BMO Capital Markets Forecasts Strong Price Appreciation for Paycom Software (NYSE:PAYC) Stock

Paycom Software (NYSE:PAYC) had its target price lifted by investment analysts at BMO Capital Markets from $145.00 to $208.00 in a note issued to investors on Thursday. The firm currently has a “market perform” rating on the software maker’s stock. BMO Capital Markets’ price objective would indicate a potential upside of 18.87% from the stock’s previous close.

A number of other equities analysts have also recently weighed in on the company. UBS Group decreased their price objective on Paycom Software from $210.00 to $183.00 and set a “buy” rating on the stock in a report on Tuesday, April 21st. Barclays upped their price target on Paycom Software from $148.00 to $154.00 and gave the company an “equal weight” rating in a research report on Tuesday, July 21st. TD Cowen dropped their target price on shares of Paycom Software from $154.00 to $149.00 and set a “buy” rating for the company in a research report on Friday, June 26th. Zacks Research raised shares of Paycom Software from a “hold” rating to a “strong-buy” rating in a research note on Monday, May 18th. Finally, Citigroup lifted their price objective on Paycom Software from $120.00 to $136.00 and gave the company a “neutral” rating in a research report on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $165.00.

Paycom Software Trading Down 0.2%

NYSE:PAYC opened at $174.99 on Thursday. Paycom Software has a 12 month low of $104.90 and a 12 month high of $248.95. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.83. The firm’s 50 day moving average is $141.40 and its 200 day moving average is $133.66. The stock has a market capitalization of $8.33 billion, a PE ratio of 20.23, a price-to-earnings-growth ratio of 1.49 and a beta of 0.76.

Paycom Software (NYSE:PAYC) last released its earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.38 by $0.40. The business had revenue of $531.20 million during the quarter, compared to the consensus estimate of $513.12 million. Paycom Software had a return on equity of 28.34% and a net margin of 22.44%.The business’s revenue for the quarter was up 9.8% on a year-over-year basis. During the same period last year, the business posted $2.06 earnings per share. Sell-side analysts expect that Paycom Software will post 9.37 earnings per share for the current year.

Institutional Investors Weigh In On Paycom Software

Several hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC bought a new position in Paycom Software in the 4th quarter worth about $638,000. AQR Capital Management LLC raised its holdings in Paycom Software by 23.7% in the first quarter. AQR Capital Management LLC now owns 19,155 shares of the software maker’s stock worth $4,136,000 after buying an additional 3,674 shares during the last quarter. United Services Automobile Association purchased a new stake in shares of Paycom Software during the first quarter valued at approximately $215,000. Empowered Funds LLC raised its holdings in Paycom Software by 22.8% in the 1st quarter. Empowered Funds LLC now owns 7,958 shares of the software maker’s stock worth $1,739,000 after acquiring an additional 1,480 shares during the last quarter. Finally, Focus Partners Wealth lifted its position in Paycom Software by 220.8% in the 1st quarter. Focus Partners Wealth now owns 3,940 shares of the software maker’s stock valued at $861,000 after acquiring an additional 2,712 shares in the last quarter. 87.77% of the stock is owned by institutional investors.

Key Headlines Impacting Paycom Software

Here are the key news stories impacting Paycom Software this week:

• Positive Sentiment: Q2 earnings and revenue beat expectations. Paycom reported adjusted earnings of $2.78 per share, ahead of consensus estimates ranging from $2.28 to $2.38. Revenue increased 9.8% year over year to $531.2 million, exceeding analysts’ $513.1 million forecast, while EPS rose from $2.06 a year earlier. Paycom Software Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management raised its 2026 forecast. Paycom now expects full-year revenue of $2.197 billion to $2.212 billion and adjusted EBITDA of $1.007 billion to $1.022 billion. The higher outlook reflects steady demand for its AI-enabled employee-management services and continued momentum from expanded automation releases. Paycom Raises Annual Forecast on AI-Driven Demand
• Positive Sentiment: Automation remains the central growth catalyst. On the earnings call, executives highlighted the strength of Paycom’s automation strategy, new product releases and disciplined execution. Investors appear encouraged that these offerings can support demand and profitability. Paycom Q2 2026 Earnings Call Transcript
• Neutral Sentiment: The guidance increase was supportive but broadly consistent with expectations. The revenue outlook centers near $2.2 billion, the prevailing analyst estimate, meaning the stock’s positive reaction is driven more by the earnings beat and AI-related demand than by a major forecast surprise. Paycom 2026 Revenue and EBITDA Forecast

About Paycom Software

Paycom Software, Inc (NYSE: PAYC) is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom’s software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company’s core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.