
Paycom Software (PAYC) Stock Forecast & Price Target
Paycom Software (PAYC) Analyst Ratings
Bulls say
Paycom Software has demonstrated a positive growth trajectory, evidenced by a New ARR increase of 7% year-over-year in the fourth quarter of 2025 and a notable rise in client count to 20,300, reflecting a 5% annual growth. The company achieved an impressive annual revenue retention rate of 91%, up from 90% in the previous year, highlighting the effectiveness of its offerings, including the iWant AI engine, which saw an 80% increase in usage. Additionally, Paycom's recurring revenue grew by 11.3%, and adjusted EBITDA rose to $236 million, up 10% year-over-year, indicating strong operational performance and favorable financial metrics ahead of continued market execution.
Bears say
Paycom Software has issued guidance indicating a significant decline in revenue growth expectations for 2026, projecting a rise of only 7%-8% compared to the consensus estimate of 9.6%, leading to an anticipated revenue of $2.08 billion. This projection represents a concerning 19% decrease in incremental revenue year-over-year and is notably below last year's initial revenue growth expectations, signaling a potential slowdown in business momentum. Additionally, while the adjusted EBITDA outlook is slightly above consensus, the overall disappointing revenue guidance and a decline in interest income from client funds further contribute to a negative sentiment surrounding the company's forward-looking financial performance.
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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