Paycom (PAYC) Q4 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy PAYC?
Source: NASDAQ.COM
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Analyst Views on PAYC
Wall Street analysts forecast PAYC stock price to rise
14 Analyst Rating
3 Buy
11 Hold
0 Sell
Hold
Current: 119.760
Low
165.00
Averages
201.82
High
245.00
Current: 119.760
Low
165.00
Averages
201.82
High
245.00
About PAYC
Paycom Software, Inc. is a provider of a comprehensive, cloud-based human capital management (HCM) solution delivered as software-as-a-service (SaaS). The Company provides functionality and data analytics that businesses need to manage the complete employment lifecycle, from recruitment to retirement. Its solution requires virtually no customization and is based on a core system of record maintained in a single database for all HCM functions, including talent acquisition, time and labor management, payroll, talent management and human resources (HR) management applications. The Company's applications streamline client processes and provide clients and their employees with the ability to directly access and manage administrative processes, including applications that identify candidates, on-board employees, manage time and labor, administer payroll deductions and benefits, manage performance, terminate employees and administer post-termination health benefits, such as COBRA.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Holding Proportion Change: Following this purchase, Paycom accounts for 2.9% of Reinhart Partners' reportable assets, highlighting its significance in the investment portfolio, even as overall market performance remains weak.
- Market Performance Analysis: Paycom's stock has fallen about 70% since 2021, primarily due to the rise of artificial intelligence, with analysts concerned that its traditional software products may be replaced, leading to revenue growth slowing to below 10% by 2025.
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- Share Acquisition: Reinhart Partners added 537,726 shares of Paycom in Q4 2025, with an estimated transaction value of $95.28 million, indicating ongoing confidence in the company despite market challenges.
- Value Increase: By quarter-end, the value of Reinhart's stake in Paycom rose by $82.74 million, reflecting both the impact of share purchases and price movements, although overall market performance has been poor.
- Asset Allocation: This acquisition positions Paycom at 2.9% of Reinhart's assets under management, yet it remains outside the top five holdings, highlighting its relative standing within the investment portfolio.
- Market Challenges: Despite the increase, Paycom's stock has fallen 38.5% over the past year, and concerns about the rise of artificial intelligence have intensified worries about its future growth, with revenue growth slowing from 30% in 2021 to under 10% in 2025.
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- Time Savings Impact: The composite organization using IWant can save up to 600 manager hours and 3,600 employee hours annually, which not only boosts operational efficiency but also enhances decision-making capabilities across the board.
- Enhanced User Experience: IWant significantly improves the overall workforce experience by streamlining processes and providing clearer access to information, facilitating smoother communication between HR and employees while empowering them with self-service capabilities.
- Industry Recognition: IWant has been recognized as a Top HR Product of 2025 by HR Executive, further solidifying its leadership position in the industry and its profound impact on clients.
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- Sales Growth: The company achieved quarterly sales of $544.3 million, exceeding the analyst estimate of $543.009 million, demonstrating strong competitive positioning and customer demand.
- Cautious Outlook: Paycom forecasts FY2026 sales between $2.175 billion and $2.195 billion, falling short of market expectations of $2.228 billion, which may impact investor confidence.
- Analyst Target Adjustments: BTIG analyst lowered Paycom's price target from $195 to $140, while Mizuho analyst reduced it from $180 to $120, reflecting a cautious outlook on the company's future performance.
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Tech Earnings Show Diverging Trends Amid Market Volatility
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- Paycom's Slower Growth: Paycom (PAYC) saw its stock drop more than 9% in pre-market trading after reporting a 10.2% year-over-year revenue gain but providing a slower growth outlook, which may dampen investor confidence and affect market performance.
- Cognex's Strong Surge: Cognex (CGNX) surged nearly 25% in pre-market trading, with the CEO attributing the impressive financial results to advancements in AI-enabled industrial machine vision, reflecting strong market demand and recognition for AI technologies.
- Real Estate Stocks Hit by AI Concerns: Real estate service stocks CBRE and JLL closed 12% lower yesterday amid growing concerns about AI's disruptive potential in the sector, indicating that their high-fee, labor-intensive operating models may face profitability pressures.
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Crocs Shares Surge 21% on Strong Earnings Guidance
- Crocs Strong Guidance: Crocs shares surged 21% after the company projected adjusted earnings between $2.67 and $2.77 per share for the current quarter, exceeding the market expectation of $2.52, indicating resilience and growth potential in the current economic climate.
- Restaurant Brands Challenges: Despite reporting revenue and profit beats, Restaurant Brands' shares fell 6%, primarily due to rising costs, including beef, which pressured profits, reflecting the dual challenges of intensified industry competition and cost pressures.
- Cognex Stock Surge: Cognex shares jumped over 37% after reporting adjusted earnings and revenue beats for the fourth quarter, along with optimistic guidance for the current quarter, showcasing significant advancements in AI-enabled industrial machine vision technology.
- Equinix Exceeds Guidance: Equinix shares rose 12% after projecting adjusted EBITDA of $5.141 billion to $5.221 billion by 2026, surpassing analyst expectations, demonstrating strong growth potential in the digital infrastructure sector.
See More
Reinhart Partners Increases Stake in Paycom
- Stake Increase Transaction: On February 10, 2026, Reinhart Partners disclosed the acquisition of 537,726 shares of Paycom, valued at approximately $95.28 million, indicating confidence in the company despite a 38.5% decline in stock price over the past year.
- Holding Proportion Change: Following this purchase, Paycom accounts for 2.9% of Reinhart Partners' reportable assets, highlighting its significance in the investment portfolio, even as overall market performance remains weak.
- Market Performance Analysis: Paycom's stock has fallen about 70% since 2021, primarily due to the rise of artificial intelligence, with analysts concerned that its traditional software products may be replaced, leading to revenue growth slowing to below 10% by 2025.
- Investor Considerations: While Paycom faces challenges, Reinhart's stake increase may suggest confidence in a potential rebound, prompting investors to carefully assess the risks and opportunities in the context of rapid AI development.
See More
Reinhart Partners Increases Stake in Paycom
- Share Acquisition: Reinhart Partners added 537,726 shares of Paycom in Q4 2025, with an estimated transaction value of $95.28 million, indicating ongoing confidence in the company despite market challenges.
- Value Increase: By quarter-end, the value of Reinhart's stake in Paycom rose by $82.74 million, reflecting both the impact of share purchases and price movements, although overall market performance has been poor.
- Asset Allocation: This acquisition positions Paycom at 2.9% of Reinhart's assets under management, yet it remains outside the top five holdings, highlighting its relative standing within the investment portfolio.
- Market Challenges: Despite the increase, Paycom's stock has fallen 38.5% over the past year, and concerns about the rise of artificial intelligence have intensified worries about its future growth, with revenue growth slowing from 30% in 2021 to under 10% in 2025.
See More
Paycom's IWant Study Reveals Up to 431% ROI for Clients
- Significant ROI: The Forrester Consulting study indicates that Paycom's IWant delivers a projected three-year ROI of up to 431%, showcasing its strong potential in enhancing financial outcomes for organizations.
- Time Savings Impact: The composite organization using IWant can save up to 600 manager hours and 3,600 employee hours annually, which not only boosts operational efficiency but also enhances decision-making capabilities across the board.
- Enhanced User Experience: IWant significantly improves the overall workforce experience by streamlining processes and providing clearer access to information, facilitating smoother communication between HR and employees while empowering them with self-service capabilities.
- Industry Recognition: IWant has been recognized as a Top HR Product of 2025 by HR Executive, further solidifying its leadership position in the industry and its profound impact on clients.
See More
Paycom Reports Strong Q4 Earnings, Analysts Adjust Price Targets
- Earnings Beat: Paycom Software reported Q4 earnings of $2.45 per share, slightly surpassing the analyst consensus of $2.44, indicating stable profitability despite a negative market reaction.
- Sales Growth: The company achieved quarterly sales of $544.3 million, exceeding the analyst estimate of $543.009 million, demonstrating strong competitive positioning and customer demand.
- Cautious Outlook: Paycom forecasts FY2026 sales between $2.175 billion and $2.195 billion, falling short of market expectations of $2.228 billion, which may impact investor confidence.
- Analyst Target Adjustments: BTIG analyst lowered Paycom's price target from $195 to $140, while Mizuho analyst reduced it from $180 to $120, reflecting a cautious outlook on the company's future performance.
See More
Tech Earnings Show Diverging Trends Amid Market Volatility
- Cisco's Revenue Decline: Cisco (CSCO) fell over 8% in pre-market trading due to a 4% drop in security segment revenue and tightening operating cash flow, although the CFO indicated plans to enhance profitability through financial discipline, highlighting the challenges and strategic responses the company faces.
- Paycom's Slower Growth: Paycom (PAYC) saw its stock drop more than 9% in pre-market trading after reporting a 10.2% year-over-year revenue gain but providing a slower growth outlook, which may dampen investor confidence and affect market performance.
- Cognex's Strong Surge: Cognex (CGNX) surged nearly 25% in pre-market trading, with the CEO attributing the impressive financial results to advancements in AI-enabled industrial machine vision, reflecting strong market demand and recognition for AI technologies.
- Real Estate Stocks Hit by AI Concerns: Real estate service stocks CBRE and JLL closed 12% lower yesterday amid growing concerns about AI's disruptive potential in the sector, indicating that their high-fee, labor-intensive operating models may face profitability pressures.
See More
