Paycom Software, Inc. Q1 2026 Earnings Recap

Paycom’s stock rallied 5.1% after earnings, driven by solid revenue growth and expanding margins that reinforced confidence despite conservative full-year guidance.

Key Takeaways

• Total revenues rose 8% year-over-year to $572 million in Q1 2026, with recurring and other revenue up 9%.
• Adjusted EBITDA margin expanded by 50 basis points year-over-year, reaching 48.2%, reflecting operational efficiencies from automation.
• GAAP net income was $156 million, or $3.04 per diluted share; non-GAAP net income was $161 million, or $3.15 per diluted share.
• Management reaffirmed full-year 2026 revenue guidance of $2.175–$2.195 billion (~6.5% growth) and adjusted EBITDA targets, signaling steady but cautious outlook.
• Aggressive capital return initiatives included repurchasing 15% of shares outstanding in Q1 and a new $2 billion buyback authorization.