 44% at the midpoint of the range. Included in total revenue outlook is interest on FUDS health for clients of approximately $103 million, unchanged from previous outlook. On May 4th, the Board approved a new $2 billion buyback authorization and the next quarterly dividend of 37.5 cents per share payable in early June.
Segment performance
Total revenues were $572 million, up 8% over the comparable prior year period. Recurring and other revenue was $544 million, up 9% year over year. GAAP net income in the first quarter was $156 million, or $3.04 per diluted share. Non-GAAP net income was $161 million or $3.15 per diluted share. Adjusted EBITDA came in at $275 million, representing a 50 basis point year-over-year expansion to 48.2%. Cash and cash equivalents ended the quarter at $154 million. The average daily balance on funds held for clients was approximately $3.1 billion in the first quarter of 2026, up 8% over the prior year period.
Analyst Q&A
Q: Similar to prior question, Paycom outperformed relative to expectations for this quarter, maintain guidance and had a nice beat in first quarter. Are you being conservative or anything suggesting slowdown?
A: It's early in the year, happy with first quarter, like guidance throughout remainder of year.
Q: Talk about board's approach to huge buyback, rationale now.
A: Stock doesn't trade off what they do, value proposition getting stronger, believe long-term investors win with share repurchases.
Q: How viewing framework for buyback and capital allocation, mix between leveraging debt to support buyback?
A: All dependent on share price, remain opportunistic with buybacks, taking on debt for that.
Q: Bigger product strategy, how IWANT supports top of funnel new opportunities, pipeline conversion?
A: IWANT creates real value, usage continues to do well, becomes predominant interface for clients and employees.
Q: Follow up on 1Q recurring question, speak to sales retraining or changes, impact on recurring growth?
A: Changes in sales department didn't impact Q1 revenue, forms filing revenue banked at end of last year.
Q: Update on sales rep expansion progress?
A: Continue to hire in sales, produce large sales classes, have award-winning sales team.
Q: Quick question on IWANT, impact on pipeline bills, trajectory or speed through pipeline?
A: IWANT helps, reduces learning barriers, contributes to greater opportunity for leads and sales.
Q: Booking's performance in 1Q and into 2Q, inflection witnessed?
A: Sales came in according to budget, sales group pulled out of field for some time, expect inflection in book sales as year progresses.
Q: CapEx leverage in 1Q, reasonable expectation for year?
A: Not ready to give guidance on CapEx right now, have opportunities to expand in data centers.
Q: Concern in market from AI perspective, client consumption pattern, adoption of IWANT relative to Betty?
A: AI changes things, but not overnight, trust important, sell automated solutions to problems.
Q: Automation impact on customer satisfaction levels and time to implementation for new clients?
A: Automation is important for ROI cases, makes it easier for clients to access value, increases retention.
Q: Sales force performance, efficiency trends of newer reps?
A: Newer reps come out the gate better trained than past reps, ramp faster.
Q: AI monetization in category, expect AI to be lever for price realization or retention?
A: AI solves problems for clients, creates greater usage and value, contributes to sales and other increases.
Q: Progress breaking into other verticals or near adjacent geographies?
A: Industry and geographically agnostic, have positive discussions with clients/prospects regardless of industry or geography.
Q: Approach to product roadmap given increase in velocity enabled by AI tooling, entering adjacent areas?
A: Provide expense management module, start with client problems, earn client trust to expand into other areas.