Paylocity Reports Strong Q2 2026 Earnings with Revenue Growth and Increased Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Should l Buy PCTY?
Source: seekingalpha
- Significant Revenue Growth: Paylocity achieved total revenue of $416.1 million in Q2 2026, marking a 10% year-over-year increase, with recurring and other revenue growing by 11%, indicating strong competitive advantages and robust client demand in the market.
- Product Innovation Driving Success: CEO Toby Williams highlighted new product enhancements, including video candidate screening and self-service scheduling, which have led to a roughly 50% reduction in client hiring times, thereby enhancing customer satisfaction and market competitiveness.
- Strong Financial Performance: CFO Ryan Glenn reported an adjusted EBITDA of $142.7 million for Q2, with a margin of 34.3%, exceeding guidance by $7.2 million, showcasing the company's ongoing success in profitability and cash flow generation.
- Optimistic Outlook: The company raised its fiscal 2026 revenue guidance to a range of $1.620 billion to $1.630 billion, reflecting confidence in future growth, while projecting Q3 recurring revenue between $457.5 million and $462.5 million, further solidifying its market position.
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Analyst Views on PCTY
Wall Street analysts forecast PCTY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PCTY is 197.07 USD with a low forecast of 164.00 USD and a high forecast of 250.00 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.
17 Analyst Rating
14 Buy
3 Hold
0 Sell
Strong Buy
Current: 127.050
Low
164.00
Averages
197.07
High
250.00
Current: 127.050
Low
164.00
Averages
197.07
High
250.00
About PCTY
Paylocity Holding Corporation is a provider of cloud-based human capital management (HCM) and payroll software solutions. Its HCM and payroll platform offers a product suite that helps businesses attract and retain talent, build culture and connection with their employees, and streamline and automate human resource (HR) and payroll processes. It provides its software-as-a-service solutions to clients across the United States. Its product suite includes various categories, such as payroll, human resources, time and labor, talent, benefits and employee experience. Its payroll product suite includes payroll and tax services, on demand payment and garnishments, and others. Its human resources product suite includes human resources, workflows and documents and HR edge, and others. Talent product suite includes recruiting, onboarding and market pay. Its employee experiences product suite includes community, video and employee voice. It also offers an all-in-one spending management platform.
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.
Paylocity Reports Strong Q2 2026 Earnings with Revenue Growth and Increased Guidance
- Significant Revenue Growth: Paylocity achieved total revenue of $416.1 million in Q2 2026, marking a 10% year-over-year increase, with recurring and other revenue growing by 11%, indicating strong competitive advantages and robust client demand in the market.
- Product Innovation Driving Success: CEO Toby Williams highlighted new product enhancements, including video candidate screening and self-service scheduling, which have led to a roughly 50% reduction in client hiring times, thereby enhancing customer satisfaction and market competitiveness.
- Strong Financial Performance: CFO Ryan Glenn reported an adjusted EBITDA of $142.7 million for Q2, with a margin of 34.3%, exceeding guidance by $7.2 million, showcasing the company's ongoing success in profitability and cash flow generation.
- Optimistic Outlook: The company raised its fiscal 2026 revenue guidance to a range of $1.620 billion to $1.630 billion, reflecting confidence in future growth, while projecting Q3 recurring revenue between $457.5 million and $462.5 million, further solidifying its market position.
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PAYLOCITY HOLDING CORP: TD COWEN LOWERS TARGET PRICE FROM $188 TO $178
Company Overview: Paylocity Holding Corp is a company that provides cloud-based payroll and human capital management software solutions.
Analyst Update: TD Cowen has reduced its target price for Paylocity from $188 to $178, indicating a shift in market expectations for the company's stock performance.
See More
PAYLOCITY HOLDING CORP: JEFFERIES LOWERS TARGET PRICE FROM $180 TO $150
Company Overview: Paylocity Holding Corp is a company that provides cloud-based payroll and human capital management software solutions.
Target Price Adjustment: Analyst Jeffries has reduced the target price for Paylocity's stock from $180 to $150.
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Paylocity Schedules Q2 FY2026 Earnings Call for February 5
- Conference Call Scheduled: Paylocity has scheduled a conference call on February 5, 2026, at 4:00 PM Central Time to review its second quarter fiscal results, aiming to provide investors with the latest financial insights and company updates.
- Live Webcast Available: The call will be accessible via a live webcast on the company’s Investor Relations page, ensuring that all investors can receive real-time access to important financial data and management perspectives.
- Earnings Release Preview: A press release highlighting the company’s financial results will be issued prior to the call, enhancing transparency and providing investors with necessary context to better understand performance metrics.
- Focus on Employee Culture: Since its founding in 1997, Paylocity has been dedicated to delivering HR, finance, and IT solutions through a unified platform, helping businesses streamline HR and payroll processes while enhancing employee experience and corporate culture, underscoring its leadership in the industry.
See More
AllianceHCM Appoints Michael Haske to Board, Enhancing SaaS Expertise
- Leadership Enhancement: AllianceHCM's appointment of Michael Haske to its Board brings nearly three decades of SaaS and HCM experience, including scaling Paylocity to over $1 billion in annual revenue, which is expected to drive further growth in the HCM market.
- Innovation-Driven Technology: Haske's deep expertise in AI-driven innovation and enterprise operations will help accelerate platform innovation at AllianceHCM, enhancing its competitiveness in complex industries such as hospitality, healthcare, and professional services.
- Market Expansion Strategy: This appointment further strengthens AllianceHCM's Board, supporting the company's efforts to expand its national footprint and continue investing in leaders and teams that drive success, thereby improving client retention and market share.
- Culture and Accountability Focus: Haske emphasizes the importance of maintaining company culture and customer focus during rapid expansion, aligning with AllianceHCM's commitment to
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Hasbro Analyst Starts Coverage Optimistically; Check Out the Top 5 Initiations for Monday
Analyst Coverage Initiations: Several Wall Street analysts have initiated coverage on various companies, providing ratings and price targets for their stocks.
Solstice Advanced Materials: RBC Capital's Arun Viswanathan rated Solstice Advanced Materials (SOLS) as Sector Perform with a price target of $50, while shares closed at $47.49.
Ascentage Pharma Group: BTIG's Justin Zelin rated Ascentage Pharma (AAPG) as Buy with a price target of $50, with shares closing at $31.73.
Super League Enterprise and Hasbro: Aegis Capital rated Super League Enterprise (SLE) as Buy with a price target of $5, and Seaport Global rated Hasbro (HAS) as Buy with a price target of $100, with respective closing prices of $1.18 and $76.70.
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Paylocity Reports Strong Q2 2026 Earnings with Revenue Growth and Increased Guidance
- Significant Revenue Growth: Paylocity achieved total revenue of $416.1 million in Q2 2026, marking a 10% year-over-year increase, with recurring and other revenue growing by 11%, indicating strong competitive advantages and robust client demand in the market.
- Product Innovation Driving Success: CEO Toby Williams highlighted new product enhancements, including video candidate screening and self-service scheduling, which have led to a roughly 50% reduction in client hiring times, thereby enhancing customer satisfaction and market competitiveness.
- Strong Financial Performance: CFO Ryan Glenn reported an adjusted EBITDA of $142.7 million for Q2, with a margin of 34.3%, exceeding guidance by $7.2 million, showcasing the company's ongoing success in profitability and cash flow generation.
- Optimistic Outlook: The company raised its fiscal 2026 revenue guidance to a range of $1.620 billion to $1.630 billion, reflecting confidence in future growth, while projecting Q3 recurring revenue between $457.5 million and $462.5 million, further solidifying its market position.
See More
PAYLOCITY HOLDING CORP: TD COWEN LOWERS TARGET PRICE FROM $188 TO $178
Company Overview: Paylocity Holding Corp is a company that provides cloud-based payroll and human capital management software solutions.
Analyst Update: TD Cowen has reduced its target price for Paylocity from $188 to $178, indicating a shift in market expectations for the company's stock performance.
See More
PAYLOCITY HOLDING CORP: JEFFERIES LOWERS TARGET PRICE FROM $180 TO $150
Company Overview: Paylocity Holding Corp is a company that provides cloud-based payroll and human capital management software solutions.
Target Price Adjustment: Analyst Jeffries has reduced the target price for Paylocity's stock from $180 to $150.
See More
Paylocity Schedules Q2 FY2026 Earnings Call for February 5
- Conference Call Scheduled: Paylocity has scheduled a conference call on February 5, 2026, at 4:00 PM Central Time to review its second quarter fiscal results, aiming to provide investors with the latest financial insights and company updates.
- Live Webcast Available: The call will be accessible via a live webcast on the company’s Investor Relations page, ensuring that all investors can receive real-time access to important financial data and management perspectives.
- Earnings Release Preview: A press release highlighting the company’s financial results will be issued prior to the call, enhancing transparency and providing investors with necessary context to better understand performance metrics.
- Focus on Employee Culture: Since its founding in 1997, Paylocity has been dedicated to delivering HR, finance, and IT solutions through a unified platform, helping businesses streamline HR and payroll processes while enhancing employee experience and corporate culture, underscoring its leadership in the industry.
See More
AllianceHCM Appoints Michael Haske to Board, Enhancing SaaS Expertise
- Leadership Enhancement: AllianceHCM's appointment of Michael Haske to its Board brings nearly three decades of SaaS and HCM experience, including scaling Paylocity to over $1 billion in annual revenue, which is expected to drive further growth in the HCM market.
- Innovation-Driven Technology: Haske's deep expertise in AI-driven innovation and enterprise operations will help accelerate platform innovation at AllianceHCM, enhancing its competitiveness in complex industries such as hospitality, healthcare, and professional services.
- Market Expansion Strategy: This appointment further strengthens AllianceHCM's Board, supporting the company's efforts to expand its national footprint and continue investing in leaders and teams that drive success, thereby improving client retention and market share.
- Culture and Accountability Focus: Haske emphasizes the importance of maintaining company culture and customer focus during rapid expansion, aligning with AllianceHCM's commitment to
See More
Hasbro Analyst Starts Coverage Optimistically; Check Out the Top 5 Initiations for Monday
Analyst Coverage Initiations: Several Wall Street analysts have initiated coverage on various companies, providing ratings and price targets for their stocks.
Solstice Advanced Materials: RBC Capital's Arun Viswanathan rated Solstice Advanced Materials (SOLS) as Sector Perform with a price target of $50, while shares closed at $47.49.
Ascentage Pharma Group: BTIG's Justin Zelin rated Ascentage Pharma (AAPG) as Buy with a price target of $50, with shares closing at $31.73.
Super League Enterprise and Hasbro: Aegis Capital rated Super League Enterprise (SLE) as Buy with a price target of $5, and Seaport Global rated Hasbro (HAS) as Buy with a price target of $100, with respective closing prices of $1.18 and $76.70.
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