PAYC NYSE Russell 1000 Earnings call
Paycom (PAYC) · Q2 2026 results and valuation
Share price: $242.66 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 5 Aug 2026 and 6 May 2026
Net income down 31.0% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−31.0%
Net income vs Q1 2026
Outlook given
Net income 107.4M vs 155.7M
Revenue −7.1%
Against the same quarter last year (Q2 2025) it is +20.0%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Typical
More upbeat than 61% of company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out Nothing unusual flagged this period.
Valuation
Is Paycom undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 14.3% growth a year (3-year revenue growth), the model's fair value is $277.67 a share — the stock trades 13% below it. Today's price assumes 12.5% growth a year.
Current price
$242.66
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+12.5% for 10 yrs
Fair value / share
$277.67
Buy below
$208.26
Price vs fair value
Undervalued 13%
Price vs buy-below price
Overvalued 17%
Read between the lines
-
Guidance
Total revenue expected between $2.197 billion and $2.212 billion, or between 7% and 8% year-over-year growth.
Source quote
“We expect total revenues to be between $2.197 billion and $2.212 billion or between 7% and 8% year-over-year growth.”
-
Figure
GAAP net income increased 20% in the second quarter to $107 million or $2.34 per diluted share compared to the first quarter.
Source quote
“GAAP net income increased 20% in the second quarter to $107 million or $2.34 per diluted share based on an average...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Based on the strength of our results in the first half, we are well positioned to deliver industry-leading EBITDA margins, record free cash flow and accelerated earnings per share growth...”
“With our strong first half results, we are well positioned to exceed our initial 2026 plan on both a revenue and profitability basis.”
“Based on the strength of our first half results and more visibility heading into the second half, we can confidently increase our revenue and adjusted EBITDA guidance ranges.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 531.2M | 571.9M | −7.1% | 483.6M | +9.8% |
| Gross profit | 442.1M | 484.5M | −8.8% | 396.1M | +11.6% |
| Operating income | 168.5M | 210.2M | −19.8% | 112.3M | +50.0% |
| Net income | 107.4M | 155.7M | −31.0% | 89.5M | +20.0% |
| EPS | 2.34 | 3.04 | −23.0% | 1.58 | +48.1% |
| P/E today 23.9 | 13.3 | 14.1 | −0.8 | 31.2 | −17.9 |
Topics
Most discussed now
- New With this product, organizations have reliable data to discover workforce talent gaps and assess talent readiness.
- New Definitely, productivity with existing reps continues to increase.
- Earlier this year, Paycom announced the release of its Career and Succession Planning solution and it is seeing solid client...
- One of Paycom's clients with a few thousand employees said that they were impressed with the new Arc release because...
- What I would tell you is that based on the strong first half results and what Paycom has visibility into...
Faded since Q1 2026
- Dropped Paycom's clients find that these strategic pillars help them achieve more ROI than anyone else in its space.
- Dropped Because clients use it does create greater usage for them, more value for them.
- Fading Discussions with them continue to be overwhelmingly positive as they use Paycom's software to drive automation, which is creating…
- Fading Paycom also continues to see many clients return to Paycom after realizing their new provider systems don't produce automation and...
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Other events · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Other events · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Director or officer change · SEC 8-K