At a glance
Paycom Soft is worth $11.84B, about 33 times its fiscal 2025 earnings. Revenue grew 8.9% to $2.05B in fiscal 2025, with 22.1% kept as profit; over 5 years it has grown 19.5% a year. It pays a 0.58% dividend yield, and returned $1.06B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +33.7% over the past year with dividends reinvested and −12.8% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 44.9% in the 2020 crash (S&P 500: 33.7%) and 35.8% in the 2022 bear market (S&P 500: 24.5%).
The business in plain English
Paycom sells cloud-based human capital management (HCM) software. These are tools that help employers manage staff from hiring to retirement. Clients use it to run payroll, recruit and onboard workers, track time, manage benefits and reviews, and handle departures. Everything sits in a single database that Paycom built in-house, so employee details are entered once and flow to every tool. Workers use a mobile app to view pay stubs and update their details. They can ask questions through an AI tool called IWant and even run their own payroll with a feature called Beti.
Paycom delivers the software online, a model called software-as-a-service (SaaS). It sells through its own sales force in offices across the United States, targeting employers with 50 to 10,000 or more staff. Prices depend on a client's headcount and how many applications it uses. Paycom reported about 39,200 clients in its annual report for fiscal 2025. Payroll has historically brought in most of the revenue. Paycom does not break out sales by product because it often sells bundles for one price, and its filing gives no regional split.
In fiscal 2025, revenue was $2.05 billion, up 8.9%. Paycom kept 91% of revenue from existing clients in 2025, compared with 90% in 2024. It aims to grow by adding US sales teams, selling more applications to current clients and winning larger employers.
Price history
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PAYC +33.7% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $531.2M, up 9.8% from a year earlier, and net income was $107.4M (+20.0%).
- For fiscal 2025, revenue was $2.05B (+8.9% year over year; +19.5% a year from FY2020 to FY2025) with a 22.1% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +19.5% good |
|---|---|
| Operating margin | 27.6% good |
| Free cash flow margin | 19.9% good |
| Return on equity (FY2025) | 26.2% good |
| Return on assets (FY2025) | 6% watch |
| Net cash (cash minus debt) | $-702.0M weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $841.4M | $143.5M | $133.1M |
| FY2021 | $1.06B | $196.0M | $198.7M |
| FY2022 | $1.38B | $281.4M | $232.4M |
| FY2023 | $1.69B | $340.8M | $292.4M |
| FY2024 | $1.88B | $502.0M | $341.0M |
| FY2025 | $2.05B | $453.4M | $408.0M |
Valuation snapshot
| Market value | $11.84B |
|---|---|
| P/E ratio | 32.5 |
| Dividend yield | 0.58% |
Rank among 1514 US companies
Market value at each year end
Paycom Soft’s market value went from $2.73B at the end of 2016 to $11.84B on Oct 28, 2026, about 4.3 times as much; since the end of 2025 it is up 32%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $11.84B | +32.1% |
| 2025 | $8.97B | -24.1% |
| 2024 | $11.82B | -5.1% |
| 2023 | $12.45B | -33.2% |
| 2022 | $18.62B | -25.3% |
| 2021 | $24.92B | -5.8% |
| 2020 | $26.46B | +71.1% |
| 2019 | $15.46B | +115.4% |
| 2018 | $7.18B | +50.9% |
| 2017 | $4.76B | +73.9% |
| 2016 | $2.73B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| PAYC price data to Oct 28, 2026 | +66.1% | +33.7% | +4.0% | -12.8% | +18.0% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +66.1% |
| 2025 | -21.7% |
| 2024 | +0.2% |
| 2023 | -33.1% |
| 2022 | -25.3% |
| 2021 | -8.2% |
| 2020 | +70.8% |
| 2019 | +116.2% |
| 2018 | +52.4% |
| 2017 | +76.6% |
| 2016 | +20.9% |
| 2015 | +42.9% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 44.9% over that stretch · deepest drop along the way 44.9%, back to its old high 2.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 23.1% over that stretch · deepest drop along the way 35.8%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-11-03 to 2026-11-03 (25 read): 0 open-market purchases and 5 sales ($1.2M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 27, 2026 | Terrell Shane Hadlock President/Chief Client Officer | sell | $388K |
| May 18, 2026 | Randall Peck Chief Operating Officer | sell | $351K |
| Aug 27, 2026 | Terrell Shane Hadlock President/Chief Client Officer | sell | $224K |
| Dec 10, 2025 | Robert D. Foster Chief Financial Officer | sell | $211K |
| Aug 28, 2026 | Terrell Shane Hadlock President/Chief Client Officer | sell | $58K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 10.6% | Mar 31, 2026 |
| HARRIS ASSOCIATES L P | 6.8% | Mar 31, 2026 |
| Polen Capital Management, LLC | 4.92% | Jun 30, 2025 |
ETFs with the most weight in PAYC
| CLOU Global X Cloud Computing ETF | 4.24% |
| RISN Inspire Tactical Balanced ETF | 2.94% |
| SOVF Sovereign's Capital Flourish Fund | 2.18% |
| WCLD WisdomTree Cloud Computing Fund | 1.79% |
| CVAR Cultivar ETF | 1.78% |
| JSMD Janus Henderson Small/Mid Cap Growth Alpha ETF | 1.42% |
| QMID WisdomTree U.S. MidCap Quality Growth Fund | 1.27% |
| FSGS First Trust SMID Growth Strength ETF | 1.2% |
What could go wrong
- Hackers target the sensitive data it holds. Paycom holds payroll, financial and personal data on clients' workers, a common hacking target. An attack on a third-party vendor already exposed some client and employee data. Breaches can bring lawsuits and lost clients.
- A weaker job market could cut revenue. Paycom charges partly by client headcount, so layoffs in a weak economy can cut revenue. Clients that close or are acquired also leave, which already weighs on its revenue retention rate (91% in 2025).
- Outages at its own data centers. Paycom owns and runs all the infrastructure that hosts its software. Damage, failure or disruption at its network or data centers could interrupt service for clients, including payroll, and hurt its reputation.
- Bigger clients are harder to win. Paycom is targeting larger employers, but they often want custom features, take longer to sign and make sales harder to predict. Paycom's software is designed to need almost no customization.
- More debt than cash, with lender limits. Total debt was $900 million against $198 million in cash and investments as of June 30, 2026. Its debt carries covenants, or lender conditions, that may restrict its business and financing choices.
- Tough competition in payroll software. The payroll and HR software market is highly competitive. If rivals offer better features or lower prices, Paycom could lose clients, struggle to win new ones or have to cut its own prices.
Recent events
- Other company announcement
- Quarterly results released
- Other company announcement
- Executive or board change; Investor presentation or announcement
- Shareholder vote results
- Quarterly results released
- Other company announcement
- Major agreement signed; New debt or financial obligation
- Executive or board change
- Major agreement signed; New debt or financial obligation
For income and retirement investors
Paycom pays a dividend, but it is small. The yield was 0.58% as of October 28, 2026, so income investors would depend mainly on price gains. Dividends began in fiscal 2023 and have not been raised. Payments totaled $84.8 million in both fiscal 2024 and 2025. That was about 18.7% of 2025 earnings and 20.8% of free cash flow (the cash left after running and investing in the business). Share buybacks are a bigger use of cash: $829.6 million from fiscal 2021 to 2025, against $234.4 million in dividends. The share count fell about 25% from October 2021 to July 2026.
The stock has swung hard. It fell 44.9% in the 2020 COVID crash and recovered by June 5, 2020. In the 2022 bear market it dropped 35.8% between January 3 and June 16, 2022. It had not regained that peak by October 28, 2026, and the price was about 50% lower than five years earlier. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Paycom make money?
Paycom makes money by selling cloud-based payroll and HR software to employers with 50 to 10,000 or more workers. Prices depend on how many employees a client has and how many applications it uses. Payroll has historically produced most of its revenue. Paycom does not break out sales by product because it often bundles applications for one price. Revenue was $2.05 billion in fiscal 2025, with net income of $453.4 million.
Does Paycom pay a dividend?
Yes, but it is small. The dividend yield was 0.58% as of October 28, 2026. Paycom began paying dividends in fiscal 2023 and has not raised them since. It paid $84.8 million in both fiscal 2024 and 2025, about 18.7% of 2025 earnings. Buybacks are a bigger use of cash, at $325.5 million in fiscal 2025 alone. The company's 10-K warns it may not keep paying dividends at the same rate, or at all.
Is Paycom still growing?
Yes, but more slowly than before. Revenue grew about 19.5% a year from fiscal 2020 to 2025, reaching $2.05 billion. Growth slowed to 8.9% in fiscal 2025, and net income fell 9.7% to $453.4 million. In the quarter ended June 30, 2026, revenue rose 9.8% from a year earlier to $531.2 million. Net income rose 20% to $107.4 million.
How has Paycom stock performed over the long term?
It has done well over 10 years but poorly over five. As of October 28, 2026, the share price was up about 424% over 10 years, or about 18% a year. Over five years it was down about 50%. The stock fell in 2021, 2022, 2023 and 2025 and was roughly flat in 2024. It was up 66.1% for 2026 through October 28. Its deepest drop from a peak since its 2014 listing was 78.9%.
Does Paycom have debt?
Yes. As of June 30, 2026, Paycom had $900 million of total debt and $198 million in cash and investments, which left about $702 million in net debt. The company reported new debt obligations in filings in March and April 2026. Its 10-K says the debt comes with operating and financial covenants. These are conditions set by lenders that may restrict its business and financing choices.