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Paycom Software recently reported Q3 2025 results that slightly beat EPS expectations but exceeded revenue forecasts, with CFO Robert D. Foster selling 1,300 shares on December 10, 2025 for approximately US$211,458.
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Analyst commentary highlights that Paycom’s fourth-quarter expectations point to modestly faster revenue growth, drawing attention to how business momentum and executives’ stock sales can influence investor perception.
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We’ll now explore how Paycom’s modest earnings numbers, stronger revenue performance and the CFO’s recent stock sale are reshaping the investment story.
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To own Paycom, you must believe that its AI-driven HCM platform, and especially IWant, can translate strong customer engagement into sustainable recurring revenue and healthy margins. The recent earnings per share loss, revenue decline, and CFO stock sales do not appear to materially change the near-term focus on whether accelerating recurring revenue growth will translate into sustainable earnings growth, while competitive and technology risks surrounding AI-driven HR tools remain paramount.
Against this backdrop, Needham’s third-quarter results and repeat Hold rating are particularly relevant, as they highlight modestly faster sequential revenue growth and solid underlying performance at a time when investors are weighing Paycom’s heavy AI and infrastructure investments against slower recent earnings growth and intense competition.
But even with encouraging revenue momentum, investors should be aware that rising AI infrastructure and R&D spending could keep margins under pressure if…
Read the full story on Paycom Software (it’s free!)
The Paycom Software story expects revenue of $2.5 billion and profit of $586.5 million by 2028. This requires annual revenue growth of 8.1% and profit increase of $170.8 million from $415.7 million.
Find out how Paycom Software’s predictions yield a fair value of $209.94, up 26% from the current price.
Four members of the Simply Wall St Community currently estimate Paycom’s fair value to be between $209.94 and $375.73, reflecting a wide spread in expectations. Against this backdrop, the key question many are asking is how Paycom’s intensive AI and infrastructure spending, highlighted around recent results, could impact future profitability and help or hinder long-term returns.
Discover 4 other estimates of Paycom Software’s fair value – why the stock could be worth as little as $209.94!
