Paycom (0PY) Q3 2026 Earnings Report
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CH:0PY Q3 2026 EPS Results
- Actual EPS
- CHF 2.75
- Consensus EPS
- CHF 2.30
- Beat/Miss
- Beat by +CHF 0.46
- One Year Ago EPS
- CHF 1.59
CH:0PY Q3 2026 Revenue Results
- Actual Revenue
- CHF 444.34M
- Expected Revenue
- CHF 437.36M
- Beat/Miss
- Beat by +CHF 6.97M
- YoY Revenue Growth
- +10.24%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- After Close
- Conference Call
- Wednesday, November 4, 2026
CH:0PY Upcoming Earnings
Paycom's next earnings date is estimated for February 10, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
CH:0PY Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Paycom reported double-digit revenue growth, substantial earnings and margin expansion, strong free cash flow, increased AI and automation adoption, positive client ROI results, and raised full-year revenue and adjusted EBITDA guidance. The main challenges mentioned were a tougher fourth-quarter comparison, calendar-related fluctuations, and the still-small scale of in-app purchasing, but these did not outweigh the company's operating and financial momentum.
Company Guidance
For 2026, Paycom expects total revenues to be between $2.213 billion and $2.218 billion, or approximately 8% year over year growth, with full year recurring and other revenue up nearly 9% year over year and interest on funds held for clients of approximately $107 million; full year adjusted EBITDA is expected to be between $1.069 billion and $1.079 billion, representing an industry leading adjusted EBITDA margin of 48.5%, at the midpoint of the range, a full 550 basis points higher than 2025 adjusted EBITDA margin. Stock based comp is expected to be approximately 3% of revenues in 2026, CapEx approximately 6% of revenues, the 2026 GAAP tax rate 29%, and the 2026 non GAAP tax rate approximately 27%; Paycom generated free cash flow of $536 million in the first 9 months of 2026, continues to expect to deliver very strong full year free cash flow, and expects even stronger free cash flow in 2027, while sales and marketing will have a strong focus next year.
- Strong Third-Quarter Revenue GrowthThird-quarter total revenue was $544 million, up 10% over the comparable prior-year period. Recurring and other revenue was $519 million, up 11% year over year.
- Significant Earnings and Margin ExpansionGAAP net income was $133 million, or $2.99 per diluted share. Non-GAAP net income increased 37% year over year to $150 million, or $3.37 per diluted share. Diluted non-GAAP EPS increased 74% year over year. Adjusted EBITDA was $268 million, representing 49.3% of revenue, driven by expanding gross margin and reductions in operating costs.
- Raised Full-Year Revenue and EBITDA GuidanceBased on year-to-date performance, Paycom raised its full-year outlook. Total revenue is expected to be between $2.213 billion and $2.218 billion, or approximately 8% year-over-year growth. Recurring and other revenue is expected to increase nearly 9% year over year. Adjusted EBITDA is expected to be between $1.069 billion and $1.079 billion, representing a 48.5% adjusted EBITDA margin at the midpoint, 550 basis points higher than the 2025 adjusted EBITDA margin.
- Strong Free Cash Flow GenerationPaycom generated $536 million of free cash flow in the first nine months of 2026 and expects to deliver very strong full-year free cash flow. Management also expects even stronger free cash flow in 2027 and described the cash flow as sustainable and durable.
- Expanded Automation and AI AdoptionPaycom is seeing greater adoption of automation across its client base as it expands automated decisioning logic and AI capabilities. Management said its early investments in data centers, AI technology, and GPUs are paying off for clients and Paycom, while clients are not paying for tokens on the system.
- IWant Usage and Client ROIIWant is enabled across the client base and has responded to millions of queries. Usage is up approximately 65% versus the end of 2025. Forrester found that mid-market organizations using IWant can achieve greater than 400% ROI and save as many as 3.6 thousand employee hours, 600 manager hours, and 60 executive hours annually, without incremental cost to clients.
- Demonstrated ROI From Decisioning LogicA business using Don eliminated $360 thousand in unmanaged PTO. The company had hundreds of employees across 73 locations in 12 states; before Don, one-fifth of PTO was approved manually after the day it had already been taken, and the majority of employees had negative time-off balances.
- Positive Response to Asset ManagementAsset management, one of Paycom's newest products with built-in decision logic, has received an excellent response and had approximately 300 or more clients after launching in the prior quarter. The product tracks, recovers, and deploys assets that clients already own.
- Product Innovation and Pipeline MomentumPaycom released more solutions in the last year than in any previous 12-month period. Management said it has several products in testing or already being used by select clients and expects 2027 to be transformative, with additional products and AI capabilities planned for release over the next year.
- Data Center Infrastructure AdvantagePaycom operates one of only a handful of Tier 4 data centers in the United States. Management said owning and operating its infrastructure provides greater control over technology and economics, supports client ROI, and drives operational efficiencies across research and development and service operations. Paycom said it will continue to invest in data centers incrementally over time and is willing to make additional investments if they make sense for clients.
- Improved Client Satisfaction and Service EfficiencyStrong product usage and investments in customer service are increasing client satisfaction and driving higher net promoter scores. Automation is allowing service personnel to shift from inbound support calls toward proactive analysis and outbound service focused on generating additional client ROI.
- Sales Execution and Market OpportunityManagement said the new sales representatives are performing better than any prior group and that overall sales is hitting the mark for the year. Paycom continues to see prospects becoming more willing to automate additional decisions, while sales and marketing will remain a significant focus in 2027.
- Capital Allocation and Share ReductionShares outstanding ended the quarter at approximately 44 million, down nearly 20% from approximately 55 million at the end of the third quarter of 2025. Paycom repurchased approximately 11.5 million shares during that period, bought back $3 million of stock in the third quarter, and had $1.65 billion remaining under its buyback authorization.
- Debt Reduction and DividendPaycom paid down $150 million on its revolving credit facility during the quarter. It ended the quarter with $194 million of cash and cash equivalents and $750 million outstanding under the facility. The company paid approximately $17 million in cash dividends during the quarter, and the board approved a subsequent quarterly dividend of $0.375 per share.
- Growth in Client Funds HeldThe average daily balance of funds held for clients was approximately $2.7 billion in the third quarter of 2026, up 7% over the prior-year period.
- Efficient R&D and Infrastructure EconomicsManagement said R&D spending was lower while the current product continued to develop and innovate, attributing the results to greater focus and the use of new technologies. Paycom also cited approximately $100 million in R&D savings and another $30 million in avoided third-party fees from infrastructure investments discussed in the prior quarter.
- Project ARC Performance ImprovementProject ARC and related products established a foundation for expanded automation, including automated punch changes, time-card approvals, and expense decisioning. Management said one enterprise client experienced approximately a 4x increase in performance.
- International ExpansionInternational expansion remains a strategic direction. Paycom is expanding in Europe and recently brought on a large enterprise client in Mexico, which management said has been going very well.
- Security and Data ControlManagement said security is top of mind for clients and that knowing exactly where data resides is a significant positive. Paycom's controlled infrastructure and data center model were described as supporting client confidence.
CH:0PY Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 10, 2027 | 2026 (Q4) | 3.08- | 2 | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | 2.302.75 | 1.59 | 73.71% (+1.17) | |
| Aug 05, 2026 | 2026 (Q2) | 1.942.27 | 1.68 | 34.95% (+0.59) | |
| May 06, 2026 | 2026 (Q1) | 2.442.57 | 2.29 | 12.50% (+0.29) | |
| Feb 11, 2026 | 2025 (Q4) | 2.002.00 | 1.9 | 5.60% (+0.11) | |
| Nov 05, 2025 | 2025 (Q3) | 1.591.59 | 1.36 | 16.17% (+0.22) | |
| Aug 06, 2025 | 2025 (Q2) | 1.461.68 | 1.32 | 27.16% (+0.36) | |
| May 07, 2025 | 2025 (Q1) | 2.102.29 | 2.12 | 8.11% (+0.17) | |
| Feb 12, 2025 | 2024 (Q4) | 1.611.90 | 1.58 | 20.21% (+0.32) | |
| Oct 30, 2024 | 2024 (Q3) | 1.311.36 | 1.45 | -5.65% (-0.08) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
