EarningsQ2 2026 Earnings Report
MX:PAYC Q2 2026 EPS Results
Actual EPS$47.25
Consensus EPS$40.38
Beat/MissBeat by +$6.87
One Year Ago EPS$35.01
MX:PAYC Q2 2026 Revenue Results
Actual Revenue$9.03B
Expected Revenue$8.72B
Beat/MissBeat by +$307.30M
YoY Revenue Growth+9.84%
Earnings Announcement Details
QuarterQ2 2026
Date08/05/2026
TimeAfter Close
Conference CallWednesday, August 5, 2026
MX:PAYC Upcoming Earnings
Paycom's next earnings date is estimated for November 3, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:PAYC Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong operational and financial momentum: double-digit top-line growth in the quarter, robust margin expansion (320 bps YoY to 44.2%), raised full-year adjusted EBITDA guidance (record margin at midpoint), and substantial free cash flow and shareholder returns (~$1.4B repurchased YTD). Product and AI initiatives (Project Arc, IWant, Asset Management, Career & Succession) signal durable product-led growth and longer-term TAM expansion. Primary risks noted were a moderation in full-year revenue growth relative to Q2, increased use of the revolving credit facility to fund buybacks (cash down to $198M), short-term limited contribution from very recent product launches, and sensitivity to interest rate assumptions. Overall, positives around profitability, cash generation, product innovation, and capital returns materially outweighed the identified headwinds.Company Guidance
Revenue Growth
Total revenue of $531 million in Q2 2026, up 10% year-over-year; recurring and other revenue of $505 million, up 11% year-over-year.
Profitability and Earnings
GAAP net income increased 20% to $107 million ($2.34 per diluted share); non-GAAP net income of $128 million ($2.78 per diluted share).
Adjusted EBITDA and Margin Expansion
Adjusted EBITDA of $235 million in Q2 with margin expansion of 320 basis points year-over-year to 44.2%; full-year adjusted EBITDA guidance raised to $1.007B–$1.022B (record ~46% margin at midpoint).
Free Cash Flow Strength
Company expects free cash flow to exceed $650 million in 2026, citing sustainable operational efficiencies and improved EBITDA-to-cash conversion.
Aggressive Capital Return and Buybacks
Repurchased ~2.6 million shares (~6% of shares outstanding) in Q2 for $346 million and repurchased nearly 11 million shares (~20%) year-to-date for approximately $1.4 billion; ~44 million shares outstanding at quarter end and $1.66 billion remaining on buyback authorization; $18 million in dividends paid in Q2 and next quarterly dividend $0.375/share approved.
Liquidity and Client Funds
Ended Q2 with $198 million in cash and cash equivalents; average daily funds held for clients ~$2.9 billion, up 9% year-over-year.
Product Innovation and Adoption
Launched Career and Succession Planning with solid adoption; released Asset Management (new multibillion-dollar TAM) in July with strong early client feedback; Project Arc was the largest system-wide release in company history and delivered meaningful performance and customization improvements (one client reported 4x system performance).
AI and Automation Momentum
IWant AI continues to drive client adoption and first-user experiences; hosting own AI models (data center investments) expected to reduce external AI costs (~$100M R&D savings and ~$30M+ in third-party response fees cited) and accelerate product development.
Operational and Talent Recognition
Company highlighted improvements in process automation and labor efficiencies, faster ramp for new sales reps, and external recognition including TrustRadius Top Rated, Newsweek Greatest Workplaces in Tech, and Selling Power sales awards.
MX:PAYC Earnings History
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