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Paycom Software (DE:0PY)
NYSE:0PY
Earnings Data
Report Date
May 05, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
2.49Last Year’s EPS
2.37Same Quarter Last Year
Moderate Buy
Based on 17 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlighted strong execution in 2025: double-digit recurring revenue growth, margin expansion (adjusted EBITDA margin ~43%), significant operating cash flow improvement, product innovation (IWant, Beti, GONE) with measurable ROI, improved retention (91%), and continued upmarket momentum. Management provided disciplined, conservative initial guidance for 2026 (6%–7% total revenue growth, 7%–8% recurring growth) that implies a deceleration versus 2025, and emphasized dependence on sales execution, retraining, and new logo acquisition to drive future growth. Key balance-sheet strengths (cash, zero debt), sizable remaining buyback authorization, and continued investment in automation temper near-term guidance concerns. Overall, positives (robust profitability, strong cash generation, product differentiation, retention improvement) materially outweigh the lowlights (moderate client growth, guidance slowdown, execution/training risk), indicating a constructive outlook but with execution and macro sensitivities to monitor.Company Guidance
Revenue Growth — Q4 and Full Year 2025
Total revenue in Q4 2025 was $544 million, up 10% year-over-year; recurring and other revenue in Q4 was $517 million, up 11% year-over-year. Full year 2025 total revenue was $2.05 billion, with recurring and other revenue of $1.94 billion, representing 10% year-over-year recurring revenue growth (above the company’s initial expectation).
Strong Profitability and Margin Expansion
Adjusted EBITDA for Q4 2025 was $236 million with a 43.4% margin. Full year adjusted EBITDA grew 14% year-over-year to $882 million, representing a 180 basis point margin expansion to 43% for 2025.
GAAP and Non-GAAP Earnings
Q4 2025 GAAP net income was $114 million ($2.07 per diluted share based on 55 million shares). Full year GAAP net income was $453 million ($8.08 per diluted share). Q4 non-GAAP net income increased 4% year-over-year to $135 million ($2.45 per diluted share); full year non-GAAP net income was $519 million.
Cash Flow, Balance Sheet and Capital Return
Operating cash flow increased 27% year-over-year and represented a larger share of revenue (management cited roughly 13% of total revenues for 2025). The company ended the year with $370 million in cash and cash equivalents, zero debt, repurchased over 1.7 million shares (~3% of shares outstanding) for $370 million in 2025, and $1.1 billion remaining under the buyback authorization. Board approved a quarterly dividend of $0.375 per share.
Client Metrics and Retention
Client count grew to ~39,200 at year-end 2025, up 4% vs. 2024 (parent company grouping clients ~2,300, up 5%). Annual revenue retention improved to 91% in 2025 versus 90% in 2024. Total employee records stored reached 7.4 million, up 5% year-over-year.
Product Innovation and Automation Adoption
Advanced automation/AI products launched and expanded (IWant, Beti, GONE). Forrester analysis cited: composite organization ROI >400% from IWant, with managers saving up to 600 hours/year, HR up to 240 hours, executives up to 60 hours, and employees collectively reclaiming ~3,600 hours annually. Customer usage metrics: IWant usage reported up 80% in January vs. Q4 baseline.
Upmarket Momentum
Paycom reported faster revenue growth from clients with >1,000 employees relative to total revenue growth, indicating success moving upmarket and winning larger deals.
Predictable 2026 Guidance with Strong Margin Expectation
Initial FY2026 guidance: total revenue $2.175B–$2.195B (6%–7% year-over-year), recurring revenue +7%–8% year-over-year, and adjusted EBITDA $950M–$970M (implying ~44% margin at midpoint). Guidance includes ~$103M interest on funds held for clients based on an assumption of two 2026 rate cuts.
DE:0PY 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
DE:0PY Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 11, 2026 | €99.16 | €99.88 | +0.73% |
Nov 05, 2025 | €159.78 | €140.37 | -12.14% |
Aug 06, 2025 | €190.10 | €199.61 | +5.00% |
May 07, 2025 | €200.02 | €220.61 | +10.29% |
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 Paycom Software (DE:0PY) report earnings?
Paycom Software (DE:0PY) is schdueled to report earning on May 05, 2026, After Close (Confirmed).
What is Paycom Software (DE:0PY) earnings time?
Paycom Software (DE:0PY) earnings time is at May 05, 2026, After Close (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 the P/E ratio of Paycom Software stock?
The P/E ratio of Paycom is N/A.
What is DE:0PY EPS forecast?
DE:0PY EPS forecast for the fiscal quarter 2026 (Q1) is 2.49.
