Paycom Software stock climbs after UBS lifts its target
Published on 09/01/2026 at 13:57 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Paycom Software, Inc. (ISIN US70432V1026) is trading with a new catalyst after UBS raised its target to $285 from $205 on August 6, 2026, while keeping a Buy rating, and the shares changed hands at $239.10 on September 1, 2026. That price sat just below the 52-week high of $242.50, with a market cap of $10.77 billion.
Target hike and earnings beat
The UBS move followed Paycom's second-quarter results, where the company reported adjusted EPS of $2.78, ahead of consensus at $2.38, and revenue of $531.20 million versus $513.12 million expected. Revenue rose 9.8% from the same quarter last year, when EPS was $2.06.
One analyst note also framed the stock as a turnaround story, citing 11 straight quarters of revenue outperformance and a larger transformation push around Beti, the company's employee-driven payroll automation tool. Sell-side expectations now point to $10.65 EPS for the current year, a figure that gives the post-earnings rerating a clear valuation test.
What the numbers say
Paycom's net margin was 22.78% in the latest quarter, and return on equity reached 37.06%, two figures that help explain why the stock held near its recent peak even after a sharp run this year. The current dividend adds another point of support: $0.375 a share is scheduled for September 8, 2026, which annualizes to $1.50.
The market move matters because the stock opened at $239.06 on September 1, 2026, leaving it only a small step from the 52-week high. With a P/E ratio of 25.40 and a PEG ratio of 1.32, investors are weighing stronger execution against a richer multiple.
Beti stays central
Beti remains the most visible product reference in the current analyst debate. It is Paycom's employee-led payroll automation tool, built into the broader HCM platform that handles payroll, time tracking, benefits administration, recruiting, and employee development in a single database.
Shares near the top
Paycom Software stock traded at $239.10 on September 1, 2026, with a 52-week range of $104.90 to $242.50 and a market cap of $10.77 billion. The setup leaves UBS's $285 target far above the current quote, while the latest quarter's $2.78 EPS and $531.20 million in revenue keep the earnings story in sharp view.
Fact box
Company: Paycom Software, Inc.
ISIN: US70432V1026
Ticker: PAYC
Exchange: NYSE
Price (as of September 1, 2026): $239.10 USD
Market cap: $10.77 billion (as of September 1, 2026)
Sector / Industry: Information Technology / Application Software
Index membership: S&P 500
Next earnings date: November 5, 2026
