Paycom Software ( PAYC ) is gearing up to announce its quarterly earnings on Wednesday, 2025-11-05. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Paycom Software ( PAYC ) will report an earnings per share (EPS) of $1.76.

The market awaits Paycom Software's ( PAYC ) announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Overview of Past Earnings

Last quarter the company beat EPS by $0.45, which was followed by a 4.53% increase in the share price the next day.

Here's a look at Paycom Software's ( PAYC ) past performance and the resulting price change:

Tracking Paycom Software's Stock Performance

Shares of Paycom Software ( PAYC ) were trading at $184.85 as of November 03. Over the last 52-week period, shares are down 20.26%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Opinions on Paycom Software

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Paycom Software ( PAYC ).

With 9 analyst ratings, Paycom Software ( PAYC ) has a consensus rating of Neutral. The average one-year price target is $255.11, indicating a potential 38.01% upside.

Comparing Ratings with Competitors

In this analysis, we delve into the analyst ratings and average 1-year price targets of Dayforce, Paylocity Holding and Trinet Group, three key industry players, offering insights into their relative performance expectations and market positioning.

Analysts currently favor an Neutral trajectory for Dayforce, with an average 1-year price target of $70.6, suggesting a potential 61.81% downside.

Analysts currently favor an Neutral trajectory for Paylocity Holding, with an average 1-year price target of $206.67, suggesting a potential 11.8% upside.

Analysts currently favor an Neutral trajectory for Trinet Group, with an average 1-year price target of $64.0, suggesting a potential 65.38% downside.

Key Findings: Peer Analysis Summary

In the peer analysis summary, key metrics for Dayforce, Paylocity Holding and Trinet Group are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Paycom Software ( PAYC ) ranks highest in Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

Get to Know Paycom Software Better

Founded in 1998, Paycom is a human capital management software-as-a-service provider addressing customer requirements surrounding payroll, talent acquisition, talent management, HR management, as well as time and labor. The company primarily services midsize businesses within the United States, targeting businesses with 50-10,000 employees. The company primarily generates revenue through the sale of subscriptions providing access to its HCM platform. To a lesser extent, the company also generates revenue from implementation services provided to customers as well as interest income generated from customer funds. As of fiscal 2024, the company serviced slightly over 37,500 customers and stored data on over 7 million employees.

A Deep Dive into Paycom Software's Financials

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Paycom Software's ( PAYC ) revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 10.54%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Paycom Software's ( PAYC ) financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 18.51%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Paycom Software's ( PAYC ) financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.09%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Paycom Software's ( PAYC ) financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.08%, the company showcases efficient use of assets and strong financial health.

Debt Management: Paycom Software's ( PAYC ) debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.05.

To track all earnings releases for Paycom Software ( PAYC ) visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.