Paycom Software Inc. Reports Strong First Quarter 2026 Results

For the quarter ending March 31, 2026, Paycom reported total revenues of $571.9 million, reflecting a 7.8% increase compared to $530.5 million in the same period last year. A significant contributor to this growth was the recurring and other revenues, which amounted to $544.0 million, representing an 8.8% increase year-over-year and comprising 95.1% of total revenues.

Paycom's earnings also saw a notable rise. The company reported a GAAP net income of $155.7 million, or $3.04 per diluted share, compared to $139.4 million, or $2.48 per diluted share in Q1 2025. The non-GAAP net income stood at $161.3 million, equating to $3.15 per diluted share, up from $157.7 million, or $2.80 per diluted share last year.

The Adjusted EBITDA for the quarter reached $275.4 million, an increase from $253.2 million in Q1 2025, demonstrating the company's ability to enhance operational efficiency and profitability.

As of March 31, 2026, Paycom reported cash and cash equivalents of $153.9 million, down from $370.0 million at the end of 2025. The decrease can be attributed to significant capital allocation, including $17.7 million in cash dividends and the repurchase of 8,375,443 shares of common stock for a total of $1.060 billion during the quarter.

Chad Richison, founder and CEO of Paycom, expressed optimism about the company's performance, stating, “We delivered solid first-quarter results while executing our strategy to provide full-solution automation, stronger client ROI achievement, and world-class service to our clients.” He emphasized the success of initiatives such as Beti, GONE, and IWant, which have significantly improved client engagement and operational efficiency.

Richison also highlighted that Paycom currently serves only about 5% of its total addressable market, indicating a substantial opportunity for continued growth.

Paycom has provided guidance for the year ending December 31, 2026, projecting total revenue in the range of $2.175 billion to $2.195 billion, which represents a year-over-year growth of 6% to 7%. The company expects recurring and other revenue growth between 7% and 8% year-over-year, along with an estimated Adjusted EBITDA in the range of $950 million to $970 million, translating to a margin of approximately 44% at the midpoint.

Paycom Software Inc. has demonstrated a resilient performance in the first quarter of 2026, underpinned by strong revenue growth, improved profitability, and strategic investments in technology and shareholder returns. With a clear focus on automation and client satisfaction, Paycom appears well-positioned to capitalize on its growth potential in the human capital management sector. As the company continues to innovate and expand its market reach, stakeholders will be keenly watching its progress throughout the year.