
Paycom Software (PAYC) Stock Forecast & Price Target
Paycom Software (PAYC) Analyst Ratings
Bulls say
Paycom Software demonstrated a positive financial outlook as evidenced by a 7% year-over-year growth in New Annual Recurring Revenue (ARR) during the fourth quarter of 2025 and an improved annual revenue retention rate of 91%. The company experienced a substantial increase in client count to 20,300, marking a 5% year-over-year growth, indicative of its effective go-to-market execution and growing demand for its services. Additionally, the company's recurring and other revenue grew by 11.3%, while adjusted EBITDA reached $236 million, reflecting a 10% increase year-over-year, surpassing consensus estimates and highlighting solid operational performance.
Bears say
Paycom Software's guidance for 2026 indicates a recurring and other revenue growth of only 7%-8%, which falls short of consensus expectations by 2.1%, leading to a significant drop in shares. The company's projected incremental revenue decline of 19% year-over-year contrasts sharply with the previous FY25 outlook, which only anticipated a 6% decline, suggesting diminishing growth momentum. Additionally, while interest on funds held for clients slightly exceeded expectations, overall revenue guidance for FY26 remains underwhelming, further reinforcing concerns about Paycom’s financial trajectory.
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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