BMO Capital Markets Issues Positive Forecast for Paycom Software (NYSE:PAYC) Stock Price

Key Points

• BMO Capital Markets raised Paycom Software’s price target from $145 to $208 while maintaining a “market perform” rating, implying 18.87% upside from the prior close.
• Paycom reported a quarterly earnings and revenue beat, with EPS of $2.78 versus $2.38 expected and revenue of $531.2 million, up 9.8% year over year. Management also raised its 2026 revenue and adjusted EBITDA forecasts, citing demand for AI-enabled automation.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and average price target of $165; institutional investors own 87.77% of the company’s shares.

Paycom Software (NYSE:PAYC - Get Free Report) had its target price hoisted by equities researchers at BMO Capital Markets from $145.00 to $208.00 in a research note issued to investors on Thursday. The brokerage presently has a "market perform" rating on the software maker's stock. BMO Capital Markets' target price would suggest a potential upside of 18.87% from the stock's previous close.

Several other analysts also recently issued reports on PAYC. Citigroup raised their price target on Paycom Software from $120.00 to $136.00 and gave the stock a "neutral" rating in a report on Thursday, May 7th. Mizuho lifted their price objective on shares of Paycom Software from $120.00 to $130.00 and gave the company a "neutral" rating in a research report on Thursday, May 7th. TD Cowen reduced 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 note on Friday, June 26th. BTIG Research lifted their price target on Paycom Software from $140.00 to $160.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Finally, Barclays lifted their target price on Paycom Software from $148.00 to $154.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and eight have given a Hold rating to the company's stock. According to data from MarketBeat, Paycom Software has a consensus rating of "Moderate Buy" and an average target price of $165.00.

Paycom Software Stock Performance

Shares of PAYC opened at $174.99 on Thursday. 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. The business's fifty day moving average price is $141.40 and its 200 day moving average price is $133.66. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.08 and a quick ratio of 1.08. Paycom Software has a 12-month low of $104.90 and a 12-month high of $248.95.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, topping analysts' consensus estimates of $2.38 by $0.40. Paycom Software had a net margin of 22.44% and a return on equity of 28.34%. The company had revenue of $531.20 million for the quarter, compared to analysts' expectations of $513.12 million. During the same period in the prior year, the company earned $2.06 earnings per share. The firm's revenue was up 9.8% compared to the same quarter last year. Equities research analysts forecast that Paycom Software will post 9.37 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Mackenzie Financial Corp grew its holdings in Paycom Software by 4.0% in the third quarter. Mackenzie Financial Corp now owns 1,624 shares of the software maker's stock worth $338,000 after purchasing an additional 63 shares during the period. Boyd Watterson Asset Management LLC OH boosted its position in shares of Paycom Software by 0.8% during the 4th quarter. Boyd Watterson Asset Management LLC OH now owns 10,662 shares of the software maker's stock worth $1,699,000 after purchasing an additional 86 shares in the last quarter. Lido Advisors LLC grew its stake in shares of Paycom Software by 1.4% in the 4th quarter. Lido Advisors LLC now owns 6,286 shares of the software maker's stock valued at $1,081,000 after buying an additional 87 shares during the period. Janus Henderson Group PLC increased its position in Paycom Software by 2.2% in the 4th quarter. Janus Henderson Group PLC now owns 4,090 shares of the software maker's stock valued at $652,000 after buying an additional 88 shares in the last quarter. Finally, Evoke Wealth LLC boosted its holdings in Paycom Software by 2.8% in the fourth quarter. Evoke Wealth LLC now owns 3,335 shares of the software maker's stock worth $531,000 after acquiring an additional 90 shares in the last quarter. 87.77% of the stock is currently owned by institutional investors and hedge funds.

More Paycom Software News

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.

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