Paycom Reports 9% Revenue Growth for 2025 Amid Valuation Reset
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 05 2026
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Source: NASDAQ.COM
- Decelerating Revenue Growth: Paycom's Q3 2025 revenue grew 9.1% year-over-year to $493.3 million, a significant drop from the 30.4% growth seen in Q3 2021, indicating pressure on the company amid high valuation expectations.
- Sustained Profitability: Despite the slowdown, Paycom's adjusted EBITDA margin increased from 37.9% in the prior year to 39.4%, demonstrating strong profitability trends that bolster investor confidence in the company's financial health.
- Share Repurchase Strategy: In Q3 2025, Paycom repurchased $223.4 million in stock, and if this pace continues, it could reduce the share count by approximately 10% over the next three quarters, enhancing earnings per share.
- Market Competition Pressure: While the company shows solid revenue and profitability, the intense competition in the online payroll and HR management space raises concerns about its growth strategy, which could further impact its valuation moving forward.
Analyst Views on PAYC
Wall Street analysts forecast PAYC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PAYC is 212.55 USD with a low forecast of 165.00 USD and a high forecast of 270.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
3 Buy
11 Hold
0 Sell
Hold
Current: 157.170
Low
165.00
Averages
212.55
High
270.00
Current: 157.170
Low
165.00
Averages
212.55
High
270.00
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.
