Paycom's 2026 Revenue Forecast Falls Short of Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2026
0mins
Should l Buy PAYC?
Source: seekingalpha
Paycom Software Inc. shares fell 3.23% as the stock hit a 52-week low amid broader market weakness, with the Nasdaq-100 down 1.02% and the S&P 500 down 0.45%.
The company's 2026 revenue forecast was downgraded to between $2.18 billion and $2.20 billion, below analysts' expectations of $2.23 billion. This cautious outlook reflects macroeconomic challenges impacting investor confidence, leading to a drop of over 7% in after-hours trading as businesses delay HR software purchases. Additionally, analysts noted potential customer acquisition challenges due to hiring slowdowns among small and medium-sized businesses, which are crucial to Paycom's client base.
This revenue forecast miss raises concerns about Paycom's future performance and market share, especially as competition intensifies in the human capital management sector. Investors will be closely monitoring how the company navigates these challenges moving forward.
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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: 122.320
Low
165.00
Averages
201.82
High
245.00
Current: 122.320
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.
See More
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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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- 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
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