
Paycom Software (PAYC) Stock Forecast & Price Target
Paycom Software (PAYC) Analyst Ratings
Bulls say
Paycom Software has demonstrated a positive momentum with a 7% year-over-year growth in New Annual Recurring Revenue (ARR) for the fourth quarter of 2025, alongside an impressive annual revenue retention rate increase to 91%. The company has also significantly expanded its client base, adding more new customers in 2025 than in the previous two years combined, indicating robust demand for its human capital management solutions. Furthermore, Paycom's focus on operational efficiency and its structural fixed cost advantages contribute to an enhanced margin structure and a favorable outlook for Free Cash Flow in the coming year.
Bears say
Paycom Software's guidance for 2026 reflects a significant slowdown in revenue growth, projecting a range of 7%-8% compared to 11% growth achieved the previous year and falling short of consensus expectations by 2.1%. This forecast indicates a concerning 19% year-over-year decline in incremental revenue, exacerbating investor disappointment following a 6% decline in prior projections. Additionally, while adjusted EBITDA guidance exceeds consensus estimates, the overall revenue forecasts for both recurring and total revenue suggest deteriorating market momentum, further contributing to a negative outlook on the company’s stock.
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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