
Paycom Software (PAYC) Stock Forecast & Price Target
Paycom Software (PAYC) Analyst Ratings
Bulls say
Paycom Software has demonstrated significant client growth, increasing its customer base from approximately 12,800 in 2014 to over 37,500 in 2024, achieving a remarkable 16% compound annual growth rate (CAGR) during this period. The company has also benefited from favorable macroeconomic conditions, such as rising interest rates, which have contributed to its overall revenue growth through new client acquisitions and successful cross-selling of additional services. Additionally, while capital expenditures have risen due to investments in new initiatives, this strategic front-loading is expected to enhance the company's long-term operational capabilities and sustain its growth trajectory.
Bears say
Paycom Software has projected a decline in New Annual Recurring Revenue (ARR) by 15%, despite anticipating a 11% year-over-year increase in Recurring and Other revenue, which is estimated at $516 million for the fourth quarter of 2025. Additionally, the company faces challenges with gross margin due to the depreciation of a $130 million investment in GPUs, which may lead to lower margin percentages than currently expected. Compounding these financial concerns, Paycom's customer retention rate has steadily declined from 94% in 2021 to 90% in 2023, indicating potential issues with maintaining its client base amidst competitive pressures and new product rollouts.
This aggregate rating is based on analysts' research of Paycom Software and is not a guaranteed prediction by Public.com or investment advice.
Paycom Software (PAYC) Analyst Forecast & Price Prediction
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