)
Overview
<ul>
<li>Human capital management firm’s Q4 revenue slightly beat analyst expectations, rising 10.2% yr/yr</li>
<li>Adjusted EPS for Q4 beat analyst expectations</li>
<li>Company repurchased 554,226 shares for $108.8 mln and paid $20.6 mln in dividends</li>
</ul>
Outlook
<ul>
<li>Paycom expects 2026 revenue between $2.175 bln and $2.195 bln</li>
<li>Company forecasts 2026 recurring revenue growth of 7% to 8%</li>
<li>Paycom projects 2026 adjusted EBITDA between $950 mln and $970 mln</li>
</ul>
Result Drivers
<ul>
<li>RECURRING REVENUE GROWTH - Recurring and other revenues increased 11.2% yr/yr, making up 95% of total revenues</li>
<li>CLIENT RETENTION - Annual revenue retention rate improved to 91% in 2025, up from 90% in 2024</li>
<li>AI TOOL EXPANSION - Launch of AI tool IWant contributed to software usability and client satisfaction</li>
</ul>
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q4 Slight $544.30 $543.009
Revenue Beat* mln mln (19
Analysts
)
Q4 Beat $2.45 $2.44
Adjusted (19
EPS Analysts
)
<h3>Q4 EPS $2.07</h3>
Q4 Miss $134.70 $137.49
Adjusted mln mln (18
Net Analysts
Income )
Q4 Net $113.80
Income mln
Q4 Beat $236.30 $232.19
Adjusted mln mln (18
EBITDA Analysts
)
<h3>Q4 $157.20</h3>
Operatin mln
g Income
<h3>Q4 $159.20</h3>
Pretax mln
Profit
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
<ul>
<li>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”</li>
<li>The average consensus recommendation for the software peer group is “buy.”</li>
<li>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</li>
<li>The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 19 three months ago</li>
</ul>
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (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.)

PAYC

Paycom Q4 revenue rises 10.2%, slightly beats estimates