Paycom Software's 2026 Revenue Forecast Falls Short of Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy PAYC?
Source: Newsfilter
- Revenue Forecast Downgrade: Paycom projects its 2026 revenue to be between $2.18 billion and $2.20 billion, falling short of analysts' average estimate of $2.23 billion, indicating a cautious approach amid macroeconomic challenges that may impact investor confidence.
- Stock Price Volatility: Paycom's shares dropped over 7% in after-hours trading as businesses delay or reduce HR and payroll software purchases due to tighter budgets, reflecting market concerns about its future performance.
- Customer Acquisition Challenges: Analysts note that macroeconomic challenges could constrain Paycom's new customer acquisition, particularly as hiring slows or layoffs occur among small and medium-sized businesses, which are crucial to its core client base.
- Intensifying Competition: The human capital management market is becoming increasingly crowded, with Paycom facing pressure from competitors like ADP, Paylocity, and Workday, which could further weaken its market share and profitability.
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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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- 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.
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- 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.
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