Paycom Software stock falls 2.85 percent as targets trail price
Published on 10/05/2026 at 13:50 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Paycom Software stock (ISIN US70432V1026) was last at USD 220.99 on the NYSE on October 2, 2026, down 2.85 percent from the prior close. The valuation debate now centers on an average analyst target below the latest share price, while the company heads toward its next quarterly report.
Targets trail the latest price
According to MarketBeat on September 29, 2026, Bank of America initiated coverage with an Underperform rating and a USD 200.00 price target. The target stood 9.5 percent below the October 2 price, using the same USD quotation.
The broader consensus was Hold, with one Strong Buy, five Buy, nine Hold and one Sell ratings. MarketBeat reported an average target of USD 213.93, meaning the price was 3.2 percent above that consensus level.
Q2 results raised the bar
Paycom's second-quarter results provided the fundamental counterweight to the cautious target picture. In the earnings call transcript published by Yahoo Finance, management reported Q2 2026 revenue of USD 531.2 million, up 10 percent from the comparable period.
GAAP net income increased 20 percent to USD 107.4 million, or USD 2.34 per diluted share. Non-GAAP net income reached USD 128 million, or USD 2.78 per diluted share, while adjusted EBITDA was USD 235 million with a 44.2 percent margin.
Guidance points to higher margins
Management raised its 2026 outlook in the same August 5, 2026 call. Total revenue guidance was set at USD 2.197 billion to USD 2.212 billion, equal to 7 percent to 8 percent growth, while adjusted EBITDA guidance was USD 1.007 billion to USD 1.022 billion.
The midpoint of that EBITDA range implies a 46 percent adjusted EBITDA margin. Management also said 2026 free cash flow should exceed USD 650 million, making margin conversion and execution the key tests behind the elevated share price.
Stock stays below the yearly high
Paycom Software was last at USD 220.99 on the NYSE on October 2, 2026 at 4:00 p.m. ET. Its 52-week range was USD 104.90 to USD 244.98, leaving the stock 9.8 percent below the high.
Paycom Software stock at a glance
- Company: Paycom Software, Inc.
- ISIN: US70432V1026
- Ticker: PAYC
- Trading venue: NYSE
- Price (as of October 2, 2026, 4:00 p.m. ET): USD 220.99
- Market capitalization: USD 10.0 billion (as of October 2, 2026)
- 52-week range: USD 104.90-244.98 (as of October 2, 2026)
- Sector / Industry: Technology / Software - Application
