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Paylocity (PCTY)
NASDAQ:PCTY
Earnings Data
Report Date
Apr 30, 2026TBA (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
2.58Last Year’s EPS
2.43Same Quarter Last Year
Strong Buy
Based on 18 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlighted broad top-line growth (10% total revenue, 11% recurring revenue), meaningful margin and free cash flow improvement, strong product momentum (AI, HCM enhancements, Airbase integration), and active capital returns via share repurchases. Management raised fiscal 2026 guidance and emphasized continued investment in R&D and go-to-market while embedding AI across the platform. Potential areas of caution include sensitivity of forecasts to interest income and Fed assumptions, a conservative employment assumption for the back half, reinvestment of some beat into growth initiatives rather than fully accelerating margin, and early-stage contribution from finance/IT products. Overall, the positives materially outweigh the manageable risks discussed on the call.Company Guidance
Top-Line Growth
Total revenue of $416.1M, up 10% year-over-year; recurring and other revenue of $387.0M, up 11% year-over-year.
Expanded Profitability and Margin Leverage
Adjusted gross profit of 74.4% in Q2 versus 73.8% a year ago (+60 basis points); adjusted EBITDA of $142.7M representing a 34.3% margin and exceeding the top end of guidance by $7.2M; adjusted EBITDA margin excluding interest income on funds held for clients up 140 basis points year-over-year.
Strong Free Cash Flow and Cash Generation
Free cash flow grew 26% over the last twelve months versus the comparative period, with a near 24% free cash flow margin on an LTM basis; cash provided by operating activities increased ~40% in the first six months of fiscal 2026.
Capital Allocation — Share Repurchases
Repurchased ~690,000 shares in Q2 at an average price of $144.86 (~$100M); fiscal year-to-date repurchases >1.8M shares at an average price of $162.66 (~$300M), reducing diluted shares outstanding by >2%; ~$400M remaining under repurchase authorization.
Raised Fiscal 2026 Guidance
Increased fiscal 2026 guidance: recurring and other revenue now $1.62B–$1.63B (≈10%–11% growth), total revenue $1.732B–$1.742B (≈9% growth); adjusted EBITDA guidance raised to $622.5M–$630.5M (adjusted EBITDA excluding interest income $510.5M–$518.5M).
Product Innovation and R&D Investment
Total R&D investment increased ~10% year-over-year (combining expense and capitalized amounts); launched/expanded functionality including reward & recognition (native tax automation and cash redemption), policy & procedures agent, AI assistant extensions (200+ IRS/DOL sources), video candidate screening, self-service scheduling, and Paylocity-for-Finance (Airbase) integration.
AI Adoption and Platform Usage
Average monthly usage of the AI assistant increased over 100% quarter-over-quarter; management cites increased client engagement, time savings, and higher platform utilization driven by embedded AI capabilities and templated agents.
Third-Party Recognition and Sales Momentum
Received 2026 TrustRadius Buyer's Choice Award, named a leader in 19 categories in G2 winter 2026 reports, listed on Capterra payroll shortlist, and recognized by Newsweek for workplace culture; broker/referral channel delivered >25% of new business in Q2 and selling season described as strong and stable.
PCTY Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
PCTY Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 05, 2026 | $127.05 | $117.85 | -7.24% |
Nov 04, 2025 | $139.33 | $145.46 | +4.40% |
Aug 05, 2025 | $181.71 | $186.82 | +2.81% |
May 01, 2025 | $194.16 | $187.33 | -3.52% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Paylocity (PCTY) report earnings?
Paylocity (PCTY) is schdueled to report earning on Apr 30, 2026, TBA (Confirmed).
What is Paylocity (PCTY) earnings time?
Paylocity (PCTY) earnings time is at Apr 30, 2026, TBA (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is PCTY EPS forecast?
PCTY EPS forecast for the fiscal quarter 2026 (Q3) is 2.58.