-
In February 2026, Paycom Software reported fourth-quarter 2025 revenue of US$544.3 million and full-year 2025 revenue of US$2.05 billion, while also issuing guidance for 2026 calling for total revenue growth of 6% to 7% and recurring and other revenue growth of 7% to 8%.
-
In addition to these slower growth prospects, Paycom highlighted 91% revenue retention, a near-record 43% adjusted EBITDA margin, zero debt and an ongoing quarterly dividend of US$0.375 per share, underscoring its focus on efficiency, automation and shareholder returns.
-
Now we’ll explore how Paycom’s moderate growth prospects for 2026, along with strong retention and margins, could reshape the existing investment story.
Today’s best AI stocks may be ahead of giants like Nvidia and Microsoft. Find the next big opportunity with these 28 smaller AI-focused companies with strong growth potential through early innovation in machine learning, automation and data intelligence that can help you fund your retirement.
To continue investing in Paycom, be confident that its automation-focused HR platform can keep customers engaged and profitable even if growth moderates. The key near-term catalyst is whether new AI tools like IWant and automation can translate into more stable recurring revenue, despite Paycom’s revenue outlook of 6% to 7% through 2026. The biggest risk remains that slower growth and increased competition in HR software could put pressure on pricing and employee retention; This guidance makes that risk more visible, but not fundamentally different.
The most relevant recent announcement is Paycom’s 2026 guidance for total revenue of between $2.175 billion and $2.195 billion, implying recurring and other revenue growth of 7% to 8%. This stands against strong execution in 2025, including 91% revenue retention and 43% adjusted EBITDA margin, and is directly related to the core catalyst: whether automation and AI adoption can offset softer revenue expectations by strengthening customer retention and supporting high profitability.
But even with strong margins and zero debt, investors should be aware that slower-than-expected revenue growth…
Read the full story on Paycom Software (it’s free!)
Paycom Software’s story forecasts $2.5 billion in revenue and $586.5 million in profit by 2028. This requires annual revenue growth of 8.1% and profit growth of about $170.8 million, up from $415.7 million today.
Find out how Paycom Software’s predictions yield a fair value of $197.18, up 57% from the current price.
Before this update, the most optimistic analysts were expecting annual revenue growth of around 9% and profits of $638.0 million in 2029. This paints a much brighter picture than the current 6% to 7% forecast and highlights how differently you and other investors might view Paycom’s potential.
